Evolved Role of Digital Marketing in Restaurant Business

Evolved Role of Digital Marketing in Restaurant Business
When asked what types of loyalty programs they're subscribed to, internet users placed restaurants high on the list, just after retail, supermarkets, and pharmacies.

By Sakshi singh , Contributory Author

08 Jul 2022 | 10 min read

There has been a seismic transformation in the restaurant industry over the past decade, driven by a number of trends. Consumers are more educated about food and dining options today and much more demanding when it comes to experiences and expectations for convenience, variety, and more. Changing tastes and preferences have put the focus on non-meat alternatives and other health-conscious diets. Consequently, restaurants are offering expanded menus, with more sustainable options and healthy food choices. And we’re seeing the growth of new and shifting categories like ‘fine-casual’ and ‘flex-casual’

To keep up with this transformation, restaurants need to deliver a superior experience in every aspect, from food quality and menu choices to online ordering options. On top of these cultural changes and shifting consumer priorities, the landscape has changed even more when it comes to restaurant marketing, with the advent and evolution of digital marketing tools and technologies. Digital has upended virtually every industry in many ways, but few have been as drastically impacted as the restaurant vertical. Traditional ways of reaching customers and building loyalty have changed, due to a number of forces and factors.

Mix and Match Strategy

According to Krunal Oza, Founder, and CEO of Hustlers Hospitality, digital advertising may be a remarkable useful resource in promoting, in addition to operating the business. Their target consumer base is tech-savvy and stays energetic on social media platforms. So, it makes the best feel for online food delivery businesses to capitalize on online resources by reaching out and connecting with the audience on numerous digital marketing channels. 

“Technologies can connect people sitting far away from each other, now we are becoming more tech-friendly post the covid 19 pandemic. Hence the cloud kitchens are leveraging the power of social media in particular Instagram marketing and hyper-local SEO by following the latest trends,” he added.

How we interact around food and dining has changed dramatically with the rise of online technology. Every meal is now an Instagram-able photo opp, chefs have become celebrities and TV stars, and food bloggers and influencers can be found everywhere. Additionally,  today, where we dine, is influenced by an increasing number of factors including restaurant loyalty apps and rewards/points programs, push notifications, and social media/online reviews and sharing.

Digital Marketing Through Aggregators

According to Alexander Valladares, chief marketing officer at Impresario Handmade Restaurants, a restaurant has more scope for marketing and content strategy in its delivery business. Additionally, advertising through aggregators helps in driving volume and advertising through direct delivery platforms as DotPe helps in driving AOV. One of the very pertinent points raised by Valladares was that if running any offers for special days like Monday, one needs to stick to that offer for a few weeks as the customer takes time to register it. 

He further paid emphasis on the multichannel marketing approach like google display network, SEM, SEO, Youtube, SMS, Whatsapp, emailers, in-store collaterals, and collaborations. “Remarketing is crucial, interacting with your customer who has already engaged with your brand adds up to great benefit. Few strategies like hitting on the abundant cart can do wonders,” he added.

Social Media: A Great Tool

For restaurant marketing, Google works better as a conversion medium, and Meta and Youtube work in favor of brand awareness as well as conversions. Content in the current world of marketing should be the video-first approach.

“Don't underestimate the power of nano influencers and local communities and reels are a great medium for Instagram which is also cost-effective,” he said.  Shaival Desai, Chief Growth Officer at PetPooja, added the fact that Facebook/Meta marketing nowadays is more for awareness, Instagram for conversions whereas Whatsapp is to reengage with the present set of clientele.

That’s a lot of change – and a lot for marketers to juggle when planning campaigns for restaurants. But as overwhelming or stressful as this may be for a restaurant marketer, the changing dining and digital landscapes also present a massive and exciting opportunity. For one thing, restaurant spending is up, with Indians spending more than ever. While boomers and Gen Xers currently spend the most on food and beverage, millennials are poised to become the biggest spenders at groceries and restaurants within 10 years, as they enter their peak earning years. And there’s more good news for digital marketers.

In a recent survey conducted by a digital marketing firm, when asked what types of companies In consumers are interested in receiving personalized messages from, more internet users (52 percent) chose restaurants and bars. Similarly, when asked what types of loyalty programs they’re subscribed to, internet users placed restaurants high on the list, just after retail, supermarkets, and pharmacies. Millennials in particular site loyalty programs as a strong purchasing influence. Consequently, loyalty apps are on the rise carving their way into the digital marketing ecosystem.

And truth to be said, traditional marketing is expensive. An ad in the newspaper can cost a few hundred dollars, and a menu or coupon sent through the mail can cost thousands. Digital marketing costs far less per lead than other methods, even if you utilize channels like pay-per-click (PPC) advertising. And the main difference between traditional and digital marketing is the conversation. Traditional marketing is one-sided, with your restaurant sending a message that may never receive a response.

Taking the E-mail Marketing Route

Email marketing is considered to be one of the most effective methods of digital marketing for restaurants, which you can accomplish with the help of your CRM database. You can send a welcome mail to your customers and proceed with sending regular greetings and offers.

However, email marketing does not have to only revolve around sending greetings to customers and delivering coupons and discounts to their inboxes. A monthly newsletter is a great way to engage with your customers. You can create a resonating personal touch with your patrons by sending them updates about your restaurant like introducing your team, the new pastry chef you hired, or an article about the recent event you hosted at your restaurant.

Introducing your culture to your patrons would give them a homely feeling when they visit your restaurant. What needs to be understood here is that digital restaurant marketing is not just about aggressively gaining customers, but about nurturing them to retain them as well. 

There has been a seismic transformation in the restaurant industry over the past decade, driven by a number of trends. Consumers are more educated about food and dining options today and much more demanding when it comes to experiences and expectations for convenience, variety, and more. Changing tastes and preferences have put the focus on non-meat alternatives and other health-conscious diets. Consequently, restaurants are offering expanded menus, with more sustainable options and healthy food choices. And we’re seeing the growth of new and shifting categories like ‘fine-casual’ and ‘flex-casual’

To keep up with this transformation, restaurants need to deliver a superior experience in every aspect, from food quality and menu choices to online ordering options. On top of these cultural changes and shifting consumer priorities, the landscape has changed even more when it comes to restaurant marketing, with the advent and evolution of digital marketing tools and technologies. Digital has upended virtually every industry in many ways, but few have been as drastically impacted as the restaurant vertical. Traditional ways of reaching customers and building loyalty have changed, due to a number of forces and factors.

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