Saturday

Selling Restaurant Gift Cards

I'm working with a bunch of concepts now who are pushing their gift card systems very hard. It's a good time of year to do this, but I'm wondering how effective we actually are at selling gift cards and whether we could do a whole lot better.

Food for thought (*disclaimer: I'm not making a case for or against gift cards; I just want to take a closer look at some things that seem contradictory in consumer behavior):
- Do you like to RECEIVE gift cards for food? Honestly. Do you like someone choosing the restaurant for you? Is it awkward to know how much they spent on you?

- Who gives you these cards and for how much? Assuming you're an adult, are these cards given to you by your kids (in the amount of $5? $10? $20?)? Are they from your boss? From a vendor or a client?

- Do you prefer to receive a card for a specific place, or do you like chains / groups of restaurants better?

- Do you GIVE gift cards from the heart, or because they're pretty cool to get and because they're unisex? Do you CHOOSE a card for someone special, or do you purchase a bunch and hand them out to those on your list?

- When giving food cards do you purchase a couple of $20 cards, or a bunch of $10 cards?

- Who purchases (multiple) $20 gift cards? Salespeople, purchasing for clients? Pharm reps? Real Estate agents? Essentially, what is our target audience for higher ticket cards?

I suppose it depends on the type of restaurant, they uniqueness of the food, and the type of clientele (lunch, dinner, High Schoolers?), but there seem to be multiple reasons to purchase these things, yet we push them in a one size fits all manner.

I'd love to know your thoughts, it's this type of input that makes new programs work and old ones work better.

Thursday

Holiday Greetings (and other ways to boost restaurant sales)

I've said it before, and folks like Jeffrey don't like it a lot but the numbers prove him wrong, that putting butts in seats, regardless of how you do it, has long term value. Spike trial, show 'em how good you are, treat them right, invite them back - get them more often.

You can't have frequent customers until you have customers. Many a post has been written about why this is and why it's not crack, and you can continue the discussion at our local store marketing forum, but for now let's just figure trial / frequency pairs that modify behavior and boost sales. Now might be the only time for a while that people loosen their purse strings. Time to grab a little share.

- Free catering for 5 people. It's a sampling of your service at a time when businesses are ordering catering for larger groups. It's pretty common to hear "How much if we have 20 people?"

The result is a 25% discount to someone who wasn't already a customer, but now will be long term. You can't take percentages to the bank.

- Free app to groups of 4 or more (increase party size). No restrictions on this - only struggling businesses and tight-wads put parameters on this kind of hospitality.

- Black Friday = Triple Punch Day. Frequency punch cards are crack if used incorrectly, but GOLD if you do it right. This does it right - don't let people eat somewhere else on the day they are most likely to blow their budgets!

- Every customer for 3 days (Friday, Saturday, Sunday after T'giving) gets a bounce-back coupon: BOGO with a 7 day expiration. If they're in your place twice within 7 days this time of year, more power to them.

- FREE dessert tray with every catering order. You've heard of loss leaders? You make it back. I promise.

- Gift Cards - you can sell $20 worth to someone (a stretch for some fast casual places) OR you can sell 10 - $5 cards to someone who has a lot of people to buy for (people for whom they'd rather not buy)

Think like a customer, not like an owner / manager.

Monday

FREE Holiday Marketing Ideas

Two old sayings come to mind this time of year, in this type of economy:

1. Volume solves everything.
2. You can't take percentages to the bank.

My next few posts will give a nod to one or both of those statements. I'd rather have a ton of customers with a low ticket average than the reverse - more mouths to spread the word, more chances to gain wallet share. And if someone comes in twice in a single week, regardless of the reason, I'm happy. Stupid couponing is, well, stupid. Modifying behavior, trading value for value, will win you long term customers.

I've mentioned loss leaders, today I list some promotional ideas that both drive traffic and show commitment your community.

Black Friday: 10% of sales, all day, to toward [insert local cause here]. Some finer points here:
- the higher the percentage, the more PR you'll generate (start now)
- use the distribution list of the cause, get their current supporter to spread the word on your behalf
- make it a news story
- put a banner up out front

December and Beyond:
- drop off place for coats for kids, or toys for tots
- bonus points if you're part of a franchise / co-op and use your radio ads to promote
- distribute coloring sheets that have a space for a "Santa List" (bonus points if it can be folded in such a way that Santa's address is already on the sheet)
- place a North Pole Postal Service mailbox in your lobby
- get in the spirit: make sure you and your staff are having some fun; give away candy canes, wear Santa hats, be jolly (dammit!)

Next up: some food promotions that will help to increase frequency and ticket average.

Tuesday

Restaurant Marketing on Election Day

Restaurant Marketing from some of the finest. Don't tell Jeffy - he'll think it's crack marketing:

Krispie Kreme is offering a free star shaped doughnut with patriotic sprinkles. www.krispykreme.com/storelocator.html

Shane's Rib Shack is giving out a free three-piece chicken tenders, fries and 20-oz. Drink. www.shanesribshack.com/locations.asp

Starbucks is offering a free tall cup of freshly brewed coffee to voters. www.starbucks.com

Chick-fil-A restaurants will be giving away free chicken sandwiches on election day. www.chick-fil-a.com

Ben and Jerry's will be offering a free scoop of ice cream. www.thefreebieblogger.com/ben-jerrys-free-scoop-of-ice-cream

Of course, in Georgia that will get you a $5,000 fine.

Most of these companies modified their offer to be free for the first "x number" of customers. Shane's was first 300 customers, I believe CFA was all day (not confirmed, but projected by GNN [smile]).

Monday

Loss Leaders

When I was 14, working for my parents in their drug store, one of my jobs was to cut the headlines off of yesterday's newspapers and put them into an envelope, throwing the rest of the paper away.

We'd sell 10-15 per day on average, but we always got 20-25 and though the job wasn't difficult, it was repetitive and ever-present. I couldn't understand why we wouldn't eliminate an opening-chore that was only worth about $1.

That's when I learned the concept of a loss leader: something that brings customers into the store, sometimes at a loss, to either sell other items, introduce customers to the store, or create habits (which leads to selling other items).

Now I see that tactic everywhere. Jeffrey the Marketer calls it crack marketing, but McDonald's runs 39 cent cheeseburger specials (probably a break-even), Kroger sells milk and bread at really low prices, Chick-fil-A sometimes offers free drinks or dessert, cellular providers give the phone away, creedit card companies offer 0% financing...

Sometimes it's easy to determine your "loss" offer, sometimes it's not so easy (a coffeehouse, for example, is a harder sale because the leader isn't necessary to the customer). Either way, getting butts in seats, by hook or by crook, is the first step to having frequent customers.