Wednesday, February 16, 2011 at 11:44AMCoupon Blizzard Comes to Restaurants
Restaurants and their managers are in the middle of a revolution - a couponing revolution that is happening on a faster pace than many traditional businesses may be used to.
What’s happening? Web sites like Groupon and Living Social have started a stampede to what’s called “social couponing,” in which deals are brokered by the sites, offered to their daily subscribers, but only become active if orders from customers reach a certain threshold.
Since Groupon.com started the trend and Livingsocial.com followed suit, both with nationwide offerings, others brands have followed. Walmart is experimenting with a similar feature, but the fact that Google tried to buy Groupon could launch coupons into the stratosphere.
What does this mean for restaurants? As easy targets for couponing sites, restaurants are going to get approached by more and more sites, all the way down to the regional and neighborhood level. Many newspapers, television stations and local media companies are also stepping into the social couponing market. Will restaurants have to deal with every coupon salesman who comes through the door?
Restaurant managers and owners are going to have to develop the business savvy to negotiate the best terms available. An additional pressure will be to deal with the many customers coming in with these deals and making sure they get the best experience possible, so the coupons function as the loss leaders you hope them to be.
The marketplace will eventual sort through the contenders and pretenders in the coupon sphere, but until then make sure your management team understands how to deal with their sales people as well as the many patrons waving their printout from the web when they walk through the door.
More on restaurant marketing in Web 2.0 world: Read Here
Reader Comments (3)
No, no, no...couponing doesn't work. Working to promote and showcase what you do best is the singular way to cement your brand and sustain business.
Come on folks, who wants to know your food doesn't really cost what's on the menu? Isn't it worth it?
Focus on the authentic brand experience and PROMOTE signature items and what's put you on the map.
Great input, Tom! Appreciate your post.
As a restaurant consultant, I try to steer independent owners away from this new social media mess. It cheapens the best restaurants and in a "down economy" to many guests ask why did you charge me $20.00 for that steak last week, month or year? While it does give you a way track your marketing, how many of your current customers are buying these to save money? How many are new customers? Will they wait for the next restaurant deal and eat somewhere else? As an owner / operator you have to know your "math " in your business. This option for couponing is a mistake and the social media sites are racking up while you are giving away a $40.00 deal for $20.00 and getting back $10.00. No "math " here and really how many new customers are you really getting in the door. You need to concentrate on what works, great service, great food and a great experience for the value.