Boosting Revenue or Draining Profits: The Pros and Cons of Offering Free Kids Meals at Restaurants

Offering free meals to kids is a marketing strategy that many restaurants employ to attract families. The idea is simple: if parents know that their children can eat for free, they might be more likely to choose that restaurant over others. However, the question remains: is this a profitable strategy for restaurants, or does it drain their profits? Let’s delve into the pros and cons of offering free kids meals at restaurants.

Pros of Offering Free Kids Meals

Increased Footfall

One of the most significant benefits of offering free meals to kids is the potential increase in footfall. Families are more likely to dine at a restaurant where they know their children can eat for free. This can lead to an increase in overall sales, even if the restaurant is giving away some meals for free.

Higher Customer Loyalty

Offering free meals to kids can also help to build customer loyalty. Parents appreciate businesses that cater to their children, and they’re likely to return to a restaurant that does. This can lead to repeat business and word-of-mouth referrals, both of which can boost revenue.

Increased Sales of High-Margin Items

While kids eat for free, adults typically order more expensive, high-margin items like alcoholic beverages or premium dishes. The profit from these sales can offset the cost of the free kids meals.

Cons of Offering Free Kids Meals

Increased Costs

Obviously, offering free meals increases a restaurant’s costs. The restaurant must pay for the food and labor to prepare and serve the meals, even if they’re not making any direct revenue from them. If not managed carefully, these costs can eat into a restaurant’s profits.

Lower Average Check Size

When kids eat for free, the average check size per table is likely to be lower. This can impact a restaurant’s revenue, especially during peak dining times when table turnover is crucial.

Potential for Abuse

There’s also the potential for customers to abuse the offer. For example, some might bring in large groups of children, significantly increasing the restaurant’s costs. Others might try to claim the offer when they’re not eligible, leading to disputes that can harm the restaurant’s reputation.

In conclusion, offering free kids meals can be a double-edged sword for restaurants. On one hand, it can attract more customers and build loyalty. On the other hand, it can increase costs and potentially lower average check sizes. Each restaurant must carefully consider these pros and cons and make a decision based on their specific circumstances and target market.