Gift Cards

I've had several questions lately as to how to sell more restaurant gift cards, so I figured I'd write it out so everyone can see it.

The first thing to keep in mind is that gift cards can only be sold to people who have tried your food. Would you ever purchase a gift card from a restaurant at which you had never eaten? Not likely.

So your audience is existing customers, and that means using media that you KNOW reaches your existing customers.

The next thing to keep in mind is that, while you may WANT to sell $20 cards to everyone, many people will treat gift cards as an easy solution to their shopping list. Few would purchase $20 cards for their mail carrier, barber, son's soccer coach, or daughter's ballet teacher. But many people will purchase 5 $10 cards to keep on hand for just such an occasion.

Merchandising
In-store POP is critical. Take down your other promotions and focus on gift cards at the point of sale. Train your staff to suggest cards. Know the cards' place in someone's gift-giving strategy: mailman, hair stylist, teachers, neighbors (who got you something but you forgot), co-workers, etc.

Answer the phone "Thanks for calling. Would you like to buy a gift card?"

Fishbowl
"Drop business card here to win a $20 Gift Card!"

Email
Send a message with all the reasons to give a Gift Card / Certificate (see above for suggestions). Send another one later with an incentive (FREE sandwich with GC purchase of $20 or more!).

Catering
Do you have contact information for every person who has ordered a catering from you in the past year? You should. Now is a great time to go back to them with a special "catering card" - a gift card of $25 or more to be used toward catering.

Complementary Audiences
You have several new complementary audiences that can help you both market your restaurant and sell your gift cards / certificates at the same time. Focus on small businesses who purchase holiday gifts for clients (large businesses will have a process for this, focus on the smaller people).

- Pharmaceutical Reps
- Real Estate Agents
- Insurance Agents
- Financial Planners
- Mortgage Brokers
- Hotel GMs / HR

These businesses typically spend more money on smaller gifts (because they work in a referral business and they use gifts to thank existing customers). Because of this, they often buy cards of $25 in value (which can be written off).

In fact, many people I know in these types of businesses will purchase $25 cards for their own use because the entire $25 can be written off as a gift, whereas lunch isn't completely deductable.

In any case, focus on your audience and be realistic about your goals. You won't sell a ton of $20 cards in-store, but you will to the right people. Likewise, if you're sitting in front of someone with a budget, sell larger cards for use toward catering (you'll get two sales for the price of one).