Some restaurateurs hesitate to discount their food out of pressure to preserve a healthy profit margin and to maintain the establishment afloat. Offering the right discounts may however yield benefits. These include better goodwill in the community, more word of mouth referrals, and more frequent customers. For instance, if a veteran knows they get a 10% discount at your pizza restaurant and your competitor a few blocks away doesn't offer a discount, they are more likely going to choose the eatery that will save them a portion of their bill.
Of course, discounts don't offset bad food or poor service, but they can entice prospective customers into giving you a chance. Discounts could also incentivize recurring customers into becoming loyal patrons.
Military
Many businesses offer discounts to military ID holders. This includes active duty military, veterans, and military family members. Business owners give discounts to servicemembers as a gesture of gratitude for their service to our country.
Most military discounts range from 5% to 15%, depending on the business.
Student
In college towns or cities with a high student population, offering student discounts makes sense. You can promote the discount in the student newspaper or other mailings. Students are often self-funding their education and always looking for ways that they can save money.
A percentage discount on food, or other deals like a free appetizer, can be a great way to attract students who wish to eat out but also want to get the most bang for their buck.
Happy Hour
Happy hours are an excellent way for restaurants and bars to drive traffic during the slower hours between lunch and dinner. Most happy hours are between 3 p.m. and 5 p.m. Some businesses also offer "reverse happy hour" during which deals are available from dinnertime until the kitchen closes. This strategy keeps the cooks busy, and the waitstaff could earn additional tips from the larger tickets.
Happy hour specials can change daily, be specific to each weekday, or be the same every day. Most restaurants vary their happy hours by day or rotate it out based on the season or month. The right fit takes some tweaking and experimentation to see what works.
Seasonal
Many restaurants offer seasonal menus, with drinks and entrées that aren't available during other times of the year. Because they're only offered for a limited time, customers will often order these items before they're out of season.
Measuring the popularity of seasonal dishes is also a decisive test for permanent additions to the menu. If you aren't sure about an item's potential interest, experiment with it seasonally and get feedback from diners on whether they would order it again, or what they would change to make it better.
Many restaurants also offer discounts on their seasonal options to make sure they sell out. For example, this could include a few dollars off a special beer or a free seasonal dessert with a three-course meal.
Fundraising
Just like offering student and military discounts, participating in fundraising programs can help your restaurant raise goodwill with the community. Offer a small 5% to 10% discount to diners who mention they are eating at your restaurant to support a specific nonprofit organization or local program, such as an elementary school. Patrons who mention that organization receive a discount or free item, and a portion of the profits can go toward benefiting the cause.
A donation for a fundraiser can be tax-deductible (but be sure to check with your tax professional first), and it raises awareness about your restaurant. The organization will promote the partnership to their members or students, potentially connecting your business to a broader audience.
Many restaurants leverage some or all of these discount options. However, what's best for you will depend on what generates the most revenue and repeat traffic. Your target audience, as well as geographic location, can influence what discounts and specials attract more patrons and which ones don't make a difference. Test a few and see what works.