Promotion Deal with Restuarant

Tomorrow (Fri) I will be meeting w/ a local Spanish tapas restaurant to see about incorporating my sauces into their appetizer/bar menu. This is a promotional opportunity set up by their marketer (3rd party).  I met the restaurant owner, executive chef and the marketer when I did a local TV news interview during my Kickstarter campaign.  All three loved the sauces and we talked about doing something at a later point when my sauces were produced.  The marketer also wants my business so she can set me up w/ local interviews with news and radio stations and do promotional stunts.  For example, November is apparently national pepper month and she says we need to “move on this now”. LOL but it is a good slant.
 
Anyway, I’m wondering if anyone has done something similar before and what your arrangement was w/ the restaurant.  The way I see it, if it’s truly promotional, then they incorporate the sauces and let the customers know in some way, probably by signage I create and their bar staff.  Under this scenario, I would provide the sauce for free and they would provide the promotional opportunity.  Guaranteed that whatever they do will be awesome and my sauce would be presented in the best possible light (it’s my favorite restaurant in town).  I don’t think they want it on the table because they are a little higher scale, not like a pub.  They want complete control over what their customer tastes.  I mentioned having it on their tables when we first met and they balked.  The other option would be they would buy it wholesale but then I get nothing more than a sale.
 
There actually is a question here.  I prefer the first option (promotional) but has anyone done this and charged wholesale for the sauce?  The way I see it, they are really doing me a favor.  Any thoughts or experience on the matter are appreciated.
 
Ken
 
i like the promotional best, so they'd offer like Ken's Roasted Superhot Salmon with a little bit or your logo or text that says made with xx sauce from kens pepper works or whatever.
I would need to know what their volume requirements / expected are. Wouldn't want to end up dumping too much cash on this promotion. I think promotion would work well for something that's on their temporarily or they use a new sauce in a dish every month or something. If they are permanently adding it to the menu i would want them to pay something, at least offsetting the cost to make the sauce..
 
i have no experience: i thought the we have to move now! is funny lol
 
juanitos said:
i like the promotional best, so they'd offer like Ken's Roasted Superhot Salmon with a little bit or your logo or text that says made with xx sauce from kens pepper works or whatever.
I would need to know what their volume requirements / expected are. Wouldn't want to end up dumping too much cash on this promotion. I think promotion would work well for something that's on their temporarily or they use a new sauce in a dish every month or something. If they are permanently adding it to the menu i would want them to pay something, at least offsetting the cost to make the sauce..
 
i have no experience: i thought the we have to move now! is funny lol
 
Agreed.  I see this a  a short-term, probably November, promotional item.
 
It takes $ to make $.

Ideally you'll find restaurants who'll buy from you & put your sauce in the table. That's the best promotion IMO.

But in the scenario you describe the promotional exposure is worth more thank the sauce you're giving them.

This has a limit though - I would suggest that you determine usage. "Free sauce" - is it bigger than a breadbox or smaller than a house? My point is that if you're giving them a case a week and they're putting your logo on the menu next to the item(s) it's featured in, that's an equitable deal.

But if you're giving them 3 CS a week and it's a casual mention if someone asks, probably not worth it.

"Promotional" is a pretty big basket - the devil is in the details. I hope it works for ya! :cheers:
juanitos said:
i like the promotional best, so they'd offer like Ken's Roasted Superhot Salmon with a little bit or your logo or text that says made with xx sauce from kens pepper works or whatever.
I would need to know what their volume requirements / expected are. Wouldn't want to end up dumping too much cash on this promotion. I think promotion would work well for something that's on their temporarily or they use a new sauce in a dish every month or something. If they are permanently adding it to the menu i would want them to pay something, at least offsetting the cost to make the sauce..
 
i have no experience: i thought the we have to move now! is funny lol

Lol - I shoulda read this 1st - Juanitos nailed it, and said it better. :rofl:
 
So I met w/ the executive chef yesterday and this is what is going down:
  • The are doing a Monday skewer special and every Monday will be a different set of skewer specials featuring my sauces
  • My sauces will be on each end of the bar counter as a display
  • My business cards will be on the bar and at the hostess table
  • Their marketer will arrange a TV interview featuring the chef and me on the local Fox and NBC affiliates where we will push the skewers and my sauce
  • They will direct any inquiring customers to my sauces and cards 
  • I will provide the sauce at slightly above cost.  I think I could have gone higher to my normal restaurant price, which is 50% more, but they are doing so much I feel lucky I'm breaking even in on this.  
This is an indefinite promotion and they only bought one case to start (4 of each flavor) so it shouldn't break the bank.  I'm not really making profit but I think to get so much promotion and still get reimbursed is a deal. 
 
Ken
 
Back
Top