How much to spend on Restaurant & Hotel marketing?

Typically a restaurant or hotel should allocate 3% - 6% of sales to restaurant marketing. It’s also wise to allocate this money proportionally to your sales volume. For example; if August is the busiest month, the proportionate amount on the business marketing budget in that month. It is not uncommon for companies to look at slow periods and think that’s where the marketing dollars should be spent, so a large chunk of cash is spent trying to build say a happy hour business and forgo building on the busy periods. Fact is, there is a reason people aren’t coming in from 4:00 PM – 6:00 PM and valuable marketing dollars will be lost trying to build this period. There are nearly one million restaurants in the United States and probably only 2% of them are busy from 4:00 PM – 6:00 PM. Restaurant marketing can’t change behavior; it can only influence existing behaviors.

Local Store Marketing and Neighborhood Marketing – does it work?

This is the marketing philosophy that seeks to build competitor proof relationships with customers without a reliance on mass media advertising. Panera Bread and Starbucks have both built their business utilizing this marketing strategy.

The Next Idea is a huge advocate of this type of marketing, as it focuses on relationship building within the community, which affords both loyalty and recognition.

Differentiation

Differentiation is the singular component that can add enormous marketing value to any business. The term ‘Differentiation’ is just that; the process of distinguishing the differences of a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors products as well as one's own product offerings. It is plain to see who wins in this area – no one has matched Coca Cola’s Coke product, neither has anyone matched Apple’s computer technology. These brands have succeeded through careful differentiation, (and clever positioning).

The fact that restaurant marketing is not easy is part its competitive advantage

Effective restaurant marketing isn’t easy. It takes a lot of careful research, analysis and testing. It’s also ever evolving, which makes it even more difficult to master. The most difficult part is that restaurant owners are in the restaurant business, not professional marketers. But don’t be discouraged. It’s not all gloom. The fact that effective restaurant marketing is difficult to master is what can give you the competitive advantage. Resist the temptation to change everything at once or to go it all alone. You can start small and build your marketing competencies over time. In the beginning, do simple programs so you can execute them well and measure the results. And if you’re not sure if your current marketing is working, save your money until you can prove the dollars invested persuade customers to buy more and buy more often.

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Company Profile: The Next Idea provides international food and restaurant consulting offering advice and consulting in all aspects of restaurant operations, development and management, including, but not limited to: Hiring a Designer, start ups, Marketing, Management, Restaurant Business Plan, Business Planning, Concept Development, start up support, Menu engineering, Cost Control, Culinary Development, Design Trends, Foodservice operations, Operating manuals, Food product manuals, Franchising, Grand Openings, Interior Design, Management Training, Marketing Plans, Marketing Strategy, Menu Design, POS, Promotions, Public Relations, Training, management development cost reduction, and nutritional analysis.