2023-10-02 19:33:21
A sign that times are difficult, restaurateurs are adopting aggressive promotions, such as offering 50% off several dishes, to attract customers during a certain period of the day.
This is particularly the case for Le Cosmos restaurants in Quebec. Since mid-September, 50% of the menu is offered at 50% off from 4 p.m. to 6 p.m. Monday to Friday. This is the solution put in place to avoid layoffs.
Louis McNeil, co-owner, was inspired by a strategy he observed in Western Canada.
“When I came back, I looked at my assessments and the assessments for the month of August were very bad,” he confided.
To counter the drop in traffic
In August, its ridership fell by 35%, a historic decline. Mr. McNeil attributes this significant drop not only to the weather, which was not very favorable, but also to the rise in interest rates which forced many households to tighten their belts.
This Quebec restaurateur is satisfied with the public’s response. He even plans to extend this promotion beyond the holiday season.
“We may end up offering it all year round,” he added.
“We’re going to make less money, that’s for sure. We’re losing money somewhere, but at least we don’t have to cut our staff. That was the primary goal. »
Pick up elsewhere
By attracting more customers, Mr. McNeil believes he can expand elsewhere, including the sale of alcohol and desserts.
“You have to have the means to be able to do it,” he said.
Louis McNeil, co-owner of Le Cosmos restaurants, in Quebec. Diane Tremblay
“We are strong and we had to do something. We had to move quickly. »
A risky strategy
Without mentioning a particular case, Robert Dion, director and founder of the specialized magazine HRImagassesses that this strategy is not without risk.
“In the days when profit margins were present, you might, on certain days, offer specials and make up for it on other days. […] Now it’s very difficult, because the margins are so small. »
Mr. Dion cites the example of a restaurateur in Saint-Jean-sur-Richelieu who recently announced his lunches at $4.99 (2 eggs, potatoes and a choice of meat), with the purchase of a drink. , Mondays and Tuesdays.
“This is not a strategy that I approve of. This is not how we are going to create wealth among restaurateurs. We will not repay the loans at the end of the year with such a low profit,” he added.
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