Joel Cohen and I hear this refrain all of the time from independent restaurateurs: "The chains are doing it, so I've got to match them so I can compete."

So, Three Questions:

1. Just because a chain offers a coupon, why do you feel compelled to do it, too?

2. What makes you think that the suits running these chains are any smarter than you are?

3. Why would you want to compete with the chains in the first place?

Joel and I can already predict that when things get tight, most independents (and many chains for that matter) will make discounting their main survival strategy. They will hope that cutting prices will keep them on life support, but it is at best just a knee-jerk response.

Couponing does not breed true guest loyalty. It just attracts the "coupon cavalry" who will charge in, take advantage of your deal, then move on to the next big discount. Coupons bite into already slim profit margins and forever compromise the credibility of your price structure.

Discounts are not a lifeline, they are the kiss of death. Worse yet they are highly addictive drugs - once you start, you get "hooked" and it is almost impossible to kick the habit, even when you know that it's killing you.

Just imagine what the competitive climate is going to be like if we end up in a full-blown recession. You're going to have more and more restaurants chasing the same shrinking market, trying to outdo each other with the most generous coupon offers. It will be the Lunchtime Limbo -- "How low can you go?"

• Do you really want to slug it out in that arena?
• Is doing business this way really compatible with the image you want to present or your professional standards?
• Would you rather rise above this food fight, stand out from the herd, cement your reputation as a highly desirable dining destination and maintain your profitability in the process?
• Would you like to know how to grow your restaurant sales and profits during a recession?
• Would you like to have a garage full of sales-building tools that will keep your sales tuned up through the slow days ahead and keep the money machine humming, putting more money in your pocket every month in the future?
• Would you prefer to wait for the politicians to solve this for you (good luck!)?
  

On March 9-10, Joel and I will coach 56 savvy independent operators on how to effectively become recession-proof. Will you be one of them? Find out more at www.MarchMarketingMadness.com.

Yes, some operators will have a recession ... but you don't have to be one of them. In fact, you may be on the brink of the most productive sales-building period in your life ... if you play it right.

PS: Next week I will tell you why you don't want try to save money by cutting back on your promotional budgets.
 

Here is the weekly report on my personal project to lighten up:

Goal: -50  Last Week: -2  Total: -25

A number of folks have joined me in this audacious venture. I applaud their courage in "going public." Do you have a goal regarding your weight? Do you have the courage to put yourself on record? We all seem to get better results when we are held accountable.

Mary Jo Beniger -- Goal: -25  Last Week: -2  Total: -13.5
Tom Combs -- Goal: -65  Last Week: -3  Total: -20
Trice Micheals -- Goal: -50   Last Week: +2  Total: -11
Steve Ulrey --  Goal: -12  Last Week: -4  Total: -3
Bill Breslo -- Goal: +5   Last Week: +5  To Date: +3.5  

If you are interested in how it's going for us, scroll down to the bottom of the EHC each week and check out the progress. If you could care less, don't!