Wondering if your restaurant needs a marketing plan?
If your tables are consistently full, you might think it’s unnecessary. However, a restaurant marketing plan isn’t just about attracting new customers; it’s a blueprint for success. Before diving in, consider that a comprehensive marketing plan goes beyond the basic 4P’s (product, price, place, and promotion) taught in Marketing 101.
The Foundation: Beyond the Basics
An effective restaurant marketing plan involves more than traditional tactics. It requires solid operational execution, strategic positioning, and understanding the local market dynamics. Your plan should be rooted in factual knowledge about your market, competition, customers, financial and marketing history, industry trends, and external factors influencing your business.
Key Metrics to Monitor
To gauge your business progress, keep a close eye on essential metrics:
- New vs. Repeat Business: Track the percentage of new customers versus repeat patrons. Train your staff to inquire if it’s a customer’s first visit, as their initial experience shapes their perception.
- Customer Frequency: Foster enduring relationships to increase customer loyalty and frequency. Imagine the impact on business if monthly visitors turned into weekly regulars.
- Check Average: Understand your average transaction value and be mindful of shifts. Implement strategies like suggestive selling and internal merchandising to influence check averages positively.
- Group Size: Tailor programs to encourage customers to bring friends. Initiatives like bus drivers eat free, birthday clubs, and refer-a-friend promotions can turn customers into advocates.
Budgeting for Success: Maximizing Your Restaurant Marketing Plan Investment
Determining the right marketing budget is crucial. Allocate 3% – 6% of sales for marketing, with proportional adjustments based on peak business months. Avoid the common mistake of underspending during busy periods. Fish where your customers are and align your budget with their behavior.
Determining the Right Allocation
Deciding on the optimal marketing budget is a critical aspect of your restaurant marketing plan. As mentioned earlier, allocate 3% – 6% of your sales to marketing. However, it’s not just about the percentage; it’s about strategic allocation and flexibility.
Proportional Spending
Consider your sales volume throughout the year and allocate your marketing budget proportionally. If certain months are consistently busier, allocate a higher budget during those peak periods. This approach ensures that your marketing efforts align with customer behavior, maximizing your return on investment.
Seasonal Considerations
For restaurants dependent on seasonal business, such as those in ski or beach resorts, timing is crucial. Promote when potential customers are in town, and avoid unnecessary spending during slow seasons. Remember, effective marketing adapts to customer behavior rather than trying to change it.
Focus on ROI: Spend Where It Matters
It’s essential to spend your marketing dollars where they will have the most significant impact on your restaurant’s success. While it may be tempting to follow the crowd and invest heavily in traditional print and broadcast advertising for new customer acquisition, this is often the least effective strategy.
Public Relations as a Cost-Effective Alternative
Instead of solely relying on expensive advertising campaigns, consider investing in public relations to make your restaurant known in the community. Building relationships through local events, partnerships, and community engagement often yields a higher return on investment than broad-scale advertising.
Aligning Strategy with Business Goals
Your restaurant marketing plan should not only align with your business goals but also adapt to changing circumstances. Regularly evaluate the performance of your marketing initiatives and be prepared to adjust your budget allocation based on what is working best for your specific market and target audience.
In summary, successful budgeting involves not just setting aside a percentage of sales but strategically allocating funds based on seasonality, customer behavior, and the most effective channels for your restaurant.
By staying flexible and focused on return on investment, you’ll ensure that your marketing budget contributes significantly to the success and growth of your restaurant.
Conclusion: Your Restaurant marketing Plan’s Success
Effective restaurant marketing is about influencing existing behavior. Focus on increasing frequency, check average, and party size rather than solely chasing new customers. By allocating your marketing budget wisely, you’ll enhance your restaurant’s visibility and, ultimately, its success.
