As a business owner, it's important to allocate a portion of your sales to marketing initiatives. Generally, companies set aside between 3 to 6% of their sales for their marketing budget. However, the restaurant industry is unique and requires a larger budget. According to the New York Times, a healthy restaurant should spend 30% of its sales revenue on food and beverages.
The Lincoln Brokerage New York City law firm has put together a list of insurance you'll need to operate in the city. Arron Allen from Arron Allan and Associates Global Restaurant Consulting suggests that restaurants should allocate 3% to 6% of their sales to marketing. He also advises against spending too much on print and television advertising as it is not the most effective way to get new customers. The cost of food is higher in New York than in other states, so restaurateurs must factor this into their budget.
Apps for restaurants are one of the best free marketing tools available as they allow customers with intention to find your business. With so much competition, it's essential to have a foolproof restaurant marketing plan. The Grabull team can help you understand how and why you should invest your restaurant marketing budget with them. They will explain the most popular restaurant marketing channels that have been tested by 26% of restaurants, your target audience and how you can achieve more success by spending a small amount with them. Now more than ever, restaurant owners need to keep and reserve funds for their online marketing budget. Restaurateurs who wish to operate in New York City are subject to a number of permits and licenses, most of which come with their own fees. Unfortunately, up to 90% of restaurant marketing budgets are spent on acquiring new customers.
The New York Times states that “a healthy restaurant intends to spend about 10 percent of its sales revenue on rent, utilities and other occupancy costs”.