Food servers playing up discounts/promotions to lure customers

March 26, 2009

Ran across two interesting articles which show just how far food service establishments in the US will go to salvage business during the recession.

According to USA Today, the $183 billion full-service dining industry is struggling to keep up with falling demand at its restaurant locations, which has prompted some well-known chains to offer astonishingly low entree prices and deals.

“‘Chains have little choice. Cash-strapped consumers are holding back on eating out.  Same-store sales have been falling for 14 months and were down 3.6% in February,’ says researcher Knapp-Track.”

For chains that use budget and family themes in their branding, offering lower prices is a sure way of appealing to their traditional customer base.  It’s risky for an elite brand to low-ball its offerings, but even the upscale Morton’s Steakhouse is getting in on the act…

Adding value is a strategy often employed by brands which come advertised as worth every penny, and are reluctant to risk their reputations by discounting, but even low-end fare requires a little dressing up to sell.

Ask yourself if you would risk eating this for the chance at winning a t-shirt…

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