Discounts are driving restaurants out of lockdown

Is that good for the long run?

The UK government launched a scheme called “Eat Out to Help Out".

It is aimed at helping with reopening of the restaurant economy and driving sales. U.K government has set aside a budget of £500 million for the policy.

The rules

From 3 to 31 August, consumers get a 50% discount when they eat at restaurants that are registered with the “Eat Out to Help Out Scheme".

Eat out and help out scheme can help consumers:

• To get a 50% discount on food or non-alcoholic drinks to eat or drink in (up to a maximum of £10 discount per diner)
• The offer is valid every Monday, Tuesday and Wednesday between 3 and 31 August and can be availed as many times as consumers want.
• Consumers cannot claim discount on alcoholic drinks or service charges.
• Participating establishments include bars, pubs, restaurants, cafes, school canteens and food halls.
• The discount was automatically available to diners at participating establishments. Establishments then claimed a reimbursement from the government.

Outcome

The scheme led to 10.5 million meals being claimed in the first week.

The scheme turned out great enough for restaurants to continue without the aid of the Treasury. The diners are…