We have all been to restaurants that have a section of their menu dedicated to value meals. This is where they highlight their menu items that are wallet friendly for those looking to save a dollar. Sometimes it is a full meal that is discounted, but some offer just the entree like 4 chicken nuggets or a single burger for a steeply discounted price. This is great for customers, but it is also great for restaurants because it encourages the customer to buy more since they are spending less. Restaurants usually try to upsell by asking if they want to add fries and a drink, or if it comes with fries and a drink, asking if they want to upsize their order. So if restaurants are selling these items at such a low cost, what is the real benefit to the business?
Customer Loyalty
When you offer a value menu that has items that customers love, you are going to build customer loyalty. First, you are going to peak the interest of new customers if you are advertising your value menu, but you are also going to retain customers that want to come back for more great deals. When people know that they can go to you for great food and great prices, you will begin to see more and more repeat diners. The good news is that the more they visit, the more likely they are to try other items on your menu and spend more money, which leads us to our next point.
Increase Sales
Essentially, restaurants bank on people going to their restaurant for the value meal, but then ordering more once they look over the menu and see that for just a small amount more they can get something even better! It is typical for customers to get in the restaurant and then reconsider their order and think, “Yeah, I might actually need a drink to go with my meal!” or, “Fries sound really good, I should just grab those too.” Some people choose a meal and then like to add a value menu item just for good measure since it is not that expensive. Whatever the reason, it is helping to increase your sales.
Value menus should be a good deal for the people who are purchasing, but they also need to be a good deal for the restaurant, so it is important to know exact numbers when it comes to plate costing and figuring out how much to sell each item for.
A value menu doesn’t have to be long. Pick just a few items that will help out those customers who might not be able to afford much more, but also are great options for families who want to add a few more items to their order at a reasonable price. This could be a great way for your business to widen its profit margins and keep customers coming in during these tight times. Some diners are choosing fast food over casual dining due to feeling the pinch in this economy, so now is a great time to take advantage of the benefits of adding a value meal.
