subject: Restaurant Deals Keeping Revenue Of Cafeterias Up [print this page] Restaurant deals keeping revenue of cafeterias up
We have heard a lot about how much foodies or food enthusiasts save because of deals offered by the restaurants, but how the discounted meals can be beneficial for restaurants in keeping revenue graph up or ideally making them unaffected in the wake of recession comes barely under the discussions on the group buying industry.
Recession is reechoing and all consumer goods companies let alone restaurants are anticipating its impact on the consumer buying behavior.
Maybe, a good number of restaurants would emerge unscathed as they did earlier during economic downturn of three-year back reminding people of 1930s recession. The famous strategy would remain the cost cutting.
Layoffs and consumer-unfriendly measures such as price hikes pique negative sentiments in the society and affect the business life cycle.
On the other hand, rise in sale volume can lead to reduction of cost, according to a general belief in the entertainment industry. A rough estimate says a two per cent increase in sales mean 10 per cent decrease in cost.
Group buying that plays as a catalyst for the growth in revenues of discounters has also augured well with the cafeterias that offer restaurant deals online to trigger customers traffic.
Entertainment industry that becomes the first victim of dampening consumer confidence is happily deploying the deals to offset the impact of decline in regular entertainment seekers.
Dining for entertainment makes more than half of revenue of restaurants. That means fifty per cent global revenue of $550bn of restaurants is because of people eating out for entertainment. Revenue of restaurants in US stands at $183bn.
Obviously, one can minimize numbers of entertainment visits to restaurants due to financial downturns but he/she cannot avoid outdoor eating out of necessity and convenience.
Restaurant deals can win back the customers affected by rise in prices. All big names attach discounts with their products to do so.
When offered from the platform of daily deal sites, restaurant deals and offers or discounted food treats discharge dual purpose. While sales ramp up on the back of surge in customers traffic, brand awareness is increased exponentially.
Who can deny the powerful impact of advertising in attracting target market?
McDonalds, Outback, or Chipotle all make use of promotion and sales promotion to increase revenue.
Worthwhile to note is the fact that strings attached to restaurant deals do more harms than benefits to deal-a-day industry and customers bad experiences can right away bring down the conversion rates.
