The debate about coupons as a tool for restaurant marketing will rage forever. Some say they are not necessary and give away bottom-line profits unnessasarily. Other entrepreneurs say it is a great way to introduce new guests to the restaurant and to feature new menu items.

The fact is both sides of this raging industry battle are right and wrong. Using coupons and incentives can be a waste of resources if used improperly and too frequently. On the other hand, if used to highlight or feature a segment of your menu, they can change a frequent diner’s habits and encourage more adventuresome trials of your menu.

Here are a few do’s and don’ts when considering coupon campaigns;

• Don’t use a coupon to reward a frequent diner’s existing habit. Why offer $5 off next weeks visit? They would be there anyway!
• Do reward a diner for becoming involved in your marketing. For instance, a free dessert or appetizer for bringing in a new guest is a good incentive.
• Don’t try to drive new traffic to your restaurant with an insignificant coupon. Few people are motivated by a $10 off coupon to try a restaurant for the first time. When is the last time you were motivated by a coupon to try something new?
• Do use a coupon to fill weak sales periods in your day. For instance, offering a free espresso with the purchase of a slice of pie from 2 to 5 PM daily may help build those hours and encourage expanded visits.
• Don’t measure your results solely in the number of coupons returned. Sometimes the mere offering is enough to draw attention to something new. An example may be a series of new pasta dishes coupled with a coupon for a free fried ravioli appetizer. Customer’s attention is drawn to the higher margin pasta selections and may produce sales in the long term, even though the temporary coupon was never used.
• Do work the math on every coupon campaign. Look at your goals and the cost to attain them. Is there a less expensive way to reach the same results?

If you use the coupon as an incentive too frequently, it almost becomes a permanent discount that a customer begins to expect. Over a long period of time, guests may wait to visit only when the incentive is offered. Coupons are just one arrow in your quiver of marketing tools.