Industry Spotlight - Nathan Moses (This article is by Nathan Moses, ex-restaurant owner, hospitality advisor for the NSW Government Business Connect program and founder of Restaurant Launch)
Don’t leave money on the table. This is the restaurant marketing strategy you NEED the first day you open your restaurant:
What can Ferrari teach us about running a successful restaurant?
Did you know..
That 65% of Ferrari owners own more than one Ferrari
The average Ferrari owner buys a new Ferrari every 4 years.
Repeat buyers are more likely to purchase a new Ferrari from the same dealership they bought their previous Ferrari from.
Repeat buyers are more likely to purchase a Ferrari with a higher price tag than their previous Ferrari.
The point here is, Ferrari is successful because of its REPEAT customers. Now, if Ferrari still needs to focus on repeat customers even though its customers spend hundreds of thousands of dollars each time then this tells us as a restaurant, to be successful, we need to do the same.
What is the best marketing strategy when starting a restaurant?
There are so many options when thinking about your restaurant marketing strategy. It’s easy to think social media is the most important restaurant marketing strategy when you are launching or buying a restaurant and this can be daunting as not everyone is a social media expert.
Do you need a marketing plan for your new restaurant? Yes. Does it have to be complicated or do you need to be an expert in social media? No.
The good news is that the best marketing strategy you can employ when you are opening or buying a restaurant does NOT require social media. I developed this restaurant marketing system in my own restaurant and saw a 42% increase in sales in 1 year.
The best restaurant marketing strategy is email marketing and here is why you should do it in your restaurant from DAY ONE:
Let’s say you have either launched a new restaurant or bought an existing restaurant. Either way, you will have a honeymoon period where customers have “shiny new thing syndrome”, they will be coming in to try you out and you NEED to take advantage of this right from day one, so you have the power to turn them into repeat customers. Here’s why..
Current numbers:
You have launched or purchased your restaurant and 200 people are coming into your restaurant each week.
The average spend per customer is $70 per person.
You implement an effective, engaging email marketing strategy on day one:
Months 0-3
You implement an email marketing system on day one where customers have the option to join your database at the end of their meal.
You see 20% of your customers sign up to your database at the end of their meal - that is 40 customers each week.
After your first 12 weeks of trade you have 480 customers on your database.
Months 3-6
You send your database weekly engaging emails
Your emails keep your database engaged and 20% of those customers come back into your restaurant just one more time over the next 3 months.
That’s 96 customers who decide to come in again BUT they won’t come in alone..
They could come in with 1 other person, 2 other people, 3 other people.
To be conservative they come in with 1 other person on average, a booking of 2.
That’s 96 bookings x 2 covers each x $70 per person
That’s $13,440 in extra sales over this 3 month period.
Months 6-9
After another 3 months of signing up customers you will have an extra 480 customers on your database, a total of 960 customers.
You keep sending them engaging emails and 20% decide to come back just one more time over the next 3 months.
That’s 960 x 20% = 192 customers who won’t come in alone..
To be conservative they come in with 1 other person on average, a booking of 2.
That’s 192 bookings x 2 covers x $70 per person
That’s $26,880 in extra sales over this 3 month period.
Months 9-12
After another 3 months you have 1440 customers on your database.
You keep sending them engaging emails and 20% decide to come back just one more time over the next 3 months.
That’s 1440 x 20% = 288 customers who won’t come in alone..
To be conservative they come in with 1 other person on average, a booking of 2.
That’s 288 bookings x 2 covers x $70 per person
That’s $40,320 in extra sales over this 3 month period.
At the End of Year 1:
Total increase in extra sales = $13,440 (3-6 months) + $26,880 (6-9 months) + $40,320 (9-12 months)
That is $80,640 in extra sales in your first 12 months.
That is an 11% increase in sales using no social media and an email marketing system you implemented on day one.
Are You Thinking About..
Starting a new restaurant where you want to ramp sales as quickly as possible in the first year? Make sure you use this strategy.
Buying a restaurant where you want to increase sales to get a better return on your investment? Make sure you use this strategy.
Either way, the right email marketing strategy for your restaurant will help set you up for success. Don’t start your restaurant without it.
The Key to Success when using an email marketing strategy in your restaurant:
An engaging email marketing strategy is NOT a boring weekly newsletter or offering discounts. It needs to be authentic to your brand, build your restaurant’s authority for the cuisine you offer and give customers a reason to join and stay engaged. We developed this unique strategy at my restaurant and saw a 42% increase in sales in the first year.
How can I find out more?
If you want to work with me to start or buy your first restaurant and develop an engaging email marketing strategy to launch on day one contact me on nathan@restaurantlaunch.com.au, book a free, no obligation 30 min consultation here or visit restaurantlaunch.com.au to find out more.
Be sure to check out Restaurant Launch today and register your interest.
Barn Wilkes, Retail Business