In today’s competitive restaurant industry, offering discounts or promotional codes has become an essential strategy for attracting and retaining customers. With the rise of online ordering, promo codes serve as a powerful tool to incentivize purchases, boost customer loyalty, and increase overall sales. If you’re a restaurant owner or manager looking to implement this feature, this guide will walk you through the steps of setting up a discount or promo code for online orders and explain why it can be a game-changer for your business.
Why Offer Promo Codes?
Before diving into the technical setup, it’s important to understand why offering promo codes can be beneficial for your restaurant:
- Attract New Customers: Promo codes can entice new customers to try your restaurant, especially if they offer significant discounts or perks. A well-promoted code can draw in first-time customers who may become regulars.
- Encourage Repeat Business: By offering discounts on future purchases, you encourage customers to return. Loyalty-building strategies like this can turn one-time visitors into loyal patrons.
- Move Inventory: If you have surplus ingredients or slow-moving menu items, promo codes can help shift these products by offering discounts on specific dishes.
- Increase Average Order Value: Customers who might have only purchased a single item may be more inclined to add extras to their order when they have a discount code, thereby increasing your average order value.
- Enhance Online Presence: Promo codes tied to online orders can drive traffic to your website or app, enhancing your restaurant’s online visibility and potentially leading to organic growth through word-of-mouth.
How to Set Up a Discount or Promo Code
Setting up a discount or promo code for your restaurant’s online orders is typically straightforward, especially if you’re using a robust point-of-sale (POS) system like Toast or an online ordering platform. Here’s a step-by-step guide to help you through the process:
1. Choose a POS or Online Ordering Platform
The first step is to ensure you have a POS system or online ordering platform that supports discount codes. Platforms like Toast, Square, or Clover often have built-in features that allow you to create and manage promo codes easily. If you’re using a different system, check its capabilities or consider integrating with a third-party service that offers these functionalities.
2. Define the Discount Type
Decide on the type of discount you want to offer. Common options include:
- Percentage Off: A discount that reduces the total order amount by a certain percentage, e.g., 10% off.
- Fixed Amount Off: A specific dollar amount deducted from the total order, e.g., $5 off.
- Free Item: Offer a free item (like an appetizer or dessert) with the purchase of a certain item or when the order exceeds a certain amount.
- BOGO (Buy One, Get One): Purchase one item and get another at a discount or for free.
3. Set Up the Promo Code in Your System
Once you’ve chosen the discount type, you’ll need to enter the details into your POS or online ordering platform:
- Name the Code: Choose a memorable code name, such as “WELCOME10” for a 10% discount for first-time customers.
- Set the Discount Parameters: Define the conditions under which the discount applies, such as minimum order value, specific menu items, or a limited time frame.
- Limit the Usage: Decide if the code can be used multiple times or if it’s a one-time offer. You can also limit the code to the first 100 customers or set a specific expiration date.
4. Promote Your Promo Code
Once your promo code is set up, it’s time to promote it. Use various channels to spread the word:
- Social Media: Share the code on your restaurant’s social media accounts, using attractive visuals and clear messaging to catch attention.
- Email Marketing: If you have an email list, send out a campaign announcing the promo code to your subscribers.
- Website Banners: Place banners or pop-ups on your website that inform visitors about the current promotion.
- In-Store Promotions: If you have a physical location, use in-store signage to alert customers about the online discount.
5. Track the Performance
After launching the promo code, it’s important to track its performance. Your POS or online ordering system should provide reports that show how many times the code was used, the total discount amount given, and any impact on sales. Use this data to assess the effectiveness of the promo and make adjustments for future promotions.
Why Promo Codes Are a Smart Move for Restaurants
Setting up and promoting discount codes might require some initial effort, but the potential benefits make it worthwhile. Promo codes can lead to increased customer acquisition, higher sales, and stronger customer loyalty—all critical factors in the restaurant industry. Moreover, in the digital age where convenience and value are paramount, offering discounts for online orders can position your restaurant as a modern, customer-friendly business.
By strategically using promo codes, you can tap into new markets, clear out excess inventory, and ultimately, boost your bottom line. If you haven’t yet implemented promo codes in your online ordering system, now might be the perfect time to start.
Call Phoenix Geeks Today at 833-PHX-Geek to learn how to optimize your restaurant’s POS system for promo codes and other advanced features. Additionally, if you want to learn more about Toast POS and how it can revolutionize your restaurant’s operations, visit GetANewPOS.com.
