Article by the Punchh team
2010 was a big year for restaurants as lots of restaurants experienced healthy growth in revenues. The growth was driven by two key factors – first: consumer spending creeping up and second: restaurants focusing more on value-based innovation.
Restaurant operators are quite upbeat about growth in 2011, both in terms of same-store sales as well as adding new stores, according to a recent survey by the Nation’s Restaurant News.
In the same survey, over 43% of restaurant operators indicated that social media will be the most important marketing budget item for them in 2011.
So why is social media marketing the top-spend area for restaurants? Because it allows even smaller, creative and nimble foodservice chains to play offense and win against much bigger competitors with deep pockets – driving better engagement with and repeat visits by loyal customers and to harnessing the power of word-of-mouth to drive growth. Of course, bigger chains can also get creative with social media in order to retain their competitive edge.
The growth expectation is single-digits for many, but stratospheric for others such as RedMango. RedMango had 100+ restaurants at the end of 2010, and expects to add 110 new stories just in 2011. To that we say, Wow!! Anyone who has been to a RedMango store knows that the secret to their success is their healthy and delicious menu of frozen yogurt offerings – just take a look at their Fresh Parfaits, I mean who wouldn’t love that for breakfast or lunch or as a snack? But we think the real secret is their social media marketing –they have over 222K Facebook fans and ~7K Twitter followers. Compare that to TCBY, which has 800+ stores but only ~27K Facebook fans.
Come back and follow our blog as we discuss the best social media marketing campaigns and the recipes for getting the highest ROI for your social media campaigns.
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