Point of View on Restaurants that Discount

By Jenny Brooks

I came across this article in Restaurant Hospitality, and I think it’s a good one for indpendent restaurant owners.

It speaks to Restaurant Expert David Scott Peters’ position that discounting devalues your product and attracts the coupon clippers to your restaurant. Once you’re not offering the coupons anymore, the coupon clippers find another restaurant offering discounts. There’s no loyalty among the coupon clippers. But if you offer quality food, the right portions with the right service, at a reasonable price, your customers will be loyal to you.

According to David, discounting is expensive and should be done sparingly and only then to the right target audience. For example, what about a discount offer in a new mover mailer? “New the neighborhood? Try dinner on us.” Or dessert on us, or something. An offer like that gives your potential new customer a reason to drop in without giving them a reason to expect these kinds of discounts again.

After I read this article I also read this one in Business Week, which really sends the message home about devaluing your product. All discounting isn’t bad, but when it’s abused, it’s detrimental.

Jenny Brooks is a public relations professional providing expert and strategic methods for businesses trying to increase awareness about themselves and their products. She is also the editor of SMART Systems Insider, a monthly newsletter from Restaurant Expert David Scott Peters. Questions about PR and how she can help your restaurant? Email her or visit her Web site at www.jennybrookspr.com.