1/2 off gift certificates or 2/1 programs

I'm not trying be a wise guy but I've seen and heard some really outlandish situations from restaurant owners. I'm speaking of the 1/2 off gift certificates sold on some websites and in newspapers. Restaurant owners that have tried this programs have said the same thing: "You don't make any money with them". I asked them to elaborate and this is what I've found:

• The advertising/marketing company that runs this program makes $$$$.
• The customers save $$$$ each visit they make.
• You lose $$$$ on food cost and lost revenue by signing up and accepting them.

Customers who use these programs use them habitually. "They won't come in unless they have the discounted gift certificate", one owner told us. "Yes, we get traffic but we're not making any money!"

Traffic doesn't equal revenue or profit. There are other ways you can bring people in without giving away the farm. Talk to you staff, talk to your customer or talk to us (as we talk to your staff and your customers too) and you'll come up with some great ideas. But please, don't get locked into giving your hard-work away.

Keep in mind - this is from you average, independently run restaurant. If you're average entree is $18-22 per person, you may break even with an appetizer or drinks. If it's higher, this program may work for you. Here is a great article along the same lines: http://www.restaurantreport.com/greatdebates/2for1dining.html

PS: A soup kitchen even makes $$$$ with donations - you don't.