Thursday, December 3, 2009

Thoughts on Restaurant.com

As a Consumer:

WOW! This has to be the best deal of all time. I paid $3 for a $25 gift certificate from Mo's Irish Pub last week. Essentially, I am receiving $22 free from this restaurant and I can print the coupon from my personal computer, saving me a trip out to make the purchase.

The offers vary according to the stipulations of hundreds of restaurants to choose from including time and day restrictions, and minimum purchases. But the idea is the same: huge discounts!

From sports bar Blue Crew to upscale-casual Mudsocks Grill in Noblesville to Peterson's steakhouse, I will never have to pay full price again.

As a an Owner:

In regards to restaurant.com, all I have is questions.

I think the point is to get patrons in the door, but how on earth do I make money? I understand the idea of more volume, but are my food costs shot to hell? Who benefits in this relationship: my establishment or restaurant.com? Am I not better off offering these promotions independently? Is there any kind of kickback for my restaurant?


As a consumer, I feel no shame in taking advantage of deals this good. As a potential restaurateur, I see no benefit in partnering with an outside agency to offer promotions and discounts that I myself can offer. I think this may be good for chains and, forgive me as I do not mean to judge, lower end restaurants.

But, seeing Mudsocks and Peterson's - as only two examples - offering these discounts makes me think two things: they are either hurting tremendously for business or maybe they do not deserve the reputation of a top independent restaurant in our city.

If I am off base, please enlighten me. I feel the strength of a great independent restaurant is the business it generates through word of mouth, grass roots, and social media promotion.

A couple of places that do a great job of this are Scotty's Brewhouse and St. Elmos. While both have established themselves as Central Indiana's own and have brand power, both Scott Wise and Craig Huse use minimal adverting, are current on social media (facebook, twitter), and use in-house promotions, if any, to their advantage.

Owners and Consumers:

I would love to get some feedback regarding restaurant.com and other promotional vehicles for your restaurants, as well as how they have worked or not worked.


Till next Sign,

Ryan

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