A sixty percent saving on printed coupons looks like this on a price breakout,

gross return (selling, price) ----------------------------------------------------- $100.00 (represents 100% of face value, easy to demonstrate) cost of product ------------------------------- $ 35.00 labor cost --------------------------------$ 30.00 occupancy cost --------------------------------$ 20.00 suggested advertising cost --------------------------------$ 60.00 _______ $145.00 net loss-- $ 45.00

This certainly is a secret weapon, now exposed which will sink any restaurant overpowered by the offering. The numbers used for this example, are conservative and most restaurants would be delighted to match, excluding the advertising amount. A restaurant may fill tables, but if it has good quality, adequate service, reasonable prices, and any of the other expenses not listed, you had better take advantage of the offer while the place is still in business.

The only hope that this would work for a restaurant is, all the printers in their marketing area stopped working and everyone started talking about the issue, got curious and checked out the restaurant.

No moral judgment was implied or intended, the percentages speak for themselves. Another insight also may apply here, the cost of product to a restaurant which is up scale, is pretty much the same to one which is less so. I wish good dining for everyone in any case.

A sixty percent saving on printed coupons looks like this on a price breakout,

gross return (selling, price) ----------------------------------------------------- $100.00 (represents 100% of face value, easy to demonstrate) cost of product ------------------------------- $ 35.00 labor cost --------------------------------$ 30.00 occupancy cost --------------------------------$ 20.00 suggested advertising cost --------------------------------$ 60.00 _______ $145.00 net loss-- $ 45.00

This certainly is a secret weapon, now exposed which will sink any restaurant overpowered by the offering. The numbers used for this example, are conservative and most restaurants would be delighted to match, excluding the advertising amount. A restaurant may fill tables, but if it has good quality, adequate service, reasonable prices, and any of the other expenses not listed, you had better take advantage of the offer while the place is still in business.

The only hope that this would work for a restaurant is, all the printers in their marketing area stopped working and everyone started talking about the issue, got curious and checked out the restaurant.

I had actually considered buying some gift certificates for my friends last year around Christmas, and many of the restaurants were sold out by the time I got around to it. They have a limited number available for each restaurant per month. If you're planning on purchasing them for a popular holiday, buy early!

A sixty percent saving on printed coupons looks like this on a price breakout,

gross return (selling, price) ----------------------------------------------------- $100.00 (represents 100% of face value, easy to demonstrate) cost of product ------------------------------- $ 35.00 labor cost --------------------------------$ 30.00 occupancy cost --------------------------------$ 20.00 suggested advertising cost --------------------------------$ 60.00 _______ $145.00 net loss-- $ 45.00

This certainly is a secret weapon, now exposed which will sink any restaurant overpowered by the offering. The numbers used for this example, are conservative and most restaurants would be delighted to match, excluding the advertising amount. A restaurant may fill tables, but if it has good quality, adequate service, reasonable prices, and any of the other expenses not listed, you had better take advantage of the offer while the place is still in business.

The only hope that this would work for a restaurant is, all the printers in their marketing area stopped working and everyone started talking about the issue, got curious and checked out the restaurant.

A reality check is required here, the promo for the site mentioned appears to be a great deal for the who might use it. On the other hand for the restaurants offering the discounts it's a disservice. Normally restaurants operate in the following percentage range, 15 to 20% labor, 25 to 40% cost of product, 10 to 20% occupancy, the better the restaurant, usually the higher percentage range. There are other expenses that come into play, that are categorized with many different headings, and these also add to the percentage total. So what-- what the point-- statement of fact ---no successful restaurant operation, to my knowledge, has ever operated with a 30% advertising budget consistently and that is what is being projected here.

The coupon idea is a myth, in regard to repeat business generation. People who coupon usually do so diligently exploring every option available and are very adroit at finding all the best deals, constantly seeking to replenish their choices. For the most part, the only time repeat business occurs, is when a place they have been before that they liked is offered again. We know this, because we ask, and survey our customer base constantly.

W have tried similar inducements many times over the years and have found that the result is a net loss. If you like a restaurant, and believe it has good products, offered at reasonable prices with good service, and would like it to survive, you may consider avoiding this offer for coupons.

Place the numbers used in the example, in a column, starting with 100 dollars which represents 100 percent of the selling price. then list the numbers descending down in the order they are displayed, subtract the sum of the numbers from $35 .00 thru $ 60.00 from the top $100.00 in the column. The representation printed above doesn't really show how flawed the reasoning given for this offer is.

Free, what's free in giving away food and service just to see your name in a Blog site. It makes no difference when you honor the coupons unless you like seeing people in your place of business at your expense.

We tried the free radio ads, where the station sold discounted coupons and kept all the money, less than one percent repeated customers at regular pricing returned. We were stopped in the supermarket one day and was asked when the next discount ad campaign would run, because they liked the experience so well.

The more places offering this type of promotion, the greater the difficulty maintaining any kind of profit margin. Pay attention to the quality, portion size and service of restaurants if this trend continues. With costs going up how the hell do you stay in business giving food away.

Anyone curious how the Blog site profits from this arrangement, the manager of this site will attest to necessity of being compensated for the promotional benefits of advertising here. Advertisement entities limit the amount of trade and refuse to extend credit into the hard cost portion of their product, restaurants need to do the same.

To me a restaurant gets more benefit with straight up advertising on a site like Buffalo Rising than attracting attention by killing their business operating percentages. Buffalo Rising with one mention in a thirty day period referred more people than radio did with discounted coupons, we tracked it.

Allowing someone to profit from selling your product is like acquiring a partner who has no vested interest in your business and contributes little or nothing.