How to Run a Successful Coupon Marketing Campaign

Coupons are an important part of the restaurant industry, and they can help bring in new customers to your business or encourage former customers to return, which helps increase your restaurant's sales. Some restaurant owners, though, may be wary of using coupons because coupons can put your business at risk to lose profits. Keep reading to learn the pros and cons of using coupons and how to run a successful coupon marketing campaign.

Pros and Cons of Offering Coupons at Your Restaurant

restaurant coupon advertising

If you're unsure of whether your establishment should advertise coupons, we listed out some potential pros and cons.

Pros of Using Coupons

There are many reasons that restaurants can benefit from using coupons. Here are a few pros to offering your customers coupons:

Coupons bring new customers to your restaurant.

Offering coupons can keep current customers interested and help bring back former customers.

Discounts and coupons are an excellent way to build interest and launch new menu items.

Customers may travel from farther away to use a coupon for your restaurant.

Cons of Using Coupons

While coupon marketing is good for many businesses, there can be some downsides as well. Here are some cons to using coupons to market your restaurant or bar.

Coupons mean discounting your food, which cuts into your profits. Because restaurants have tight profit margins, this can be a tough pill for some owners to swallow.

Some websites that offer coupons, like Groupon, can take a chunk of the profits. As a result, it may not be profitable in the long run unless you bring in a lot of new business.

How to Run a Coupon Advertising Campaign

coupon marketing

Many foodservice establishments offer coupons, but not every restaurant uses coupons strategically. By planning your coupon campaign, you can ensure that your business gets the most out of each coupon. But, before you decide how you're going to distribute and advertise your coupons, you need to decide what type of coupon you want to offer and how much you can discount your food and still make a profit.

Different Types of Coupons

Coupons come in several different types, ranging from flat rate discounts to "buy one get one free" bonuses. All of these are viable options for foodservice establishments, but some of them are better for different situations. As a result, you should consider which type of coupon best suits your business's needs before making a decision.

Flat-Rate Coupons: Flat-rate coupons give your customers a flat discount, such as five or ten dollars off of their total bill. This is a good option for most foodservice operations, especially restaurants with pricier menus. To protect your profits, many times flat rate coupons have a spending minimum. For example, you can get five dollars off your bill, but only if you spend over 30 dollars.

Percentage-Based Discounts This type of coupon involves discounting your food by a percentage, such as 15 or 20 percent. Percentage-based coupons are also ideal for restaurants with affordable prices. Because customers focus on the percentage, they think they're saving a lot of money, when they're really only saving a few dollars.

Bonuses: Bonuses refer to offering discounts or free items with the purchase of another item. For example, you can create a promotion where customers get a free beer with an order of wings at your sports bar. Offering bonuses is ideal for bars and lively restaurant establishments. They're also excellent options when launching new menu items, because you can package the new item with something you know your customers will enjoy.

Loyalty Cards

Loyalty Cards: While not a traditional coupon or discount, loyalty cards are an ideal discount option. Loyalty cards allow customers to collect stamps or stickers for each time they visit your establishment, allowing them to eventually work up to a free meal or menu item. This type of coupon is appealing to businesses because it keeps your customers coming back and making purchases. Loyalty cards are most often used in establishments like coffee or ice cream shops. 

How to Distribute Your Coupons

Once you've decided which type of coupon marketing you want to implement, you need to get the coupons to your potential customers. There are many ways that you can distribute coupons. Here are a few popular ways that you can get your coupons to your customers:

Groupon: Groupon is a popular website that offers customers discounts for a variety of activities, and there is an active section for foodservice establishments. While advertising on Groupon can expose your business to many new potential customers, the website takes a cut of your profits, which can make it less appealing to restaurants.

Social Media: Distributing your coupons via your establishment's social media accounts is an excellent option because you're sending them directly to loyal customers that you know will visit your business.

Traditional Print Advertising: While print advertising and printed coupons are less popular than online options, it's still an excellent way to reach your community. Printed marketing materials can be local newspapers and magazines as well as newsletters and coupon books printed by the local Chamber of Commerce. Print distribution is also ideal for establishments that service an older community, as older customers are more likely to look for coupons in newspapers and magazines. 

Coupons are an excellent way to bring in new customers, encourage past customers to return, and keep your loyal customers coming back. While many foodservice establishments use coupons to advertise their business, not everyone uses them effectively. By thinking about which type of coupon and distribution channel best fits your business, you can help ensure that your coupon marketing campaign succeeds.