BY Kathy Crosett
How can media sellers help local restaurants increase traffic this year? The National Restaurant Association expects industry revenue to increase only 1.3% increase over last year, a number that indicates a competitive market. AudienceSCAN shows 46% of U.S. adults are cutting back on restaurant spending. New restaurant advertising ideas will help your accounts win more business.
Where are consumers cutting restaurant spending?
The cost of dining out has increased more than eating at home in recent years. The expense has caused older consumers to cut back on spending. Lower-income consumers have also cut back, reports McKinsey.
Through early last year, consumers reported a 9% spending drop at full-service restaurants and a 14% spending drop on limited-service outlets.
How are restaurants responding to consumer cutbacks?
Restaurants have felt the financial pain and are reducing expense where they can. But they also report needing to make changes to attract more business. Here are the top tactics they’re trying:
- 33% are investing in more marketing
- 33% are introducing new promotions/specials
- 30% are adding new channels such as catering/events
They also plan to continue emphasizing carryout and delivery options; 81% say takeout/delivery sales are up.
Consumers may be opting for these meal formats because they want convenience and tipping expense will be lower. One of the top restaurant advertising ideas is to promote specials that are available for off-premises dining.
What do limited-service restaurant diners want?
Consumers have noted that food quality (57%) and portion size (55%) are not what they expect from restaurants. This is particularly true of limited-service restaurant patrons.
AudienceSCAN data indicates that around 34% of the people who are cutting back on restaurant dining are regular limited-service fans.
How can limited-service restaurants win more customers?
19% of restaurant spending cutters make purchase decisions based on coupons. Providing coupons is a good way to boost traffic from these consumers.
In addition, around 42% of restaurant spending cutters want to spend more time with family this year. Promoting a value meal at a limited-service establishment as family-time extender will attract attention and business. These kinds of promotions serve as excellent restaurant advertising ideas.
What do full-service diners want?
Full-service restaurant diners, who are typically higher income consumers, are looking for a quality experience. Around 25% of U.S. adults identify as full-service restaurant patrons, according to AudienceSCAN.
Over 5% of these consumers report being vegetarian, an important detail for full-service restaurants to know. A TouchBistro report notes that more full-service establishments are rolling out menu changes, such as vegan options. These menu changes can reduce expenses while attracting new patrons.
Full-service restaurant diners are far more likely than other U.S. adults to celebrate holidays such as Easter, Valentine’s Day and St. Patrick’s Day with a meal out. And they also expect to be delighted with new menu ideas and great ambiance for these occasions.
How can full-service restaurants win more customers?
Full-service operators should join forces with entertainment venues for restaurant advertising idea. Full-service restaurant patrons are far more likely than average to be season ticket holders to the ballet, symphony or Broadway shows. They make a great target audience for a promotion that touts entertainment and a fine dining experience as an evening out.
Over 38% of this audience has household income exceeding $150,000. They also like deals. And they want to be rewarded for their loyalty. Around 22% of these consumers have at least 10 loyalty cards/apps/programs.
What restaurant advertising ideas work?
More customers started using restaurant loyalty programs in the past year — up to 49%. At the same time, many restaurants pulled back some of their loyalty offerings. For example, the number of restaurants offering birthday loyalty benefits dropped from 51% to 42% in a year. Analysts noted that single location restaurants were most likely to pull back.
It’s clear that consumers want to use these programs. Operators will need to find and promote the right balance — the one that attracts business and delivers a profit.
The TouchBistro report lists another important data point. Most restaurants, 81%, have websites. And over 70% of restaurants use social media marketing on Facebook and Instagram, where imagery matters. How do your accounts compare to the competition when it comes to social marketing?
Running a Digital Audit on AdMall will give them the answers they need. The AI-generated executive summary in the report outlines simple steps these accounts can take to improve their digital outreach. With this information, you can pitch new restaurant advertising ideas and campaigns and help your accounts grow their business.
Image by Ron Lach on Pexels.
