How to develop an independent restaurant marketing budget?
In order to be successful in today’s economy a restaurateur must have a significant budget to offset advertising costs. Gone are the days of word of mouth. If you do not advertise, your clients will forget you and go elsewhere.
This is an especially competitive time for restauranteurs. Restaurants are opening, and CLOSING everyday.
Here are a few guidelines for developing an independent restaurant marketing budget.
Percentage of revenue
3 – 5% is a conservative marketing approach (only to maintain current status)
6 – 8% is a moderate marketing approach (you may experience minor growth here)
8 – 10% is an aggressive marketing approach (for newer business’s or the most growth possible)
As you get to the 10% range, you are also coming close to investing to the point of diminishing returns.
In order to increase revenue an independent restaurateur must commit to a marketing package that will saturate the market the first six months after opening.
Most businesses shoot for 2-4%. Start-ups will go more for the 50-80% range in order to saturate the market for the first 6 months.
Business listings are the first step in developing your marketing strategy. You must present you business in the best way possible on listing pages. This is your only first impression.
Dave Ramsey’s “My Total Money Make Over”
eHow “How to Advertise and Independent Restaurant”