Gift Card Question

I've got a question regarding gift cards. Tonight I tried to use a gift card from a local restaurant that I got as a Christmas gift. I was told I couldn't use it because the company had been sold and I would have to use it at one of the original parent company's locations. I spoke with the manager and he wouldn't honor it.

I'm I right for being pissed?

Thanks,
Allen

I'm assuming the restaurant is still operating under the same name thought probably went from corporate ownership to a franchise ownership situation. In this case I would certainly expect the franchise to also accept the gift certificate. I would probably contact the corporate offices of the restaurant and get their opinion. What restaurant was it if you don't mind me asking?

Yes, it's still operating under the same name. I plan on contacting the corporate office. To me It's just a matter of principle and doing what's right.

I would name them, but since it's my first post I didn't want to look like I was trolling.

By the way, welcome to the forum. Hope you'll continue to participate, we are actually rather nice most of the time!

In most cases we actually like to hear about what restaurant was so we can avoid the same situation and really don't think it's trolling as long as you come back and answer questions. Especially since your be talked to management of the restaurant I know I would personally like to know what I'm sure many others would to where it was.

[Robin Garr]

As a technical matter, I expect that the current owners would have to eat all the costs, and they're probably reluctant to do that. It really comes down to how far they are willing to go to sacrifice on the customer's behalf. Great restaurants will sometimes go that extra mile, believing that it pays off ultimately in word of mouth. This one clearly didn't make that choice, and now they've probably lost a customer.

The restaurant business is one of slim margins and frequent judgement calls. I wish there was a clearer way to answer your question, but it pretty much comes down to "sometimes yes, sometimes no."

[Robin Garr]

Oh, and Allen, let me add my warm welcome to our forum, too. You handled a critical report with grace, and while I'd kind of like to know, too ... I admire your decision to avoid making your first post look trollish.

Thanks for the warm welcome!

To answer your question it was Aspen Creek. I was told by the manager it was an old gift card and I should take it to Texas Roadhouse to redeem. The change of ownership isn't really my problem. No notice was given. No expiration is noted on the gift card.

I think it's foolish for a business to piss off a good customer over a $30 gift card.

[Robin Garr]

I think it's foolish for a business to piss off a good customer over a $30 gift card.

Let the congregation say "Amen!"

Totally agree. It illustrates yet anther problem with large chain operations. Frequently managers are paid meager saleries with an additional chunk of money coming from bonuses based on their P&Ls. No thought is given to long term answers because chances are good that manager will be transferred out to another local so they live for short term benefits to their bottom line. (ie, a few comped dinners as possible.)

Ok, so bam. This comes up all of the time in my business and honestly I'm surprised that this particular instance wasn't on us.

Here's how it breaks down (in our case) from a behind the scenes perspective:

All of our stores are franchisee owned. The franchisees as a collective group cannot agree on a gift card program (or loyalty program or marketing program or...or...or...), so gift cards are left to a store-by-store basis. Stores are required to create their own gift cards or participate in the program we have approved. If they create their own gift cards, the cards are required to state clearly that they are store specific.

However, no matter how meticulous the plan is, the consumer buys a GC at store A and tries to use it at store B or is given the GC as a gift purchased at store A and tries to use it at store B. And the burden of this madness shouldn't be on the consumer, it should be on us. It should be as easy as: I bought a J. Gumbo's Gift Card, I should be able to use it at any J. Gumbo's. And if all of our stores were owned by us, it would be that easy. But when franchisees come into play, things get messy and tricky. We have the option of forcing all of the franchisees to participate in a unified program, but that is also rife with troubles. Honestly, it is the best option in the grand scheme, but for a small brand just getting started, implementation and enforcement is not easy.

The other option (and one I am strongly considering after 5 years of this headache) is to just do away with gift cards altogether. It cuts off an important revenue stream, but I would rather lose revenue than lose customers due to conflicts over gift cards. It's a lose-lose, sadly.

Robin is right, the great business owners are the ones who value your business more than they value nickels and dimes because they understand that one positive visit becomes ten, while one negative visit becomes zero. The great business owner honors the card in the hopes that they have earned your business (even though this card isn't for our store, I am happy to take it because I value your business). You can always spot these owners because they put the customer first, because they know the customer is the one who pays the bills.

We have great owners in our system, and we have good owners in our system. And things like this make the difference.

I have no idea what the situation is with Texas Roadhouse, but speaking from my personal experience, it is never as simple as it should be.

Allen, thanks for telling us what restaurant this involved. Considering the gift card was several years old I do understand the situation more, from your original post I thought it was new. That being said considering this is a chain that is trying to expand I would've thought that they would accept it. I would think when buying the entire chain like they did they would have to accept previous gift cards along with all other assets and liabilities of that namebrand.

I got the card in December 2013, so it's not too old. But the point is, nowhere on the card is there anything about an expiration. If it did I'd have no problem with them refusing it.

I contacted the corporate office via email, but haven't gotten a reply.

[Robin Garr]

I contacted the corporate office via email, but haven't gotten a reply.

Let us know what (if anything) comes of that, Allen. This is a fascinating topic!

Yes, it's still operating under the same name. I plan on contacting the corporate office. To me It's just a matter of principle and doing what's right.

I would name them, but since it's my first post I didn't want to look like I was trolling.

Yes, I would expect them to honor it, certainly if its still under the same name.

Who was it? Edit: Never mind, saw it mentioned further down the chain.

Sold or not, as someone else mentioned, when you buy a business then you accept all the outstanding debts and liabilities of that business unless the sellers maintain liability of the debt as a term of the sale. Not to mention that as an expanding brand in the Louisville area that was the dumbest decision ever, look at the bad press this is generating for them on social media.

Here is corporate for Aspen Creek: http://www.ultrasteak.com/1002/Page.aspx

I believe, by law in Kentucky, that they are required to honor the gift card even with the change of ownership. We had an issue with Groupon/Living Social certificates being presented 3 & 4 years after the expiration date and i was obligated to honor the purchase value. That always irked me because the consumer doesn't have to uphold their end of the deal by using the certificate by date certain. Particularly when the justification I used to participate was predicated on 30% not being redeemed. I believe someone will have to honor that gift card but, unfortunately, you will probably have to push to make it happen. I would be surprised if Texas Roadhouse were unwilling to convert it to one of their cards. Or, if the card was purchased off a retail rack you may have to run that company down and request that it be converted to another card.