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Is It Giving or Is It Marketing?


DonRocks

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Restaurants and bars that donate an insignificant portion of their revenue to Haitian relief organizations are both trite AND self-serving.

Here's an actual example, if you can believe it: One restaurant group has the chutzpah to say that they're going to "donate $1 to the Red Cross every time certain appetizers and entrees are ordered between Jan. 19 and Feb. 19." Guess who gets to take the tax deduction on that dollar?

I repeat, if anyone wants to help Haiti, in the most efficient way possible, you'll go to this post, pull out your checkbook, and take a tax deduction for YOUR charitable contribution.

I'm not naming names, but some of these "compassionate offers" I'm seeing really piss me off, and places are getting free publicity for it, too. If I had a restaurant, and wanted to help the Haitians instead of padding my own pocketbook, I'd hand out to each diner a flier (on a small, thin, sheet of recycled paper) with the website addresses of these organizations.

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Restaurants and bars that donate an insignificant portion of their revenue to Haitian relief organizations are both trite AND self-serving.

Here's an actual example, if you can believe it: One restaurant group has the chutzpah to say that they're going to "donate $1 to the Red Cross every time certain appetizers and entrees are ordered between Jan. 19 and Feb. 19." Guess who gets to take the tax deduction on that dollar?

(That made my gorge rise. That's not trite; it's vile. Which can be anagrammed to "evil"...but I won't go that far.

Urgh.)

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Restaurants and bars that donate an insignificant portion of their revenue to Haitian relief organizations are both trite AND self-serving.

Here's an actual example, if you can believe it: One restaurant group has the chutzpah to say that they're going to "donate $1 to the Red Cross every time certain appetizers and entrees are ordered between Jan. 19 and Feb. 19." Guess who gets to take the tax deduction on that dollar?

I repeat, if anyone wants to help Haiti, in the most efficient way possible, you'll go to this post, pull out your checkbook, and take a tax deduction for YOUR charitable contribution.

I'm not naming names, but some of these "compassionate offers" I'm seeing really piss me off, and places are getting free publicity for it, too. If I had a restaurant, and wanted to help the Haitians instead of padding my own pocketbook, I'd hand out to each diner a flier (on a small, thin, sheet of recycled paper) with the website addresses of these organizations.

Shame on the restaurant that just sent out a promotional email entitled "Relief for Haiti & More," which says that they're going to donate "10% of our revenue" every Monday night in February to Haitian relief funds. The "More" part of the email detailed, among other things, a Valentine's Day Weekend promotion that has nothing whatsoever to do with Haiti.

It's one thing to take advantage of me; it's another thing entirely to take advantage of innocent people for personal gain.

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I purposely did not name names, or restaurants - specifically because I didn't want the Google search engines to pick any of this up. I'm also purposely going back and retro-editing this existing post (rather than writing a new one), because I'm prepared to let this topic subside peacefully, rather than unfairly singling out one spoke in an entire wheel.

However, I have strong convictions about my position: It is morally bankrupt to profit - in any way - using "Haiti" to play on peoples' sympathies. This isn't like heart disease, or cancer, or even Aids; this Haitian Earthquake is more like the World Trade Center Bombings or the Indonesian Tsunami. You either shut up about it, or else you help these suffering people with quiet reverence and humility; you don't turn this disaster into some sort of venal promotion by advertising $1 off an entree, or a free dessert.

It is not my goal to single out individual entities for what is a widespread transgression. Here are some more examples of restaurants and bars using Haiti as part of their for-profit marketing:

* A medium-upscale chain offering $5.95 bread pudding, the proceeds of which go to Haitian relief. (When's the last time you went to a restaurant and only ordered bread pudding? Food cost probably less than $1.00. Tax deduction taken by the restaurant.)

* A bar making an unspecified donation "based on how many people come out"

* Another bar donating $1 from a $5 cover charge to the American Red Cross

* A restaurant having an event at 9 PM, and donating 5% of all food and beverage sales to Partners in Health

* A fairly upscale restaurant donating, for one night only, "a portion of proceeds from all ... signature drinks, the Titanic cocktail and two house label wines" The promotion was sent out at 4:50 PM that same day.

ALL of these events - which are doing the absolute minimum - were announced in advance, and received free publicity, thus playing on people's sympathies and driving up attendance, revenue, profit, and goodwill. If you think these pre-announced, marketed, token discounts of 10%, 5%, sometimes even less, are costing the restaurants money - especially when they're offered during times when the restaurant is normally empty - then you're just plain gullible.

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You're making a mountain out of a molehill here, Don. It's hardly as if these restaurants are saying that this is the best or most efficient way to donate to the Haiti relief efforts.

And for the record, if I'm going to make an effort to go to Dino, which I can't afford to do on a regular basis, I appreciate Dean sending me an e-mail to let me know that if I choose to dine there during a certain timeframe, my money going in part to a worthy cause.

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Why is it important to announce how much money you are donating? Or that you're doing it in a "very tough economy"?

...and you've donated how much? I don't think profit margins are that high in the restaurant business and that $1000 represents what could be quite a bit of profit that will be going to help someone in need. The "very tough economy" is understood unless you're one of the lucky few who has felt no impact of the current economic situation.

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Restaurants and bars that donate an insignificant portion of their revenue to Haitian relief organizations are both trite AND self-serving.

Here's an actual example, if you can believe it: One restaurant group has the chutzpah to say that they're going to "donate $1 to the Red Cross every time certain appetizers and entrees are ordered between Jan. 19 and Feb. 19." Guess who gets to take the tax deduction on that dollar?

I repeat, if anyone wants to help Haiti, in the most efficient way possible, you'll go to this post, pull out your checkbook, and take a tax deduction for YOUR charitable contribution.

I'm not naming names, but some of these "compassionate offers" I'm seeing really piss me off, and places are getting free publicity for it, too. If I had a restaurant, and wanted to help the Haitians instead of padding my own pocketbook, I'd hand out to each diner a flier (on a small, thin, sheet of recycled paper) with the website addresses of these organizations.

What are you really trying to say here? Who are you to call ANY donation insignificant? I know, I know, you're calling it an insignificant portion of their revenue, not the donation as insignificant. But I don't see it as insignificant either way. There are some people out there who won't donate on their own, but if they feel eating somewhere may help another in need, they will take advantage of it and that's a good thing. And as I much as I may not like one's methods or another's ad campaign, if one finds a way to bring business in during these tough times, well, that's what makes horse races, doesn't it?

It's one thing to take advantage of me; it's another thing entirely to take advantage of innocent people for personal gain.

And therein lies the definition of marketing :angry: And for the record, I don't see it as taking advantage of anybody...people who respond are far from "innocent."

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Why is it important to announce how much money you are donating? Or that you're doing it in a "very tough economy"?

It's a legitimate response when your sincerity is questioned. Should be noted, as well, that Dean didn't start this.

*******

One supposes now that we can now start threads trashing Yoplait for sponsoring breast cancer walks, restaurants who feed volunteers during NPR fundraising drives and the Ronald McDonald House.

Sheesh.

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Don

You can name names: That was the Dino email. I will be happy to delete you from our mailing list as it troubles you so much. I will also donate well over $1000 in a very tough economy.

I am happy to take responsibility for what do.

Please add me to your email list and thank you for thinking of Haitians in their time of need.

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I am so surprised and disappointed in the double standard being expressed here. For years, this site has promoted similar events - principally Dining Out for Life, through which dozens of DC and area restaurants donate money to needy charities, based on a certain percentage of that night's income going to the charity. Martha's Table and DC Central Kitchen are frequent beneficiaries of such fundraising. On a smaller scale, I have participated in events to support local high school groups at Two Amy's and Sushi Zen in Arlington. You are right that people can donate directly to a Haiti relief organization or any of these local groups. but what is so wrong if someone is going to eat out that they are aware of such offers and choose, for example, Dino over another restaurant that is not making such a generous offer. My husband is part owner of a DC restaurant and I can attest to the very difficult economy we are in, so I say bravo and thank you to Dean Gold for his actions on behalf of Haiti.

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I guess we each have our own set of standards for these types of relief efforts, as to whether they're kosher or not. I've been thinking about what mine are, and I think for me it boils down to three pretty basic criteria:

1. Is the effort doing some good?

2. is the effort not doing any harm?

3. Are those behind the effort transparent about what they're doing, so that people can make an informed decision as to whether or not to support it?

Everyone's going to have their own way of thinking about these things, but in my mind at least if you can answer yes to each of these questions, then it's cool in my book.

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I am so surprised and disappointed in the double standard being expressed here. For years, this site has promoted similar events - principally Dining Out for Life, through which dozens of DC and area restaurants donate money to needy charities, based on a certain percentage of that night's income going to the charity.

I was thinking specifically of Dining Out For Life, and wondering how this was any different.

Of course you can open your checkbook, or go online and donate directly - but if you're going to have dinner out already, why not choose a place that's going to give a portion to a cause?

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Of course you can open your checkbook, or go online and donate directly - but if you're going to have dinner out already, why not choose a place that's going to give a portion to a cause?

There are also people who wouldn't take the initiative to donate directly who will participate in a more passive (if that's the right word) approach. As a procrastinator, I recognize myself :angry: .

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There are also people who wouldn't take the initiative to donate directly who will participate in a more passive (if that's the right word) approach. As a procrastinator, I recognize myself :angry: .

I gave (to one of those mentioned by Don). I also went to the Kennedy Center last week, for a concert that benefited Haiti. The proceeds went to Haiti. I enjoyed myself AND benefited Haiti.

The most poignant moment came from the Haitian Ambassador to the US; Do not forget us, in Haiti, and those of us in the diaspora. Wow.

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It must have been this concert, which donated 100% of its proceeds. Kudos to the NSO for this genuine act of charity.

The NSO didn't make the donation, the Kennedy Center did - and I'm willing to bet that the actual amount is quite a bit less than we'd all imagine. I'm also willing to bet that the musicians and conductor were paid their full fees in accordance with their union contracts. Are we really going to say from now on that unless a restaurant donates 100% of its proceeds to charity that it's engaging in nefarious marketing tactics to prey on the well-meaning? What about the Sunday dinner thing at Ray's the Steaks? I've never heard anyone say that it's a scam, or less than heartfelt. And didn't the Dino newsletter include ways to contribute without coming to the restaurant?

I'm not a Dino fangirl - I've eaten there maybe 4 times since they opened, and know Dean casually from lunches and dinners with other on this site - but I don't get the sense that this was anything but well meaning, if clumsy, way to get some people to dine there who might have made another choice, and get some money to a good cause.

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I would not call this a Marketing scheme, more of nice to know information. I don't think anyone is going to pick an appetizer because it is the donation special. This is just something nice to know that the owner of a restaurant that I enjoy going to is making a nice donation.

As to the marketing of donations, this is not any different than a charity advertising for donations or the advertising to donate cars. The advertising cost a lot of money, The charity gets a donation after all car pickup and sale expenses. Fund Raisers are very expensive to put on. If you don't have major sponsors, the actual amount that goes to the charities are much less than you would expect.

When a restaurant is running a night for the school - 10% of all sales tonight go the local PTA, I will sometimes go but more of a we have to eat anyway and maybe we will run into some friends. Not specifically because of the donation, but that is nice plus for the schools.

Let's not take something nice, and turn it into something it is not.

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Hey Don, what do I do then to promote something I think is worthwhile? I am donating my private party room on a Saturday night and paying staff to work a benefit for a Haitian medical organization tomorrow night. I was approached by a whole bunch of friends who are in bands that wanted to donate their talents by playing "unplugged" acoustic sets (more than 10 noted area artists), needed a space (preferably with a bar) and are suggesting a donation of $15 at the door, 100% of which goes to the relief organization. I offered 10% of bar sales on top of this so more money could be raised. I have been promoting it so they get as many people here as possible, but am I gonna be accused of being self-serving? I'm trying to help them raise money; clearly, having a bar makes the evening a more attractive draw as an event to generate more door receipts for the cause. Where's the line here? I'm waiving any room rental, staffing it out of my pocket, spending a lot of time trying to promote it, not taking any of the door, and donating some of the sales. This is in addition to any other donations I and my friends may have already made directly to relief orgs, I should add. I don't view this as a marketing tool at all, and I kind of find that idea repellent. Are we to sit idly by? I'm not defending token offerings to sell one's restaurant, but I do think we all should try and help where we can. Next Saturday's a NOLA fundraiser with the AFI and the green building council. I'm donating the room, staff, food and part of the bar and got friends to perform a set for free. Now you've got me doubting how I'll be perceived.

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Hey Don, what do I do then to promote something I think is worthwhile? I am donating my private party room on a Saturday night and paying staff to work a benefit for a Haitian medical organization tomorrow night. I was approached by a whole bunch of friends who are in bands that wanted to donate their talents by playing "unplugged" acoustic sets (more than 10 noted area artists), needed a space (preferably with a bar) and are suggesting a donation of $15 at the door, 100% of which goes to the relief organization. I offered 10% of bar sales on top of this so more money could be raised. I have been promoting it so they get as many people here as possible, but am I gonna be accused of being self-serving? I'm trying to help them raise money; clearly, having a bar makes the evening a more attractive draw as an event to generate more door receipts for the cause. Where's the line here? I'm waiving any room rental, staffing it out of my pocket, spending a lot of time trying to promote it, not taking any of the door, and donating some of the sales. This is in addition to any other donations I and my friends may have already made directly to relief orgs, I should add. I don't view this as a marketing tool at all, and I kind of find that idea repellent. Are we to sit idly by? I'm not defending token offerings to sell one's restaurant, but I do think we all should try and help where we can. Next Saturday's a NOLA fundraiser with the AFI and the green building council. I'm donating the room, staff, food and part of the bar and got friends to perform a set for free. Now you've got me doubting how I'll be perceived.

Jackie,

Upon first reading, your event seems like a selfless celebration with meaningful donations going to Haiti. I don't believe for a second you're doing "the minimum necessary" to qualify for positive press; you're trying to get money down there, and kudos to you for doing so. There are haitian relief events, and there are Haitian Relief Events - yours seems like it's in the latter category. Thank you for posting here, and good luck with your fundraiser.

PLEASE start a thread about this in the Events and Gatherings forum.

Cheers,

Rocks.

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Come on by to Ray's: The Steaks or Ray's: The Classics on Sunday (Ray's: The Steaks at East River is already doing an event for Leukemia/Lymphoma Society that day) and we'll donate a straight 10% of gross sales to help get those vans back out there on the streets. Based on a typical Sunday that would be about $2000, so hopefully we'll get enough of you all coming out to make that a bit more.

On top of that, I'll have Mark pick out a special bottle of wine in the $40-$50 range at each restaurant that we'll donate an additional 25% of each bottle sold. Whatever that amount is I'll match out of pocket.

The work they do, and the people they serve, are too important and too crucial, too vital, to let anything get in the way.

I wonder if this offer to help will get a similar response as Dean's offer to do the same for Haiti (I sure hope not).

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I wonder if this offer to help will get a similar response as Dean's offer to do the same for Haiti (I sure hope not).

Uh, doubtful that it will since Michael hosts these events all-the-time.

I was going to propose that DR.com do something fun like have a bake sale to raise money for DCCK. I'm out of town at the moment but what do y'all think? I live near the Zoo and would happily ask the Starbucks across from the Zoo if they would let me set up one weekend day with a bake sale for which all funds would go to the DCCK. It would also give DR.com members an excuse to bake. :-)

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Uh, doubtful that it will since Michael hosts these events all-the-time.

So frequency = legitimacy? I am not saying either are disingenuous in their offers*, but why is a person's one-time offer of 10% of gross sales offered only once any different than someone that makes the same offer all of the time? If you think that it is a horrible thing to make this offer once, the admonishment should be compounded if someone does it multiple times, not excused.

*I am not taking any side on whether such offers are good or bad, only questioning why it is bad when done for one cause, but not another.

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So frequency = legitimacy? I am not saying either are disingenuous in their offers*, but why is a person's one-time offer of 10% of gross sales offered only once any different than someone that makes the same offer all of the time? If you think that it is a horrible thing to make this offer once, the admonishment should be compounded if someone does it multiple times, not excused.

*I am not taking any side on whether such offers are good or bad, only questioning why it is bad when done for one cause, but not another.

To me it has to do with scope. DCCK is something tangible that impacts my community. I volunteer there and can register the faces/names of people the vandalism has an impact on, which makes me much more inclined to go to a restaurant with the intention of donating to the cause (vs. going to the restaurant b/c I like it, which I often do at both Dino and Rays).

I'm not saying by any means that the Haiti event was not legitimate, it was. However, I think comparing the two is flawed based on scale.

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In the typical scenario, the restaurant donates a portion of sales.

Let's say it sells a piece of steak for $30, which cost it $10. Its taxable profit is $20. Let's say the restaurant then donates $10 to charity - this reduces its taxable profit to $10. The customer gets no tax benefit by eating out.

Alternatively, the restaurant can reduce the price of steak to $20, but the customer has to write a check to the charity for $10 and hand that over to the restaurant. Again, the restaurant's taxable profit is $10 (revenue of $20 - $10 cost) but now the customer has a charitable contribution deduction of $10, which can generate tax benefits of up to $4.

Just a thought.

Query: would any restaurant owner take that deal?

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However, I think comparing the two is flawed based on scale.

To your first point that only addresses that you think that it is a great cause worth everyone's support, which I never questioned so I will leave that alone.

What I cannot understand is that restaurant X is admonished for saying they will donate 10% of gross sales to gianormous charity A because they will otherwise profit off of it; however, if restaurant Y does the exact same thing (and throws in a bonus of more coming from a wine sale) but stipulates that it goes to a small local charity that is so uber-cool and makes you sleep well at night, but restaurant Y will still profit off of, that it is completely different...

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What I cannot understand is that restaurant X is admonished for saying they will donate 10% of gross sales to gianormous charity A because they will otherwise profit off of it; however, if restaurant Y does the exact same thing (and throws in a bonus of more coming from a wine sale) but stipulates that it goes to a small local charity that is so uber-cool and makes you sleep well at night, but restaurant Y will still profit off of, that it is completely different...

I'm curious to know where restaurant A was admonished? Maybe I missed it?

If you think my point is that I'm chastising the restaurant b/c it is donating to a cause that is "gianormous", meaning the restaurant would profit off it, you are missing the mark. My point is that the Haiti cause (or any other large cause) is supported by a large portion of the population (not just restaurants) via many different means (cell phone donations, etc etc). DCCK, b/c it is much smaller and local has a much smaller base of support, which makes me more likely to go support it b/c I have a personal attachment to it and the community it serves.

In all honesty (and I'm only speaking for myself), you can take restaurants completely out of the equation and my point would still apply.

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I'm curious to know where restaurant A was admonished? Maybe I missed it?

I would consider this an admonishment:

Shame on the restaurant that just sent out a promotional email entitled "Relief for Haiti & More," which says that they're going to donate "10% of our revenue" every Monday night in February to Haitian relief funds. The "More" part of the email detailed, among other things, a Valentine's Day Weekend promotion that has nothing whatsoever to do with Haiti.

It's one thing to take advantage of me; it's another thing entirely to take advantage of innocent people for personal gain.

You can find that at the link in my first post.

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I had missed the thread you reference (and upon a review, I can see where you are coming from).

I am only arguing the point regarding something small/tangible to a potential donor vs. a large coordinated effort that visibly has many supporters and how that would elicit different reactions or support mechanisms.

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