Why Restaurant Marketers Need to Rethink Their Advertising Strategies

Has the rate of restaurant closures been higher than usual this year? Industry research shows that over 7,500 restaurants closed across the U.S. in the first half of the year. In addition, foot traffic at existing restaurants has dropped by 2.6%. Your restaurant marketers might be feeling the pinch from changed consumer behavior. But when they promote the right deals to the right consumers, they can increase revenue. As AudienceSCAN from AdMall data shows, over 32% of U.S. adults eat fast food at least twice a week.

How has consumer restaurant spending changed?

Consumer spending at restaurants has changed this year. A PopMenu study calls attention to the fact that 60% are going out less frequently. They are also trading down to lower-cost providers. Despite that shift, about half of the restaurants that closed so far this year have been quick-serve establishments.

In addition, once patrons are in the restaurant, the focus on cost cutting continues. Notably, consumers are:

• Skipping a beverage 52%
• Reducing alcohol-based beverages 28%

With so many consumers looking for ways to save money when it comes to restaurant meals, it’s no surprise that tipping has become another flashpoint. Around 16% of U.S. adults think less of businesses that ask for tips, especially when that habit isn’t well established in the industry, reports AudienceSCAN. And the PopMenu study reveals that 78% of consumers are cutting back on the tips they give at restaurants and bars.

How time of day visits have changed

Consumers have cut back across the board for most dayparts. But the dinner hour reduction is most noticeable with 46% of consumers slowing their spending on that meal.

On the other hand, Revenue Management Solutions reports one positive trend. Consumers are spending more on the afternoon snack category than they did last year. As they are driving around or taking a break from work, they are purchasing an order or fries or a beverage and a sweet snack to hold them until dinner time.

How do consumers search for restaurants?

To capture consumer restaurant spending, your restaurant marketers’ messaging must be present where their target audience will notice it. Consumers have their favorite restaurants, of course. In general, 58% visit QSRs frequently, while only 17% go to fine dining establishments.

But when they are in the mood for something different, how do they decide? Understanding consumer behavior can help your accounts choose the right media formats for their ad spending.

PopMenu analysts report that most consumers, 80%, first search on Google or another provider. The majority, 58%, are looking for a specific type of cuisine — such as Indian or Italian. If your accounts aren’t creating content about their cuisine, they should be.

Paid search can pay off for restaurants. Around 59% of U.S. adults have clicked on a digital ad for restaurants.

And in the past 30 days, your restaurant accounts should know that 44% of fast-food customers responded to a streaming TV ad they saw, notes AudienceSCAN.

How ad content can sway restaurant patron decisions

Remind your restaurant marketers to appeal to consumers’ visual and auditory senses. When checking out the menu, they want to see images and video. Advise your accounts to invest in videos, and they will increase their chances of gaining a customer.

How to win consumers through deals, discounts and personalization

Your restaurant accounts may not be able to afford promoting a big discount. But bundling items and touting them as special deals will snag the business of 62% of restaurant searchers.

Restaurant patrons are fans of loyalty programs. 46% choose a restaurant based on whether there’s a program.

AudienceSCAN research shows that 39% of consumers with at least 10 loyalty apps/cards eat fast food twice a week. They are also far more likely than average to dine at or order from any restaurant at least twice a week.

Your restaurant accounts should take advantage of every opportunity to make loyal customers feel recognized.  For example, 35% of consumers who respond to birthday messages and/or offers eat fast food at least twice a week.

And reaching QSR customers through mobile apps or text message is critical. Around 42% have responded to this type of messaging in the past month. Another way to ensure that consumers respond to outreach is to personalize their messages. If your clients know certain customers always order double cheeseburgers, the promotional message should mention that detail.

How do patrons feel about pick up and delivery?

50% of potential patrons will order online and pick up the meal themselves to avoid delivery costs. These consumers prefer a restaurant site over a delivery service app because they can easily customize orders.

Around 50% of QSR customers have purchased from a business’s app/website for pickup in the past month. The typical restaurant client isn’t worried about the business using AI. They’re looking for a seamless experience, especially when they want to place an order through their phones.

Summary

Restaurant marketers face challenges ranging from hiring to profitability to changing consumer preferences. But consumers enjoy dining out. They’re looking for the best options to order for dinner when they’re too tired to cook. Your restaurant accounts can grow their market share when they target the right consumers with the right promotions.