EDITORIAL STAFF Anthony Anton, Publisher Lex Nepomuceno, Executive Editor Heather Donahoe, Managing Editor David Faro, Contributing Editor Sheryl Jackson, Research Editor Lisa Ellefson, Art Director WRA EXECUTIVE COMMITTEE Jim Rowe, Chair Consolidated Restaurants Phil Costello, Vice Chair Stop N Go Family Drive Inn Robert Bonina, Secretary/Treasurer Washington Athletic Club Bret Stewart, Immediate Past Chair Center Twist Nancy Swanger, WRAEF President WSU WRA EXECUTIVE TEAM Anthony Anton President and CEO Teran Petrina Vice President Bruce Beckett Director of Government Affairs Lex Nepomuceno Director of Communications & Technology Lyle Hildahl Director of Education Victoria Olson Director of Business Development Susan Howe Director of Internal Operations 510 Plum St. SE, Ste. 200 Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 www.warestaurant.org
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What about daily deals? By Lex Nepomuceno, Executive Editor Are daily deals sites like Living Social and Groupon still relevant? From a customer’s perspective, the answer would be an emphatic “YES,” but from a business owner’s perspective it is closer to “Uff da!” Just in case you don’t know what the latter expression means, Wikipedia states: “Uff da is often used in the Pacific Northwest as a term for sensory overload. It can be used as an expression of surprise, astonishment, exhaustion, relief and sometimes dismay.” This “all-purpose expression with a variety of nuances, and covering a variety of situations” effectively summarizes the range of emotions many restaurateurs go through whenever they hear the term “daily deal sites.” As one who occasionally uses daily deals when planning vacations and weekend outings, I have found that the viral nature of these sites has not died down one bit. If anything, I have noticed friends and relatives point out offers they feel I might be interested in more than ever. I also notice more people reference these sites as part of their daily or weekly ritual – similar to how they peruse news sites and sports scores. Hence, regardless of whether business owners like it, daily deal sites are here to stay and likely flourish. Fortunately, there is more competition in this coupon space than ever. Major players such as Google and Amazon.com have come in to provide more options for restaurants. Trends for niche sites like ManDeals continue to pop up and allow business owners to target their marketing efforts. More choices mean more flexibility in how businesses take advantage of daily deals to attract new customers. Thus, proactive restaurants need to look at ways to get the most out of daily deals instead of having an “Uff da” moment whenever the topic comes up. According to a survey that the National Restaurant Association partnered in, “restaurateurs who had successful daily deal experiences stood out as experimental marketers that use a variety of different channels and tactics to drive customer acquisition and retention:” 94 percent engage with customers via social media (vs. 75 percent of non-daily deal users) 77 percent have run more than one daily deal 73 percent connect with customers via email (vs. 59 percent of non-daily deal users) 79 percent monitor online review sites to see what others are saying about their business (vs. 68 percent of non-daily deal users) 71 percent have promoted their business with traditional newspaper and magazine ads (vs. 58 percent of non-daily deal users) In addition to the aforementioned traits of successful daily deal restaurants, here are some industry best practices to help ensure daily deal success: Prepare staff to focus on customer service, look for upsell opportunities and track offer redemption Schedule daily deal timing based on business needs and seasonality Estimate and understand the promotion’s impact on profitability Measure success by using free tools provided by daily deal company Encourage repeat visitors with a customer loyalty program The most important thing to remember when considering (or reconsidering) daily deals for your business is to commit fully, or just not do it at all. Results from the above survey clearly indicate the restaurants that implement daily deals, do so as part of a more thorough online strategy. These types of sites continue to be viable marketing avenues that can generate a steady stream of new customers. However, businesses need to go all-in when they go down the path of the daily deal. Take heed in a fictional character’s famous words: "Do or do not. There is no try.” - Yoda