Promotions in F&B: Why Discounts Create Short-Term Traffic and Long-Term Dependency

Promotions in F&B: Why Discounts Create Short-Term Traffic and Long-Term Dependency

Promotions are deeply embedded in Singapore’s F&B scene. Discounts drive footfall. Bundles move volume. Flash deals create urgency.

They also train behaviour.

 

Why promotions work — initially

Promotions lower decision friction. They give customers a reason to try, return, or spend more. In tough periods, they feel like relief.

The problem is not that promotions work.
The problem is what happens when they stop.

 

The promotion dependency cycle

Over time:

  • customers anchor to discounted prices
  • regular pricing feels less attractive
  • demand fluctuates sharply
  • margins tighten

Businesses then feel compelled to run promotions more frequently just to maintain baseline traffic.

What began as a tactic becomes a dependency.

 

What promotions don’t solve

Promotions do not:

  • build brand loyalty
  • clarify positioning
  • improve operational efficiency

In fact, heavy promotion often increases pressure on already stretched teams.

 

When promotions make sense

Promotions are most effective when they:

  • support a clear positioning
  • are time-bound and intentional
  • reinforce value rather than replace it

Used sparingly, they can be powerful. Used habitually, they erode trust.

 

When to rethink promotions

It may be time to pause promotions if:

  • sales drop sharply without them
  • customers delay purchases waiting for deals
  • staff struggle during peak promotion periods

At that point, the issue is no longer marketing. It’s strategy.

 

Speak with Bluehive

If promotions drive traffic but weaken stability, it’s worth rethinking the approach.

📞 Call or WhatsApp 9191 682
🌐 www.bluehiveasia.com

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