Let us start this article by addressing the “D” words – discounts and deals. Ironically, lowering prices and offering freebies and buy-one-get-one deals can have a counter effect on perceived value. They can send the message that your food and guest experience are not worth a penny more. And they can attract guests who are only looking for the next deal.

That said, discounts can work if employed judiciously. For example, a new concept can attract initial interest with a special deal. You offer a special to get people in the door, then over-deliver in the hope they will come back.

Even in this situation, discounting is best done in moderation, as one tactic of a diversified strategy to showcase your value. If you discount too frequently, you may struggle to fill the dining room with guests who are willing to pay full price. No concept can survive on couponers who are one-off customers looking for deals.

Local Motion

Meet Kirk Coult, owner-operator of three Asian concepts in Colorado and Hawaii, including Phatt Pho n’ Sushi in Aspen, Osake Steak and Sushi Bar in Salida, and Bangkok Happy Bowl, which has units in Breckenridge, Aspen, and Kauai, HI. Coult runs a special at the Kauai Bangkok Happy Bowl location, where local residents get 22-percent-off pricing all month.

This kind of “local only” discount is very common in Hawaii, where residents enjoy special ‘kamaʻāina discounts’ at everything from restaurants and farmers markets to hotels and resorts. The price cuts offset the higher cost of living in the islands and typically require proof of residency, like showing a Hawaiian driver’s license.