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How to Diversify Your Coupons And Boost Restaurant Sales

Coupons are an integral part of many business marketing plans in an effort to drive new and repeat sales. For pizza shop and restaurant owners, coupons are almost a necessity.

Because of this, we are often asked by our customers what coupons work the best and, unfortunately there is no silver bullet answer to this question.

Since everyone’s market, demographic and clientele are different, what works in one part of the country may not work in another area. However, there are a number of factors that should be considered and evaluated across the board, regardless of business model and location.

Things to consider if your are looking to diversify your coupon strategy

Many business owners tend to gravitate towards one specific type of coupon.

For example, many pizza operators like to use coupons to promote larger bundle deals that offer a combination of items at one set price. Although on the surface this may seem like a great strategy to ensure a larger ticket sale, after deeper consideration this strategy may not perform as planned and could greatly reduce redemption rates. Here’s why.

Avoid offering coupons that will only appeal to a specific audience.

Let’s use the following coupon as an example:

Coupon Example
2 Large Pizzas, 20 Wings & 2 Liter Soda for $24.99

This offer will only appeal to a consumer that has a larger group to feed and wants a specific combination of pizza, wings and soda. More often than not, this is less than 25% of your actual target market.

What should be done before implementing this strategy is to find the demographic of families with children in your area. This will tell you what percentage of your target customers may have more than a few mouths to feed and would be enticed by a larger bundled offer.

In our experience, it is typically less than 25% of a business’s total market that not only have more than one mouth to feed but that are also interested in that one specific offer.

If this is the case than that would mean the remaining 75% of your market is either single families or couples who would never be interested in such an offer, or that the consumer just did not want that combination of items, thus reducing the chance of reeling them in with an enticing offer.

Diversify your larger offers.

Specific bundle deals only appeal to a certain buyer. Therefore, we recommend offering at least one generic dollar-off coupon. For example:

Coupon Example
$5 off any purchase of $25 or more

A coupon like this will appeal to a broader audience as they can choose the items that appeal to them, thus driving a larger ticket purchase and increased coupon redemption rates.

But wait… there’s more.

Create coupons that will appeal to the single person or couple.

This would include smaller ticket items or smaller bundle deals that two people would be interested in.

Coupon Example
$1 Bread Sticks with Purchase of Large Pizza

Coupons that offer something for FREE are very effective.

Because the free item that you give away only costs you whatever your food cost is, but will be perceived by the customer as much more valuable, as they are receiving the discount of the retail value of the item, it’s a win, win for both you and the customer.

Coupon Example
FREE Bread Sticks with purchase of Large Pizza

In conclusion, in order to have a successful coupon marketing campaign it must be diversified and appeal to a broad audience. Follow our tips and watch your coupon redemption’s soar.

Josh DavisLooking to take your direct mail campaign to the next level? Contact Mail Shark today at (610) 621-2994 or use our online form to request free print samples and information on your specific mailing area.
Josh Davis – VP of Sales