Will the New Marketing Strategy For Higher-end Table Service Restaurants Work?

More and more table service restaurantsirloin offering with salad, baked potato and bread
companies are turning to couponing, deep• Ruth's Chris Summer Classic featuring a
discounting and reduced services to drive gueststarter, entrée, personal side and dessert
counts and survive in these tough times.all for $39.95
Everyone is fighting for the smaller portion ofThese are just a few of the seemingly limitless
consumer spending, and studies show that manyoptions you can find in the restaurant world
consumers are trading down to the next pricingtoday, not to mention the $5 lunch or $10 dinner
tier. For instance, those who used to go tomenu many casual chains offer.
Morton's for dinner are now going to TGI Friday'sI think the question of "Will it work?" remains to
and those who were going to Chili's for lunch maybe seen. The bigger question for me is, "If it does
now be going to Chipotle. The trouble for thework, what will be the lasting effects?" and "At
higher-end restaurants is that there are no dinerswhat cost?" The only way that these types of
trading down to them, and we are seeingdeals can continue to work is if the portions get
something that many of us have never seensmaller and smaller or the quality of the product
before - deep discounting and, may I dare say,lessens. Either way, the industry is setting a
even coupons from those high-end eateries.standard that may haunt them well into the
In a market that does not traditionally use deepfuture.
discounting and coupons to drive sales, outside ofWe do not have to look far to see examples of
some limited time offers, we are starting to findhow this has affected other industries in the past.
deals like these:The hotel sector is still trying to recover from
• Morton's is offering two steaks, two choicesprice wars and deep discounting that occurred in
of seafood, two salads, potato and vegetable asthe early 2000's. They have struggled to get their
well as two delicious desserts for $99pricing back up to earlier levels or in some cases
• PF Chang's four-course meal including soup,even "profitable" levels. Like the restaurant
starter, entree and mini dessert as part of theirindustry, even the high-end hotels were not
'Chang's for 2′ promotion, which isimmune. Before this last economic slowdown,
just $39high-end hotels' rates were considerably less than
• The Palm's is offering a family style dinnerthe late 1990's and early 2000's.
that serves two to three guests for $69 -or -It makes me wonder if we will ever look at these
their Palm Summer Lobster Event - a 4 poundrestaurants the way we did just one year ago
lobster (split for two), 2 salads and a signatureWhen the economy returns, will the consumers
side dish for $89still be looking for the "deals?" One would argue
• Logan's Roadhouse's $13.99 special menuthat these questions are not important if you do
features 12 options including steak and seafood, allnot survive to see what the outcome will be. But
of which come with two sides, rolls and theone thing is for sure, it will change the way we
bottomless peanut bucketlook at dining out forever.
• Outback's $9.95 special includes a 6 ounce