With the increase in competition for independent restaurant owners on a constant rise, restaurants are searching for new marketing strategies to draw in customers. It’s time to dish out some motivation to your customers and present a marketing strategy that has been tested and proven to work on a multitude of platforms: the Red envelope Promotion.
An exhilarating concoction of suspense and surprise, the Red envelope Promotion is a strategy that enables restaurants to generate sales and profits during slower months. This is a sure winner that has proven its efficacy year after year, earning the title of “The Number One Restaurant Promotion Of All Time”.
The Most Successful Restaurant Bounce Back Promotion
The Red envelope Promotion is built around a simple concept. As a customer in a participating restaurant, you’re handed a colored envelope, themed corresponding to the month or event. The envelope must remain unopened until your next visit to the restaurant, where an employee reveals a secret prize inside. The prizes range from double points, free desserts, a 10% discount on a meal, a $100 gift card, a big money giveaway, up to lavish prizes like a flat-screen TV, and more.
The beauty of this promotion is its universality. It has shown positive results in fast food, casual and fine dining, family restaurants, and international cuisines settings. It’s a versatile tool that caters to both dine-in and takeaway orders. The process is simple: an envelope is either handed over or stapled to a takeaway bag – a little pull to an individual’s curiosity that easily translates to increased sales.
Implementing the Red envelope Promotion is straightforward. Decide on the giveaway prizes and the time frame for handing out the envelopes and redemption. Then, create envelopes and certificates, and ensure that they are proofread for any errors. Once the envelopes are ready, stuff them with prize certificates, seal them, and they are ready to go. The staff must be informed and well trained on how the promotion works, and the customers should be notified about the promotional month. And there you have it – a winning promotional strategy that keeps customers coming back for more.
The Curiosity Gap
Everyone loves to win and can’t wait to find out what their prize is. Same concept as the lottery. Everyone thinks they have won the big prize or at least has a chance at it. It’s that simple. This unique marketing strategy enhances customer engagement, encourages repeated visits, and is a phenomenal way to boost sales. Everyone loves the thrill of a surprise, and the Red envelope Promotion perfectly applies this concept, turning every dining experience into a chance to win big!
Will This Work For Your Restaurant?
We have been doing this promotion for 19+ years and have tested it on virtually every location, style, size restaurant. It has been proven to work in any market, for any style of restaurant: Fast, Casual and Fine Dining, Carryout, Family, Italian, BBQ, Chinese… the list goes on. This promotion has been tested to work by tens of thousands of restaurants all over North America with any number of seats. This promotion works so well, even the big corporate chains use it – maybe you have seen it done in the past.
We love this promotion because it works for both dine-in and carryout sales. Simply staple an envelope to every bag or put it inside the bag with every carryout order. Then, watch your carryout and dine-in sales grow like magic. It’s important to customize your promotion to make sure it works specifically for your business and your specific needs.
Getting Started:
Start by deciding your time frame to hand out and time frame for redemption, as well as what prizes you will give away and how many of each prize. Include a teaser prize on the envelope that none of your customers would actually win because we all know that no one likes to win the smallest prize.
The envelope template is for a standard #10 envelope. Feel free to get creative on the certificate graphics! Add images, logos, whatever you’d like, but make sure the prize text is light enough that it is not visible through the envelope
Once your design is complete, go through and check all the grammar and that your expiration dates are correct. There’s nothing worse than spending all this time and money and then realizing that you spelled your restaurant name wrong!
When your envelopes and certificates are complete, reach out to your local printer for pricing and a time frame of when they can have the envelopes back to you. Remember to send them the artwork in PDF formats, and make sure to let them know that all prizes need to be kept separate. It would be a shame if everything came all mixed up, and you have to spend a ton of time separating each prize. Now, just wait for the call that your order is ready to be picked up.
Next… stuffing and sealing. Make sure all prizes are separated and labeled accordingly. We highly suggest stuffing and sealing one prize at a time because once the envelopes are sealed, you won’t know what’s what. Seal each envelope tightly with a glue stick – this way, each envelope is properly sealed so your customers won’t be able to easily open them to sneak a peek.
Ready, Set, Launch!
Step ONE: Have a meeting with your staff to explain your Red envelope Promotion. Go over your prizes and procedures to pass them out to your guests. Making sure your staff is well informed, excited, and diligently passing out the envelopes – this is key to a successful promotion. They should also tell your guests, “Red envelope! You must bring the UNOPENED envelope back next month to see what you’ve won, and it can only be opened in front of one of our staff.”
Step TWO: Let all your guests know your Red envelope promotion is in full swing and to come in and get their envelope. Put it in your newsletter, emails, Facebook page, table tents, signage around the restaurant, etc. The more you promote your Red envelope promotion, the more envelopes you will hand out. If you have a big prize such as a TV, an iPad, or a trip, it’s a good idea to display it to get your guests excited to win.
Step THREE: Remind your guests next month that it is time to bring back their envelopes to see what they have won. This is the fun part where your register goes Cha-Ching! Again, put it in your newsletter, emails, Facebook page, table tents, signage around the restaurant, etc. You should also have another meeting with your staff at the beginning of the month to make sure they understand the rules for giving out your prizes.
Insider Tip: If you have any leftover envelopes at the end of the month, give them to another local business to pass out to their customers (think dry cleaners, health clubs, etc.). This will help get you new customers, and it’s something nice for the other business to give to their customers.
How To Get The Red Envelope/No Peeking Promotion Done For You Customized For Your Restaurant
We are the largest supplier of this promotion to the restaurant industry since 2008. WE have generated over $326 Million dollars in sales for restaurants using this promotion.
Check out how we can custom design a Red Envelope/No Peeking promotion to increase sales at your restaurant.
Michael Thibault
Known as “The Done For You Marketing Guy for Restaurants.” International Speaker on Restaurant Marketing. Published contributing author of 4 Marketing Books. Industry expert on Google Searches and Review Sites. Recovering Independent Restaurant Owner and Caterer of over 21 years. And, all-around good guy.
