Getting noticed by customers requires more than just a great menu or fantastic ambiance. You need to reach people where they are, especially when they’re already in the mood to dine out. This is where location-based marketing becomes essential. By targeting people based on their geographic location, you can make sure that your restaurant stays top of mind when they’re nearby and hungry. Let’s dive into why location-based marketing is important for your restaurant and how it can help you bring in more customers.

• Save

What Is Location-Based Marketing?

Location-based marketing uses location data to target customers near your restaurant with timely and relevant promotions. This could include messages, offers, or advertisements that pop up on a person’s smartphone or social media feed when they’re in the area. Imagine someone receiving a discount offer for your restaurant when they’re a few blocks away. This is a prime example of location-based mobile marketing.

Location-based marketing for restaurants often involves geo-fencing, beacons, and GPS tracking. These technologies make it possible to engage with customers based on where they are, helping you attract foot traffic right when people are in the neighborhood and likely to visit.

Why Is Location-Based Marketing So Important for Restaurants?

1. Reach Customers in Real-Time Location-based marketing allows you to target customers when it’s most relevant. About 70% of customers say they are more likely to make a purchase when they receive mobile-based ads that are relevant to their location. Imagine someone is nearby, looking for a place to eat — your promotion or ad can help sway their decision to choose your restaurant.
2. Increase Foot Traffic In the restaurant business, foot traffic is everything. According to studies, 80% of consumers say they’re more likely to go to a business if they see a deal or offer on their smartphone. A well-timed geo-location marketing campaign can catch people who may not have been planning to eat out but will change their plans because of a tempting offer nearby.
3. Build Customer Loyalty Building loyalty is a long-term strategy, and location-based marketing can be very effective here. Imagine rewarding regular customers with exclusive offers when they’re in the area. This could make them feel valued and give them more reasons to keep coming back. Location-based notifications or in-app offers add a personal touch that builds a stronger connection with customers.
4. Target Nearby Customers of Competitors Location-based marketing also lets you target people who might be near a competitor. For instance, if someone is outside a competitor’s restaurant, you can send them an ad with a discount offer to try out your place instead. This strategy helps you reach people who are already in the mood to dine out but may just need that extra nudge to come to your restaurant.

• Save

• Save

How to Use Location-Based Marketing Effectively in Your Restaurant

1. Set Up Geo-Fencing Around Your Restaurant Geo-fencing allows you to create a virtual boundary around your restaurant. When someone enters this boundary, they can receive a notification or offer through their mobile device. For instance, if someone is walking nearby, they could receive an alert about your lunch special. Geo-fencing can increase foot traffic by an average of 15-20% as people are more likely to stop by if they get a tempting offer right when they’re nearby.
2. Run Social Media Location-Based Campaigns Social media platforms like Facebook and Instagram let you target people based on location. You can create ads that appear only to people who are in your area. This way, instead of showing your ads to everyone, you can focus on those who are more likely to become customers. Statistics show that location-based advertising has a 20% higher engagement rate than general ads, proving its effectiveness.
3. Offer Location-Based Discounts and Promotions People love a good deal, especially when they’re right around the corner from your restaurant. By offering a special deal to customers in the area, you give them a reason to stop by. You can even set up automated push notifications to reach customers when they’re close by. For example, you might send a message saying, “Get 10% off if you visit us within the next hour!” These small incentives can drive traffic, especially during off-peak hours.
4. Use Beacons to Engage Customers Indoors Beacons are small devices that use Bluetooth to send messages to smartphones nearby. They’re great for restaurants because they allow you to target customers not only when they’re near your location but also when they’re inside. Beacons can welcome customers as they enter and promote specials or discounts that might interest them during their meal. Around 54% of customers are more likely to visit a store or restaurant if they get a personalized in-store offer via beacon technology.

Benefits of Location-Based Marketing for Your Restaurant

• Improves Relevance: When people receive ads or offers based on their location, it feels more relevant. Studies show that 75% of consumers find location-based ads helpful and are more likely to take action.
• Cost-Effective Marketing: You only target customers near your restaurant, so you don’t waste money on people who are unlikely to visit. It’s an efficient way to spend your marketing budget, especially compared to traditional ads that target a broader audience.
• Better Insights into Customer Behavior: Location-based marketing gives you insights into the movement patterns and behaviors of potential customers. You can analyze how far customers typically travel to reach you or which nearby events drive more traffic. This data can help you fine-tune your promotions and understand your audience better.
• Helps You Compete with Big Chains: Big chains often have large marketing budgets, but location-based marketing gives you a chance to level the playing field. You can target locals more directly and create offers that appeal to people who live or work nearby. 65% of small businesses that use location-based marketing find it gives them an edge over larger competitors.

Challenges of Location-Based Marketing

1. Privacy Concerns With location-based marketing, you need to ensure you’re handling customer data responsibly. Make sure you’re transparent about why you’re collecting location data and how it’s used. Respect for privacy builds trust with customers, who are then more likely to opt in for location-based notifications.
2. Limited Reach While location-based marketing is highly targeted, it may not reach a broad audience. This means it’s best used as part of a bigger marketing strategy. Combine it with other methods, like social media or email marketing, for a wider reach.
3. Timing Is Everything Location-based marketing relies heavily on timing. An offer sent too early or too late may not have the desired impact. For example, a lunch special notification sent at dinner time isn’t effective. Be sure to schedule your promotions to reach customers at the right moment for maximum impact.

What is one example of Location-Based Marketing?

Let’s look at a well-known example: Starbucks. Starbucks uses geo-location marketing campaigns to boost sales by targeting customers close to their stores with special offers through their mobile app. Customers get notified about happy hour promotions or special seasonal drinks when they’re near a Starbucks location, making it easy and convenient to stop in. This strategy has contributed to Starbucks’ growth, with a reported 30% increase in sales driven by mobile orders and promotions. This shows how a well-executed, location-based strategy can increase foot traffic and sales.

• Save

Location-based marketing is a powerful tool for restaurants. By targeting customers nearby with relevant and timely offers, you can increase foot traffic, build loyalty, and even outshine competitors. With an average of 70% of smartphone users willing to share location data for a more personalized experience, location-based marketing offers a unique way to connect with your audience.

In a fast-paced and competitive industry like dining, adopting location-based mobile marketing is an opportunity to grow your restaurant’s reach and attract new customers. So, consider starting with a simple geo-fencing campaign or a few location-based ads on social media. It’s time to put your restaurant on the map — literally!