Wean customers off voucher deals as recession recedes, say accountants

Pubs and restaurants using discount vouchers to lure in cash-strapped customers during the recession may find punters will expect similar value-for-money offers once the economy improves.

This is the conclusion of accountancy firm Deloittes, which warns that as the economy emerges from the downturn operators will face the challenge of weaning customers off such discount deals.

Glyn Bunting, partner in the hospitality & leisure team at Deloitte, said: "The deals clearly help to buoy up trade whilst customers focus on 'value for money', but continuous discounting tends to undermine long term value creation from brand building."

Two-for-one voucher deals are currently commonplace at popular restaurant chains such as Strada and Pizza Express, while the likes of Mitchells & Butlers' Browns outlets are offering dining offers.

Bunting said that in the current economic climate, consumers focused on the 'value' of the offering, which made growing like-for-like revenue that much harder.

"In the long term, however, operators will want to build a brand that stands for more than simply 'being cheap'.

"Price has to be competitive, but operators still need to have a good offering and manage their operations well," he added.