Groupon In Restaurant Business (Best Practices)
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This company came seemingly from nowhere and made everything think about local marketing differently.
Groupon is now arguably the fastest growing company ever promising to reach the $1 billion in sales mark within two years of its history.
By this standard, Groupon is an outstandingly successful corporation that has over 200 copycats in the United States alone and over 500 worldwide.
Groupon sure does know how to generate profits for themselves.
You offer a number of gift certificates redeemable at your restaurant at a major discount (usually around 50%).
The money your campaign generates is then shared between you and the vendor (Groupon or one of their competitors).
Such a campaign can practically put your restaurant on the map.
This type of heavy couponing is going to bring in "moochers".
Many never take the time to read the terms and try to combine the coupon with other specials or discounts you may have going on that day.
What's worse, few of these guests end up coming again.
Yes it's nice to have a lot of new guests to come in and discover your restaurant for the first time.
Train your staff on how to work with coupon holders.
Coach your waiters how to capture guests' contact information table-side.
Offer Groupon deals only on days and hours when your restaurant is slow and only on the items that offer you a high profit contribution margin.
Given that you only get 25% of the value from Groupon, you are very likely to lose money on this marketing campaign, even if some of the coupons don't get claimed.
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About the Author
If you like this article please learn more by going to http://thecustomeradvantage.com with ID "danielf112167" The author specializes in the coupon industry and finding new and inovative ways to helps people during these tough economic times. Learn how to actually profit from the coupon craze.
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