For years, restaurants have relied on discounts to drive loyalty. Free fries. BOGO offers. Bonus points. Dollar-off rewards. What started as a loyalty strategy has quietly evolved into something else entirely: a dependency. A recent QSR Magazine article argues that many restaurant brands have trained consumers to expect promotions as the norm, creating a cycle that becomes increasingly difficult to escape. As margins tighten and competition intensifies, particularly from convenience retailers and emerging food service models, many operators are discovering that loyalty built on discounts isn't really loyalty at all. It's simply price sensitivity. The moment a promotion disappears, so does the customer. That's not loyalty. That's a transaction. The Dangerous Economics of Value The challenge facing restaurant marketers today isn't a lack of engagement. It's the cost of maintaining it. When rewards programs become little more than discount-distribution engi...
There’s a reason marketers keep coming back to price promotions. They work. If you need to shift product, offering 20% back or running a multi-buy is familiar territory. Everyone understands the mechanic and you have a pretty good idea of what it’s going to do. But I think we need to be much more honest about what it can also do. It eats your margin. It can mortgage future sales. And over time, it can teach shoppers that the price worth paying for your brand isn't the one on the shelf. It's the one they should wait for. That last point bothers me. The sales uplift on a promotion can look great, but how many of those are genuinely new sales, and how many have simply been brought forward from next week or next month? Then your competitor promotes. You promote again. Everyone gets dragged into competing on price and it becomes harder and harder for the shopper to see a meaningful difference between you. Which raises a fairly fundamental question? If we've spent...