Friday, December 12, 2008

How Restaurants Should Respond to Customers Asking for Money for Charities

One question that often remains unanswered is what to do with all these people coming to your restaurant and asking for donations (gift certificates).

It seems like lots of people all the sudden think that it is a great idea to go to their favorite restaurant and ask the owners for gift certificates to donate to their children's schools, their churches or their preferred charities.

Of course, they don't realize that hundreds of customers and organizations have the same idea and ask for the same gifts. And perhaps they think that this sinking economy is not impacting your business.

And what can you do, poor restaurateur, but suffer the unpleasant experience of having to say NO to these, often pleasant and good people?

Don't despair. I have a couple of ideas for you to use next time that you get the happy solicitor asking you for a donation:

  • If the solicitors are organizations with many people: school, hospital, church, charity, etc. Offer to give them many small gift certificates that don't cover your average price per customer. For example, if your average ticket is $25 per person, offer gift certificates for a value of $10. Also make sure that you clearly print on them that they can't be combined. You want to take advantage of this opportunity to give away coupons masked as gift certificates for a value less than your average check so that the customers coming will spend more money in your place.
  • If the solicitors are individual customers. Offer to sell them the gift certificates at a discount. You can apply the same principle than before. You can sell them several $10 gift certificates for a value of $5 each. They can buy as many as they want but they have to give them or raffle them to many people (and not bundling them together) so that many people get to come and try your place. Tell them that you are contributing your share by giving them the discounts, but they also have to contribute theirs by paying for the difference. After all it's their idea and it should be their donation, not yours.
If you apply both techniques you will:

  • Be happier because you won't have to say NO to a good cause
  • Leverage your marketing by distributing gift certificates that will bring additional customers (who could be potential clients) to your place at a minimum cost

It is a win-win proposition.

Happy Sailing,

Jose L Riesco
© Riesco Consulting Inc.
www.twitter.com/jlriesco
http://www.myrestaurantmarketing.com

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