Updated: Aug 18
For this article, local restaurant marketing is about the owner/operator that works tirelessly to manage operations, staffing levels, food costs and the ultimate bottom line. In today’s climate restaurant operators face a greater challenge as the pandemic is hindering every business aspect including the food supply chain.
Beware of Discount Websites
At Propulsion, we believe in sound marketing strategy and it’s at the core of everything we do. This does not mean offering a deeper discount than the competition. Restaurant marketing is more complicated than offering a “loss leader” just to drive traffic. Rolling out a loss leader often hurts more than they can help, depending on profit margins. With already slim margins, discount websites can be a trap. For example, an offer on Website X is 50% off to the customer, but the retailer also pays Website X a percentage or fee to run the offer. These discounts dilute our profit margin and in some cases put us in the red. Most restaurants don’t have room for error and operating in the red for any offer really hurts. By looking over costs for the Website X offer, we should place funds into an imaginary marketing bucket. If we had the money to run a Website X offer, we can shift the dollars towards a more robust marketing effort with increased upside. Here, we are able to control offers and our customer acquisition costs. There are many alternatives to the discount sites but many operators don’t have time to properly evaluate them. When we consult with owners, they are often amazed at how little time it takes when using strategies to break down those options. As we’ve noted in previous articles, tapping into current customers is cheaper than finding a new one. Staying connected with customers is the key.
How does restaurant operation fit into marketing strategy? With sound marketing strategy, a restaurant can expect to see some bump in business. We have invited guests into our establishment, but without solid operations, any marketing effort is destined to fail. Restaurant operators have a responsibility to their customers and employees to be prepared. This means communicating current offers and establishing a protocol on how to handle offer redemption. This simple plan helps close the loop on marketing efforts and may keep employees engaged.
In 2021 we are focused on the success of the local restaurant. If you have a Las Vegas restaurant marketing need or know of one in need, please call us at (702) 751-4890. We’re here to help at any level necessary.