How Outback Steakhouse Budgets & Calculates Their Advertising Costs

Small scale restaurants without corporate financial backing must find means of advertising their products and meals to a customer base without committing too much money to an unsuccessful campaign. Indeed, the reason that nearly ninety percent of new restaurants fail is because they either do not have successful marketing or spend too much money at the start. For chain restaurants, however, the difficulty is not in finding a marketing campaign - they have the money to engage in a new one each year - but rather to woo new local customers.

A larger restaurant like Outback Steakhouse, for example, retains customers with a combination of superior service, a positive family experience and high quality meals. Simply bringing a customer through the door represents success to Outback as they calculate that their restaurant's client base will visit the same restaurant within six months after an initial meal. Many outback steakhouse coupons, distributed on the Internet, have proven to be an extremely successful means of keeping customers in their booths. How Outback Steakhouse's budget and calculate their advertising costs leads their marketing to use a strategy where nearly every coupon presented to a server represents a new customer client, which in turn counts for between three and four repeat visits over the course of a year.

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These overstock coupons are available at multiple online sites where the daily traffic is strong enough to attract the attention of major restaurants, manufacturers, retailers and sales outlets. Coupon sites that receive over a million hits per day are such an enticing source of potential customers that restaurants like Outback are more than willing to cut a favorable deal to potential customers in the hopes of attracting a repeat client. These coupon sites do not manufacture or even print their own internet coupons; instead they allow users to select a deal from a virtual glossary of restaurants and stores.

These coupons will often have greater value than their mailing list cousins - an Outback coupon, for example, may give off an entire meal - as these sites use an algorithm to keep shifting their "inventory", so that new coupons will appear and vanish each minute. As such, while customers can be picky about which restaurant they choose, an eye popping coupon that may only be available for mere minutes provides an excellent lure that many cannot turn down.

It may seem counter productive, however, to think that the cost of this advertising is certainly not worth shaving twenty dollars off the profits of a meal. A restaurant like Outback fully appreciates the hit they take on an initial meal. How Outback Steakhouse's budget and calculate their advertising costs means they will lose money on every first meal, regardless of the customer's choice. As such, twenty dollars off a sizzling cut of filet mignon affects their profits just as much as a highly marked up meal, such as a chicken or pasta dish.

As always, the key in this loss is to simply get a customer through the door. This ensures forty percent greater customer retention simply by having a family sit down rather than risk changing their minds. Customer satisfaction is key to chains like Outback; with the majority of customers claiming to have a very positive experience, the restaurant is more than willing to take a loss on an initial meal in order to see their profits increase with subsequent visits.

How Outback Steakhouse Budgets & Calculates Their Advertising Costs

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