Restaurant's Smartest Strategy to Attract New Customers and Boost Profit

Running a restaurant is challenging, and every owner has faced slow days where tables sit empty. Many owners think discounts are just for desperate times, but what if discounts could be a smart, long-term strategy to attract fresh faces and build loyal customers—all while adding to your profit? Here’s how offering discounts can help you increase revenue, fill tables, and save on advertising, with the math to back it up.

1. Use Discounts as Zero-Cost Advertising

One of the most powerful benefits of a discount is that it works like free advertising. Let’s break down why this is so valuable:

• Traditional advertising can be costly. Running social media ads, printing flyers, or partnering with influencers can cost thousands, without any guarantee of return.
• Discounts, on the other hand, create immediate value and get customers through the door without these upfront costs.

Math Example: If you offer a 30% discount on a $20 meal, you’re only giving up $6, and each customer who dines with you becomes a potential regular. If 1 out of every 5 customers returns and pays full price next time, you’re covering the cost of that discount and adding loyal diners to your base.

2. Fill Empty Tables and Generate Repeat Customers

Every restaurant owner has seen slow periods. Discounts offered during these times can bring in customers who may not have considered your restaurant otherwise.

The Value of a Full Table: Let’s say you’re offering a 50% discount on a $20 meal, so each discounted sale is $10. If your food cost is 30%, or $6, you’re still making a $4 profit per customer even at the discount. Not only does this cover costs, but it also allows you to:

• Build relationships with new customers who might return without a discount.
• Give these new diners a positive first experience, making them more likely to spread the word.

If you fill 10 tables with this discount and each person spends $10, you’ve still made $40, covered your costs, and potentially gained loyal customers.

3. Stand Out from the Competition

In a world where customers have so many dining options, offering an attractive discount can set you apart. By listing discounts on platforms like Voraa, you’re reaching people who are actively looking for dining deals and are ready to give new places a try. Here’s how this makes your restaurant stand out:

• Immediate Exposure: A discount puts your restaurant in front of diners who may not know you yet but are willing to try something new for a great price.
• Word-of-Mouth Marketing: When people feel like they’ve scored a great deal, they’re more likely to share their experience with friends, generating free word-of-mouth buzz.

4. Increase Profit Margins with Strategic Discounts

Let’s look at how discounts can still contribute to profit when used strategically. If your restaurant has a gross margin of 70%, then your cost of producing a meal is 30% of the selling price. Here’s the math that shows why you can offer a 50% discount and still make a profit.

Example Calculation:

• Original Meal Price: $20
• Cost of Meal (30% of price): $6
• Discounted Sale Price (50% off): $10
• Profit on Discounted Sale: $10 (sale price) - $6 (cost) = $4

Even at a 50% discount, each sale brings in $4 of profit. So, if you bring in 50 customers in a week with this discount, that’s an extra $200 in profit from filling seats that might otherwise have been empty. And if a fraction of these diners return at full price, your long-term profit grows even more.

5. Discounts Help Build a Positive Brand Image

Discounts aren’t just for struggling restaurants; they’re a sign of a forward-thinking, customer-friendly business. Offering discounts shows diners that you’re open, approachable, and focused on giving value. This helps build a strong, positive image that can attract both new diners and retain existing ones.

Let Voraa Handle Bringing New Customers So You Can Focus on Service

Managing discounts yourself can be time-consuming, but platforms like Voraa take on the work for you, creating a seamless experience for both you and your customers. By offering strategic discounts through Voraa, you reach a large network of diners actively looking for dining deals and ready to try new restaurants—without paying upfront for advertising.