Restaurateurs Offer Deals to Drive Traffic
Despite a volatile financial climate, U.S. restaurant traffic increased 1 percent in June, July and August, compared to the same three-month period last year, according to a Port Washington, N.Y., market research firm.
As price-conscious diners curb their spending habits, foodservice operators are driving restaurant traffic by offering discounts and other value-related promotions, The NPD Group reported late last week.
"More so than we've seen in many years, consumers are looking for savings and ways to stretch their dollar. Restaurants operators are responding to economic concerns with enticing value offers and deals," says Bonnie Riggs, a restaurant industry analyst at NPD and author of the report "Working Magic: The Art of The Deal."
Traffic at restaurants that offered deals was up 9 percent in June, July and August, while traffic at restaurants that didn't offer deals was down 1 percent during the same period.
"Deal offers are complex and risky for restaurant operators, and this is at the same time they are faced with rising food costs," adds Riggs. "But operators understand that in order to get the customers in the door, they need to make them an offer they simply can't refuse."