Value of Specials

"Specials," as in a special price for a particular item, are a key business practice in the food industry. You'll also hear these called "promotions," "sales," and "events." Whether it's a special product (McDonald's McRib or the Wendy's Fish Sandwich that only come by once in a while) or special pricing (Pizza Hut's $10 any pizza deal) a special can do several good things for a company, oftentimes at the same time.

Some of the goals of a special...

• Bring in new customers. Whether it's a new product a customer isn't used to seeing from your business, or they perceive you're typically too expensive a special can convince a person to give your business a try.
• Lure back old customers. Maybe a customer had a bad experience and hasn't been around lately. Or maybe they've just been enticed away by some other chain. Either way, a cheap deal or a novel product could bring them back to the fold.
• Push volume. Maybe I only get coffee from a shop three times a week, but if 20oz of coffee is only $.25 if I bring in my own cup during April (Earth Day is in April, mind you), I'll prolly drop in much more often.
• Alternately, push product count. Buy 3 scones, get a 4th free. Free bread sticks with every large pizza. Each BBQ sandwich only $2 instead of $4 (might see plenty of people buy a 2nd sandwich now).
• Help a struggling line. If sales have dropped on muffins, maybe your customers have forgotten how yummy they are. Give one away with each coffee for a week Changed the recipe on your bagels? Sell them at a discount to lessen buyer wariness.
• Expose a new service or product. If you're trying to encourage a new delivery service, maybe all delivery customer's get a free 2 liter of soda. New dine-in service includes free dessert. Decided to share that new lasagna with the world? Start offering samples or even giveaways for a limited time (with or without purchase).

When the bottom line needs a kick in the pants, a special can do the trick when advertised and operationally supported. Strategic goals, such as expanding menu and services, can benefit just as much if not more from a well-executed promotion. The key there is well-executed.