Discount and voucher deals are useful tools to boost off-peak custom to the region’s restaurants, but must be used selectively, according to a panel of operators.
Jason Pettit, brand chef at FoodMark, called discounting a “necessary evil” and said: “It’s a good way to drive footfall and increase revenues for certain day parts, but don’t cannibalise your sales. Recognise your strengths and the trading patterns of your brand and maximise the opportunity.
“It’s a tool to open you up to a wider audience, but as an everyday offer it becomes damaging.”
The Caterer Middle East Chef & Ingredients panel, chaired by Nicholas Couvaras, MD of Kroma, warned that restaurant operators who over-use voucher deals will get a reputation for discounting and be frequented by deal chasers, rather than loyal customers. “You won’t see them again until the next discount,” predicted Pettit.
Ryan Waddell, executive chef at Reform Social & Grill and The Black Lion, revealed that the Entertainer ‘buy one get one free’ deal brought in AED1m of business to the gastropub in the past year. He said the benefit of that offer is that it can only be used once. “Hopefully they’ll enjoy their meal and come back again.”
There is no discounting at his new venture, the Black Lion. “The alternative is to work your menu – change it every three months to keep it exciting. With quality and consistency, if people love the food and the atmosphere, they will want to return.”
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Manoj Aswal, head chef at Bukhara at Kempinski Hotel Ajman, agreed: “The guests who drive your business are the ones who come again and again. Word of mouth is what makes restaurants run for ever, not discounts.”
Pettit admitted that – with increased competition and increases in the cost of living – discounting is here to stay. “Consumers are more conscious of where their money goes, so discounts come into play. And busy restaurants are psychologically good – people walk by and see it’s full.” And that makes them want to come in, he added.
Daniel Lewis, senior corporate chef at RMAL Hospitality, said that UAE consumers’ expectations of discounts are increasing. “The days of just offering glass of wine or an aperitif are gone. So it can take a lot out of your earnings,” he said.
The panel agreed that restaurant operators should explore collaborations with suppliers to work together on discounts and promotions, and meet somewhere in the middle on margins and costs.
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