Restaurant Digital Strategy?

30 replies
Hi. I'm a bit of a newcomer to the digital marketing game. I recently took over everything digital for my family's restaurant chain. I work for next to nothing and I'm more interested in seeing the business be successful than making money for myself. I have been trying to create a comprehensive strategy that is "worth the ad spend"... the issue is, the more I look into it, the more it appears to me that digital marketing for restaurants, is in fact, NOT worth it. I'd love to get your opinion.

To give you some background:
- American company in a semi-large city
- Currently 7 locations with plans to expand
- Smallish budget (of course. about 1k/month)
- They do NOT do online orders - brick and mortar sales only
- They are a fast-casual restaurant -i.e. they do NOT take reservations
- Food is their only product

To wrap up the challenge: I need to find a way to generate more in-person conversions. Here's what I am currently doing:

- Running geotargeted FB/IG/Google ads. Acheiving solid CPM and CPC (around $1.60)
- Email marketing (about 11k signups and decent ROI so far)

I want to increase ad spend and create a more robust strategy but I am dismayed by the numbers: Somewhere close to $44/conversion in the food/hospitality industry according to wordstream. Even if I run a highly successful campaign and cut this number in half, $22 is still above the average spend at the restaurants. So what do I do? Again, I'm not trying to act like an agency and present them with figures about how many I got to sign up for emails, about how many impressions we got, driving traffic to the website has no imediate return... I NEED TO GET PEOPLE INTO THE STORES ONLY. Thoughts?
#digital #restaurant #strategy
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  • Profile picture of the author Steve L
    Originally Posted by panda215 View Post

    Hi. I'm a bit of a newcomer to the digital marketing game. I recently took over everything digital for my family's restaurant chain. I work for next to nothing and I'm more interested in seeing the business be successful than making money for myself. I have been trying to create a comprehensive strategy that is "worth the ad spend"... the issue is, the more I look into it, the more it appears to me that digital marketing for restaurants, is in fact, NOT worth it. I'd love to get your opinion.

    To give you some background:
    - American company in a semi-large city
    - Currently 7 locations with plans to expand
    - Smallish budget (of course. about 1k/month)
    - They do NOT do online orders - brick and mortar sales only
    - They are a fast-casual restaurant -i.e. they do NOT take reservations
    - Food is their only product

    To wrap up the challenge: I need to find a way to generate more in-person conversions. Here's what I am currently doing:

    - Running geotargeted FB/IG/Google ads. Acheiving solid CPM and CPC (around $1.60)
    - Email marketing (about 11k signups and decent ROI so far)

    I want to increase ad spend and create a more robust strategy but I am dismayed by the numbers: Somewhere close to $44/conversion in the food/hospitality industry according to wordstream. Even if I run a highly successful campaign and cut this number in half, $22 is still above the average spend at the restaurants. So what do I do? Again, I'm not trying to act like an agency and present them with figures about how many I got to sign up for emails, about how many impressions we got, driving traffic to the website has no imediate return... I NEED TO GET PEOPLE INTO THE STORES ONLY. Thoughts?
    Hey friend, it sounds like to me you have yet to determine your average customer lifetime value. You say even if you generated a $22 cost per lead it wouldn't be profitable because of the average spend at the restaurant. This is assuming the customer will never come back or tell anybody else about the restaurant.

    The first step is to calculate an average customer lifetime value so you know how much you can spend to acquire a new lead and customer.

    If your average customer lifetime value is low, it means the main issue is with the food no offense. In the restaurant industry, average lifetime value should be high considering we all have to eat 3 times a day. I know I've been known to frequent my favorite restaurants once a week or once a month.

    Building an email list that you can promote special dishes to is great! I'd try and offer special dishes that they can only get for a limited time only vs offering discounts. This is a great way to add scarcity to your offering without having to discount your food.

    Aside from that, PPC Ads can be very confusing. I suggest talking with a professional regarding your campaigns.
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  • Profile picture of the author Odahh
    What steps to you take to capture as much digital Information about the customers who currently eat food at the 7locations

    Are those customers aware that you have seven locations .

    If you are starting with no budget figure out how to do more business with current customers
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    • Profile picture of the author DABK
      Are you getting their monile phone numbers when they come in? Are you texting them discounts?

      It should be something like this:

      Ad offers free fries and drinks. When they come, you collect their phone number and instantly they qualify for a free coke the next time they come. Next time they come, you give them free fries for the next next time. And you do that at least one more time. Many people, if they go a few times in a short period, get hooked enough that they do it often on their own.

      In the mean time, you text them offers that are good during your slow periods.

      You can look into Warrior Will on warriorforum; bout 3 years ago he had a WSO where he showed you, step-by-step how to set up texting campaigns... WSO had the word Christmas in the title.

      Or you can get one of the companies that does it all for you. Cannot think of the name of one, but they exist.

      By the way, how are the Google My Business pages for the 7 locations?

      How about your yelp reviews?

      In what kind of neighborhood are these restaurants located?

      Who is your ideal customer?
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  • Profile picture of the author LindyUK
    Originally Posted by panda215 View Post

    Hi. I'm a bit of a newcomer to the digital marketing game. I recently took over everything digital for my family's restaurant chain. I work for next to nothing and I'm more interested in seeing the business be successful than making money for myself. I have been trying to create a comprehensive strategy that is "worth the ad spend"... the issue is, the more I look into it, the more it appears to me that digital marketing for restaurants, is in fact, NOT worth it. I'd love to get your opinion.

    To give you some background:
    - American company in a semi-large city
    - Currently 7 locations with plans to expand
    - Smallish budget (of course. about 1k/month)
    - They do NOT do online orders - brick and mortar sales only
    - They are a fast-casual restaurant -i.e. they do NOT take reservations
    - Food is their only product

    To wrap up the challenge: I need to find a way to generate more in-person conversions. Here's what I am currently doing:

    - Running geotargeted FB/IG/Google ads. Acheiving solid CPM and CPC (around $1.60)
    - Email marketing (about 11k signups and decent ROI so far)

    I want to increase ad spend and create a more robust strategy but I am dismayed by the numbers: Somewhere close to $44/conversion in the food/hospitality industry according to wordstream. Even if I run a highly successful campaign and cut this number in half, $22 is still above the average spend at the restaurants. So what do I do? Again, I'm not trying to act like an agency and present them with figures about how many I got to sign up for emails, about how many impressions we got, driving traffic to the website has no imediate return... I NEED TO GET PEOPLE INTO THE STORES ONLY. Thoughts?

    Hello Panda

    We are a large UK based Agency but we also operate in the US. Most of our clients are small business's, and they include small restaurants. We have added 4 new Pizza shops to our client list just in the last 10 days, and would have well over 200 small restaurant clients.

    So my first comment is answering this: "the more I look into it, the more it appears to me that digital marketing for restaurants, is in fact, NOT worth it"

    The reason you say that lies within your opening sentence:

    "Hi. I'm a bit of a newcomer to the digital marketing game. I recently took over everything digital for my family's restaurant chain."

    If online marketing for restaurants was in fact "NOT worth it", then we must have a lot of pretty silly clients, paying us month after month for something that gets them no benefit.

    Then next - "Smallish budget (of course. about 1k/month)". Do I understand that correctly, your family is willing to only spend $1000 a month between 7 restaurants? That comes down to only $35 per week per restaurant. Some people would spend more than that on promoting their garage sale, and you are talking about promoting a business? I couldn't even advise you to change your window signage each week because that would far exceed the $35 a week per restaurant budget that you have.

    I can't give you any detailed advice, the 4 new Pizza clients comes from a test campaign we are running prior to a larger campaign targeting restaurants both here and in the US, so our next client may be the restaurant just down the street from you.

    But some advice I can give you is: Forget about PPC, you know nothing about it and cannot afford it anyway. You have done well in building up a 11K mailing list, so come up with more ways to use it. You need to be creative in finding other low cost ways of promotion, similar to your use of your email lists. That is what we are doing for our clients, we know they are small business's and don't have large advertising budgets. We would be leveraging your existing customers to help promote your restaurants, at very low cost to yourselves. I like DABK's suggestions to you,

    Cheers
    Lindy
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  • Profile picture of the author savidge4
    I would suggest you need to be devoting an amount of time into your google business account. you NEED ratings. you NEED customers taking photos. You NEED customers leaving rave reviews. You NEED Google to work for you and not the other way around, meaning do the above things and Google will deliver the door traffic for free based on social signals and Googles local end users based on previous experiences vs paying Google to reach people that have absolutely no interest.

    And now you are reading this thinking what the FLIP is this guy talking about. Go into Google Play or iTunes and download Googles app "Contribute" and start playing with it.. learn all about it, and USE it yourself.

    Do all 7 of you locations have a Google maps entry? If not you will be able to include all of your locations. Do they all have images? if not you will be able to add them.

    You suggested that the website isn't working for you? how specifically do you know that? do you have a mobile dedicated site? and NO I do not mean responsive. Can they get directions to each of your locations front door using Google maps? Is your menu available online? Do you push take out order at all as in... drive to the National chains parking lots around you and identify the "To GO Order" parking signs. My local McDonalds has 4 spots for goodness sakes.

    Focus on this.. and get your family out of 1990 and bring them up to speed on the current trends of today and moving forward. Bottom line is you can only turn so many heads an hour even if you ran at capacity... To Go can increase that number. To Go can increase the convenience of your SERVICE, and probably increase that Value over lifetime number from figuring once a month to once a week.

    Its very clear your family is set in their ways.. and want to keep things the way they have been, and yet every other restaurant around you has changed - its cute its quaint, but its a fast track to closing 7 locations doors over an amount of time.

    Hope that Helps!
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  • Profile picture of the author nshep
    I agree with much of what others say here. For a brick-and-mortar business, your first order of the day should be to make sure your local SEO is on fleek. Optimize the hell out of your GMB profiles, work on getting into the local 3-pack, and do whatever else you have to do so that local searchers find you easily.
    After that, an 11K mailing list is actually really good, so focus on growing this and using it to your benefit. If done right, email marketing is one of the most cost-effective ways of marketing and you have already made great progress there, so use it!
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  • Profile picture of the author panda215
    Thank you all so much for your imput, it's been very helpful. I'll give a bit more context:

    My challenge has been to try to illustrate/prove the ROI of digital marketing to family and I'm not sure how to go about doing that (though you have all shed some light). Sure, I can get more people to visit our webiste, more people to follow us on Facebook/IG, and get our name in front of more people, but it's been hard to get approved for more money to be allocated without somehow illustrating direct ROI.

    Getting people to look at our website/social surely builds awareness but because it's fast-casual and does not take reservations/online orders, it's hard to illustrate how spending thousands for people to see us directly translates into in-store returns... this is obviously not a new phenomenon: how do you measure the direct ROI of a billboard or a press story? - same challenge.

    Our GMB, Yelp, and Social profiles are all fairly well built out and have over 2000 cumulative reviews with over a 4.5 star average - I have already dedicated a significant effort towards this. SEO could always be improved but we're doing alright... something I'm also working on. Emails are collected at the POS, part of why the list has 11k already.

    I know it's a nebulous question with a lot of possible answers, but I am just trying to find the best platform/strategy to drive IN-STORE purchases with demonstrable ROI. You all have confirmed a lot of my suspicions and I appreciate your input. I think demonstrating the lifetime value of a customer is a great idea that will hopefully help me get more funding soon. Cheers.
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    • Profile picture of the author Steve L
      Originally Posted by panda215 View Post

      Thank you all so much for your imput, it's been very helpful. I'll give a bit more context:

      My challenge has been to try to illustrate/prove the ROI of digital marketing to family and I'm not sure how to go about doing that (though you have all shed some light). Sure, I can get more people to visit our webiste, more people to follow us on Facebook/IG, and get our name in front of more people, but it's been hard to get approved for more money to be allocated without somehow illustrating direct ROI.

      Getting people to look at our website/social surely builds awareness but because it's fast-casual and does not take reservations/online orders, it's hard to illustrate how spending thousands for people to see us directly translates into in-store returns... this is obviously not a new phenomenon: how do you measure the direct ROI of a billboard or a press story? - same challenge.

      Our GMB, Yelp, and Social profiles are all fairly well built out and have over 2000 cumulative reviews with over a 4.5 star average - I have already dedicated a significant effort towards this. SEO could always be improved but we're doing alright... something I'm also working on. Emails are collected at the POS, part of why the list has 11k already.

      I know it's a nebulous question with a lot of possible answers, but I am just trying to find the best platform/strategy to drive IN-STORE purchases with demonstrable ROI. You all have confirmed a lot of my suspicions and I appreciate your input. I think demonstrating the lifetime value of a customer is a great idea that will hopefully help me get more funding soon. Cheers.
      To achieve demonstratable ROI with a Google Ad campaign for example would require a CRM and for you track customer sales and data. You don't typically do that with a restaurant unless you have maybe a VIP offer where you collect their email address on your website, then whenever they come in they enter their email address so you can track sales. In doing so you'll be able to determine the actual ROI.

      This is called 'offline conversion tracking' in the Google Ad world.

      A more holistic approach is to assign a value per website visit or Google My Business visit. Calculate what your existing traffic is to both your website and your Google My Business on a monthly basis. Then take your monthly sales number and divide by your number of visitors to get an average value per visitor figure. Then you know the max you could spend per click roughly.

      Good luck!!
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    • Profile picture of the author savidge4
      Originally Posted by panda215 View Post

      I know it's a nebulous question with a lot of possible answers, but I am just trying to find the best platform/strategy to drive IN-STORE purchases with demonstrable ROI. You all have confirmed a lot of my suspicions and I appreciate your input. I think demonstrating the lifetime value of a customer is a great idea that will hopefully help me get more funding soon. Cheers.
      I think what may be lacking is the PROOF of the online efforts. You need a coupon to be presented or SOMETHING that can give you an idea of the effect of your efforts.

      A suggestion.... Chocolate chip cookies ( if they are parallel to the food you are serving ) and a online only coupon for a free cookie with every meal.. add a scoop of ice cream for an additional dollar or something. You can make a simple graphic for this, and identify them based on the platform they are coming from IG in the bottom right corner or FB or WS ( Website ) or EM ( E-mail ) etc etc. This gives you definitive numbers and you are not having to offer a "Discount" in order to get it. Adds value to the experience, and gets you the numbers you really need to move forward.

      Hope that Helps!
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  • Profile picture of the author Evelyn Thomas
    Before you work on the expansion, start with working on building a brand along with a loyal customer base. Once you have an idea of what is your customer profile like it will help you plan your marketing activity around it.
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  • Profile picture of the author poetry22
    You should focus on customer loyalty of the restaurant itself. Offer them a discount for leaving your email, for following you on Facebook, etc ... At the same time, agree that with ads on Facebooks. Try to get good reviews on Apps like Tripadvisor, etc ...
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  • Profile picture of the author Medon
    I think the only thing you need to do for now is to develop customer loyalty. Let your digital marketing strategy focus at encouraging previous customers to come back. Find a clever way of obtaining their contacts and use them to encourage repeated buying.
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  • My advice is to try email marketing as an alternative strategy for your restaurant success, email marketing has the highest ROI for any business and can easily be set up and strategized for your own personal goals.
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  • Profile picture of the author 55sadhikar
    How is the food? Is it good? Do you get repeat customers? If you haven't got good reviews..you need to work on food. No screaming and hollering in the internet is going to make them come, maybe just for a little while... Once you've got the food ironed out, you need to get as many ppl as possible to be compiled into a data, so you can run mass promotional campaigns. I think nailing down to conversions may be too granular for a casual restaurant. You basically want them to remember your restaurant when they feel hungry...that can only happen with branding campaigns. You can cross promote your restaurant with businesses in your local areas that are not your direct competitors. Small grocer stores, barber shop etc can bring traffic your restaurant via cross promotion. You can run geo targeted campaigns easily via facebook, google, youtube [ The 3 big gorilla]
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  • Profile picture of the author Medon
    I believe digital marketing can work for a restaurant. Have the right strategy in place and things will sort themselves out .
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  • Profile picture of the author Anthony J Namata
    What I like about the bricks and mortar business is that you can actually lynch customers off the street with banner campaigns using hired marketers parading the streets; and that you can also circulate fliers around the neighborhood with special offers in-print. Online marketing for a restaurant? Unless it's an enormous brand with outlets in every corner of every street... I know I exagerated there a bit, but you catch my drift.
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    • Profile picture of the author LindyUK
      Originally Posted by Anthony J Namata View Post

      What I like about the bricks and mortar business is that you can actually lynch customers off the street with banner campaigns using hired marketers parading the streets; and that you can also circulate fliers around the neighborhood with special offers in-print. Online marketing for a restaurant? Unless it's an enormous brand with outlets in every corner of every street... I know I exagerated there a bit, but you catch my drift.

      Hello Anthony

      So, " Lynch: (as by hanging) by mob action without legal approval or permission."

      Geez, that's really drastic marketing tactics. So I guess these "hired marketers parading the streets" are looking for hungry victims, then using some sort of banner with a rope to wrap round their necks while dragging them back to the restaurant.

      Then I guess they throw the rope end of the banner over a beam or something and the implied threat of a lynching encourages the victim to order something. Maybe a sit down meal so they have to take some pressure off the banner rope.

      I guess it's a bit thought out. The victim thinking it's maybe his last meal will likely order up, maybe with a few drinks too, if they are on the menu.

      I actually prefer your more gentle method of just circulating flyers around the neighborhood with special offers. I guess the flyers have something like "Special Offer That You Can't Refuse" on them.!

      So your name is Anthony - but do people call you Tony? I'v seen some movies with Tony's in them, that might sorta explain the "marketing tactics! you mention.

      Cheers
      Lindy
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      • Profile picture of the author 55sadhikar
        Originally Posted by LindyUK View Post

        Hello Anthony

        So, " Lynch: (as by hanging) by mob action without legal approval or permission."

        Geez, that's really drastic marketing tactics. So I guess these "hired marketers parading the streets" are looking for hungry victims, then using some sort of banner with a rope to wrap round their necks while dragging them back to the restaurant.

        Then I guess they throw the rope end of the banner over a beam or something and the implied threat of a lynching encourages the victim to order something. Maybe a sit down meal so they have to take some pressure off the banner rope.

        I guess it's a bit thought out. The victim thinking it's maybe his last meal will likely order up, maybe with a few drinks too, if they are on the menu.

        I actually prefer your more gentle method of just circulating flyers around the neighborhood with special offers. I guess the flyers have something like "Special Offer That You Can't Refuse" on them.!

        So your name is Anthony - but do people call you Tony? I'v seen some movies with Tony's in them, that might sorta explain the "marketing tactics! you mention.

        Cheers
        Lindy
        Damn...that's a plot straight out of a horror movie, i don't ever wish that happen to my worst enemy...
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  • Profile picture of the author agmccall
    one thing I would suggest is for local marketing you really need a feel for the area and it must be real difficult seeing that you are in Argentina. So, I have to wonder if your family has a chain of 7 units then they are successful and why would they hire you a couple of thousand miles away to do their local marketing. It makes no sense even if you are related.

    al
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  • Profile picture of the author Jeffery
    I'm surprised that nobody mentioned "online ordering software for restaurants."
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    • Profile picture of the author Steve L
      Originally Posted by Jeffery View Post

      I'm surprised that nobody mentioned "online ordering software for restaurants."
      Yea, ordering online from your table is becoming more popular. I really like the concept.
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      • Profile picture of the author Medon
        Originally Posted by Steve L View Post

        Yea, ordering online from your table is becoming more popular. I really like the concept.
        A good idea! just introduce the online service and I am sure you will go places.
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  • Profile picture of the author seocorporation
    What about leveraging Google my business. You should enlist all your 7 locations on Google My business ( Google Map) and define the area which you serve. Keep your listing on GMB updated and keep on getting reviews, adding pictures etc and see the magic. You can also run a paid ad campaign on GMB. This will help you get local customers.
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  • Profile picture of the author Gambino
    Originally Posted by panda215 View Post

    To give you some background:
    - American company in a semi-large city
    - Currently 7 locations with plans to expand
    - Smallish budget (of course. about 1k/month)
    - They do NOT do online orders - brick and mortar sales only
    - They are a fast-casual restaurant -i.e. they do NOT take reservations
    - Food is their only product

    I NEED TO GET PEOPLE INTO THE STORES ONLY. Thoughts?
    The way I see it, you don't need to get more people into the stores, you need to get more sales out of the stores. That can be done by increasing the number of customers and increasing the average amount spent.

    The first thing that jumps off the page to me is that there's no way to order online. Any restaurant that doesn't allow you to order online for pickup or delivery is at a huge disadvantage nowadays. If you're not on UberEats/DoorDash/GrubHub/whatever is popular in your area then that is the place I would start.

    Those apps are where people are actively looking to buy what you're selling. That's the low hanging fruit in your space, in my opinion.

    Otherwise, you're going to be advertising discounts to people who aren't actively looking to buy food, in most cases. Unfortunately, you're a few years late when it comes to doing like/share giveaways on Facebook which were killer for offline businesses back in the day.

    And, as others have said, I wouldn't even think about buying ads until you know the lifetime value of a customer.
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  • Profile picture of the author Jeffery
    A sign of a great restaurant = people standing in line outside the restaurant!


    Ways to speed things up for them and increase your sales:
    A sign that says "Pre-Paid Orders Please Come Directly To The Pick-up Cashier"

    An employee taking orders with an online app to include free download of the app.

    An employee giving out free appetizers and hot/cold drinks.
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  • Profile picture of the author jdickson20
    How are you currently tracking ROI?
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  • Profile picture of the author BYV Digital
    Digital marketing is very important for every business even for the restaurant business and this helps you to market your business in a more proper way because nowadays everyone visits your website before coming to your restaurant so it will give you the opportunity to get the customer for your business
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  • Digital marketing help to increase your business online. it not only helps to promote your business online but it help to generate leads and brand awareness
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  • Profile picture of the author Rose Anderson
    Do you post in local Facebook groups? Many allow businesses to post for free once a week. Read the group rules. People often ask for suggestions, when someone from the restaurant actually responds and personally asks them to drop by it can effective.

    Do you have offers for each night?

    Kids eat free with adult purchase.

    Wino Wednesday - half price bottles of wine (my personal favorite)

    Trivia night. Winners receive gift certificates to the restaurant.

    Support the local band/sports team. 10% of all profits go to a local school. This will bring in all the parents of these kids. Plus, it shows you care about the local community.

    Discounts for community workers such as police, firemen, military, or teachers. Again, a way to show you support the people in your town.

    Create these events and then spread the word through local Facebook groups and ads.

    Rose
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  • Sounds like you need brandin'.


    Hot & searin' on your inspirational ass; live & juicy when you twerkin' your booty.


    So ... you a pizza joint evryplace unspesho or Life-threttnin' Capital city exotica?


    (This is a Princess thought exercise btw. Balance in all things ... kinda thing.)
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