Is it good to offer discounts?

Should you offer a discount or not? It’s a tricky question. On the one hand, offering a ‘cut-price meal’ might encourage new customers through the door, but on the other, a low-priced meal might influence customer perceptions and put people off if they’re looking for a special treat.

If you’re in the fortunate position of having a good flow of loyal customers and income, then the best way to keep those customers coming back for more is probably to continue doing what you do well (whatever form that might take).

However, most caterers experience lulls in business from time to time and feel the need to give their business a bit of a boost. And a special offer might just give the lift you need.

But rather than merely offering a 10 or 15 per cent price reduction, why not create a ‘wow’ promotion? Something instantly eye-catching – or rather mouth-watering – one that will bring lots of new customers through the door. Of course, many restaurants already offer ‘Two dine for £x’ promotions, especially mid-week – essentially discounting by 50 percent, but what about something more radical?

We like this idea, successfully trialled by a large restaurant.

It’s a sample menu evening, where customers get to try out new dishes at a fraction of the cost and have the opportunity to give feedback not only on how delicious the food is, but also on whether they think it represents good value: i.e. would they pay £x for this dish?

It takes some advance planning and advertising and you’d probably want to keep numbers perhaps to a single sitting to allow time for feedback and discussion, but not only would you get valuable insight into your dishes, your customers would feel involved and be more likely to return for another meal. The idea works whatever type of establishment you have. And of course, it could be carried out every time you want to overhaul your menu.

Might be something to think about for the New Year quieter period?