Home › Forums › Restaurant Professionals Forum › Restaurant Professionals Forum › Any Good marketing Ideas For Small Restaurant? Do Giveaways Work? › Re:Any Good marketing Ideas For Small Restaurant? Do Giveaways Work?
I just re-read the article on Groupon, and did some of my own research. Here’s the thing: you cannot think of it as any other thing than an advertising plan that you pay for in your costs, as opposed to cash. If your delta cost is low, then you can get some really nice advertising cheap.
The ads only stay up for a relatively short period of time; their audience is people who are constantly texting and going on social network sites like Facebook and Twitter. My guess is that these are mostly younger people who give low tips out of ignorance more than cheapness. So another key is to remember that it is you, as the owner, who are paying for this, and you need to ensure that your staff doesn’t end up footing part of the bill for you. In other words, except for perhaps getting paid today for coupons that may not be redeemed for a year, or, at all, you are probably going to lose money on the actual coupons; the profit, theoretically, is in attracting new customers, notably among those who just see your ad (Groupon uses professional copywriters who use a “house style” designed to promote the business, not the discount).
The trick is to figure out a discount that will be attractive, won’t cost you too much, and avoid a deal that will attract too many people who would not otherwise use your business. Also, you have to decide whether the continuous texting crowd is who you feel will make good customers. For a diner-like ambiance, probably not.
This all came about because, by strange coincidence, a (non restaurant) client was considering looking into Groupon and asked me to do the research. In my particular case, it’s a difficult fit, because while the grouponers are an attractive market, their ability to give an attractive while not too expensive discount is very limited.