It Seemed Like a Good Idea at the Time...
Bickell's Blog
October 30, 2007
It's always been about putting butts in the seats and at some point a marketing genius came up with the brilliant idea of the proverbial 2-for-1 coupons. They are still very much in vogue today and they are still working extraordinarily well putting independent restaurants out of business (only the chains know how to make them work). They were designed to allow the dining public to sample a restaurant with a special offer and be so blown away that they would become regular guests. In truth, the only time they returned was when they were given another coupon.
I am beginning to fear that the modern version of the 2-for-1 coupons might be the now popular Restaurant Weeks. The concept is fairly standard with a group of restaurants offering a fixed-price, three or four course dinner for $30 or $40 (beverages, tax and gratuity not included). The thinking is that the public can sample the best of the best restaurants for a special price, fall in love, and return often. Make no mistake about it, the Restaurant Weeks put a lot of butts in a lot of seats and one could easily suggest that the idea is nothing short of brilliant.
I believe the jury is still out on this one. It really comes down to the basic question - will someone who just spent $30 for a meal in your restaurant return and spend $60 for basically the same meal? What do these frantic Restaurant Weeks do to your kitchen and your entire staff? The volume is undoubtedly there, but how profitable is it? What happens to your regular guests during Restaurant Week? And where do all these people go during the fifty or so weeks when there is no Restaurant Week?
It really did seem like a good idea at the time.
Talk Back:
What are your thoughts? Write to Bickell's Blog at rbickell@restaurantreport.com
READER FEEDBACK:
I think Restaurant Weeks can work. However, with all the "Tastes" out there, I would question their value, and they DO cost the restaurant money. Restaurant Weeks bring people and money into the restaurant. Building upon the experience, to make repeat diners should be part of the restaurant's plan.
Here are some ways Restaurant Week can work for the participating restaurants:
1) Restaurant week should be held during a slow time, then you are accomplishing "putting butts in seats", when you normally would not have any.
2) Limit the number of restaurants - location or type, so that the market is not over saturated.
3) It is actually smart economical advertising for the restaurants involved. Sponsorships can cover the costs, requiring little investment from the restaurant.
4) Menu should be something that exemplifies the restaurant, but not something that is just a smaller portion of the normal menu. Let's get creative here and showcase our talent!
5) The menu can easily be costed out to still make a profit.
6) Although I can't quantify whether or not these people return, I have heard some anecdotal stories of new "regular" customers. Whether they "fall in love" and return often, does not negate the fact that you did put butts in seats and made some money.
7) With the right staff attitude, servers can make some money as well (again see #1)
Deb Scott
LMVconsulting.com