In 2010, the word “Groupon” became almost as familiar as the word Google. In fact, the 2-year old company was nearly absorbed by Google just a month ago…for over $ 6 billion (which coincidentally, is approximately equal to the number of their discount certificates I have in a file at my home).
Admittedly, the Groupon is a brilliant marketing tool, but it’s not for everyone. It has certainly changed the way consumers look at retail businesses and it is effective—wildly effective--for some of them, but not for those on slim margins or for old-school business owners who feel that deep discounting sets an irreversible force—a downward spiral--in motion, one that permanently cheapens their product or brand.
The owners of Monarch restaurant fall in the latter camp and on January 3 will launch a revolutionary marketing move of their own, a counterpunch to Groupon (dare we call it a Scroopon?), that is designed to inject some adrenaline in a month when all restaurants could use a jolt. Regardless, it will cause a buzz.
The concept lies somewhere between a Groupon and St. Louis Bread Company's “pay what you can” arrangement (another unique marketing concept whose testing ground is St. Louis Bread Company's cafe in downtown Clayton).
Customers who dine at Monarch on Monday and Tuesday nights during the month of January will be presented with two guest checks, one for the beverage portion and one for food. Guests must pay in full for beverages, but have the option to pay whatever they think is a fair price for the food portion.
The strategy, according to Monarch’s co-owner Aaron Teitelbaum, is that diners are willing to pay more for quality, even if given the option not to: “It will be interesting to see what happens, but we would be shocked if people decide that our food prices constitute the types of discounts that these ridiculous programs demand.” His partner, Jeff Orbin, puts it a slightly different way: “…these new social buying/discount sites have gotten out of hand and are not a stable solution… So we decided to invite everyone in and decide for themselves what our experience is worth..."
The duo hopes to reap all the benefits of Groupon, and then some. I see it this way:
- Guests understand they’re dining at a discount and often order more—or better-- alcohol, a higher profit item.
- The restaurant creates goodwill and recognition, two hard-to-quantify side benefits of any good marketing campaign.
- In Monarch’s case, it provides a chance to show off a brand new menu (a single, simplified menu, by the way, that’s available in all dining areas), which may not have happened otherwise.
- It gives Monarch a chance to show off their game-changing makeover of the main dining room (photo above), one that many diners--or even their existing customers--may not yet have seen.
- It’s an excuse to get out of the house and be a part of something revolutionary. These things tend to spread virally as well as by word of mouth: it's got "water cooler flavor of the month" written all over it.
- Like any good promotion, people will claim that they’ve “been there, done that” and hopefully respond positively, boasting about it the way they brag about beating you to the newest restaurant.
There’s only one way to silence those braggarts (braggart scribes included)…reserve a table at Monarch on Monday, Jan 3. Who knows? You may be witnessing the genesis of the best rewards program since S&H Green Stamps.
