A promo code is a powerful tool when set up correctly. A promo code without restrictions is a hole in your budget. This article covers how to use promo codes to attract new customers and grow revenue — not just hand out discounts to people who would have ordered anyway.
Why Restaurants Use Promo Codes
Promo codes solve three problems:
1. Acquiring new customers. A first-order discount lowers the barrier to trying an unfamiliar restaurant. A customer who had a good experience will return without the promo code.
2. Re-engaging lost customers. A customer hasn't ordered in 2 months? A "We miss you" promo code is the perfect reason to remind them you exist.
3. Increasing average order value. A promo code with a minimum order threshold motivates customers to add one more item. "Save $5 on orders over $30" → the customer adds a drink.
Types of Promo Codes
Percentage Discount
FIRST10 → 10% off the order.
Pros: Easy for customers to understand and calculate. Cons: On large orders, the discount can be substantial — no ceiling. Fix: Pair with a maximum discount cap. E.g., 10% off, up to $8.
Fixed Amount Off
SAVE5 → $5 off the order.
Pros: Predictable budget impact. Cons: On small orders, the discount is disproportionately large. Fix: Always pair with a minimum order. "$5 off orders over $25."
Free Item
FREESOUP → free soup with any order.
Pros: Encourages trying a specific dish. Cost is known precisely. Cons: Slightly more complex to configure technically.
Free Delivery
FREEDEL → free delivery on this order.
Pros: Perceived as high value — customers are sensitive to delivery fees. Cons: If you run your own delivery, this is a real cost.
How NOT to Lose Money on Promo Codes
Mistake 1: No Minimum Order Amount
"15% off with no restrictions" sounds generous. But a customer orders the minimum (say, one item for $9), gets $1.35 off, and you give a discount to someone who brought minimal profit.
Rule: Always set a minimum order amount. It should be 20–30% above your average order value to pull orders upward.
Mistake 2: No Usage Limit
You launched "SUMMER20" with no cap. A customer uses it repeatedly. Another shares it in a group chat. Within a week your promo code is living its own life, and you're discounting orders indefinitely.
Rule: Limit the promo code. For example:
- One use per customer
- Maximum 100 total uses
- First order only
Mistake 3: No Expiry Date
A promo code given out a year ago at your restaurant opening gets used at the most inconvenient moment.
Rule: Always set an expiry. 7–14 days for urgency-driven promos, 30 days for seasonal ones.
Mistake 4: Not Running the Unit Economics
Before launching a promo code, calculate:
Example: 15% off first order
Average first-order value: $30.00
Discount 15%: -$4.50
Revenue after discount: $25.50
Food cost (35%): -$10.50 (of $30)
Gross margin: $15.00
Compare: what does acquiring a customer via a delivery app cost?
Commission 30% of $30 = $9.00
Conclusion: a 15% promo code acquires a customer cheaper
than an aggregator ($4.50 vs $9.00), and the customer becomes yours.
When and How to Run Promo Codes
First-Order Promotion (always active)
Code: FIRST or WELCOME
Discount: 10–15%
Condition: New customers only, one-time use
Goal: Lower the barrier to try your restaurant
Where to place it: Instagram bio + posts, flyers in delivery packaging from aggregators, Google Business Profile.
Win-Back Campaign
Code: Personalized, sent via SMS or email Discount: 15–20% Condition: Customer hasn't ordered in 45–60 days Message: "We miss you! Here's COMEBACK — $5 off your next order"
Triggered automatically via CRM when the condition "no orders for X days" is met.
Seasonal Promotion
Code: SUMMER, NEWYEAR, FRIDAY
Discount: 10–15% or a fixed amount
Condition: Limited time (7–14 days), limited uses
Goal: A spike in orders during a target period
Published on social media, Telegram channel, can be sent to your customer base.
Referral Code
Code: Unique per customer (auto-generated) Discount: 10% for the new customer + a reward for the referrer Goal: Organic word-of-mouth growth
How to Track Effectiveness
Every promo code should give you data:
- How many times it was used
- Who used it (new vs. existing customers)
- Average order value for promo code orders
- How many of those customers returned without a code
In Restmarket, all this data is available in the dashboard, broken down per promo code.
The 80/20 Rule: If 80% of promo code uses come from the same customers (not new ones) — the code is cannibalizing regular orders. Add a "new customers only" restriction.
Ready-to-Launch Promo Code Templates
| Code | Discount | Condition | Limit | Goal | |------|---------|---------|-------|------| | FIRST15 | 15% | First order, min $20 | 1 per customer | New customers | | FRIDAY | 10% | Fri–Sun, min $25 | 200/week | Weekend volume | | BACK5 | $5 off | No orders 45+ days, min $22 | Auto-send | Re-engagement | | SHARE10 | 10% for new customer | On referral | Unlimited | Virality | | BIRTHDAY | Free dessert | Order within ±3 days of birthday | 1/year per customer | Loyalty |
Conclusion
Promo codes are a tool with predictable economics — when configured correctly. Three mandatory parameters: minimum order amount, usage limit, expiry date.
Without these constraints, a promo code is a budget leak. With them — it's a controlled marketing spend that pays back through acquisition and retention.
Create and manage promo codes through Restmarket — promo code management dashboard with stats, limits, and automated sends. Free for all partners.