In this rough economic recession, people are faced with scarcity and must make a choice on what they purchase with limited funds. Many companies are afraid of going out of business, but it is not just about the current situation. A restaurant in todays recession can still stay in business and make lots of money, they just have to do it right. Many restaurants are searching for new ways to get out there and try to stay in business.
In Toledo, about a week or so ago IHOP was giving away free pancakes all day for International Pancake Day. What did this do? It brought customers into IHOP who would normally not go to let them try the product. Yes, I’m sure that there were people who got the free pancakes and left, but i’m sure that the majority of the people bought other items on top of the free pancakes, helping IHOP make money.
Some people do not think that this will help out, but what it the restaurant going to do? I personally think it is smart to have a free day of food to draw in customers, new or old.
Besides IHOP, it was recently annouced that Denny’s was giving away a free breakfast on February 3rd. All though they have lost money from the advertising and cost of food/production for the free day, they have gained new customers and other important things.
Do you think this is smart for businesses to be doing in such a rough economic time?