Restaurant Marketing Report - 7 Secrets To A Full Restaurant

Simple ideas and strategies to put "bums on seats" and fill your restaurant or cafe with paying customers.

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Thursday, 19 May 2011

The Biggest Mistake Most Restaurant Owners Make!

Most restaurants do not have a marketing system; do not collect the names and details of their customers but instead waste money by running one off promotions to lure new customers into their restaurant. This is a very expensive and often a very ineffective strategy.

Alternatively, they open their doors, put up a few signs and do nothing and then wonder why business is slow!

I remember a customer who once wanted to run a promotion where he wanted to put up a motor scooter as the prize to get new customers in the door with no follow up strategy. While this would have been great to promote, the costs of the promotion plus the prize cost would have taken weeks to recover.

The “Gold” is right there under your feet so why don’t you tap into it.

Yes, instead of spending your marketing budget focusing on getting new customers a significantly better strategy is to spend time encouraging your existing customers to dine with you more often.
Every $1 spent on marketing to an existing customer will return you 5 to 7 times more profit than you will get by spending the same dollar on acquiring a new customer.

There are several reasons why -
·         Firstly, you promotion is more targeted.  Someone who has dined with you before is significantly more likely to dine with you again and is more receptive to receiving communications from you.
·         Secondly, the cost of any promotion to existing customers is much cheaper and effective than chasing new customers for reasons mentioned above.
·         Thirdly, use you existing customers as a primary source of new customers. Do this by encouraging them to refer new customers to you through a system of rewards and acknowledgment. A referred customer will end up being much more valuable to you than any brought in randomly on a promotion.
Let’s put all this in perspective...
Imagine a customer who dines with you twice a month. The average spend is $35 each time they visit. So the current spend is let’s say $70 a month. If you get them to dine one more time and they spend $35 that is an increase of 50% on your turnover and you haven’t had the enormous cost of chasing new customers.
I know of no other way to so quickly give you such a quick increase in turnover. 
Check out the Restaurant Sales Builder Program it gives you the tools to do all this and heaps more at

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