You have probably been led to believe that the best restaurant marketing plans are complicated and require an expensive team of “experts” to function well. But what if I told you that the best restaurant marketing plans are actually easy to understand and simple to create? What if I said that there are only three parts to building effective marketing plans and everything else is hogwash? Would you be interested in knowing more?
Well, good news! It’s the case. You may be thinking: Who is this Adam, and how would he know it? I have been obsessed with marketing for the past decade, acquired over 10 million customers along the way and spent the last year specializing in restaurant marketing.
Without further ado, let’s dive into it.
Define your goal.
The first step and the most important factor in any restaurant marketing plan is to define your goal. What is your goal in the first place? Obtain new clients? Increase the average size of your check? Become the best restaurant that people frequent for your type of food in your town?
Think carefully because the goal you set should dictate everything you do in terms of marketing. All.
Why is it so important to set a goal? Because you can’t hit a target if you don’t know where to aim. And, no, you can’t have multiple goals for the same plan. The same plan can lead to multiple benefits, but your goal should only be the benefit that you think is most important to your business. So pick one and ride with it.
Now that you’ve set your goal, you need a way to measure your progress.
Choose your measurement metrics.
Based on your goal, which metrics give you the best indicator of your progress?
If your goal is to increase income, for example, you would measure using metrics such as income increase and the percentage increase in income year over year. These metrics would be helpful because they directly reflect your goal. And they give you a clear idea of your level of success.
An important note: the less you can focus on metrics to measure progress, the better. Trying to measure progress using more than three metrics is confusing.
Metrics aside, the most important part of any marketing plan is …
Understand your economy.
What can you afford to spend to acquire a new customer? Your answer to this question will help you understand the kind of performance you need to turn your marketing plan into a profit machine. And it will be based on the product of three simple numbers: the average check size, the average number of visits per customer, and the net margin.
Multiply these three numbers to get your customer’s lifetime value. And then use that magic number, the product of your equation, to figure out how much you can spend. For example, if your average customer spends $ 20 per visit and visits five times in their lifetime, and you have an average net margin of 20%, that means your average customer is making a net profit of $ 20. And that means you can afford to spend up to $ 19.99 to profitably acquire a new customer.
As long as you spend less than your net profit per customer on acquiring a new customer, your campaign will be profitable. In addition, the lower your customer acquisition cost, the higher your profit will be.
In summary, the most important parts of your restaurant marketing plan are very simple. Once you understand your goal, define how you are going to measure progress, and calculate how much you can afford to spend, effective marketing becomes a simple math equation.
And now that you have the formula, you can plan your restaurant marketing like a pro without expensive marketing consultants complicating it too much with smoke and mirrors. So use this marketing plan framework to clarify your vision and unite your team around it.