Restaurant Discounts and Incentives are NOT dirty words

by Heather T. | May 15, 2025 | Books, Business, Marketing, Observations, Operations, restaurants

Larger Version at the Bottom

Times are tough, that’s nothing new for the restaurant business. I hear that quite a bit from business owners. I don’t want to discount; I don’t want to give away incentives. Margins are thin….etc.

For some businesses I would agree, if it’s what I call a “one and done”. An example might be a hardware store gives away a coupon. The recipient of the coupon waits until they need something to go to the hardware store, they may buy a few things or maybe only one thing that they use the coupon on, and “maybe” have an impulse buy. The hardware store isn’t really getting “more” out of them, other than the customer went to their hardware store, instead of the competitors and they had to lose a little of their profit margin to get them in the door.

Trying to upsell in a hardware store is doable, of course, but all I can think of is a hardware store employee, “Sir, I know you are buying this cordless drill only so you can fix your deck railing, but have you considered this beautiful set of 150 drill bits and perhaps an extra battery as well?”

Restaurants and most other eateries can use discounts and incentives to leverage MORE sales.

If you offer someone a free or deeply discounted appetizer or dessert for example, statistically most diners don’t like to dine alone, there are exceptions of course, but even for single diners, most people won’t go to a place “just” for an appetizer or “just” for the dessert.

If a couple comes in and takes advantage of the free appetizer, it’s not a lot of food (for them) even if they split it, and you still have them in the door to order at least a couple of entrees, possibly another appetizer, maybe some desserts and drinks. Once you have gotten them in the door, that’s also the time to have your staff and management trained to step in and upsell for some additional revenue.

Example: Succulent Smoked Shrimp & Grilled Corn Fritters with Spicy Remoulade.

The manager who is assisting with waiting tables, “Oh, you are ordering the shrimp and corn fritters, I LOVE those, I get those with my girlfriend when we come in on my day off. She swears the Kung Fu Girl Riesling is the BEST with it. I was skeptical because I’m not really a sweeter white fan but the remoulade is a little zippy and it helps balance the spice. She orders it every time we come in and now I’m a big fan!”


Double whammy here for marketing. Yes this example is a little over the top and a little wordy if vocalized, but an example of the upsell, in that the manager says A. he loves the food (he’s a fan) and B. he loves the place so much he will come back on his day off (employee loyalty).

Currently, Kung Fu Girl Riesling runs about $12 retail and less wholesale. Even based on the retail price, if you serve one 5 oz. glass of wine at $5.00 (cheap right?) and the wine is $2.40 your cost per glass, plus tack on a percentage for labor and overhead, you are still making at least a 50% profit margin. And that’s based again on retail pricing.

Even if you upped this to a 6 oz of wine, with wholesale costs, you are still making a hefty profit on this. That’s if you sell it by the glass which is the way to really make money on wine. I worked with an extremely good waiter named Karl many years ago who would use this type of upsell to increase the check average (and his tips). Personal buy-in plus personal endorsement equals sales.

This has always been my personal pet peeve with restaurants, and it’s also a pet peeve of many diners, who refuse to pay for a bottle of wine or by the glass that’s more than double retail prices, and up to four times retail in some places.

Give generous pours at affordable prices and people will order more. Having a great (but inexpensive and unknown) house wine is another way to increase profits, years ago when I was the Chef at a resort in Vermont, I did the wine ordering too, because I liked to do pairings and our front of house manager didn’t know much about wine. The “house” cabernet which was from a small vineyard on the Western Cape of South Africa cost me wholesale $3.50 a bottle. There was no brand name recognition for the wine, so no preconceived thoughts about price, but I had a nice writeup about it on the wine menu so people could get some insight into what kind of wine it was and what it paired well with. We got four pours from the bottle at $4.50 a glass. One dollar profit on one glass ordered (and paid for itself) and 3 additional glasses pure profit minus a small percentage for labor and overhead tacked on, still a hefty money maker.

If you want to make money on full bottles, drop the price to something realistic. Believe me, you will sell a LOT more wine, having done this for years in restaurants. Higher price points mean lower margins when it boils down to it. If you sell 3 bottles a month marked up triple your costs, you will sell less wine.

One of the methods I have used prior is to add on approximately 6 dollars to the average retail price, especially on the name brand recognized affordable wines, to keep the menu price point under $20. You are still making a profit on the $6, including the wholesale discounted price and the labor is the bartender taking 1 minute to open the cork and pour, and a small percentage for general overhead.

You can also add a few dollar corkage fee if you want to bring the “illusion” of costs down even more. $12 of drinkable but inexpensive wine (retail), it’s $16 for the bottle on your menu, plus a $2 corkage fee.

If you train your staff on wine and other beverage pairings and make them able to give suggestions, it not only increases your margins but increases staff knowledge. Pairing wine and beer on the menu itself is also a proven way to increase revenue.

If you or your staff is not well up on wine knowledge, at the moment, ChatGPT can come up with a great list of wines and beers to pair with your menu. I would spot check all of those as in testing as it came up with a couple of “fictional” wines when doing a bunch of testing, but knowing quite a bit about wine and food pairings myself, I’d say it does a more than better-than-average job. Put your menu into ChatGPT or other AI of choice and some specifics, Pair with wines under X dollars and the menu item and any other parameters you want to put in, i.e. Spanish wines only.

Having pairing suggestions on your menu, both alcoholic and non-alcoholic, makes it easy for people to decide and also for those that are afraid or just don’t feel comfortable asking for recommendations.

Tying these into a discount or promotion is carrying it one step further.

Get our fan favorite: Smoked Shrimp & Grilled Corn Fritters and get two dollars off our Iced Lemongrass-Mint Green Tea. Tea is a high profit margin item that costs less than $.50 even with some extra ingredients, selling it at $4.00, even with a dollar off is still a very good “extra” profit item. Most other beverage items, even with a discount, are still money makers.

A few examples, and giving some examples of different ways to describe the menu item as well as the beverage descriptions.

Vegetarian Small Plates + Pairings

Crispy Oven Roasted Artichoke Hearts with Zesty Lime and Rosemary Vegetarian Aioli
For one person: $7.50 For two: $14.50

Pairing Suggestions:

White: Oyster Bay Sauvignon Blanc (NZ)
Aromatic tropical fruits and bright citrus notes, with a refreshingly zesty finish. Recently awarded 90 points by James Suckling.
6 oz. Glass: $5.50 Bottle: $16.50 (Retail average is $10, wholesale would be less).

Red: Georges Duboeuf Beaujolais-Villages
Light-bodied, bright cherry and raspberry fruit, hints of violet and earth. Crisp acidity and low tannins make it food-friendly.
6 oz. Glass: $6.50 Bottle: $19.50

Beer: Bell’s Light Hearted Ale
Light Hearted is aromatic, balanced, and incredibly easy-drinking. This Lo-Cal IPA has only 110 calories, yet all the Heart. Centennial and Galaxy hops result in citrus and pine aromas, while a variety of specialty malts help give Light Hearted its body and flavor.
$4.50

Traditional Cocktails
Gin Gimlet with a Rosemary Twist
Lemon-Basil Vodka Fizz

Non-Alcoholic
House Made Cucumber-Lime Sparkling Water with a Rosemary Sprig
House Made & Herb Shrub
Iced Green Tea with Lemon

Grilled Aji Amarillo Pepper** and Sweet Basil Marinated Halloumi Skewers with Grilled Figs and a Drizzle of Honey Balsamic. **Aji Amarillo Peppers are a spicy South American chili pepper with vibrant orange-yellow skin and fruity flavor. On a scale of spicy peppers from 1-4, Amarillos are about a 3, the Halloumi cheese balances the spiciness of the peppers and brings it down a notch.

Pairing Suggestions:

White: Santo Wines Assyrtiko
Assyrtiko, a Greek white wine, is known for its high acidity and mineral notes. These characteristics complement the salty halloumi and cut through the richness, while the wine’s citrus undertones harmonize with the sweet basil and balance the Aji Amarillo’s heat.

Red: Domaine du Pélican Arbois Poulsard
A light-bodied, naturally bright red from the Jura region of France. It shows delicate red berries, subtle earthiness, and a whisper of spice. Tannins are soft, and the wine finishes with refreshing acidity and a touch of minerality. Earthy undertones match the grilled figs and basil, while the light body complements the dish’s delicate balance of sweet, smoky, and herbal notes.

Beer: Weihenstephaner Hefeweissbier
This German wheat beer offers a smooth, creamy texture with notes of banana and clove. Its subtle sweetness and effervescence provide a refreshing counterpoint to the spicy Aji Amarillo and the savory halloumi, while the beer’s body stands up to the dish’s bold flavors.

Traditional Cocktails
Whiskey Sour
Classic Mojito

Not So Traditional Cocktails
Basil Whiskey Smash
Housemade Honey Balsamic Old Fashioned (balsamic reduction in place of simple syrup with a dash of honey and orange bitter)

Non-Alcoholic
Iced Hibiscus Tea with Orange Peel
Pomegranate Spritzer
Housemade Ginger-Turmeric Tonic (unsweetened)

Smoked Shrimp & Grilled Corn Fritters with Fresh Mint and Ginger Remoulade
Succulent house smoked shrimp and fresh grilled corn fritters, with a side of our famous mint and ginger remoulade. Our fritters are light and airy yet delight your tastebuds with the earthy smokiness of locally caught shrimp and local Shell Island Farm organic corn.

Pairing Suggestions:

White: Dr. Loosen Blue Slate Riesling Kabinett
This Riesling offers bright acidity and subtle sweetness, which balance the smokiness of the shrimp and the heat from the ginger. Its citrus and mineral notes complement the corn fritters and mint in the remoulade.

Red: Cleto Chiarli Lambrusco di Sorbara
Light, fizzy, and dry with red berry flavors (think raspberry and cherry), floral notes, and mouth-cleansing acidity. The slight fizziness of this red helps balance the richness of the fritters and mild acidity complements the ginger.

Beer: Saison Dupont
Saison Dupont is a Belgian farmhouse ale known for its effervescence and peppery, citrusy flavors. These flavors cut through the richness of the fritters and enhance the herbal notes of the mint-ginger remoulade.

Traditional Cocktails
Moscow Mule
Daiquiri (Traditional, not frozen)

Not So Traditional Cocktails
Ginger-Lemongrass Rickey
Charred Corn Old Fashioned

Non-Alcoholic
Iced Lemongrass-Mint Green Tea
Shrub Spritz (Ginger-Mint Shrub + Sparkling Wine or Soda)
Savory Tomato-Ginger Tonic

Crispy Polenta with Roasted Beet Bites with Smoked Tomato and Lavender Jam

Pairing Suggestions:

Red: Gnarly Head Pinot Noir
This California Pinot Noir is bold for the varietal, with ripe cherry and raspberry flavors at the forefront. Underneath is a thread of vanilla and toasted oak. Medium-bodied with a silky texture and soft tannins, it finishes with a touch of sweet spice. The wine’s ripe red fruit plays well with the smoked tomato-lavender jam, echoing the jam’s sweetness and contrasting the smoke with bright acidity.

White: Geyser Peak Sauvignon Blanc
A vibrant, zesty white with high-toned aromatics: lime, gooseberry, and freshly cut grass. It’s lean and dry with a bright acidity and a mineral edge, finishing with crisp green apple and citrus zest notes. The wine’s lime and green apple notes offer a clean, tart contrast to the sweetness of the roasted beets and the smoky tomato-lavender jam,

Goose Island Sofie (Saison/Farmhouse Ale)
A Belgian-style saison aged in wine barrels with orange peel. It pours golden with a creamy head. Aromas include white pepper, orange zest, and a hint of vanilla. The taste is tart, citrusy, and subtly spicy, with a champagne-like effervescence and a dry finish. Sofie’s flavors of orange peel and white pepper brighten the earthy sweetness of the roasted beets and contrast nicely with the smoked tomato jam.

Traditional Cocktails
Negroni
Americano

Not So Traditional Cocktails
Lavender-Basil Gimlet
Smoked Tomato Bloody Mary (w/ Lavender Salt Rim)

Non-Alcoholic
Lavender-Lime Soda
Chilled Spiced Carrot Juice
Sparkling Apple-Celery Tonic

A marketing piece like this can be used for mailers, in house promotions (put it on a tent card or menu holder) encourages guests to buy prior to ordering while dining, and as social media posts. “Mention this ad and get…..”

This is a sample chapter for my upcoming book on Guerrilla Marketing, releasing mid-summer 2025. The book will be focusing on over 100 Guerrilla Marketing ideas with examples, as well as a few chapters like the above. I have a favor to ask, if you catch a typo please send me a wave and let me know, snarky comments are appreciated if they are well meant and funny, even running text through two very good grammar editors doesn’t always catch things and my book editor has not yet had a crack at this. 🙂