What Would Be a Reasonable Restaurant Offer That You Cannot Refuse?

Long time lurker… first time poster, and yes I had to finally create an account to post in the forum (hence newly create account).

I have a genuine concern and need your opinions, input and help! My friend owns a restaurant in Melbourne (Indian cuisine), unfortunately I cannot name the restaurant as he has no idea I am posting this here, I just wanted to know if I can help him out. Also, the restaurant's name does not really matter for this post as this essentially applies to all restaurants.

The concern is that his business is not doing well. He has tried multiple different offers like % off total bill, and various offers on UberEats etc. He says the offers get a few customers in but then it is the same. He does social media marketing, has reasonable rating on Google (4.4 stars overall) as well. From a customers perspective the food is good quality, tastes good, service is really goos, customers are generally happy.

The main reason for this post is to understand what would be something that he could do to increase their regulars. I am asking from you guys as I have seen you guys usually have sensible opinions (sometimes harsh) and genuine ones! What would you want in a restaurant that would make you return and be your go-to restaurant?

He is really struggling at this stage to make sure his business survives and I often see him stressed due to this. He has tried multiple things that the marketing world tells him. They do fb/insta ads as well + organic posts almost every other day. So basically he has tried pretty much everything I would say.

So the main question being… what would a reasonable promotional offer for you be to get to a restaurant you have never tried before! As I feel once people try the restaurant, there is not much to not like about it, it is decent.

Any help/input is much appreciated and please don't be harsh as it is my first post in the forum, thanks guys!

Comments

  • +4

    What would be a reasonable restaurant offer that you cannot refuse?

    "Would you like fries with that…"

    • If i understand that correctly, does that mean they should offer some surprise sides/freebies?

      • +3

        I think they're making a McDonalds joke :)

      • +7

        thier

        Do you make this spelling mistake with monotonous regularity on purpose?

        • +2

          I saw someone on discord talking about how he's fine tuning his shitty reddit post AI to do things like this so it'd look more human lol

          • +1

            @idonotknowwhy: You saying that I waste all of my negative vote quota on an AI bot?

            • +1

              @MS Paint: Some grad student created their own very first comment bot - the bot took it literally and that’s all it replies to now

  • +33

    What are the prices of the dishes? That's the main factor for a lot of people. Why spend $25+ on a butter chicken when you can make something similar (albeit not as good) at home for $10.

    Unfortunately you've asked a bunch of bargain hunters - so while many of us will go in for a deal, like buy one get one free, we'd likely not return and pay full price later.

    • Thanks for your input. The price of the dishes is around $21ish. Correct if it is just to feed the tummy, homemade is fine, but we all sometimes go out for the experience and to treat ourselves and if that comes at a reasonable bargain its not bad.

      The reason to ask bargain hunters is that you guys know deals inside-out! ;) what is a good deal, which deal is not so great, I think ozbargainers have a better understanding of 'deals' in various contexts. So if something can lure ozbargainers to his restaurant… it can get the regular crowd in as well (hopefully). Overall I want to suggest him some ways that can help him get some cashflow at this stage, so he doesn't have to shut down unfortunately.

      • +32

        The price of the dishes is around $21ish.

        This might be part of the problem. Indian food used to be cheap and considered value for money (as well as being quite tasty). Nowadays a butter chicken or curry costs that much, is often a few pieces of chicken tikka soaked in sauce, and more often than not doesn't even come with rice which is extra. There are so many alternative options nowadays that it isn't a tempting proposition.

        I don't think promotions are going to attract regular clientele. Unless the place either caters for the cheaper market (i.e. Student Biryani) or has some added value location (e.g. Lal Qila Barangaroo) or is deeply routed in history/heritage and been there forever to build a regular customer base, it's going to be a tough sell.

        Also, is it a traditional authentic Indian restaurant, or a 'colonial' one catering for different tastes? They're vastly different and attract different people.

        • I think his prices are ok-ish compared to other similar restaurants, but yes overall the prices of indian food have gone uphill.

          I was thinking on the lines of… that if he puts up some promotion that does not put him at loss, at the same time is enticing for the customers, and if they try his food, they might revisit etc. you know how sometimes its like customers have no idea that a restaurant like this exists.

          the place technically does not caters for cheaper market.

          thats actually a good question…. i want to say it is between authentic and 'colonial' (as he has a mixed crowd), but mostly on the authentic side.

          • +32

            @lukejen: Just from personal experience of why we stopped going to our local Indian place, was to do with portion sizes. I don't mind paying $21 if it would be enough for a leftover meal, but if it is a single meal I generally won't pay $20+ for a take-away. Our local place reduced portion sizes and I stopped going because of this.

            • -5

              @conan2000: you want two meals for $20 from a restauratant??? wow

              • +6

                @CheapskateQueen: Not two meals, he said the portion size is too small. I have always had left over curry and if it did not, i would stop going as well

                • @dealsucker: "if it would be enough for a leftover meal" …i understand that as saying you want the portion to be big enough that there will be left overs to eat as a meal

                  that's two meals

          • +4

            @lukejen: Could he perhaps do a daily special. he might be able to buy the ingredients in bulk cheaper for each to make the economies of scale add up. one item per day. I wish your friend good luck.

          • -8

            @lukejen:

            I think his prices are ok-ish compared to other similar restaurants,

            You asked for feedback and have immediately and unnecessarily become defensive after being given some genuine feedback.

            While the prices of dishes may compare to other Indian restaurants, it's still a huge reason why most people don't bother with Indian restaurants any more.

            We have stopped going to Indian restaurants for this very reason as well. Small portions, large prices and the need to order several things to have a meaningful meal. A main dish or two, rice and breads separate and the cost adds up quickly to the point where there are much better value propositions available.

        • +6

          Exactly this. A curry for $21 and the each naan for $3 or even $4 and it becomes a terrible value proposition. There is much better much higher quality food to be had for that amount of money.

          • +1

            @dealsucker: My local curry shop is one that has bain marie's as opposed to a restaurant. The food is tasty and the large containers of curry only are about 18 bucks, and I typically buy two and get two dinners out of it and leftovers easily. Naans aren't as cheap at 5 for a cheese or less for others but these and rice can be seen as optional (since you can make rice at home). It's quite busy most of the time so I would suggest your mates place is not cheap, at least not if it's the same style of place.

            Down the road there's a sit down Indian restaurant that's changed hands 5 times, it seems no one can make money out of it. 4 of the times were before the above restaurant came on board, so it would only be harder for them know. I tried out a couple of them and the food was fine, so it's the price. They are competing with Thai. Chinese etc

      • could you do some low cost or specials night with cheap ingredients - ie Batata Bhaji and parathas, + heaps of butter always keeps the customers happy as it tastes great

      • If it was an "experience" thing then i wouldnt expect any regulars? You charge a fortune and unlikely you would see them again…. thats the business model…
        Also, the location matters as well. Does your friend have that many locals that are willing to pay for that experience?
        For indian food (no disrespect), I would expect cost to be the main competitive advantage, the same as cheap chinese takeouts that serve cheap large portion food for like $12-$15.

  • +2

    $5 lunch and $1 can of drink, proper lunch not meal in a cup bs

    • +10

      Who is doing a proper lunch for 5 bucks? Even 10 these days is dirt cheap

      • +1

        There's a takeaway sushi place in Brisbane CBD where most of their menu is $7.5 ea .. curry, karaage, teriyaki, all with rice.
        Close to train station so prob rent isn't cheap but they seem to do well, been at same price for years. Brissy CBD workers probably knows this one, or Mr Curry which was at similar price point for >2 years.

        When I'm walking to that place and I see an indian restaurant doing $5 lunches, I'll do a u-turn and walk towards it.

        • +1

          The problem is the $5 indian will give you one piece of thumb sized chicken swimming in sauce.

          • +1

            @Hydrool: I'm not expecting it to be a permanent price, just something to bring people thru the doors. An 'offer I can't refuse' as OP wanted. A Japanese place in the city can do $7.5 curries any day, $5 temporarily miight be reasonable?
            Restaurants do $2-$3 meals thru Uber Eats promos occasionally for the same reason, encourage people to have a taste.

            If they serve a thumb sized chicken then they're negating their own promotion since people won't come back.

        • Which place? Near Central or Roma St?
          My usual cheap karaage place near Roma St closed down so looking for options.

          • +2

            @NigelTufnel: Sushi Paradise, 200 Adelaide St (so google map tells me)

  • +43

    Promos won't make me a regular.

    The place has to be close to where I live or work and better value for money than any nearby competition.

    There's a bit of a cost of living crisis happening right now btw.

    • +2

      Promos won't make me a regular.

      But the Rogan Josh sure will.

      • +19

        Isn’t that a podcast

        • +2

          I'm gonna start replying to people who mention him with "isn't that a curry"

      • +4

        I think it's Josh Rogan Experience

        • +1

          that's what OP's friend needs to do: theme it. Rename it to the Josh Rogan Experience, and just go nuts with the theme.

    • +2

      thats right… there is not enough to spend these days. cost of living is crazy. his place is in the city, so loads of office crowd, but not many getting in unfortunately. Yea better value makes sense. thank you!

      • +3

        Is it brightly lit? Airy? Can you smell the cooking as you walk past? Love that smoky charcoal indian chicken cooking smell.

        • +2

          That can go both ways though, especially if one is using rancid oil which many are if they are cutting costs like the OP has mentioned.

          I highly suspect like others, there is something wrong with the way the food is cooked. Remember the OP is very likely the owner, given past threads like this on OzBargain.

          Furthermore, Indian food goes best with Corn Oil. If they are using cheap Canola Oil, that smell will permeate throughout the premise…

      • +3

        A familiar tactic is to recognize your fanbase demographic. Are there a few regulars who seem to embody a theme? Are the regulars visiting the restaurant at lunch or dinner? Are they budget conscious or lavish diners or some of each? What are the delivery order patterns? Figure out the questions to get the answers relevant to this restaurant.

        Target the office crowd with promos. If the restaurant can get an app sorted or get on DoorDash, MenuLog, etc., perhaps concentrate on lunch specials. Minimum spend for free delivery will potentially have office workers combining their orders to reach the target amount ($45? which is 2 meals + sides/desserts or 3 meals). That exposes more people to the food and makes each order sizable enough to potentially offset fees. If meals are generally $21 offer a 3 main meal combo for $55 or whatever maximum price is appealing. If the food is really good, one office worker can order extra meals for dinner and the freezer to score the combo price. The trick is to offer a discount which still profits the restaurant.

        Figure out a loyalty system that's easy to manage by the restaurant and to use by customers. Perhaps the office crowd is close enough to warrant a punch card (buy 4 whatevers and the 5th is free) which is a relatively inexpensive experiment. I'm a sucker for interactive apps and discounts within the app. Make it attractive to be a repeat customer. I know I order Hungry Jack's a lot more now that I have the app because of the weekly vouchers, app deals, and Shake & Win. Some will only order the minimum but most customers will add on extra food and drink.

        When QR codes were new, I created an html version of a discount offer. Scan the QR code on the restaurant wall to generate a discount. There were 60 rewards and the minute determined the prize. I have 3 friends with restaurants and it sounded too complicated to them because QR codes were nowhere at the time. I believe there are enough people who want to be entertained with their transactions that gamifying purchases are a good idea.

  • +8

    Jerry is that you? https://www.youtube.com/watch?v=scSkB_6Sng8

    Is it predominately a sit down restaurant or more so take away? Obviously most restaurants need to cover both but it depends what the area that needs focus is.

    The successful Thai restaurants near where I have lived had some commonality.. Both had seating for a range of group sizes and ability to quickly adjust. The lunch special was rice + dish, or noodle dish under $15 (depending on veg or meat) and ran until 4pm. Dinner was dish plus separate rice then 3 or more dish = free rice.

    Possibly some of those options could align with your friends restaurant.

    • +3

      Not Jerry haha….
      Yes it is predominantly dine in.

      I think he was planning to do the same for lunch… dish + rice for $15, not sure if he started that yet. I like the idea of 3+ dishes gets free rice, I will tell him, thanks!

  • +3

    I would suggest reading the Google reviews for answers …

    Asking a bunch of bargain hunters will just result in screams of "cheaper prices" somehow ;)

    Personally, I would make it a regular if it was authentic Indian (no seed oils, using ghee instead, etc) …

    • +3

      They can set a a loss leader pricing for a day or a week, make the place look busy. If he's got a queue of people lining up on the footpath, that will grab attention.

  • +6

    lunch specials are always good (like $10-$15). As cliche as this sounds, a good butter chicken IMO is a must as most kids i know love that stuff.

    • +1

      yea i think he was planning $15 curry + rice. his butter chicken is the most popular, it is good. thanks for your input.

      • +1

        Maybe you could provide a free portion of rice with like 500g of curry. So maybe $21 for a Butter chicken curry + free portion of rice. Rice is relatively cheap. Basically same idea as above but more portion?

  • +3

    Having meal in Sydney now is around $18. I would love to go out more if it's $15 or less

    • what does that meal include, the one you had if I may ask? last I spoke to him, he was planning a $15 curry + rice option for lunch, so that might help.

      • People like myself like simplicity. If there is a lunch special of $15 which is; main meal + rice + drink, that would attract me every now and then for a lunch work.

        If he's going to do main meal + rice (w/ drink EXTRA), then I'll end up going to somewhere like Guzman gomez where I can just buy a burrito for $13.70 and drink my own water + get Gomex points. Perhaps you can't compare a nice hearty butter chicken + rice with a burrito, but at the end of the day as long as it satisfies my craving and somewhat fills my tummy.

  • +12

    The problem with Indian is that there are so many moving parts to it.

    People really want the main dish, plus rice, plus naan.

    But you are forced to buy a full sized meal, full sized rice and then the naan.

    It might give you two, maybe three meals - but it comes expensive.

    If he was to offer a dinner offer of half main/half rice and a papadum.

    He might find people will jump at that and reach for a can or naan bread.

    • +1

      What you are referring to is called 'Thaali' - you may need to look for restaurants which offer a Thaali (there are some in every major city). It typically has small portions of a couple of curries/daal, naan/chapati, and a few other items. It's like a set menu for one person for a fixed price.

  • +5

    Free meal if you roll a 6 on a die. People will go for the thrill and order more and it works out to be a 16% discount across the board.

    • Do you need a gaming license for that?

      • +2

        No but not that you mention it, some pokies at the entrance would surely do the trick. Good thinking

    • Reminds me of a place in Newtown where if there is a cricket match on with India, especially if against Australia, the owner will let you flip a coin and if you get it right, its half price, or maybe free but I forget

      • Went to an Indian restaurant once that had cricket trivia - if you got 5/5 you scored a discount.

  • +4

    The problem with one off discounts is that customers can just cycle through all the restaurants offering them. You can build the perception that it's only good when discounted, so when it's not discounted it's not worth it. IMO have a regular specials board rather than try bring people in with one offs. Uber eats and sit down customers are also very different, personally I'm not a fan of restaurants where uber eats drivers are rushing through the place regularly while I'm trying to have a nice meal.

    There's also just that Melbourne is restaurant dense and there's a lot of Indian restaurants around. What's the demographics and competition like? Are there a lot of restaurants to compete with or just a few? If you're competition is nearby, rated 4.6 and $1 cheaper, you're going to lose all the time, despite being such a small difference.

    • you are right… if a restaurant usually discounts, when it is not discounted it doesnt seem worthwhile. but at this stage I guess it is more about cashflow, definitely not longterm.

      Its mostly family crowd and couples. There are a couple of indian restaurants nearby, and their overall location is better (in terms of access and lively area compared to his unfortunately).

  • +2

    I think you can divide into two tasks; getting new customers in, then encouraging return visits. Attracting new customers is hard and will probably cost. How about something like EatClub? Whatever he uses to get in new customers, he should be prepared with an in-house offer, like handing out a discount voucher for the next visit, or setting up a loyalty scheme.

    • thats a good idea… regarding handing a discount voucher for their next visit. its good if he is able to set up loyalty as well but i guess that will take time to implement.

  • +5

    Is it byo?

    • it is fully licenced, no byo.

      • +3

        this is your problem

        • +1

          you think? I hate BYO restaurants. If i'm coming to dinner, you should provide me with everything I need.

      • +1

        Think about the current climate.
        You add byo aswell and you get more of the market who want byo

  • +1

    Are there other restaurants in the area and how are they doing?

    • -1

      yea there are 2 main competitors in the area, usually they are the same in terms of diners but sometimes the others are doing good while his restaurant is close to empty he says.

      • +2

        There has to be some differences, need to work out what. Service/ prices/ drink prices/food etc

      • +6

        You sure seem to know an awful lot about the business, competitors, comparative prices, popular dish, promos in plan, etc. corresponding to the restaurant owned by 'your friend'.

  • +3

    Maybe a few good Thalis so people get a mixture of flavours. To me indian food can be a bit heavy so a few taster dishes with some bread and rice would be a better option. Is the place licensed, BYO or unlicensed? Maybe he can do a deal with wine if four people are dining etc. The Indian food we went to in Mauritius was amazing because it was beautifully spiced. Fresh clean flavour and backed off the heat. Perhaps he can have different specialties during the week. The one near us has butter chicken Wednesday.

    • +1

      i think he does thalis for lunch. it is fully licensed permises.

      yea I will tell him to play around with some new ideas like deal on the wine for 4+ people and butter chicken wed! thank you for your input, appreciate it!

      • +1

        Wrong place open ( open restaurant next to famous same cuisine)
        Average quality food also make it hard to divert and make regular customers,
        Atmosphere and vibe of restaurants also very important. To attract new customers always they see from window and it needs to be well decorated and nice atmosphere. If it look like take way restaurant feeling then you would stay empty and live on take way.

        Free byo can attract many people and give good deal with birthday party because most of Indian restaurants live on birthdays party or takeaway. Unless they got popular and most Indian happy to travel far to go most popular restaurants.

  • He could get a liquor license, people do like to drink when they go out.

    • true… it is fully licensed though.

  • +5

    He needs to look at what the competition offers around him (prices, serve sizes etc). Like actually go to their restaurants and order from them. See how busy they are at different times etc. Look at their websites/socials as well.

    Only then will he know why his business isn't working.

    This place as an example, gets 4.3/5, melb cbd based, and offers this:

    Butter Chicken Thali —- $ 17.90
    Large Butter Chicken Served with Rice, Naan, Pappadum & Pickles

    • +2

      Not just in the immediate area. I travel 30+ mins each way from home for my favourite restaurants because they are miles above anything local.

    • yea makes sense… I will share this info with him, thanks!

  • +4

    Most of the curries are just same readymade sauce and added meat, veggies etc. ….may be try to serve some authentic dishes…..

  • +2

    Does he have a family pack or dinner for set menu for 2.

    That's what I look for when I go to an Indian restaurant.

    I don't need a 50% off deal, but if you have a entree + 2 curries + rice + naan and I liked the food, I'd be a regular. I'm happy to pay extra for drinks (mango lassi please) and homemade pistachio ice cream

    Best of luck to your friend.

    • yea he does set menu but only for groups of 6+ or 8+ (not sure of the exact number but it is definitely for more than groups of 6+ i think). thank you!

      • There can be 50 people wanting a set menu but they may not come in as a group or at the same time. Is there a reason to do this only if it's a group of 6 coming in together?

      • I shouldn't use the term set menu, I should say a dinner pack for 2 or 4.

        e.g. if 3 people come, then they can order a dinner pack for 2 + an extra curry and rice.

        Anyway that's my suggestion. Hope it helps.

  • +2

    In this economy there is nothing he can do, all restaurants are fighting for a significantly smaller cut of the pie.
    People have significantly cut discretionary spending. Indian cuisine has the struggle of appealing to a smaller percentage of the community by default.

    • +1

      that is definitely a major factor for sure. he is just trying to survive for now…

  • Also social media ads. A well designed and implemented ad easily pays for itself. A bad ad is like pissing money into the wind though.

    • he does fb ads… but I have no idea about their performance. they are probably not working by the looks of it lol…

  • Have you tried yum cha Indian on the weekends?

  • +4

    Reasonable prices and good food and service beat any offers. My local indian was great, but they started cutting back on the meat in dishes and just filling with veges and sauce so i stopped going. loyalty discounts can help to make me a more frequent customer, i.e 10% off for repeat customer.

    • yea I will suggest him to run some kind a loyalty program, but might take time to implement, lets see. thanks!

  • +3

    Running a restaurant is tough, especially when the profits from all this generally just go to the landlord. I think generally the ones that survive / do well have always been able to build a loyalty base / regulars. And this is usually due to the quality / taste of the food and decent pricing for it. Showing some extra care for them / recognising repeat customers can keep them as repeat customers.

    • +1

      thats true… customer loyalty is crucial. he has his share of regulars but they are quite few in number apparently. his service is good and often gets compliments for it on reviews, but not sure if the staff is good enough to recognise repeat customers appropriately, maybe unless someone visits too frequently. good points though, thanks for your input.

  • +2

    Get a piss license and upsell them on booze. Most people in this country are piss heads and can't help themselves and that's how top restauarants make their money anyway.

    • should have mentioned sorry… it is fully licensed premises.

  • +2

    Ive found a majority of indian restaurants in the past to taste amazing, however they always, always have tiny portions, so i just dont bother going to them anymore. As others have said, would rather cook it at home or even just the coles/costco butter chicken premade containers tase dam good for $10.

  • +1

    Restaurants are getting hit hard.

    Start with fundamentals like renegotiate utilities, cut staff, close on slow nights, restrict opening hours etc.

    Past that, as others have suggested it's competition, pricing, portions and value.

    Have they considered cheaper meats such as goat?

    • he has cut down on staff already, but i think he feels that closing on slow nights or restricting opening hours may affect his restaurant's image adversely, so he is not willing to do that.

      I am not sure if he has considered goat, as far as I remember he does not have goat on his menu… only remember seeing chicken, beef, lamb and fish on the menu.

      • I would look at the sales and see what can be culled.

        Keep the top performers, dump others.

        Change fish to vegetarian options such as Dahl, Aloo Gobhi, Paneer etc. Look at traditional Sikh options to save money.

        Any stupid extras that arent cheap to make and high wastage, stop selling.

        And I would take a look at the figures on Monday and Tuesday tbh

      • Perhaps he can share the premises on slow nights with a different restauranteur. I visited a restaurant that was a regular Aussie sit-down restaurant but had one night a week that turned into a Yank diner. The Yank diner people were testing the customer waters, paying the Aussie restaurant rent for the night and, hopefully, taking profit home. At least the restaurant is getting funds in through rent on a slow night.

      • may affect his restaurant's image adversely

        Given the fact that not a lot of people want to eat at this joint, I'd suggest this "image" of the restaurant is pure fiction and resides only in your "friend's" mind.

        Nobody cares if a restaurant was opened last Thursday or not if they want to eat in there today.

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