What Is the Reason for a Grand Opening?

by Kristen Bennett

A grand opening is a social event that is intended to introduce the community to a new business. It can include a party, refreshments or special pricing. In addition to grand openings, many restaurants use a technique called a "soft opening" to invite special guests to try their cuisine before the general public. Grand openings help attract new customers, generate buzz, gain media attention and create goodwill with neighboring businesses.

Attract New Customers

One of the key reasons that businesses stage a grand opening event is to attract new customers. By drawing attention to a new store in a strip mall or retail complex, businesses can attract shoppers who might not be aware that a new store has opened. Another tactic used in grand openings to encourage shoppers to enter and browse a store is offering special pricing or handing out coupons to people in the area.

Generate Buzz

Businesses use grand openings as a way to generate "buzz" or publicity for their store. Many retail stores and restaurants will send out a press release to announce the opening or create a direct-mail piece to reach their target audience. If a business is the first of its kind in an area, a banner or sign can attract additional attention. Getting people to talk about a new business is critical to the success of a grand opening.

Attract Media Attention

In addition to generating publicity within the general public, a grand opening also can attract media attention. Local papers, television stations and radio programs often feature segments where they introduce new businesses. Chambers of commerce also work with local businesses to promote their openings through formal ribbon-cutting ceremonies and photo opportunities.

Foster Goodwill With Other Businesses

A grand opening also can be a way to foster relationships with other businesses in the area. Typically in communities where small businesses are plentiful, interacting with other business owners is beneficial. Hosting a grand opening or networking event allows neighboring businesses to learn more about your store and even recommend it to customers with whom they have a relationship.

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