Coupon Cutters Are Killing Your Restaurant’s Profits

As a restaurant owner for over 26 years, and a restaurant marketer since 2008 I’ve seen countless establishments fall into the coupon trap. You know the routine – stuffing val-packs with two-for-one deals, filling coupon books with discounts, and watching your profit margins disappear with each redemption. Here’s the hard truth: coupon cutters aren’t your best customers, and they never will be.

Why? Because coupon-dependent customers only show up when they have a discount in hand.

They’re not loyal to your restaurant; they’re loyal to the deal. Without strategic planning in your marketing system, these customers disappear until the next coupon arrives in their mailbox.

Let me share a real story. One of my clients, an Italian restaurant in Baltimore, was drowning in coupon redemptions. Their entire business model revolved around val-pack promotions and two-for-one dinner deals. The result? They were losing money hand over fist. But here’s where it gets interesting – after shifting their strategy to target customers who matched their ideal customer profile, their profits increased tenfold. How did we do that?

Simple, found their ideal customer profile and marketed the sh** out of them, turning them into long term loyal high paying customers.

So who is your ideal customer?

They’re the ones who visit your restaurant one to three times a week without needing a coupon. They leave positive reviews, treat your staff with respect, and genuinely love your establishment. These are the customers you should be focusing on – and rewarding.

In today’s digital age, the best way to attract these ideal customers is through strategic marketing both on and offline.

Your potential best customers are searching for restaurants on Google right now. When they find you, they’re looking at your reviews, checking how you respond to feedback, and making decisions based on your online presence.

The key is to stop giving away the house to attract any customer who walks through the door. Instead, focus on:

• Maintaining a strong Google presence
• Managing and responding to online reviews
• Targeting ads to reach people who match your best customers’ profiles
• Rewarding loyalty instead of discounting for first-timers
• AND STAY TOP OF MIND WITH YOUR LOYAL CUSTOMERS!

And to keep them coming back Focus on Quality Over Discounts:

• Invest in staff training
• Improve food presentation
• Enhance customer service
• Create memorable dining experiences that justify full pricing

The Path Forward

Remember, the goal isn’t to eliminate all promotions – it’s to be strategic about who you’re targeting and how you’re rewarding them. Your marketing should focus on attracting customers who appreciate your value proposition, not just your discounts.

The digital age has given restaurants powerful tools to target and attract ideal customers. Through proper online presence management and targeted advertising, you can reach customers who match your best customers’ profiles in terms of:

• Geographic location
• Income levels
• Dining preferences
• Lifestyle choices
• Spending habits
• Age
• Type of home ownership
• Hobbies
• The list goes on and on

These customers are already looking for restaurants like yours – they just need to find you through the right channels.

Ready to see how your restaurant appears to these ideal customers online?

Get your free Restaurant Digital Audit by a real DFY Online Restaurant Marketing Expert. This comprehensive analysis will show you exactly where you stand on Google and across the internet and what steps you need to take to attract more of your ideal customers.

Don’t let another day of profit-killing coupons eat away at your bottom line. Take the first step toward sustainable profitability by understanding your digital presence and attracting the customers who will help your restaurant thrive.