bringing more new customers to your restaurant - the restaurant dishes come to your door

Bringing new customers to restaurants seems to be the primary goal for many restaurant owners.
However, it should not.
Read on and see what I mean. . .
When I asked the restaurant owner the following question: what is their biggest challenge as a restaurant owner?
This is the first answer to a large number of restaurant owners every month: "bring new customers to my restaurant.
It seems like this is a logical answer, isn't it?
Who doesn't want a lot of new friends coming into your door?
However, if I manage my restaurant in the same way --
After learning a lot about marketing in the past few years
My wishes may be different.
It's like: "I want my existing clients to come back to my restaurant over and over again.
"Does that mean I don't want a new customer?
Of course, new customers are new opportunities to translate into repeat customers, but getting new customers for your marketing efforts should not constitute most of your efforts.
What do you need to do?
I will explain to you through a hypothetical exercise: Let's imagine that we have two restaurants with similar capacity.
We called them Restaurant A and restaurant B.
For simplicity, we assume that both restaurants have the following parameters: * Average price per meal is $25 * profit margin per meal is $10 * the marketing investment for both is $5,000, the difference now is: restaurant A has spent $5,000 to attract new customers.
They invest their money in a very successful event and create direct mail, discount coupons, etc.
When the $5,000 marketing money was over, they brought 1,000 new customers to the restaurant.
Good, right?
$5 per customer is a very small investment to attract new customers.
B Restaurant is different.
They spent the same amount of money ($5,000), but they didn't spend the whole amount of money on attracting new customers through advertising, and they decided to invest all their money in their existing customers, let them come back over and over again.
They also offer rewards for their friends and family so they can also come in and try their restaurant.
Who do you think will do better?
Let's do some numbers.
Restaurant A invested $5,000, bringing 1,000 people and making $10 per person, so they earned A total of $10,000 in profits or A return on investment of 50%. Not bad.
Instead, restaurant B focuses on bringing back their existing customers through a formal referral system.
They gave four gift certificates to 100 of the best clients: one for them to repeat the gift certificate to your restaurant and three for their friends and family, so they can try your place on their own.
These gift certificates allow them to enjoy a 50% discount on a meal.
Keep in mind that the average meal fee for the restaurant is $15, as we mentioned before, the other $10 is the profit.
When you offer a 50% discount, you actually cost $7. 50 per meal.
Also, when you give someone a gift voucher, it is very likely that they will not come to your place on their own.
They will probably bring some companies to dinner together.
Let's assume every $12.
The 50 you give away (50% of the average meal fee), you bring back two people.
Now your fee is $3. 75 for each. Wow!
Even better than the initial investment.
But it's not all, and there are three things happening here: if people don't use gift certificates when they eat, you won't lose money, make this investment a Sure Thing (relative to spending money on ads that don't guarantee any results ).
New visitors will love your place;
After all, they trust your restaurant more than any other restaurant review --
Their friends or family first gave them your gift certificate.
If your restaurant offers great food and service, they will most likely come back again because they feel that they have got a lot more not only because of the discount, but you can also give them a gift voucher of your own, plus three extra gift vouchers for their friends to try your place.
This is called viral marketing because they are spreading news about your place.
How do you see the situation?
You can invest a lot of money and bring new people to places where you may never come back, or, you can create a referral system for less money, make people who want to eat in your place and have a firm tendency to have a good time.
If you stick to your system, these technologies will bring new repeat customers and will also build a referral system for you and your place.
In times of economic crisis, every marketing fund you spend needs to be leveraged to bring you the most profit.
Think wisely and strategically before spending your hard earned money.