Most Restaurateurs would choose Discounting something over giving it away for free.

  • But I will tell you that you may be thinking about this all wrong!

Discounting Issues:

  • Creates a competitive environment where the consumer is looking for the deal… They will skip around town looking for who has the “Best Deal”
  • You only have some much profit to give away to someone that only has loyalty to the Deal
    • Discounting to Collect Data vs. Create Loyalty
      • When you discount something, you should get data in return
      • Customer Data collection is going to be paramount for future success in the industry
      • Go to the Trilogy of Episodes by Matt Plapp to understand Why, Who and How
  • Anthony – What would be an attractive discount % for a restaurant to give away?
  • Brian – What does the Typical Restaurant bottom line %
  • Any other Questions?
  • Discounts become expectations and your customers will end up only coming when you have discounts
    • Doesn’t sound fun or Profitable
  • Discounts Lower your Value – 1) You Actually LOWER the Value, Or you show a Perceived Lower Value
    • Perception is reality – so you may be setting a Perception you don’t want without even realizing it
    • “Father Jonathon” Story

Advantages to FREE:

  • I am about to sound like I’m speaking out both sides of my mouth…
    • “Dave!  If I shouldn’t Discount, How could I ever give something away for Free?”
    • Discounts become Expectations – No One Expects to Eat Free more than once!
      • AH HA! – Now you can unlock the code to getting customer Data and Deploying marketing against it.
  • FREE will also Create Loyalty if you back it up with Amazing Food with Great Service.
  • PLUS – Not Many Places do it… so you will separate yourself from the pack…
    • The Pack of Discounts and Coupons!


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