Tips for Marketing a Restaurant in a Downturned Economy

In a downturned economy, restaurants are finding it increasingly difficult to maintain a steady customer base and keep their tables full.  However, there are several tips you should follow when the economy isn’t looking its best—they will help keep you sane (and your restaurant afloat) through the worst of the economic crisis.  

1.       Focus on low-cost marketing strategies.

There are many effective marketingstrategies that cost little to no money, and can help boost your sales more than most of the higher-cost strategies such as print, television, and radio ads.  Since most customers are making online social media and group discount opportunities like Groupon, start with those avenues to attract customers and keep in constant contact with the ones you already have.  

2.       Increase your visibility.

Again, this doesn’t have to cost a lot but can have enormous benefits for your restaurant.  Increasing your visibility means reaching out to your customers on a daily or weekly basis through email campaigns, social media posts, blogs, direct mail, or any other strategy you can find to get your restaurant’s name “out there.”  Getting involved in community efforts also helps to increase your visibility, while also showing your customers that you care about the well-being and progress of the community.  

3.       Update your menu. 

If there are items on your menu that do not sell and/or have a low profit margin, get rid of them.  Do this before you adjust pricing, and if you must adjust the price of your items, do so subtly.  Also, if you feel you need to raise prices, consider other things such as reducing portion size.  In an increasingly health-conscious society, the reduced portion size will be less negative from your customer’s point of view than an increase in price will be.  You can be sure that your customers are feeling the weight of a downturned economy to the same extent you are. 

Consumer Trends and Expectations in a Shaky Economy

While the restaurant industry continues to show upward trends in 2012, 8 out of 10 consumers say they have been forced to cut back on eating out during the worst of the recession. This is no surprise – with the millions of jobs lost throughout the nation, eating out becomes part of the “unnecessary expenditures” column of many family budgets.  Customers are expecting low, competitive pricing with fresh and quality ingredients. Local sourcing is a selling point.  

There’s no doubt about it, American families are certainly watching their spending habits more closely, and many have been forced to cut back significantly.  This is the reason why the Fast Casual model has proven to be so strong in the past few years despite tough economic times – consumers are watching their spending lately but that doesn’t necessary mean they aren’t eating out.  And many fine dining establishments with pricier fare are still going strong due to continued customer loyalty and word of mouth referrals, which has proven to be a restaurant’s number one asset for building a thriving customer base in any economy – good or bad.  

What it all comes down to is in order to attract business and maintain a successful, thriving establishment, restaurants will need to provide the best in customer care, food quality, and service so that customers will be more inclined to tell their friends, co-workers, and family members about their experience.  Customer experience can often be as important as price, and both should be kept in consideration.  

Also, with trends toward locally grown produce and nutritional menus, customers are becoming more inclined to care about the source of their food and to frequent establishments that support local farmers.  Additionally, families are concerned about a restaurant’s offering of nutritional choices for children, as well as vegetarian and vegan selections to satisfy diverse palates, preferences, and diets.  

In general, consumers are concerned about eating healthier when dining out.  According to the National Restaurant Association’s 2012 Industry Forecast, nearly three-quarters of consumers prefer restaurants that use locally grown food and that same number say they eat healthier now than they did two years ago.