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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