The wonderful blog Consumerist makes great points about the recent snafus in "free" coupon giveaways by restaurants like KFC and Arby's. It only manages to generate consumer mistrust and cause long-term damage to their reputation.
I've identified four rules that chains should follow before giving out something for free (consumers can also check these rules to see whether a certain promotion satisfies):
1. Make sure you've got your franchisees on board: Some chains are announcing "free this" or "free that" but not getting the support of the franchisees who own the actual restaurants. When Popeye's promoted a discounted chicken special but didn't get its only location in Minnesota on board, it only ended up with angry customers and lots of bad press.
2. Don't promise too much. Denny's free Super Bowl breakfast aside, less is
more here. While a free burger won't attract the same crowds as a free value
meal, it also means not having to put up with the such
long lines. A week before the Oprah fiasco, KFC was able to meet demand when it gave away one
piece of chicken. It might have earned a lot of customers in the process.
But when they tried to do more, the promotion got out of
control.
3. Don't require a coupon.
Often deals inspire a certain type of people. Not freeloaders per se
but not regular customers either. These people will not only make employees' lives hell but could alienate regular,customers who might not
even be aware that there's a special promotion. The last thing any chain wants is to make loyal customers feel excluded, and if
they walk into the restaurant only to see a
bunch of people with coupons getting free stuff while they have to pay
full price, it's going to make them angry. To be on the safe side, just
make the deal for everyone. Yes, you'll give away a little more but if
you're so stingy about giving away free food, why run the deal in the
first place?
4. Don't pay to advertise it. This is
where I think Denny's really messed up. It paid more than $2 million for a Super Bowl commercial, even though the free breakfast was
spectacular enough that television stations, newspapers and certain
food blogs (ahem) would have made sure it received plenty of press.
Showing 1-1 of 1
like
dislike
