Best practice

Online Marketing in the Restaurant Industry

The onslaught of a recession was predicted to hit the restaurant industry, with diners expected to drastically cut back on spending. With more than 300 restaurants closed in the first six months of 2009 (BBC, August 2009), the outlook was bleak. There were high profile casualties, including Marco Pierre White’s Drones in Belgravia, Raymond Blanc’s Manchester Brasserie Blanc, while Gordon Ramsay dipped in to his personal fortune to insure his empire. It was also claimed that the amount spent on eating out had dropped for the first time in 40 years.

The Livebookings Restaurant Report into online marketing examines the impact that the Internet has had in the current economic climate. 98% of restaurateurs now have a website, with the majority of those promoting special offers and set menus online and starting to investigate third party websites for extra promotional opportunities.

Key findings also demonstrate changes in consumer dining habits are leading many restaurants to re-evaluate the way they structure their menus with over 65% of restaurants now offering set menus or special offers to drive covers - from casual dining to Michelin starred restaurants.

At the core of online marketing, positive results show that just under three quarters of restaurants are now collecting and building a customer database.

However, despite proving itself to be an invaluable instrument in generating income, online marketing is not used across the board, with restaurants unaware of, or choosing not to make use of a simple and effective tool in driving covers. This report highlights that fact, with the results making interesting reading for restaurant owners and employees alike, suggesting that a carefully structured marketing plan can significantly improve revenue.