Restaurant Marketing Ideas

Five Places to Find Funds for Restaurant Marketing

Tweet

  

 

Free restaurant marketing is my preference.  (Which refers to no cash needed.)  However, if you understand about investing in a restaurant marketing plan, here are a few tips on where to look for funds.  The goal is to ear-mark dollars which can then be invested and re-cycled as each marketing campaign pays off.  If your restaurant business has a sales issue and is short cash then investing in anything, especially marketing, seems an impossibility. 

Here is where I have looked for cash in the past:

1)  Government Tax Programs:

WOTC - Work Opportunity Tax Credit

Think about the hiring processes at your business.  As you hire new staff, follow the screening processes to get tax credits.  Chances are that you are already hiring new staff so learning this gives you opportunity for thousands of dollars in tax credits which can be ear marked for your marketing campaign. 

Do you think it is too complicated and don't like paperwork?  Then outsource the tasks but be prepared to pay a fee.   My recommendation is to connect with your state's restaurant association for options.

the Hiring Incentives to Restore Employment Act

BRAND NEW

To spur immediate job growth, the HIRE Act would provide businesses with an exemption from Social Security payroll taxes they owe for every worker hired in 2010 who has been unemployed for at least 60 days. The maximum value of this incentive is $6,621, which equals to 6.2 percent of wages paid in 2010 up to the FICA wage cap of $106,800. The longer that a business has a new qualified worker on its payroll, the greater the tax benefit. This would create an incentive for businesses to hire people now.

In addition, to promote long-term employment, there would be an additional $1,000 income tax credit for every new employee retained for 52 weeks.

Your accountant will need to help you with this.   If you know you are expecting tax credits, then wouldn't you rather adjust your estimated payments sooner rather than at the end of the year?  Yes, it does take tracking.  That is the price you pay for this one.   Do NOT do this on the fly.  Have your accountant involved.

2)  Inventory:

Consider the frequency of deliveries of products to your restaurant.  Is there a seat of the pants system for ordering products?  Then your guesstimates will not be helpful.  The challenge is:  Why carry enough product for 2 months usage when there is a delivery twice a week?  If there is a deep discount of, let's say 20%, maybe that is incentive enough.  Otherwise, consider the hundreds of items on the shelf.  Will you be able to reduce inventory by 10%?  That cash could then be used for a successful restaurant marketing campaign.

If you are not tracking actual usage for each item for each delivery because it "takes time" or "it's too hard" then you need to connect with someone who has done hundreds of inventories and understands the process of inventory control backwards and forwards. Check out Restaurant Owner Resources for people to talk to.

Caution if you have the vendor ordering for you.  While it is easier for YOU their goal is not the same as yours.  They will be sure you have more than enough product on hand.  Sure, it is great to have them do the counts and ordering but it may be time to "train" them as to how you want to keep the inventory mean and lean so you can use the cash for restaurant marketing.

Rarely do I find an operation without excess inventory.  This is cash on the shelf which can be put to use immediately for a restaurant marketing campaign.

3)  Vendors:

If you understand how to create an effective campaign which will flow the money back within 30 to 60 days where you can then recycle the funds back into another campaign, then going direct to the suppliers of advertising may be a source.

While not every company will do so, there are some who will invoice your business with a 15 to 30 day billing cycle.  (This will depend on the age and reputation of your business.) 

Create marketing campaigns which are heavily weighted towards the beginning of the month.  This gives you a full month to create responses.  The invoice at the end of the month can be paid directly from the marketing campaign results.

At times local newspapers will work on invoice and many other marketing companies will also accept half the fee up front with the other half invoiced.

This can be risky if you do not have the skill and understanding of how to pencil out an effective restaurant marketing campaign.  For those of you who get results because you understand the five essentials to business success and have good controls in place, this may be enough to give you a shot in the arm.  Again, do not use this source of funding for testing campaigns.  It is for those in which you have confidence.

This may seem an obvious option.  Why then will so many simply write a check when the payment is asked for instead of asking for an invoice?  Ask for an invoice.

4)  Not for Profit Businesses - Fundraisers

Non profit organizations will many times have an army.  I refer to non-profit organizations for restaurant marketing because the cash to pay them is rewards-based post campaign.  In essence you lend them a piece of your business for a small period of time and reward them for success.  A not for profit business can be an ambassador for your business if the reward is high enough.

First though, you must understand how much it typically costs to acquire a customer.  For instance, if you send out 5000 cards for $2500 and receive a 10% response, 500 responses cost you about $5 each.  Instead of paying an advertising company up front the $5 each for those 500 customers, why not offer a non profit group $3.50 for each sale after the end of a campaign?  This means the cost would be about 25% less and you would be also writing a check to a local community group for about $1750.  (This works exceptionally well when you connect with a group of 100 or more participants since the work load is spread out.)

Do not have long campaigns or events with non profit organizations.  Also, be sure there is ample number of people helping.  Be involved and prepared to teach, assist, guide and inspire.  

This one is very important to consider.  It not only helps your business get found it also offers opportunity for you to do press releases and help those in your community more than you realize.  Don't know where they are?  Contact your local newspaper; they know.

Need more ideas on this?   10 Magic Marketing Tips ebook is free and ready for download.

5)  Deposits:

Did you make a deposit 3 years ago that was meant to be temporary?  When a business is new there are many deposits to assure the utility company (and others) you will not skip out.  When the time period expires, many times the deposit is then refundable.  This depends on your state and agreement.  Read the agreement.  If $500 of your money is no longer required to be on hold, simply ask the company for the process or form to request the return of your deposit.  After all, you made it and have proven you are low risk. 

Then take the returned deposit, add it to your marketing fund and begin to think about your restaurant marketing planning calendar.

Summary:

1. Hire people and qualify them for tax credits.
2. Check your inventory.  Over inventory is cash.
3. Ask for an invoice.  Not an option?  Then make that a deal breaker.  Some will bend to get the business.
4. Collaborate with non-profit organizations for marketing campaigns.
5. Think back to when you started your business or started a new lease or rental.  Are there any deposits on the books which are now available?

Did you find any money in at least one of these?  There are many others to consider but there is certainly not enough space or time here. These are not the only places to find restaurant marketing funding but they should give you a chance to think again about your business in a different light.  These are not new nor experimental.   Others have already used these resources with success (as have I).  If you hire a consultant and tell him/her you are short cash to create marketing campaigns, these are areas they would hopefully recommend for your consideration.