November 22, 2023



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The clever restaurant utilizes the "Add $1" strategy to expand its customer base

In the highly competitive restaurant market, attracting and retaining customers requires innovative strategies. Recently, a restaurant achieved business growth effortlessly by introducing the "Add $1" strategy, gaining a large number of loyal customers.

The "Add $1" strategy utilizes an additional offering approach. When customers are settling their bills, they are given the option to pay an extra dollar in exchange for corresponding rewards, which can be dishes in the restaurant, discount cards, or tangible items.

The primary goal of this strategy is to cultivate more repeat customers. Whether in concept or execution, the "Add $1" restaurant marketing strategy is straightforward.

How is it implemented? Here's a depiction of a real restaurant scenario:

When customers are settling their bills, the waiter can say, "Hello, congratulations! Today, if your spending in our establishment is over $100, you have a special privilege. For just an additional $1, we will gift you a dish worth $25 for free!"

Moreover, you also have the opportunity to participate in our free lottery draw. Here is our prize list; take a look."

Subsequently, the waiter can hand a delicately crafted card to the customer, who can then present the card on their next visit to redeem a complimentary dish.

As for the lottery segment, it guarantees a 100% chance of winning, with prizes consisting of various denominations of vouchers. These vouchers not only specify their expiration dates but also explicitly state that they cannot be used in conjunction with other discount cards.

This strategy is simple, and customers are generally willing to pay an extra dollar. The restaurant gains an opportunity for the customer to return for future spending. This small gesture significantly boosts the restaurant's revenue.

But wait, there's more!

In the aforementioned lottery segment, customers don't simply draw lots on-site. Instead, they are asked to leave their phone numbers, email addresses, or scan a QR code to join a WeChat group—any of these forms are acceptable.

Then, the customers are informed that the restaurant will conduct the draw using their contact information, and the winning information will be notified the next day.

Most importantly, the restaurant can place a display screen or notice board at the checkout area, announcing the information of past winning customers.

Let's analyze the wisdom behind this small " $1."

99% of restaurant owners make a common mistake—after operating for years, they know nothing about their customers. Even if they recognize some regulars, they haven't collected their contact information.

Customers come and go, and the restaurant cannot predict when they will return or if they will come back at all. The blind operation of the restaurant is highly risky, akin to starting from scratch every day. The restaurant is like waiting for a windfall, happy if it comes, but worried if it doesn't.

But losing customers without a way to track them means even promotional activities are like advertising in a vast sea, with no knowledge of where to find previous customers. If the business needs to relocate, it means starting the business afresh.

Only by actively collecting customer information and establishing comprehensive records can the restaurant better analyze customer needs, maintain long-term contact with them, and have channels for promoting to them during business downturns.

Creating a winning announcement board is also a great way to encourage customers to leave their contact information.

This way, no matter where the business goes, there is no worry about a lack of customer sources. Even if you don't plan to continue the current restaurant business and decide to sell, a business with a customer data file will command a higher price, laying a solid foundation for your future endeavors!