With the economy attempting to make a comeback, looking at how some of the businesses are attempting to do so can be interesting. One way Outback is doing, it is to not only revamp its menu with more low-dollar menu items, but through coupon sales. Of course, one has to wonder if that is price effective.
Coupon Code tend to be one of the staples of most mail circulars. There are plenty of offers for discounts on various items. The most popular of these items is the onion bloom, which is even featured on its Facebook page. The coupons usually give a decent discount, sometimes over a dollar per item and the onion bloom is regularly offered as a free item such as the Facebook offer, which offered it free for the first 500,000 fans. However, there is some debate as to how effective those offers are cost-wise; part of that debate is to how expensive the coupon campaign is.
The problem of course is that although sales are increasing thanks to coupon sales, there are no reliable statistics for how well coupons are driving them; Outback, like other companies, does not track that information with any reliability. Most restaurateurs simply have noticed that restaurants that do not offer coupons tend to go out of business quickly. Few actually stay at the same restaurant for more than a few months or go to it so rarely, usually for birthdays or other special events.
This makes the restaurant need to find ways to attract new customers if it is to grow. A coupon offers those potential customers a chance to try something new with little risk; something consumers welcome. Added to this issue is that restaurants are always trying new things; Outback is also adding fifteen meals for $ 15 or less, which can also drive sales, as well as incorporating more social media into its advertising. There is simply no way to track each individual effect.
In essence, the way Outback Restaurants determine the cost of coupons versus the cost of advertising is to look at their front doors; if customers still open them regularly, they consider the cost of advertising a good cost. Although the cash registers track coupon sales, it is simply not a statistic that is looked at close enough. It is definitely not one of the most accurate ways of doing so, but that is because coupons are ingrained as the way to do business, so they simply make sure that they have coupons going. They appear to drive people to the door, so they are used; advertising works, so it is used. Although more accurate reporting would make for a more efficiently run restaurant, and would be able to determine a more specific expenditure, this is something that is unlikely to change soon. Until it is, enjoy the same food at a cheaper price.
I am Mohan read mathematics at Stanford and remained there for his MS. From 1998-1999 on researched in Evolution and in Animal Behavior in Camrbidge, UK. I was was then a professor in the departments of Anthropology and Biology, New Jersy College, USA. Now teaches at the department of Zoology. Carried out research in several areas of evolutionary biology, particularly in sexual selection and the comparative method.