Discount dining: Help or hindrance for the restaurant sector?

Posted By Heather Stanley

24 July 2015 - 12:37pm

Discount vouchers have traditionally proved an effective tactic by some operators in encouraging consumers to eat in their outlets and have risen in popularity since the recession. But the popularity of these schemes has raised concerns that some operators are now becoming reliant on them. Many of the major national restaurant chains are falling back on deal sites, coupons and voucher codes to drive business, this is test. As restaurant owners look to remain profitable during the tough economic climate, the temptation to lower prices and offer coupon deals can be so irresistible that it becomes a difficult habit to break. A recent review of discounting activity in the casual-dining sector by Restaurant magazine showed that many restaurant chains who pledged to shake off their old deep discounting habits this year have already fallen off the wagon.

To listen to the short audio podcast, click here as BigHospitality spoke to Peter Backman, managing director of foodservice consultancy Horizons, and Andrew Guy, director of Ed’s Easy Diner – a restaurant that has forever strived to stay away from discounting and daily deals. to listen to the audio podcast. We asked them about the positives, the negatives and the potential risks of special offers and deals for restaurants, in a bid to find out if it is actually possible for a large chain to escape from the treadmill of discounting. Many of the major national restaurant chains are falling back on deal sites, coupons and voucher codes to drive business As restaurant owners look to remain profitable during the tough economic climate, the temptation to lower prices and offer coupon deals can be so irresistible that it becomes a difficult habit to break. A recent review of discounting activity in the casual-dining sector by Restaurant magazine showed that many restaurant chains who pledged to shake off their old deep discounting habits this year have already fallen off the wagon.

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