Introduction: How Do Promotions Impact Your Restaurant’s Sales?

In the restaurant industry, many believe that offering promotions on popular items is the best way to boost sales. But is this truly the case? In this article, we’ll reveal why this strategy might be harmful to your restaurant, and how you can use smart promotional tactics to increase your profits.

Why Promotions on Popular Products Might Harm Your Restaurant

Offering discounts on highly popular items—like chicken in this example—might seem like a good strategy to boost sales. However, this could lead to:

• Increased demand for a single product: Leading to stock shortages.
• Reduced demand for other products: Such as beef, which may result in waste.

Example: If your monthly sales from chicken are 250,000 SAR, and from beef are 100,000 SAR, then offering discounts on chicken might increase its sales, but without a matching rise in beef sales, you’ll face losses due to spoilage and waste.

The Solution: Focus on Low-Selling Products

Instead of offering discounts on high-demand products, consider focusing on those with lower sales. This approach can:

• Increase overall sales: By promoting less popular items.
• Reduce waste: By balancing inventory and reducing surplus stock.

Example: If your monthly sales from beef are 100,000 SAR and from chicken are 250,000 SAR, a discount on beef can increase its sales, ultimately raising total profits.

How to Create a Successful Promotion for Your Restaurant

To design an effective promotional offer, you should:

1. Clearly define the promotion’s goals: Such as increasing sales of a specific item or attracting new customers.
2. Select the right product: One you want to improve sales for.
3. Set a defined promotion period: To encourage quick action from customers.
4. Promote the offer effectively: Via social media, emails, and other channels.
5. Track the promotion’s performance: To assess its impact and make adjustments if needed.

Example: Launching a “Buy one beef meal, get the second free” promotion for one week, promoting it on your restaurant’s social platforms, and monitoring sales during that period.

Why Promotions Are Crucial for Restaurants

Promotions are more than just a customer attraction tool. They serve a strategic role in:

• Increasing sales: By attracting new customers and motivating current ones to buy more.
• Reducing waste: By shifting demand toward products that need to be sold quickly.
• Strengthening brand identity: Through creative offers that set you apart from competitors.
• Fostering customer loyalty: By giving returning customers exclusive deals.

Example: Offering a “20% discount on all meals during weekends” to bring in more customers during typically slow days.

Conclusion

Promotional offers are a powerful tool for increasing your restaurant’s revenue, but they need to be used strategically. By focusing on low-performing products, setting clear objectives, and marketing effectively, you can drive significant profit growth. Always remember, well-thought-out promotions are the ones that deliver sustainable success.