Boost sales with exclusive SMS discounts for your restaurant! Learn how to craft compelling offers, strategically use loss leaders, and create the thrill of exclusivity. Keep customers coming back for more with mobile marketing techniques that deliver real ROI.
It’s no secret that restaurant customers love a good deal. In fact, a 2023 survey found that 72% of U.S. diners say they actively look for discounts before deciding on a place to eat. But how can you make your offer stand out among countless online coupons and digital ads? The answer lies in SMS-exclusive discounts—promotions delivered right to your customers’ phones, where open rates are near 98%. Here’s how you can structure your discount strategy, use loss leaders effectively, and create a sense of exclusivity that turns one-time visitors into loyal patrons.
Why SMS-Exclusive Discounts Work So Well
- Instant Visibility
Most people check their phone over 50 times a day, meaning your discount code or coupon is almost guaranteed to be seen quickly. - Personal Touch
SMS feels more intimate and conversational, making customers more likely to engage. - Built-In Urgency
Text messages are read rapidly, so short-term deals can create immediate foot traffic or online orders. - Higher Redemption Rates
According to recent data, SMS coupons have redemption rates 10x higher than printed or emailed coupons.
Snippet Sample Messages
“Good morning and have a blessed day! Treat yourself at Spicy Kitchen—enjoy 20% off breakfast today. Reply YES to order.”
Crafting the Perfect Discount
A discount is more than just a percentage off—it should be designed to attract the right type of customer and support your profit goals.
Set Clear Goals
Are you aiming to boost slow-day traffic, encourage higher ticket sizes, or upsell new menu items? Your discount structure should match those objectives.
Use Crisp Wording
- “Exclusive Offer: 15% off all lunch orders over $20 today! Show this text.”
- Keep it simple: specify the discount, what it applies to, and how to redeem it.
Highlight Expiration
- “Hurry! Expires at 3 PM.”
- This builds urgency and spurs quick decisions.
Combine with Personalization
If your SMS marketing platform allows dynamic fields, insert the customer’s name or preference. On SmartSMSSolutions portal this is possible with the SmartCompose feature:
- “Hey [Name], enjoy your favorite Chicken Alfredo at 10% off this week!”
Sample SMS:
- “Dear Alexandra, your free dessert is waiting at Maple Diner! Show this text before Wednesday night to redeem. We appreciate you!”
The Power of Loss Leaders
A loss leader is a menu item sold at or below cost to attract customers, who then hopefully purchase other profitable items.
- Example 1: “Free Fries with Any Burger!”
- Even if you lose a little margin on fries, customers might add on drinks, desserts, or upgrades.
- Example 2: “$1 Coffee”
- This exceptionally low coffee price can pull morning traffic, and many will buy pastries, sandwiches, or other add-ons.
Pros
- Encourages impulse decisions.
- Drives foot traffic or online orders.
- Builds brand awareness if the deal is particularly eye-catching.
Cons
- Risk if too many people only buy the loss leader and nothing else.
- Must be carefully timed or limited to avoid hurting your bottom line.
How to Use SMS for Loss Leaders
- Highlight the big benefit: “Get a $1 latte at Java House—today only!”
- Add an upsell mention: “Try our new breakfast wrap for a complete meal.”
- Provide redemption instructions: “Show text code $1LATTE at checkout.”
Making It Exclusive
Nothing entices customers quite like the word “exclusive.” If diners believe they’re receiving a deal that others don’t, they feel valued and special.
VIP Lists
Create a “VIP” or “Insider” list, inviting only your loyal subscribers.
- “You’re on our VIP list! Get 2-for-1 drinks at Margarita Monday, exclusive to text members.”
First Access to New Menu Items
- “Sneak peek! Be the first to try our Winter Special Soup—show code FIRSTTASTE for 10% off.”
Short Windows of Availability
- “Exclusive 3-hour flash sale! 20% off all pizzas from 5–8 PM. Code: FLASHPIZZA.”
Sample Tone
From the conversation, we see messages like: “Kindly ensure to make your balance payment…” or *“New Visitor Alert…”. We can adapt that style:
- “Exclusive Offer Alert! Only our top customers (that’s you) can get a free appetizer at The Steak Loft this Friday. Show this text upon arrival!”
Timing and Frequency for SMS Discounts
Even the best discount can flop if sent at a bad time or hammered too often, causing unsubscribes.
Peak Dining Times
- Send around 10–11 AM for lunch deals or 4–5 PM for dinner.
- Example: “Lunchtime craving? Get 15% off any entrée at The Lunch Spot, 11 AM–2 PM today. Show text SPOT15.”
Slow Days
- If Tuesday is your slow day, push a special discount the day before or early Tuesday.
- Example: “Happy Tuesday at Purple Plate! Stop by for a free soda with any meal. Expires tonight.”
Avoid Over-Messaging
- Studies show 2–4 SMS promotions per month is optimal for restaurants.
- More frequent messaging can lead to a spike in opt-outs.
Personalizing SMS Discounts for Greater Impact
Behavioral Data
- If a customer typically orders vegetarian dishes, text them about plant-based specials.
- “Hey Alex, our vegan lasagna just landed on the menu. Grab it at 10% off with code VEGGIE10!”
Birthday Offers
- “Happy Birthday, [Name]! We have a sweet surprise for you: a free slice of cake if you dine in this week. Show this text to redeem.”
Customer Preferences
- If your loyalty program tracks desserts vs. entrées, target the relevant audience with specialized discount codes.
Real Example
- “Hi Hannah, your friend Mary recommended you try our new dessert at Dreams Bakery. Enjoy a free pastry on your first visit—just show this text!”
Converting Text Discounts into Repeat Business
The true power of exclusive discounts is how they lead to deeper loyalty, not just a one-off sale.
Collect Feedback
- After redemption, send a follow-up: “Hope you loved our discount. Let us know what you think: [short link].”
- This helps refine future offers.
Upsell or Cross-Sell
- If someone redeems a free appetizer, next time offer a discount on dessert.
- “Since you loved our appetizer, enjoy 20% off any dessert! Show text DESSERT20.”
Encourage Social Sharing
- “Share this code with a friend. If they redeem it, you both get free drinks!”
- A direct referral system can expand your SMS audience exponentially.
Real-Life Scenario: Launching an Exclusive Discount Campaign
Imagine your restaurant, “Urban Bites,” wants to boost Tuesday dinner traffic:
- Opt-In Strategy
- Advertise: “Text URBAN to 12345 to join our exclusive discount club. First 50 sign-ups get a free appetizer.”
- Craft the Discount
- Decide on a 20% off dinner entrée deal, valid Tuesday only.
- Push the SMS
- Monday around 5 PM:
“Tomorrow only! Enjoy 20% off your dinner entrée at Urban Bites, 5–9 PM. Show code TUESDINNER. Book early to skip the wait!” - Loss Leader Twist
- Also mention a $1 dessert add-on:
“P.S. $1 desserts with any entrée. Don’t miss out!” - Exclusivity
- “This special is just for our text VIPs—thanks for subscribing!”
After the Campaign
- Track redemption: how many used TUESDINNER code?
- Check average spend: did diners purchase more than usual?
- Collect feedback: “Thank you for dining with us! Reply with your rating 1–5.”
Overcoming Common Pitfalls
- Pitfall 1: Over-Discounting
- Always check your profit margins. An occasional big discount might be okay, but consistent deep discounts can erode brand value and profits.
- Pitfall 2: Generic Offers
- Relevance is key. Don’t blast vegetarian specials to steak-loving customers.
- Pitfall 3: Spamming
- Even “exclusive” offers can annoy if they appear too often. Maintain a balanced frequency—2–4 times a month typically works best for restaurants.
- Pitfall 4: Non-Compliance
- Make sure every subscriber has opted in. Provide an easy unsubscribe method: “Reply STOP to opt-out.”
Measuring Success and Refining Your Strategy
- Redemption Rate
- Number of redeemed discounts ÷ total delivered messages × 100.
- Aim for 5–15% or higher, depending on the offer.
- Average Ticket Increase
- Do discounted customers also order more sides, drinks, or desserts?
- Repeat Customer Rate
- After using a discount, do they come back soon or sign up for a loyalty program?
- Opt-Out Rate
- Keep unsubscribes below 3–5%. If it spikes, re-evaluate your frequency or messaging content.
Remember, even “failed” campaigns provide data on what to tweak. Perhaps your discount was too small or the redemption window too short. Maybe the day of the week didn’t align with your audience’s habits. By analyzing outcomes, you’ll continuously refine your SMS approach.
Integrating Discount Offers with Other Channels
- Social Media
- Share a teaser of your discount: “Join our text club to get an exclusive 20% off coupon!”
- This synergy drives your social followers to opt into SMS for deeper deals.
- Email Newsletters
- Let your email list know about “SMS-only” perks. Encourage them to sign up via a link or texting a keyword.
- In-Store Prompts
- Table tent cards or receipt messages like: “Want next week’s discount? Text BURGER to 12345 now!”
Real-World Tie-In
“Thank you for your purchase at Urban Bites! Scan the QR code on your receipt to join our text club and get your next meal’s discount.”
Future Outlook: Personalized, AI-Driven SMS
Looking ahead, AI-driven personalization will likely refine SMS discounts further. Imagine a system that automatically calculates an optimal discount for each customer based on their purchasing behavior. If a diner typically orders $40 worth of food, they might get a $5 off coupon, while big spenders might see 15% off. This ensures each discount hits the sweet spot between enticing the customer and protecting your margins.
Big chains like Starbucks have already trialed AI-driven suggestions, and smaller restaurants can follow suit as more affordable SMS marketing platforms adopt AI analytics. The results? More relevant offers, higher engagement, and improved loyalty.
Conclusion
Sending exclusive discounts via SMS isn’t just about slapping a percentage off your menu items. It’s about crafting well-timed, well-structured offers that create genuine excitement, leverage psychological triggers (like urgency and exclusivity), and align with your restaurant’s profitability goals. By using loss leaders strategically, personalizing the deals to each customer, and measuring results meticulously, you’ll keep your restaurant buzzing with activity.
In a world where the average American receives hundreds of marketing impressions daily, SMS-exclusive deals stand out for their immediate visibility and personal feel. Embrace it now, and watch your diner base grow—both in size and loyalty.