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Wednesday
Nov262008

WTHR News 13 : Restaurants Rely On Coupon Marketing to Lure Consumers

Cheaper fastfood-style restaurants are seeing a slight uptick in sales at nearly two percent. Family-style restaurant sales are down almost one percent and casual dining sales are down over four percent.

Restaurants are offering big deals to bring you back while grocery stores are trying to convince you to stay at home and cook.

The economy is making restaurants tighten their belts and come up with creative ways, in some cases, to survive.

"Restaurants feel it first. Discretionary income turns down, people trade down because they have to eat out to a degree, so they trade down," said John Livengood, Indiana Restaurant and Hospitality Association.

For example, high-end restaurant chain Ruth's Chris, which reported a seven-percent decline in the last sales quarter, is offering $25 gift certificates, and offering lower prices on certain items.

Another fine dining chain, Kincaids at Carmel's Clay Terrace, is offering free $20 gift certificates, a promotion the restaurant's offered for five to sx years that's paying off for customers pinched by the economy.

"It's a way to infuse a little energy and guest counts into the restaurant and to get new people into the restaurant to see what we do and then let what we do bring them back," said Danny Dirscher, Kincaid's general manager.

Read entire article on wthr.com

 

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