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.

The Internet is a beautiful thing! Behind the keyboard you can be anything you want. There is even a song that tells the tale of a guy who becomes 6 feet 5 inches tall, dark and handsome - online. He becomes a millionaire with big fancy cars and expensive habits - online. His fantasies become reality - online.

When it comes to finding help for ailing restaurants, its amazing to me that websites, blogs and articles hype the achievements of the fabulous marketing gurus who become magicians - online. They apparently have crystal balls, taro cards, boiling pots of potions and withered skulls that produce overnight results for anyone willing to pay. There are so many of them that I have to believe someone is believing their hype.

I may be a little naive when it comes to Internet marketing, but are there really restaurant owners who are hiring these online marvels? Are there really business people who believe there are quick fixes for sales, marketing and operational problems? What happened to knowledge, experience, learning and planning?

Visiting other websites and blogs have become my daily humor exercise. How can anyone not be amused by someone selling the restaurant “W.O.W. Factor” for $29.95 and offering a guarantee that if it doesn’t work, they will work for free (by email) until it does? More belly laughs can be had by the people who offer thousands of new customers by purchasing their mailing lists of people who are moving into your area. I don’t know where you live, but the real estate agents in my state are looking for jobs. I am wondering if these “thousands” are homeless and all the mail is going to shelters?

Of course, then there are the “marketing experts” who just came out of a national restaurant chain who were responsible for “397 multi-unit operations”. This person is now offering their “coaching” skills for as little as $25 per hour to give you the “secrets” of restaurant marketing. Now if you are sitting in Podunk, Idaho with a restaurant that just lost $10,000 last month, what do you think some character out of a public restaurant chain based in Atlanta can do for you?

Restaurateurs who fall for these voodoo, knee jerk pitches online should walk out the door, go to the closest McDonald’s, spend five bucks on a burger and shake and then just watch, look and listen for about an hour. You will learn more about marketing, service, cost control, customer expectations, operations and training in an hour than a $25 an hour witch doctor will teach you. There, I just saved you $20! Send me a fee.

To survive in the restaurant business you need knowledge, not quick fixes. You need to learn what marketing really is. You need to know what your customers expect. You need to know the differences between cash flow and profits. You need to find how to develop a marketing plan while tweaking your customer service system. You need ideas that work for your restaurant, not the chains. You need to know about analyzing you demographics. You need to find out why you have advantages the chains can’t match.

There is no substitute for experience. Of course, I am kind of fascinated by the thought of becoming a witch doctor. Might be fun concocting these quick-fix potions in some 40 quart pot. Maybe I can get the staff to do a little dance around the kitchen at the same time.

Larry Edger, Author

The Restaurant Ebook

Now is the time for independent restaurant to really show their skills in meeting the consumers demand. All the signs show that the average family will have to tighten their budget. Higher gas prices lead the way for inflationary pressures on almost every commodity your guests are buying.

Chains will take months to respond to consumer spending trends, but the independent restaurant can start now.

While food costs are are escalating, there are some comparative bargains that can be passed along to your customers. You can also modify your menu to include new items and serving methods that lets your customers know you understand. Economic woe’s are also the time when diners look for comfort foods. Coincidentally, comfort foods generally have the highest margins for restaurateurs.

Here are a few ideas to keep your guests coming back, but spending less;

• What are bargain foods? Pork, still a low priced protein. Ground beef has gone up, but the versatility can fill your menu.
• Many less expensive beef cuts can produce the best comfort foods like pot roast, corned beef, sirloin and chuck.
• Some seafood has remained steady such as shrimp. New fish species, both farm raised and wild, are being offered at reasonable prices.
• Try new serving ideas on your menu. How about a whole roasted chicken dinner? A stuffed pork tenderloin is an inexpensive entree with great presentation options. Family style servings of vegetables, potatoes and sides can reduce your plate costs, save time and reduce waste.
• Rice, beans and pasta continue to offer a value for the diner. Pasta servings can be produced for less than the cost of a candy bar and offers wide latitude for preparation. Now is the time for spaghetti, fettuccine and lasagna.

Now is the time to sit down with your food purveyors to seek out those bargains. They will give you ideas about what others are doing and new products that meet your goals. You don’t need to replace your entire menu, just find those dishes you can identify as pocketbook friendly.

By the time the chains respond to the trends, the economy will be improving if the cycle holds true to form. You will have built your loyal base through a marketing phase that will emphasize your economic friendly menu. The opportunity exists to build your brand as consumer responsive.

Larry Edger, Author

The Restaurant Ebook