What is the Consumer Appetite for Restaurant Coupons?

We’re sure you won’t be surprised that many consumers look for and use coupons at restaurants. The results of our national consumer research and insight report “Cracking The Code,” 9,162 consumers indicate that 51% reported they use coupons for restaurants they frequent. What you may also find insightful is the correlation between consumer income and coupon use. Our latest data shows as consumer income increases, the likelihood of them using coupons at restaurants slightly decreases. However, although reported coupon use decreases for respondents as income increases, it does not mean that wealthier consumers do not use coupons. Over one out of every three (37%) of the highest income demographic bracket of $150,000 indicate they do use coupons for restaurants they frequent.

Which of the following statements applies to you?

Which of the following statements applies to you?

Food For Thought When Considering Coupons For Your Restaurant

• We recommend using at least one generic broad discount that can be applied to all or most menu items, e.g., $5 off any order of a certain amount or more. Generic offers like this have the widest appeal and the highest redemption rates. Narrow offers also work well but should be used in addition to at least one generic broad offer.
• Coupons offering something FREE with the purchase of another item receive high redemption rates. You can also minimize the discount cost by strategically choosing to give away a FREE item that has a lower food cost. The perceived value is high from a consumer perspective because they are saving the retail value of the FREE item, yet the cost to you is much less based on the food cost of that item.
• Knowing your audience is also critical to developing strategic offers. For example, if you are in an area with a high percentage of families with kids and your restaurant is kid-friendly, consider the highly effective Kids Eat FREE strategy that has worked extremely well for many restaurants.
• If your restaurant offers dine-in, consider creating a dine-in-only offer. By getting customers to dine in, you can profit from higher-margin items like fountain soda and upsell customers on appetizers, desserts, alcoholic beverages, and other items, all leading to a higher ticket.
• If your restaurant offers online ordering, consider offering customers a discount on their first online order.
• Always ensure your coupons are legible. Too often, we see coupons that have either too much content or content that is small and hard to read. Consumers don’t want to have to squint to read your offers.

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