Tumblertown

Because of the economy attempting to make a comeback, looking at how some of the businesses are attempting to turn their businesses around can be interesting. An effective approach that Applebees is taking is simply dropping their prices. Obviously the first question that comes to mind is whether or not it will work.

One thing is true, and that’s coupons being cirulated to the public. There are lots of offers for discounts on various items. The most popular of these items is the onion bloom. The discount coupons usually give a decent discount, sometimes over a dollar per item and the onion bloom.

The problem naturally is the fact that although sales are improving on account of coupon sales, there isn’t any trustworthy statistics for how well coupons are generating them; Applebees, just like others, is unable to 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 which is why applebees coupons are so important. 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; Applebees 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. All Applebees knows is that it is gaining more customers each quarter, and that means that something is working, so that’s good enough.

In essence, the way in which an Applebees restaurant determines the cost of coupons as opposed to the cost of advertising is to look at their front doors; if customers still open them frequently, they consider the expense of marketing an effective expense. 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 on a regular basis. Although additional accurate reporting might make for a more proficiently run restaurant, and would be able to determine a more specific expenditure, this probably will not happen as it’s just too difficult to track.