Tuesday, September 3, 2024

Kids Eat Free Promotions Are Back – Here’s Why Your Restaurant Should Jump on Board

 


At Tacoma, WA based Foodservice Solutions®, our Grocerant Guru® Steven Johnson says, “Success leaves clues,” and one of the biggest clues in the restaurant industry is that focusing on families and kids works. One of the most reliable traffic drivers for restaurants has always been the "Kids Eat Free" promotion. While it was once the domain of family-style restaurants like IHOP and Denny’s, the concept has now spread across various dining segments. With guest traffic down across the board, more and more restaurants, from casual dining to even the likes of Denny’s, Captain D's and, Chili’s are leveraging Kids Eat Free promotions to attract families.

Does It Work?

The short answer is yes—Kids Eat Free promotions do work to drive traffic. However, the more important question is: "Is it right for your business?" Offering free meals is a surefire way to bring people through the door, but the goal is not just to increase foot traffic—it's to make a profit. The key to a successful Kids Eat Free promotion is structuring it in a way that benefits both the customer and your bottom line.

Structuring a Profitable Kids Eat Free Promotion

Most successful Kids Eat Free promotions come with conditions that help cover your costs. Common strategies include requiring the purchase of a regular-priced adult meal or a kid’s beverage in order to receive the free kids' meal. Some restaurants also set limits, such as allowing only two kids per adult meal purchased. These requirements ensure that the promotion doesn’t turn into a loss leader, where you’re giving away more than you’re bringing in.


The Drawbacks: Loyalty vs. Price Sensitivity

While these promotions are great for bringing in price-sensitive customers, they don’t necessarily build loyalty. Just like coupon clippers, these customers may hop from one restaurant to another, depending on who’s offering the best deal that week. I’ve seen this firsthand in a chain that offered Kids Eat Free on traditionally slow nights—Saturday and Sunday. While guest counts surged during the promotion, they dropped right back to their previous levels once the promotion ended.

The Longevity Trap

Another critical factor to consider is how long you plan to run the promotion. Many operators roll out a Kids Eat Free promotion as a quick fix for low traffic on certain days or during specific dayparts. The challenge is that once it starts working, it’s tempting to expand the promotion to more days, which can ultimately devalue your product in customers' eyes. If customers start expecting the free meal, you may find it difficult to remove the promotion without facing backlash.


Why Every Restaurant Should Consider a Kids Eat Free Program This Time of Year

Given the potential drawbacks, you might wonder why you should even consider a Kids Eat Free promotion. Here are five reasons why it might just be the traffic-driving tool your restaurant needs:

1.       Attracting Families: In today's economy, families are looking for value. Offering a Kids Eat Free promotion can position your restaurant as a go-to spot for family dining, helping you build a broader customer base.

2.       Filling Slow Times: If your restaurant struggles with low traffic during certain days or times, a Kids Eat Free promotion can help fill those gaps, turning slow periods into profit-generating opportunities.

3.       Increased Adult Sales: By requiring the purchase of an adult meal, you’re ensuring that the free kids' meal isn't just a giveaway but a strategic move to increase adult sales and cover costs.


4.       Brand Differentiation: In a competitive market, a well-publicized Kids Eat Free promotion can set you apart from your competitors, giving you a unique selling proposition that resonates with budget-conscious families.

5.       Building Community Loyalty: When executed correctly, Kids Eat Free promotions can be part of a larger community engagement strategy. Partnering with local schools, sports teams, or community events can enhance your restaurant's image as a family-friendly destination.

Final Thoughts

Should you roll out a Kids Eat Free promotion? If you do, make sure you go in with a clear plan. Know your costs, set realistic growth targets, and most importantly, have a marketing strategy to spread the word. Perhaps the most crucial step is to have an exit strategy—offer the promotion for a limited time, like the summer months, to create urgency and avoid setting unrealistic customer expectations.

In summary, a well-planned Kids Eat Free promotion can be a powerful tool for driving traffic, increasing sales, and building brand loyalty. But like any promotion, it must be approached strategically to ensure it contributes to long-term success rather than just a temporary spike in guest counts.

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869





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