How Can Restaurants and Bars Use Groupon Strategically?

Summary:

Groupon provides restaurants, bars, and cafes with a low-risk marketing tool to acquire new customers and boost revenue. You pay no upfront costs and only pay a flexible commission when a sale is made. To get the most out of Groupon, these businesses can use strategies such as:

1. Fill Empty Seats: Use the deal's fine print and booking tools to direct customers to your slowest days or times, maximizing revenue from existing capacity.

2. Encourage Higher Spending: Structure your offer to cover core items while motivating customers to buy high-margin add-ons like cocktails or desserts at full price.

3. Build Long-Term Loyalty: Convert first-time diners into full-price regulars by offering an in-house incentive (like a discount on their next non-Groupon visit) upon voucher redemption.

As a restaurant or bar owner, you know that an empty seat during a slow Tuesday lunch or a quiet mid-afternoon gap is a missed opportunity. Groupon is not just a discount platform; it’s a powerful, pay-for-performance tool designed to help you solve this exact problem and turn first-time visitors into long-term customers.

Success depends on using the platform strategically. Here are the three core tactics that drive the most value for Food & Drink businesses.

1. Fill Empty Seats During Slow Periods

The main goal of your Groupon campaign should be to manage your capacity and get customers in the door when you need them most. This maximizes the profit from your existing overhead.

Tactics to Optimize Time and Capacity:

• Target Off-Peak Periods: Use the fine print of your offer to direct customers to your slowest hours. This ensures new patrons don't displace your regular, full-price diners during busy shifts.

  • Examples: Restrict redemption to Monday through Thursday evenings, or specifically for a mid-afternoon happy hour slot between 3 PM and 5 PM.

• Set a Voucher Cap: In the Merchant Center, you can set a monthly or lifetime voucher cap to control how many new customers come in. This prevents your staff and kitchen from becoming overwhelmed and helps you maintain great service.

• Fill Seasonal Gaps: Run targeted campaigns to counteract expected slow seasons (e.g., a "Cozy Dinner Package" in January) or use the platform to introduce new menus when a specific season ends.

• Use Booking Tools: If you offer reservations, integrate Groupon with your booking system. This helps you guide new customers to available slots, ensuring predictable traffic and seamless management.

2. Structure Deals to Encourage Extra Spending

While the voucher introduces the customer to your business, the real profit comes from them spending money beyond the voucher's value. This is called incremental spend, and your offer should be designed to maximize it.

How to Drive Higher Check Averages:

• Design for Add-ons: Since customers often spend extra when redeeming a voucher (especially gifts), make sure your deal covers the core items but leaves room for high-margin purchases at full price.

  • Example: Offer a voucher for a fixed-price appetizer and two entrees, encouraging the customer to buy cocktails, dessert, or a premium bottle of wine—the higher-profit items.

• Offer Bundled Experiences: Create high-value packages, like a "Whiskey Tasting Flight & Shared Small Plate" or a "Dinner for Two & Dessert," with different price tiers. These packaged experiences are highly attractive to gift buyers and typically result in a higher initial sale.

• Capture the Gifting Market: Position your offer as an ideal gift for birthdays, anniversaries, etc. Research shows that 61% of gift card recipients spend beyond the card's value, which directly translates to profit. Structure giftable vouchers that explicitly state what is included, making them easy for the buyer and attractive to the recipient.

3. Convert New Customers into Loyal Regulars

The voucher should be viewed as the first step in a long, profitable customer relationship. Your final goal is to make the new diner return again, paying full price, without needing another voucher.

Tactics to Encourage Full-Price Repeat Visits:

• Give an In-House Loyalty Incentive: Train your team to offer a small, unique reward only to Groupon customers as they cash out.

  • Example: A small card offering 15% off their next non-Groupon order if they return within 30 days. This incentivizes a full-price repeat visit directly to your business.

• Provide Flawless Service: Treat every Groupon diner as a valuable, full-price customer. An exceptional first experience is the best retention tool. Positive reviews and word-of-mouth promotion from new customers are invaluable, low-cost marketing assets.

• Review Your Data: Use the Merchant Center Performance Dashboard to see details about the types of customers you're attracting (what they spent, what they reviewed). Use this information to tailor your long-term loyalty programs and menu offerings.

By combining the power of Groupon's platform with these strategic operational tactics, you can acquire new customers profitably, fill your slowest hours, and build a base of loyal, repeat diners for your restaurant or bar.