The world’s largest coffee chain, Starbucks has started providing huge discounts to lure more customers as it is aiming to achieve higher rates of consumption. The customers who are purchasing before 4 pm will receive a discount voucher for 40 percent of the bill. This offer is valid for the next time when the customer visits a Starbucks restaurant in Chennai, Mumbai, Delhi NCR,Hyderabad, Bengaluru or Pune after 6 pm. Also, the coffee chain offers an additional 10 percent discount for those customers who have a loyalty card from Starbucks.
Regarding this, Manmeet Vohra, Marketing and Category Director of Starbucks claimed that the firm is trying to innovate and create enticing offers for their customers constantly. The concept of treat recipe has been conceptualized from this very customer centric thought. Notably, Starbucks is not the sole café chain in the country that is aiming to win customers via discounts.
Domino’s has a promotional offer every Friday, ‘buy one, get one free’ on pizzas. Likewise, Pizza Hut has a similar one on Wednesdays. McDonald’s is providing cash back of up to Rs 50 and it can be availed on Freecharge, mobile recharge platform.
Regarding this, Jaspal Singh Sabharwal, partner at Everstone Capital, local master franchisee for Burger King claimed that the quick service restaurants and café industry are getting into a circular squad firing formation that will eventually force them to kill each other in order to gain market share. He added that these firms believe that this is the sole way to achieve growth in the market. Furthermore, he credited this competition to a variety of factors including massive pressure, sluggish demand and more.
The Gen Y that refers to people born in the time period between 1980 and 2000 are spending more on the online purchases of fashion and smartphones and this has led to a decline in the finances to eat out, suggested Sabharwal. To target at these customers, the café chains are making significant cuts.
Even Costa Coffee ran Happy Hours promotion for a limited time period of two years to increase their custom during the non-peak hours of the day. Also, Café Coffee Day being the largest café chain in the country with 1,400 stores is running promotions that do not last for a long time.