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Typically, average restaurant food costs are between 25 - 35%. At these rates, the food costs to honor a $25 gift certificate are as little as $6. Certificates may only be applied to the food portion of the bill, and
cannot be applied towards tax, tip, or alcohol. Maintain your high margin on
alcohol while applying the certificate towards the food. Research has also shown
that in almost 90% of the cases studied, consumers spend well in excess of the
face value of the certificates, and tend to spend more freely, knowing that the
bill will be reduced by the certificate value.
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