Six Restaurant Marketing Trends For 2012
Plus One Bogus Trend That Will Cost Restaurants Millions
By Carin Oliver
Approximate reading time: 5 minutes
What’s in store for restaurant marketing in 2012? We see six key restaurant marketing trends that will lead this next year’s efforts to gain market share, better understand the customer and turn a profit in 2012. We also believe there is one trend that will consume marketing dollars in 2012 but will turn out not to be influential in driving consumers into restaurants.
A recent Harris Poll reported that the majority of consumers surveyed planned on reducing their spending on dining out occasions. We believe this will make dining choices in 2012 even more selective as consumers opt for safe, trusted brands and rely more heavily on recommendations from friends and online research.
The most important restaurant marketing tactics restaurants will employ for 2012 include:
Data
The biggest restaurant marketing trend in 2012 will be integrating data capture and in-depth analysis from social media, public relations, email marketing and advertising teams. Savvy restaurateurs will also increase the data points collected on customers to better allocate tight marketing dollars into the marketing channels that are delivering the most return on investment.
Although data reporting services are in abundance, they alone will not be able to deliver the multi-platform analysis required. While social media participation and listening was a great first step for many organizations, in 2012, it will be time to go beyond gathering data and to bring in senior customer intelligence analysts to extract usable information from the data. Analysts will need holistic marketing training to effectively mine and merge insights from webpage analytics, onsite restaurant data capture and social media analytics from Facebook, Yelp, OpenTable, Twitter, YouTube and others.
Many restaurants are still keeping data in separate silos, maintaining marketing, public relations, influencer relations and business data in different departments. Although we believe this will be a protracted process, in 2012, we will begin to see silos break down and the emergence of more fully integrated communications programs that inform each other to reach a highly defined target market with customized messaging and provide a robust understanding of marketing effectiveness. The organizations that can effectively streamline internal data from multiple touch points will have a significant lead over their competitors that will extend well beyond 2012.
Identifying And Activating Influencers
If you ask any restaurant marketing professional, they report that the number one way consumers find and decide to dine is based on a positive word of mouth recommendation from a close contact in their social sphere. But when it comes to finding and activating those customers who have the most authority to drive recommendations, there has been a significant lack of data to understand who those individuals are and which tools to give them to encourage pass alongs.
In 2012, we will see more programs identifying and activating the hidden individuals who influence a greater number of diners. The big play will be in digging deep beyond the top traditional media influencers and food bloggers to uncover the passionate foodie who is prime to spread the word about their great restaurant experience.
Specialized tools, techniques, and word of mouth marketing agencies will be engaged to identify those individuals who are passionate about a particular kind of restaurant, have both the digital and offline reach to be influential and are considered knowledgeable by their social sphere. Activating the individuals who have access, motive and credibility to make restaurant, food and dining recommendations will see wider adoption at a diverse array of restaurants.
While we don’t think the perfect tool that seamlessly blends on and offline dining influence will arrive in 2012 it will be the year that restaurants get serious about working with influencers.
Signature Items
While signature items have been around since restaurants began, a new marketing importance will be placed on them. In 2011 we witnessed an increase in chatter on websites, blogs and in traditional media discussing specific dishes versus specific restaurants. This will place more emphasis on restaurant marketers to make sure signature items are getting sampled by key influencers in order to steal share from competitors. This will also play heavily into local search as consumers research individual items instead of types of restaurants.
Gamification Of Loyalty Programs
2012 will be a transformational year for how restaurants will attempt to differentiate their loyalty programs from their competitors with social gaming-type rewards for performing certain actions, such as referring friends, visiting multiple times and more.
Location based services with their badges, titles and rewards will merge with restaurant loyalty programs to play a major role in incentivizing repeat visits, facilitating sharing and making rewards easier to redeem for diners. Check-ins in 2012 will begin resulting in real offline rewards from savvy restaurants. Integrating gaming dynamics to impact diner action will accelerate restaurant loyalty programs.
One to One Accessibility
Social media has made getting to know the brand much easier and connecting with diners outside of the restaurant has been a simple communications evolution for many restaurants. Restaurants, unlike many industries, excel at customer relations and social media has given operators another channel through which to make a meaningful connection with diners. However, diners are now demanding more: They want to get up close and personal with who’s cooking in the kitchen.
Specifically in 2012, consumers want to hear from but also interact with the chef directly, both on and offline, not with the intermediary in the marketing department. Expect to see personalized messages directly from the chef to best customers telling them when the menu changes, nightly specials, and suggestions based on past orders.
While this might sound like another daunting task on top of an already busy schedule, chefs will manage this enhanced engagement by relying on the marketing team to first identify the restaurant’s best customers both on and offline. In the restaurant, the chef will also need to play a prominent role on the dining room floor.
People are looking for more personalized, direct connection with both what’s on the plate and who’s plating the food.
Coupon Personalization
In 2011 many restaurants experimented with social coupon sites such as Living Social, Groupon and others. Unfortunately, many reported neutral and often negative results. We believe restaurants will continue to experiment with coupons and certificates in 2012, but with more realistic expectations of results, more control, customization, flexibility as well as insist on reporting data.
We also believe that most restaurants will realize their own customer lists are gold mines for helping to promote them, focusing again on the top influencers and providing them with additional opportunities for value added experiences and tools and rewards to facilitate the pass along recommendation.
Couponing will be more select and personalized for the brand with restaurants running their own deals to loyal customers. This trend will accelerate as restaurants see the benefits in tracking and engineering word of mouth recommendations that a well designed application and program can deliver.
Search is the New Social…NOT
And now for the trend we will see that will waste precious resources.
In 2012 we will most likely see restaurants allocating resources to local search. We do not believe this will provide an adequate return on investment for dining establishments. Preliminary results from our current dining survey point to search as one of the least influential channels for diners. While we don’t see local search as having a huge impact on dining decisions in 2012, we do believe it is part of the marketing equation that restaurants should not totally ignore this next year, but should earmark resources judiciously.
What restaurant marketing trends do you see that you care to share?
What Your Restaurant Loses By Ignorning Gatekeepers
By Carin Galletta
In every industry, there are gatekeepers. Those people who have unique access to the decision maker, a proprietary way to reach them as well as a compelling motive to make the recommendation.
In the restaurant industry, those gatekeepers can be hotel concierge and the bell desk, the human resources or office manager who books company events or the administrative assistant who is tasked with ordering executive lunches.
All of these very influential individuals are frequently overlooked when creating a external communications program. But by not including them in your restaurant’s marketing mix you are potentially forfeiting thousands of dollars in lost revenue.
But gatekeepers, unlike your straight to reservation consumer, have a downside. They have the most to lose by making an unfavorable recommendation. Suggesting a restaurant for your boss is fraught with anxiety. And this can make them extremely challenging to influence.
As a restaurant your strategic challenge is to create a program and outreach plan that is specifically targeted to that group, taking their expectations and objections into account as well as develop an ongoing relationship with them to generate reservations through out the year.
The tactical challenge is not only to initially capture their attention in a meaningful way but to also continue to keep your restaurant top of mind during peak booking times.
An example of an extremely effective gatekeeper program was one that Ink Foundry created for Organic To Go targeted to office and human resource managers of mid-sized companies. Using data that we had collected, we identified with the client the companies most likely to take an interest in Organic To Go. Our strategy was to create an initial awe-inspiring package of tasty goodies and information, and then we continued with other top of mind touch points in six weeks intervals. If they hadn’t placed an order, we then hit them with a free lunch offer. Before rolling this program out to Organic To Go’s other locations, we initially tested this program at under performing restaurants. The results were impressive and helped increase lunchtime sales by nearly 30 percent in 90 days.
Part of the success of any gatekeeper program for your restaurant will be dependent upon the tone of the materials (let them know you appreciate them), the offer and the ease of the sample you provide. They will need to dovetail nicely with your restaurant’s identity but also help to answer questions and concerns that your target audience may have about your service proposition. If done correctly, reaching out to gatekeepers can dramatically improve your immediate sales, but also provide an ongoing revenue stream for your restaurant.
Roy’s Hawaiian
Overview
Faced with the challenge of permeating an increasingly chain resistant and deep-rooted market, Ink Foundry established a crucial relationship with one of Pasadena’s most influential and fruitful charitable organizations, Hillsides, a foster care and treatment facility for children. Roy’s hosted a private preview and grand opening celebration that benefited the charity.
Impact
Roy’s Private Preview kicked off with an appearance on FOX’s Good Day LA and became THE gathering place for members of Pasadena high society by sundown. Featured on all of the community’s society pages, the event raised more than $20,000 and won the hearts of the local community. The event was followed by feature media coverage, including glowing reviews by top restaurant critics and residents alike. Roy’s is currently featured in Pasadena Magazine’s November Food & Wine issue as the city’s premier destination for fresh fish and seafood.
Wine Down Wednesdays at Fleming’s
Overview
Word of Mouth (WOM)
In an effort to introduce new audiences to Fleming’s Prime Steakhouse & Wine Bar and drive pre-holiday event bookings, Ink Foundry created a series of “Wine Down Wednesdays” that showcased the Fleming’s 100 wines by the glass program and quality of service.
Ink Foundry reached out to local charities and social organizations in each participating market, and the groups, in turn, invited their supporters to attend and participate in these educational wine-tasting experiences.
Impact
Based on the initial success of “Wine Down Wednesdays,” Ink Foundry produced a turn key event series easily replicated by any in house staff at Fleming’s locations nationwide. The individual Wine Down Wednesdays garnered coverage in both traditional media and social networking and niche blog sites. The events also resulted in repeated return visits by event attendees who had not previously dined at the restaurant.
Lawry’s The Prime Rib
Overview
Product launch using offline Word of Mouth (WOM)
To launch Lawry’s off-site catering program, Ink Foundry created an informative luncheon at the historic restaurant that was attended by a select group of Los Angeles’ most prominent event, meeting and wedding planners. The luncheon demonstrated Lawry’s ability to provide the highest level of service and fine cuisine while presenting the new services extended to Lawry’s patrons beyond its traditional menu.
Impact
Filling the grand dining room, the luncheon started the community talking and resulted in a successful word-of-mouth campaign that generated bookings and inquiries for the new catering services.
Ink Foundry also secured online word of mouth from members of the Association for Wedding Planners International and the National Association of Wedding Professionals by providing a preview of Lawry’s The Prime Rib catering offer.
Rubio’s Fresh Mexican Grill
Overview
Ink Foundry convinced a foreign governmental tourism agency to name Ralph Rubio of Rubio’s as an expert on the region.
Impact
Ink Foundry secured coverage on every morning show where the client has critical mass.
By creating “Ralph’s Private Recipes” Ink Foundry was able to secure food pages coverage, unheard of for a fast casual restaurant. Did we mention that we can cook?
Tinseltown Studios
Overview
Dinner theatres were increasingly receiving a lackluster response from consumers. We created a media outreach program based on Andy Warhol’s concept “15 minutes of fame.”
Impact
Ink Foundry’s program resulted in more than 300 million media impressions. This effort included a front page arts story in the New York Times and nearly 200 executive interviews in 23 countries.
Roy’s
Overview
Ink Foundry immediately recognized a competitive advantage for Roy’s when the chain was set to open in downtown Los Angeles. Located just a few blocks from the Staples Center, Ink Foundry implemented a two-tiered approach by securing on-air time with KCAL-TV during the Lakers’ season through a leverage exclusive trade agreement as well as partnering with the Staples Center Foundation to capture Los Angeles sports enthusiasts.
Impact
Just try to get a reservation.
Fogo De Chao
Launch & Grassroots Marketing
Overview
The Brazilian steakhouse opened in the midst of nearly half a dozen other high-profile steakhouse launches in Los Angeles.
Impact
Ink Foundry was able to secure significant media coverage for the chain by positioning Fogo as the authentic offer. Ink Foundry instituted an entertainment industry outreach campaign that drove celebrities, managers and top agents nightly into the fine dining high volume restaurant. With approximately 15,000 monthly covers, the restaurant is currently one of the highest grossing restaurants in Los Angeles.
