The Impact of Offering Deep Discounts On Restaurants.

Marketers often use discounting to attract customers especially in the Quick Service Restaurants ( QSR). What I would like to highlight in this article is the impact of offering 50% discount and BOGO ( Buy One Get One) on non-QSR restaurants and the industry as a whole.

The problem with steep discounting is that it sends the wrong message: it says your restaurant is not good enough, and that maybe a low price can make customers decide to come in. It shows you have a talent issue in your marketing department, as it lacks creativity, innovation and the needed effort to market your restaurant. Unfortunately, There is zero guest loyalty with discounting, fickle customers is what you will get!

I believe restaurants should market “an unmatched experience” instead of value alone.

50% discounts and BOGO lack marketing uniqueness, is boring and it is based on a “me too” marketing approach, especially in the hotel F&B industry.

Discounts and online/offline deals platforms have caused drastic restaurant price inflation, as restaurants tend to either increase prices or lower their food quality in order to offset the costs associated with offering a 50% discount or BOGO. The industry must stand up to this idea and discontinue it from all restaurants because it hurts F&B profitability, quality and the guest experience.

Consumers are not na?ve. Steep and ongoing discounting shows issues with food, service, team training, atmosphere, and business longevity, and it’s based on short-term thinking. Restaurants with unattractive menu offerings, average or below average service, and poorly trained staff tend to offer a 50% discount, so fix your operations before resorting to discounting. From my travel and F&B experience, I can tell you that great, well-established restaurants never offer a 50% discount.?

Restaurant operators should always spend their time on the business fundamentals: great, consistent, signature food, well-trained servers, a clean and fun atmosphere, and building reputation and loyalty. This is where F&B leaders should play & spend most of their energy. Most F&B leaders have not previously worked in or been trained in marketing, so they need to stop acting like marketers and instead act like F&B experts. When I interview an F&B director, if I don’t hear him or her talk about great guest service, menu knowledge, consistency, and operational excellence, I don’t proceed with hiring?them.

Lastly and most importantly, WOW the hell out of every visiting guest. Make word of mouth your strongest form of marketing...not discounting.

To be clear, I am not saying you should not discount at all, but I definitely don't support offering 50% discounts. I have used other forms of discounting, offers & shock advertising in my career.

Lastly, Its important to be creative with marketing and to think outside the box when it comes to campaigns and without a doubt to continue to focus on the experience as nothing really beats word of mouth!

All the best!

?This article reflects my personal opinion. See more F&B tips and posts on my Instagram account @Marvin_Alballi_fnb or Facebook Marvin FoodandBev