Restaurant.com: A Coupon Website That Works
Coupon books work for some, but not for others. Dealing with all of the rules associated with using one of these coupons can often ruin the dining experience. Often restaurants will sign up for a two or three year contract with the businesses behind the coupon book, and then end up closing for business. I myself have gone, coupon in hand, to a business that is no longer open. And besides, this is the age of the internet, where people would prefer to Google their way to a discount rather than lug around a heavy book of coupons for restaurants they've never heard of.
But the online coupon and discount sites disappoint, too. Again, the rules and regulations around using the discount are often debilitating, and quite often the restaurants on the list are nothing to write home about. Additionally, I find that the keepers of most of these sites do an awful job of maintaining up-to-date information to the chagrin of the customer and the restaurants. The one I’m thinking of specifically showcases year old menus and restaurants that have been closed for a few years. We’ve also heard the horror stories of gift certificates and coupons not being honored when a restaurant changes hands but not identities, and anyone in the industry itself knows what a pain it can be to deal with all of the coupons, offers and gift certificates—and that’s not even taking into consideration the many issues small restaurants have with fraud.
The good news is there appears to be a national internet company that’s figured out all of the details and made their site a real value for the customer and the participating restaurants. Currently its list of Buffalo restaurants is short (but special), offering new customers a less risky way to try a new restaurant and regulars a more affordable evening out.
Restaurant.com offers customers a fantastic deal. Visitors to the site can log on and purchase a gift certificate with a face value that far exceeds their out of pocket costs. Less expensive restaurants offer a $10 gift certificate for a mere $3 (with a minimum purchase, usually of about of $20) while pricier places weigh in with a $25 gift certificate for only $10 (generally with a minimum purchase of $35). The rules each restaurant chooses to place on their gift certificates are different and allow the restaurant to offer this discount without losing their shirt entirely. Wisely, most restaurants haven’t put too many rules in place, rules that discourage diners as much as one of those coupon books littered with conditions.
What makes Restaurant.com really stand out are the details. The site is entirely secure and if a user ever has an issue with the restaurant they’ve selected, a quick phone call to the Better Business Bureau endorsed site promises to remedy the situation. Visitors are limited to the number of certificates that they can buy for a specific restaurant, protecting the restaurant from anyone looking to abuse the system. In some cases, the site will also make reservations for the user, a detailed and well thought out system in itself, that you’ll have to use to believe. Better yet, once a guest has redeemed their gift certificate, they’ll find a secure survey in their email inbox giving them the opportunity to report on their experience directly to Restaurant.com and the restaurant’s owner.
Some of the Buffalo restaurants currently listed on the site are: Bel Cibo, The Chocolate Bar, The Buffalo Chophouse, Cozumel, DiGiulio & Company, Duo, E.B. Green’s, Europa Bistro, Harry’s Harbour Place Grille, Marco’s Italian Deli, Prime 490, Stillwater and Sample.
BuffaloRising.com is in no way affiliated with restaurant.com- we just thought you all would like to know about it!
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Comment Options
Joshua
Bill Rapaport's ***** INTERACTIVE ***** BUFFALO RESTAURANT GUIDE
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Jdub
This site is awesome. They often run deals where you can type in a code and get additional $ or % off. Although sometimes I wonder how the restaurants listed stay in business when I'm getting $20 gift certificates for $3.
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NorPark
Not sure what the link to rapaports website has to do with restaurant coupons, although i love the site. Anyways I have used these coupons on occasion and never have had a problem. If you register on their website you will get occasional emails with codes for special offers, like 50% off, so instead of paying 10 bucks for a 25 dollar gift card its only 5 bucks. So you can basically get a free bottle of wine with dinner, or go for the nice vintage bottle, with the gift card off setting the cost a bit.
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buffaloamy
Coupons are a good thing -they are an excellent way to introduce a a new establishment, a new menu item or to help get through the dreaded winter slump so many restaurants experience .
Please remember your server and staff when benefiting from a discount or two for one special, and tip according to the check total before the coupon is applied.
If you have had an experience with a surly server when you mention the word coupon, realise that they have probably recieved a less than fair compensation at least 50% of the time( based on my experience as a server )
Some restaurant owners will make polite mention on the menu , or print the coupon with a friendly reminder, but with a full belly and perhaps a few cocktails otherwise gratuity savvy folks will forget.
Thanks for the posting !
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GoldenLark
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!
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gosabres22
This may be off topic. But i was in canton OH this past weekend, a place a quarter the size of buffalo, and there were two awesome restaurants with live music. Is there anything in this city that on a weekly basis offers good food and cocktails on the weekend along with live music? I find it hard to belive this doesnt exist.
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ChristaSeychew
Joshua,
I use Bill's site all of the time. We did a story on it last year:
http://www.buffalorising.com/story/the_rapaport_report
gosabres22,
I'll see if I can come up with a good list for you. There are sundry reasons why live music and restaurants don't go together, but there are also a lot of places that overcome these difficulties and make it a really great experience. Live music, food and cocktails- only on the weekend? I'll see what I can do for you.
Happy Eating!
Christa
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Joshua
Christa - I probably didn't catch the post on Bill's website. Thanks for the heads up!
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Deliking
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.
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NorPark
Deliking So basically what you are saying then is that the restaurant, who makes the decision to enter into this agreement with the site mentioned and ultimately the end user, is essentially doing themselves a disservice by offering these coupons. A lot of those restaurants mentioned who offer coupons have been around for quite a while and are not cheap places to eat, so a $25 GC is going to be a small % of what the final bill is going to be. For instance when you buy a GC from the chophouse or fiamma, from the actual restaurant, they usually give you a $25 GC when you buy a $100 one, why, to get you in the door, its not going to cover much but will perhaps entice you to come back again, or for a first time. Sure, there are the crazy folks who allow coupons to make their decisions, whether it be shopping for clothing, electronics, groceries, or dining, but i'm not certain there are going to be the same folks who are going to drop 150 bucks min. at the chop house or e.b. green. I have used these coupons perhaps 2-3 times over the last few years, that accounts for prob. 2% of my dining. I dont choose my restaurant based on what coupons are avail., but if there happens to be one then great, bonus, instead of the 25 bottle of wine perhaps i'll order the 60 dollar bottle. However I dont religously seek out these every time before I am going out to eat. The long and the short of it is the restaurant makes the decision to offer these, so as long as people do not abuse them, which seems to be safeguarded seeing how their is a monthly cap, then I would assume that these successful restaurants perhaps know what they are doing. I just think that it obviously works for some places and not for others, its not going to work for a place where a $25 gc is going to account for 30% of the final bill, but its prob proven successful to the places that your going to drop close to 200 bucks on.
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Deliking
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.
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IslandInTheSea
To me, using coupons and certificates brings down my restaurant visit. It cheapens the experience. I'm not rich, but I just rather pay full price than to have to dabble with coupons.
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JeffC
Thanks everyone for your interest. We really appreciate the article and your comments and wanted to make a couple of points in hopes that you'll give Restaurant.com a try.
For diners, our site means quick information and at least 60-percent savings on printable gift certificates to dozens of restaurants in Buffalo and thousands of restaurants across the country. Many of our favorite customers are savvy buyers who take pride in finding affordable, enjoyable dining. For them, Restaurant.com is “secret weapon” for selection and savings at great restaurants, especially with food and gas prices rising at record rates.
For participating restaurants, Restaurant.com works with restaurant managers to estimate program profits based upon the number of seats to fill, overhead expenses to incur, and gift certificates to sell every month. Restaurant managers track their gift certificate activity through a password protected site to ensure sales and redemption results meet their profit goals. Our program is used by thousands of restaurant managers nationwide who frequently connect with diners, fill tables and reap profits. Last year alone, we helped push more than $160 million in food sales for restaurants.
Whether you’re a diner or a restaurant manager, we hope you’ll see the potential for great dining, savings and profits, and will visit Restaurant.com to experience the value for yourself.
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buffaloamy
If you fill out the Discove rCard application, they will send you a $25 gift certificate to use at restaurants .com
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Deliking
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.
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Deliking
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.
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Deliking
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.
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Deliking
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.
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JeffC
Importantly, participation in the program is free for restaurants, protected by restrictions that guide gift certificate use, and based upon an agreement to honor the certificates presented by customers. Restrictions define how the certificates can be used including, for example, minimum required spends and times of the week when they are valid. They are put in place to protect the restaurateur’s business, while still providing a great deal for consumers.
If you’re a restaurant owner who wants to learn more, or run through the financials for your own business, I’d encourage you to connect with Restaurant.com directly at partnerjoin@restaurant.com.
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Deliking
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.
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