What is National Hamburger Day?
Every year on May 28th, businesses around the country jump on the National Hamburger Day hype train. Branded social media accounts get filled with burger deals, restaurants start slashing prices, and more customers get their foot in the door, expecting a bargain.
So on the surface, it seems like a win-win. Stores get packed with customers who earn a great deal while the business makes a great profit. However, many businesses are slowly and quietly losing thousands of dollars on what is supposed to be one of the most celebrated food holidays of the year. Let’s see why that is and how you can prevent yourself from falling into that trap.
The Discount Trap
While discounts definitely sound and seem like a great idea for your business, higher volume doesn’t automatically mean higher profit. When you offer steep discounts such as $1 burgers or buy-one-get-one-free deals, you’re usually cutting into thin margins. While you may get far more customers than on a normal day, it doesn’t balance out important factors such as rising food costs, labor expenses, and delivery platform fees.
So, how do you stop this high risk of going negative? Try offering value instead of just discounts. Having bundle meals, creating limited-time specials, or adding exclusive limited-time items to the menu can allow for just as much foot traffic in your business while providing a much more positive impact on your company than just slashing prices.
You’re Attracting the Wrong Customers
Deep Discounts aren’t just bringing in more customers, but instead usually bring in deal-seekers. Deal-seekers are people who mainly show up only for the promotion and spend the bare minimum, leading to no return at full price. This means that your ‘deal’ isn’t building up to long-term loyalty, you’re just renting brief attention for a day, and once that deal disappears, so do they.
To fix this, you can offer bounce-back deals such as a ‘Come back next week for 20% off’ deal. This will have a high chance of converting the one-time buyers into regulars.
Operational Chaos Kills Efficiency
A sea of customers sounds great at first, but then your operations end up not being able to handle it. On National Burger Day, many businesses experience overwhelmed staff, longer wait times, higher chances of order mistakes, and lower customer satisfaction. This is because when your team is stretched too thin, quality drops, which can hurt your brand way beyond a single day.
One bad experience can turn a potential repeat customer into a negative review, but how can we prevent that? Make sure to keep your team prepared. Training your team to handle these fast-paced situations can prevent bigger mistakes.
Final Thoughts
If you feel like you’re losing profits on National Hamburger Day, then the day might not be the problem, but rather it could be your strategy. If you’re solely relying on heavy discounts, unprepared operations, and one-day thinking, you’re likely leaving money on the table, and possibly losing it too.
However, with the right approach, May 28th can go from a profit drain to a powerful growth opportunity. The difference comes down to one thing, though, and that’s asking yourself if you’re chasing short-term traffic or building long-term revenue.
FAQ
Why do businesses lose money on National Hamburger Day?
Many businesses rely on deep discounts to attract customers, which can cut into already thin profit margins. When costs like labor, ingredients, and overhead are factored in, the increased sales volume often doesn’t make up for the reduced profit per item.
Is it better to skip National Hamburger Day altogether?
No, since completely skipping it can mean missing out on valuable exposure and profit. The key is to participate strategically rather than relying on aggressive discounting, which is an easy method; however, it has a high risk of hurting profitability.
How can businesses avoid losing money on May 28th?
Instead of simply offering steep discounts, businesses can focus on value-based promotions like bundles, limited-time menu items, or exclusive deals with add-ons that encourage higher spending while maintaining healthy margins.
