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The old stigma attached to coupon use at restaurants has turned into "a badge of honor," something people will share with friends on Facebook, David Grzelak, an executive director at Engauge, told the Chicago Tribune in the recent article "Small gains are big news for restaurants."
Though the recession-hit restaurant industry is taking "baby steps to a recovery," Grzelak said, businesses that take advantage of the new cultural cachet of coupons—both online and traditional clip-and-save—stand to realize significant gains in 2011.
"You don’t have the same freedom and frivolity around eating out that you had prior to the recession," he said. After suffering a serious decline in 2009, revenue in the restaurant business has grown slowly, but steadily, with single-digit increases forecast for this year.
People are now eating out more often, "but they’re doing so much more cautiously," notes Grzelak. He said today’s consumer spending is characterized by "more guardrails, warning signals." Online deals and coupon offers can lower those inhibitions and deliver significant returns for restaurants.
The Engagement Brief features the latest research and insights from Engauge.
One of the nation's largest independent agencies, Engauge leverages creativity and technology to develop transformational ideas that connect brands and people. Engauge guides a growing roster of clients on the path to realizing the power of digital channels by focusing on driving results and sustainable growth for brands. The agency's client roster includes Nationwide Insurance, DAD'S Pet Care, The Home Depot, Best Buy For Business, Chick-fil-A, Brown-Forman, Food Lion, Van Gogh Vodka, NGK Spark Plugs and more. Engauge, which has offices in Atlanta, Austin, Columbus, Orlando and Pittsburgh, is a portfolio company of Halyard Capital.
