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| Tri-State Area's Premier Digital Dining POS Provider |
In the next 30 days or so we'll be getting into the hottest selling time of the year for restaurant gift certificates and gift cards.
Restaurants that sell gift certificates see several benefits, most notable of which is the immediate bump in cash flow. One of our members, whose restaurant opened last October, said he raised over $70,000 selling gift certificates during the holiday season, enough cash to pay off the balance of his opening costs.
Whether it's re-loadable gift cards or printed certificates, operators are finding creative ways to promote their sales
including point of sale marketing at the counter, on table tents, their website and even by displaying promotional material in the restrooms. Some restaurants also provide incentives for servers to sell gift cards and certificates to their guests.
Value added promotions, such as buy a $25 gift certificate for $20, or get a $25 certificate free with purchase of a $100 certificate, are well received by guests looking to find a welcome gift at a bargain price. Considering that gift certificate redemption rates average around 80-85%, the cost of printing and promotion is usually offset by the savings of those that are never redeemed.
Another advantage to operators is that most guests will spend more than the value of the gift card, resulting in higher check averages and increased sales. Add that to the fact that most gift certificate users are accompanied by full paying guests.
If you don't presently offer gift certificates, now would be a good time to reconsider. If you do sell them, start planning soon about ways you can promote them, making for more holiday cheer for all.
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