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With the economy the way it is, I have noticed an increase of mass coupon and email mailings by several restaurants. What is your feedback on this?
Does it drive business? Are the restuarants making less just to get guests in the door? Share your thoughts.
Professor Blum
I have seen this a lot as well. In my opinion, restaurants are sending these emails and cards just to entice people to go out again. It gets customers thinking about their restaurant and gives them the potential for more customers. In terms of deals and lowered prices, some money is better than no money... Especially today.
ReplyDeletePersonally, I will go eat at a restaurant just because I get a coupon, either by mail or internet. I as a college student and I need to eat so especially in the student market, coupons can drive a lot of business their way. Also, I agree that restaurants are making less but they are willing to go through a period of less revenue and profit in order to last through this rough patch and survive to thrive in the profitably years that are undoubtedly coming in the future.
ReplyDeletewith many people trying to save money, the coupons are encouraging people to go out and have that meal at the restaurant. I know that I will out to eat at a restaurant if i recieved a coupon or discount! i love getting the student discounts just by showing my college ID card. A lot of restaurants are doing this now near colleges to draw in the college community and college students like to eat! If the food is good people will recommend the restaurant to others, in turn sending more people to the restaurant. This is creating a profit for many restaurants.
ReplyDeleteI am going to have to agree with Patricia on this one. My inbox receives a few sets of coupons as well including Groupon. TGI Fridays is one of my favorite coupon givers because in being a member of their Stripes program, I receive free chips every time I walk into the door, as well as coupons in my email. They send me coupons for free apps, buy one get on free entrees, and right now I have a REUSABLE coupon for 20% off. I am a college student and will take a bargain wherever I can. I think that the restaurants are making less money per check, but they are getting the business that other restaurants are not.
ReplyDeleteI think restaurants who are offering a one time coupon are getting a lot of good business from it. Sites like Groupon are getting their name out there and thats half the battle of surviving. I think these restaurants main goal is to get the people in and get them to like the food so that they will come back. I also haven't seen many coupons for over 40 dollars so I am sure they are not loosing to much money because those coupons get used with groups of people and they make a lot of the money back from the drinks and other food purchased. I think they are a great idea. In Denver every year they have 5280 week which is a week where every great restaurant offers a meal for two people for 52.80 and their main goal is to get people who wouldn't normally come in to come eat there. It works amazingly and it is hard to get a table anywhere during that week.
ReplyDeleteI believe that the restaurants aren't very concerned about making a lot of money. Overall they are just praying and aiming to get any customers inside of their restaurant. With the economy as bad as it has been over the last year it’s now time to draw in the customers. The easiest way is by coupons. A lot of people college student or not will go out to eat or even shop just because they have a coupon for that facility. With drawing in the customer it brings in sales. The facility is not making what they would have before the economy dropped. But for where we stand today it is a good start to bring business back to where it was before.
ReplyDeleteI have seen this as well. My family and I used a coupon like this over the weekend. However is this necessary? NO. Currently at the restaurant that i work at, we do not advertise. I work at the Yard House, a full 350 seat full service restaurant. I Find it amusing that with out advertising, we still fill the dining room 7 nights a week and hit almost a two hour wait at the door. Rather then investing in advertising, an added emphisis on the plates and service provided will boost restaurant sales over time
ReplyDeleteI think that coupons are a great was for a restaurant to advertise. They get people interested in the company and let know that the deal is worth it. Once they've been there and experience the atmosphere it'll keep them coming back. So in the long run the restaurant will be making money, not losing it.
ReplyDeleteI think coupons are a good idea. Everyone's looking to save a few bucks here and there, especially college kids. A little discount here and there could give the restaurant a great lifetime value of a customer, versus always over-spending to constantly be getting new customers.
ReplyDelete"Bundle" meals such as a Bento Box are a good thing too. It gives the diner a little sample of everything so they know what to come back for.
I think coupons are just keeping the doors open for restaurants. Also, I don't think people are getting as big of a deal as they may think they are. Time and time again people go into a restaurant with a coupon and end up ordering dessert or an extra drink just because they have that coupon. It brings business in and could raise a check average rather than lower it.
ReplyDeletethe whole coupon thing is just to make customer come back to the restaurants. i dont think the restaurants are making less just trying to get guests to come. they could be using the coupon to lure people and show them new dishes to see what they think
ReplyDeletep.s. this is angel
Coupons and mailings are a great way to advertise, but these are not free like word of mouth and can be quite expensive. In this economic climate, many restaurants are feeling the pinch and are resorting to marketing and advertising ideas. Some of these are expensive, such as Groupon, which has been a sky rocketing company in terms of growth and profit this year. But using Groupons ervice comes with a hefty price, one that I would not be willing to pay. Groupon sells $100 gift certificates for $50, then the merchant only receives $25 from that sale. Even worse, the merchant is responsible for paying the credit card fees for the entire $50 and then to top it all off, Groupon pays the merchant in portions, therefore collecting interest on the merchants money. During desperate time, restaurants are trying new ideas and I feel that perhaps Groupons success is coming at the expensive of desperate restaurant owners. Receiving less than $25.00 in revenue for providing $100.00 of product and service seems very risky, desperate, and backwards. The other side of the concept of filling the seats at any cost, is that the business can hope to create and retain new customers through consistency, quality, and service that exceeds expectations. So at the same time that profits are slumping, restaurant managers and owners need to be more vigilant than ever to properly train, coach, and inspire their team members.
ReplyDeleteI definitely think that many restaurants will lose more than they gain through advertising/maarketing companies like Groupon, and coupon programs need to be well thought out, implemented in a way that the effects can be seen and turned into data to continue to improve profit lines and market strength.
Alisha Bird
It does make a lot of sense that companies send out coupons to get some kind of business into their establishment. Apparently we are recovering from the recession, but this shows that it takes time for the business market to fully recover.
ReplyDeleteI always pay attention to what coupons and deals that I can find from local restaurants. Since I don't have much of a disposable income, I look for these when going to restaurants because I never really want to pay full price. I don't want my lack of income stopping me from getting out in Providence. I'll sometimes go to a place I otherwise wouldn't have thought of if I receive a coupon and often times end up going back because I like the atmosphere/food/prices. Any discount is great to get customers through the door even if it means that the company is going to lose some money.
ReplyDeleteI have noticed more coupons in recent months. I think that restaurants just do this to get people to come to the restaurant. Once you get there they tell you about ten other deals that they have going on. I see it mostly with chains. I have also noticed lots of restaurants creating bar menus and happy hour specials.
ReplyDeleteI feel as though in these depressing economic times every place of business needs to entice the customer out of their home. Restaurants may not be making as much money as they use to in better times but if they stay open they are doing better than a lot of other business. Coupons are in the companies best interest, not only is it a form of advertising but it may draw new customers who would not normally or have not been into the restaurant.
ReplyDeleteThe coupons and emails most definitely have to do with the poor economic state that we're in. It makes perfect sense from both the establishment and customers' view point. The restaurant will see more business because of promotions; it may mean less money coming in than full price, but less money is better than no money. It also might not mean less money - people may bring friends, or kids, or they might change their mind and order something else when they get there...not to mention drinks, desserts, etc. It also makes sense for the customer because we are all under economic stress and everyone would rather spend $10 than $20.
ReplyDelete-Anabelle Adkins
To me it seems to be simply a sign of desperation in a difficult economy
ReplyDeleteit definitely brings in more business. people are on the internet all the time and it is a good way to advertise. i have seen companies have deals where if you buy gift cards for 25 dollars, you get a free 5 dollar gift card. not a bad deal if you are getting gifts for people.
ReplyDeleteI read an article in a magazine promoting restaurants to use Facebook, Twitter, and other social network sites to do Coupons and Promotions particularly if it can be promoted by someone else ie: Coors, local radio stations, a particular social club
ReplyDeleteI don't really get much, except the coupons from local fast food restaurants, and pizza places, however we normally just throw them away and dont look at them. The restaurant I currently work at stays busy all the time, and we do not need to send coupons
ReplyDeleteAndrew Rivera-Myers
I think coupons are a great way to get people out and dining again but prices of dining out have also declined and i think the coupons, if continued may cause for more economic problems for restaurants. Also, when people stop receiving these coupons who knows if they will continue to go out to dine.
ReplyDelete~Carolyn D.
Restaurants are sending out coupons to bolster business as well as advertise. I feel like it's a strong move; there's nothing wrong with it at least. Discounts attract customers. Customers won't visit your establishment if they have no idea who or where it is. Emailing coupons is a cheap, effective way to do both.
ReplyDelete- Alex K.
Restaurants do need customers. However, because of the economy and the Christmas season, people want to spend their money wisely and going out to eat seems like an extra expense. Yet, if coupons are sent out, going out to eat does not seem like such a huge expense, more like a savings. People want to go out and have fun, but without hurting their wallet and these promotions are the right way for restaurants to bring customers in during this time of year.
ReplyDeleteDesiree M.
Of course, i have been getting them myself. With this economy people working in the food industry should keep advertising in order to get customers on their side. It might cost them a lot of money just to have coupons made for them in order to sale their food; but the thing is i think that people running the business rather spend a few dollar for advertising instead of donig nothing about it. In my opinion coupons can be great if the customers are going to use it. In the other hand if you have a customer like me who does not go in restaurant often because they enjoy cooking than sending them coupons is a waste of time and money for the business.
ReplyDeleteI believe that the e-mail coupons and offers are a way to entice people to come. Most of the time it is the large chain restaurants that can cover their costs with volume. For me personally, these ads are annoying and drive me away from the restaurants. I can't tell you how many UNO Grill e-mails I've gotten and have never ate there!
ReplyDeleteCoupons sent out by these chain restaurants help to bring people in the door. Even if the majority are thrown away without even being considered. However the only restaurants I see sending out coupons are chains who can most likely afford selling their food at a lower price.
ReplyDeleteits a good way to get their names out there, people are still going out to eat even though the economy isn't so great. Working in a restaurant I've noticed a little bit of a drop but more and more people are getting as many coupons as possible and are enjoying the food.
ReplyDeleteIt is interesting that you noticed this. I haven't personally experienced it, but that may be because I don't readily give out my email information and I make sure to uncheck boxes that allow places to send me emails. I do find a lot of coupons online now, but I actually have found that it is cheaper to just go into a store rather than buy things online. As for restaurants, I think that they gamble on customers coming in to their establishments to use the coupons for items they may lose money on, but hope to gain money on other impluse buys. Like a restaurant could run a special on an appetizer and entree for x amount, but they count on the waitstaff to push a salad, soup, or dessert where they can make up the difference.
ReplyDeleteRestaurants giving out coupons is one way to get people to notice your establishment but does not guarantee new customers . If your restaurant is not making a profit during these tough economic times there are probably a few simple things to adjust that could help gain a steady customer base and income. Instead of giving out "half off" or "two-for-one's" and most likely losing money instead of making any, look into why people are not coming in. There is bound to be a problem with the menu, service, marketing, or just overall quality and ambiance of the place. Restaurants should be improving whatever areas need it and gain long term customers rather than the one time, non-profit making ones.
ReplyDeleteI think the restaurant industry sending out mass coupons and email advertisements isn't so much a sign of their desperation, but more a reminder to the public that they are still here. These coupons generally don't save you much, but they remind consumers that restaurants can fit into their budgets and are willing to save them money to get them into the restaurant. Overall, they serve as a reminder that these restaurants are trying to survive. They haven't become desperate yet, but rather tell consumers that they don't need to change their spending as they probably should in these times.
ReplyDeleteI have heard about coupons being mailed out and also e-mail as well espcially if someone signed up for Groupon which was offered a mega deal by Google to buy them. I went to a pizza shop and the boss was telling me that he accpects the groupon to attract business, so far he has loss profit but gained some attention. But come Super Bowl he should see more money coming in.
ReplyDeleteMy thoughts are that while they give coupons they know that it will be a temporary loss of money but they do this since they hope that these new customers will become loyal returning customers. it seems like a good idea at first but in my opinion nothing beats getting customers only by mouth of other clients.
ReplyDeletei have not noticed any increase in coupone mailings to tell the truth. but then again i dont recieve any mail. i do get a lot of discount offers for online shopping from art stores and radioshack. but thats not culinary related. i do feel however that everyone loves a bargain and that coupons are a good way to generate business.
ReplyDeletei have noticed that recently, the restaurant's discount coupons and adds have increased. Probably their main purpose is to get people back to their establishments even with a low profit or a no profit at all.In my opinion, this shows that the hospitality industry is still in a recession, and the restaurants are struggling to stay in business.
ReplyDeleteI most definitely have seen an increase is mass coupon mailings during this economic crisis. Many restaurants are trying to make a name for themselves again by sending these mass mailings out. While other well known establishments have been sending coupons out to expand their clientele and increase sales. Personally as a college student, if I find a coupon worth purchasing on a website, I will definitely try the restaurant out and give them a chance.
ReplyDeleteI have recieved a couple of emails my self, most times you end up spending more than the amount on the coupon so they are bringing in money and you may even come back again. It also reminds you or introduce you to the restaurant.
ReplyDeleteI think that the coupons were a good method to try to increase the business while the economy was in such bad shape, but now that it is starting to catch up, I think that the restaurants will start cutting back on their coupons, as the clientele starts coming more regularly, instead of depending on the coupons so much as an incentive to go out to dine to their favorite places. ana449
ReplyDelete