Successful restaurants know that every interaction with a guest is an opportunity to foster loyalty and spark word-of-mouth recommendations. Thoughtfully applied discounts are not a loss—they are an investment in relationships with both new and returning customers. Psychological research shows that discounts activate a sense of reward and urgency in consumers, triggering positive emotions that reinforce behaviours, such as returning to dine again.
A 2023 Vericast study found that 53% of consumers are more likely to try a new restaurant when an offer is available, while 33% say they become more loyal to venues that offer deals regularly. Well-executed discounts go beyond driving a one-off visit—they create emotional connections and lasting bonds between diners and restaurants.
Incremental revenue refers to income from sales that would not have occurred otherwise—such as filling seats that would remain empty without an offer. Discounting off-peak tables does not undercut full-price sales; rather, it ensures that every shift adds value. With fixed costs remaining constant, a carefully timed offer turns unused capacity into a profitable opportunity.
Jese from BODA, who has welcomed over 15,700 diners through targeted offers via First Table, explains:
"Discounted diners often order extras—cocktails or desserts—and their positive experiences bring them back. Many even recommend us to friends."
This aligns with psychological research showing that positive emotions associated with rewards reinforce customer behaviours, such as recommending the venue to others and returning without future discounts.
While a 50% discount may initially seem like giving away half your profits, in practice, it offers much more. Behavioural economics suggests that discounts function as psychological rewards, increasing consumers’ willingness to explore new venues. Furthermore, offers tap into the scarcity principle, where time-limited deals create a sense of urgency and drive immediate action
Vince from Tapestry Dining, who has hosted over 5,000 diners through First Table, reflects:
"At first, we worried about giving away too much, but the revenue from those tables—along with follow-up visits—far outweighed the discounts. Guests started coming back, often without needing a discount the second time."
Nixon from Mount Eden Hospitality, who manages four venues, highlights the strategic flexibility discounts provide:
"We spread out bookings across the day by offering early deals through First Table, which kept our staff engaged without compromising the peak hours. It’s now an essential part of how we attract new visitors."
Discounts are not about short-term gains—they are strategic tools for building relationships, creating memorable experiences, and ensuring steady foot traffic. When guests have a positive experience, they are more likely to return and recommend your venue to others.
As Vince from Tapestry Dining puts it:
"Discounts aren’t giveaways—they’re invitations. And when the experience exceeds expectations, those invitations turn into loyal, repeat customers."
By tapping into the psychology of rewards and urgency, alongside practical strategies for managing capacity, restaurants can use discounts not just to attract new guests but to build a thriving, loyal customer base.