The problem with dropping your prices, especially if you serve anything "fresh" is that people assume you aren't doing well. You might pick up on the tourists, but the locals will think you aren't serving fresh food because you are struggling...makes sense right. That's why I never buy discounted sushi, as an example.
Check the reviews on your restaurant and the others; what are people saying, how can you improve?
The first thing that you need to think about is how you can build brand recognition so that your customers will even know that you are existing. Flyers are outdated, what's in nowadays is the use of floor advertising. You can use floor graphics in parking lots and custom floor mats in the entrance of your restaurant. It can add to the aesthetic of the restaurant as well as increase the awareness of your customers. It is also believed that using custom floor mats can create a positive impression and "great experience" to your customers. You can see some custom mats at promomatting.com. Through this, you can encourage the customers to flock into your restaurant. However, this is just the first step, the secret ingredient is to provide excellent customer service to keep customers from coming back.
I watch bar rescue all the time this goes for a restaurant or a bar you need a bright sign with a good logo. Your own signature food and drink to get people talking about you restaurant and wanting to come back. Also of you have good service and good food they will tell other people and their friends and you will have plenty customers in no time. Hope this helped.
Do you have a web site with your menu and prices on it? Are you using Facebook and Twitter to advertise daily specials? Do you make sure to check Yelp and respond to reviews/ Do you ask the people that come in to review your restaurant on Yelp?
You need to outreach to the community to let them know about your quality and prices. You've set yourself up to compete, but you haven't gotten the word out or people wouldn't feel the way they feel.
not enough info on the area to truly help you.. add more options to the menu that target your specific area.. like if you are in southern US more southern dishes.. near the ocean then more seafood favorites.. cook what the locals like
I own & run small restaurant in Small tourist town. There are 3 to 4 different restaurants in town. people see our restaurant as best place in the town and that's what the problem is majority of locals never come because they think its too expensive and too classy for casual dinning. Our price is now equal to everyone in town even less in some dishes with good quality then others. How can i bring more people in to restaurant and also how can we tell people that we are not too expensive or too classy. Any ideas for promotions specials we can do get more people in.