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National Restaurant Association - Are you giving away too much free food?

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Are you giving away too much free food?

Restaurant marketers aren't using buy-one, get-one offers to their advantage, research from Fishbowl finds.

Fishbowl analyzed offer data from 25,000 restaurant guests and found that restaurant marketers aren’t entirely in sync with what guests want. 

“Marketers are missing a big opportunity with BOGOs, given the guest response and redemption rates,” the company says. Its data shows that restaurants are overusing offer types that don’t resonate with guests as much as BOGOs do.

Not surprising, the research shows highest redemption rates for free offers, which drove a nearly 24 percent open rate. But it also shows restaurant guests respond almost as enthusiastically to BOGO offers as they do to free items. BOGO redemption rates were nearly as high as those for the free offers, and open rates were 19.25 percent.

When Fishbowl saw that data, researchers assumed restaurants frequently offered BOGOs. But that wasn’t the case.

Instead, it found that restaurant marketers were underusing BOGOs. Nearly 49 percent of its clients used free offers, but just under 3 percent offered BOGOs.

What does that mean for your restaurant? Consider testing various BOGO offers to see which drives the most business in a short period of time. As you develop more analytics about your guests, you can refine the strategy with better segmentation and/or additional offer dimensions to drive your business goals.

This content was provided by Fishbowl .

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