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Dining vouchers still popular but most consumers would use restaurants who remove discount

1 commentBy Peter Ruddick , 05-Jan-2012
Last updated on 05-Jan-2012 at 16:22 GMT

Related topics: Business, Trends & Reports, Restaurants, Pubs & Bars

Restaurant discounts and vouchers are still popular with nearly two thirds of consumers using them when dining out but just 18 per cent say they would stop visiting somewhere if they were removed, according to a new survey from Deloitte.

Deloitte says discount vouchers remain popular but diners might not boycott restaurants who remove them

Deloitte says discount vouchers remain popular but diners might not boycott restaurants who remove them

Casual or fast food style restaurants are the most popular places for consumers looking for discounts with more than 60 per cent of diners using vouchers, while half will use them in a fine dining establishment and 48 per cent in a pub or bar.

Deloitte talked to 3,000 UK consumers about their eating and drinking out habits in the latest Taste of the Nation survey and the findings show that vouchers were popular among diners during a busy Summer period.

Consumers to eat out less in next six months

Despite economic problems, on average diners in the UK went out for food or drink almost 20 times a month, more than six months ago, but they are more cautious about the next six months and expect to eat out less in the first half of 2012.

The survey finds that vouchers from sites like Groupon are a big part of the resilience of the sector and are now widely used across the hospitality industry. Young people are the biggest users of vouchers although just over half of over-55 year old diners also use them.

Less than 1 in 5 would boycott outlets that removed vouchers

However, the impact of dining vouchers might not be as obvious as the headline figures suggest. Just a quarter of consumers say they eat out more because of vouchers and only 18 per cent would stop visiting a restaurant or bar who removed the discount.

The youngest age group were the most likely to boycott somewhere that stopped offering vouchers but Jon Lake, a corporate finance director in the licensed retail group at Deloitte, said discounts were not the only way to increase their loyalty.

“Vouchers are undoubtedly an excellent tool to generate new custom, especially amongst the 18-34 age group, the biggest market for eating out. However, the challenge comes when converting that consumer into a loyal customer willing to pay the full price in their establishment.

"Some will find it difficult to determine the most effective method for phasing out vouchers and increasing their customers’ average spend whilst retaining their loyalty. However, our research indicates it could be achievable," Lake concluded.

Earlier this week BigHospitality reported that the food service consultancy Horizons predicted restaurants would continue to use vouchers but cuts in food costs would help counteract the cost for operators.

1 comment (Comments are now closed)

Well thank God for that!

The whole point of discount vouchers is to get people to carry on using you at full price on subsequent visits. Good to know they do, so by implication voucher discounts do their job.

My worry with discount voucher people is that they organise their whole dining life around the voucher restrictions, ie their loyalty is to the voucher promoter, not the restaurant. Having said that, it is a fact of life that the same meal can be sold for more on Saturday night than Tuesday afternoon, and "early bird" and "Monday specials" do not irritate the premium part of your market. In fact, there is a good argument to say you are running two businesses, at different times of the week.

Wonder if the same applies to HighLife. There's a debate, fellow sufferers - which is least worst, a Groupon diner or a Highlife diner (two glasses of tap water please!)

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05 January 2012 | 16h24

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