Just about all restaurant owners have the same basic goal. They want to keep their tables full and their patrons happy so that they’ll come back again and again. After all, that’s the best way to maintain a healthy profit margin and grow a restaurant business.
It may sound counterintuitive, but according to realtimecampaign.com, one of the best ways to boost profits is by giving away discounts and free products. Promotions like those seen in a knockout post make it easier not just to bring back satisfied patrons but also to attract new guests. Well-designed promotions can even encourage higher spending, but coming up with the right ideas is an art as well as a science. Read on to find out about the top rules that restauranteurs should follow when designing new promotions.
Know the Customers
Restaurant owners can’t just look up 10 Restaurant Promotion Ideas to Drum Up Business and assume that all of them will be a perfect fit for bringing in new guests. First, they have to get to know the customer base so that they can create more targeted promotions. Start by performing some market research and coming up with patron profiles, then think about whether any given promotional idea would really appeal to those people.
Know When to Use Promotions
When business is going well, there’s no need for giving away free items or discounts. If anything, bringing in more business with deep discounts can wind up hurting a restaurant’s bottom line if it can’t accommodate all of those new guests. Instead, think about alternative plans for keeping existing patrons happy such as investing in Atmosphere TV.
Consider the Big Picture
Restaurant owners need to realize that promotions may not pay off immediately. This type of marketing strategy is designed to boost profits over time, not to pack the restaurant the very next day. Before giving up on a promotional idea, give it some time to work. Keeping the big picture in mind and realizing that restaurant promotions are a long game will make it easier to evaluate the success of any given campaign.
Know the Margins
Arguably the most important rule for coming up with new restaurant promotions is to know the margins. Before giving away coupons, calculate the cost of making each dish on the menu, then subtract it from the selling price to figure out profit margins for all of the dishes. This will make it easier to target items with high margins for discounts so that the restaurant isn’t losing money.
The best time to start brainstorming new restaurant promotion ideas is now. While it’s important to figure out profit margins, understand patron demographics, and take the time to figure out whether the restaurant can really accommodate more guests successfully before running the new promotions, there is no harm in starting the brainstorming process early. Remember that it takes time to come up with stellar ideas and then put them into practice because promotions won’t work if guests don’t know about them. The entire process takes some time.