'Restaurants Need to Discount,' Says Market Analyst
Restaurants, pubs and fast-food outlets need to tempt consumers with discounts, set-price meals and value-added offers to boost footfall during quiet periods in the run-up to Christmas, according to market analyst Peter Backman of Horizons.
Backman warned that as the public gets used to sales and discounts on the high street they are becoming reluctant to pay full price for anything, including meals out: 'Almost every non-food retailer on the high street has slashed prices to encourage consumers to spend,' he says. 'Restaurants, pubs and fast-food outlets have to do the same to raise throughput of customers at quiet times.
'Consumers now have a massive amount of choice when it comes to eating out. Pubs and restaurants have all raised their game and are competing for the same consumers. Clever operators are now offering discounts that encourage people through the door.'
Last week Pizza Hut announced a VAT-free weekend, while Whitbread is passing on the VAT reduction to customers by cutting prices across its Premier Inn, Costa coffee and restaurant brands Beefeater and Brewers Fayre.
Backman warned that as the public gets used to sales and discounts on the high street they are becoming reluctant to pay full price for anything, including meals out: 'Almost every non-food retailer on the high street has slashed prices to encourage consumers to spend,' he says. 'Restaurants, pubs and fast-food outlets have to do the same to raise throughput of customers at quiet times.
'Consumers now have a massive amount of choice when it comes to eating out. Pubs and restaurants have all raised their game and are competing for the same consumers. Clever operators are now offering discounts that encourage people through the door.'
Last week Pizza Hut announced a VAT-free weekend, while Whitbread is passing on the VAT reduction to customers by cutting prices across its Premier Inn, Costa coffee and restaurant brands Beefeater and Brewers Fayre.
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