Just a week ago I popped by a small restaurant just slightly away from town for dinner and managed to have a chat with a small restaurant owner. Somehow the conversation landed on the topic of Groupon – he loves it.
Recalling from my past conversations with other business owners on Groupon in Malaysia, I instantly wanted to know more about this liking of his towards Groupon. What is it that made his Groupon campaign successful? Why is it that he is able to make Groupon work while others find it difficult to handle?
Here are some tips from our chat:
#1: Don’t Stinge on Quality
The restaurant owner insists that the proportion of the meals served during the campaigns have to be the exact proportion of how it is off-promotion, if not better. Customers can tell the difference – especially those that frequent you. Business owners should not opt for a cheaper alternative just because of a lower profit margin.
#2: Know How Much You Can Handle
If your restaurant operate 8 hours a day with a total of 40 seats and if each customer takes an average of 30 minutes per meal, you’re likely able to handle no more than 640 customers per day. And that’s if you operate back-t0-back without rest. This figure will let you know whether you’re able to take in X amount of reservations daily. This restaurant owner drew up a reservation chart to make sure he does not overdo it. By doing so, he will be able to operate at full capacity, yet maintain the quality and service efficiency.
#3: Know Your Limits
If the number of customers flooding your store isn’t a concern, how about the number of staff on duty? He pointed out a valid point – the more customers you have, the more manpower you’ll need and that will cost you money. If that still isn’t a concern, think about the workload – will your staff be able to handle two, three, or even four Groupon campaigns back-to-back? Give them (and you) a break…
#4: And Measure Your Results
The simplest method suggested is to give out vouchers for their next visit. Have them printed with unique codes / colors so you can track which campaign your customers are coming back from.