How providing discounts can benefit your restaurants
Every business needs to earn daily profits to be successful and profitable.In the service sector, like restaurants, you can use different strategies and tactics to earn daily profits because it is one of those businesses in which you can directly communicate with your customers, so you have more chances to get knowledged about their likes and dislikes but the one universal thing which attracts customers in every corner of the world is getting things on discounts.Everyone works hard to earn money and want things on less prices, so when you offer them food on discounted prices, it has been observed that the probability of sales increases in restaurants and you are likely to get their attention more than on usual prices. It is a quick way to draw people in your restaurants and will not only increase your sales, but will also improve your restaurant's reputation and your restaurant business will become successful. Here is a list of benefits that you are likely to get through providing discount offers to customers.
Providing discount to customers is a great way to attract customers because people prefer buying things on sale rather than on usual prices.If you are offering a dish for $20, not everyone will be willing to buy it, but if you add a word discount with it, you will notice a margin increase on that dish. Because discount serves as a mean to attract more people to you. If your discount price is only for limited days, mention it well through your advertising media channels because people will rush to purchase that discounted food and you will get more customers in your restaurant. Your store will experience more traffic, and make sure to serve them well and be careful to turn around the tables timely!
Consider profit margin
But before you hurry to offer discounts to the customers, make sure that you will still make profit for the extra orders coming in and analyze before offering discounts about your current profit margin, breakeven point and markups and how it will affect your profit margin and sales target.First make a marketing plan about how you can encourage new customers to come in and the regular customers to become the loyal one through discount offering program.Considering this, calculate the best alternative discount prices and choose the best which will earn you more profit by comparing the competitors price and discount your prices in that month or time of the year in which you notice that your sales become low, review other options for promoting sales offers without reducing the price. These things must be kept in mind before offering your food on discounts.
Get one buy one
Now coming back to the discount context, it is not necessary that you only have to offer them discounts only with the discounted prices or a percentage discount, you can also provide them different kinds of deals like "get one buy one "deal in which customer can get one dish free with the other one. It will help you in increasing the size and value of customer orders and may also help you in moving stock which may be needed for clearance item. And will also helps you to purchase stock at reduced prices. because when there are guests coming into people's houses,they will prefer to buy that "buy one get one" deal.
Free more storage
Discounting offers also enables you to free up room in your store or may be a quick way to unload inventory because unlike durable items, there are some perishable items which don't stay long and expires in a short span of time and may create smell in your storage or fridge so during discount period, you can offer them that items at very low cost, hence making extra profits.
Not only this, people may also think to switch brand and may also choose your restaurant over your competitor. When you offer them discount at the very beginning of opening restaurant, it also becomes easier for people to try a dish at discount rather than paying at full price.If you succeed at attracting the first time buyer, you may also become able to increase your customer base for the long term.People may also purchase other items that are not discounted along with the discounted dishes.
For more assistance in restaurant matters, Bistroservice.com is a great consultant and provides full assistance in making restaurants and help in restaurant related matters.