The restaurant industry is a vibrant tapestry of flavors and experiences, celebrating culinary innovation and bringing people together over a hot plate and smooth drinks. Yet, behind the aroma of freshly cooked meals and the clinking of glasses lies a daunting challenge: driving foot traffic and acquiring new customers.
Restaurant groups are navigating a new generation of foodies and restaurant-goers, and attracting fresh faces to their tables is proving to be a challenge. Traditional marketing isn’t cutting it anymore. Email marketing, search engine optimization, paid search, and social and loyalty programs aren’t performing as they once were, resulting in 54% of restaurant owners reporting a lower profit margin since 2020.
Restaurant groups need to look for a proven alternative acquisition strategy that is both cost-effective and transparent so you’re always in the know. At Nift Advertising for Restaurant Groups, we’re redefining how restaurants drive foot traffic and acquire new customers.
Nift’s closed partner ecosystem drives traffic to your restaurant by offering personalized ‘thank you’ gifts to consumers at surprise and delight moments. These gifts can be redeemed in person or through a direct online order.
In this blog, we’ll discuss the customer acquisition challenges restaurants face, how Nift can help drive more traffic to your restaurant group, and examples of restaurants utilizing Nift to drive new customers.
Why is Customer Acquisition More Important Now Than Ever Before?
Customer acquisition is the process of obtaining new customers and bringing them down the marketing funnel. It’s an ongoing process that requires strategic planning, effective marketing, and a commitment to delivering exceptional dining experiences day in and day out. The way consumers discover new restaurants is constantly changing, so restaurant groups need to review their customer acquisition strategies regularly and adjust when needed.
Customer acquisition is critical for a restaurant’s business growth and sustainability, as it directly contributes to expanding its customer base, increasing revenue, and enhancing loyalty and awareness.
Top 4 Pressing Restaurant Business Challenges in 2024
The restaurant industry isn’t for the faint of heart, and since the pandemic in 2020, running a successful restaurant group has been more challenging than ever. The market is changing rapidly, and one of the most notable trends is the increasing use of technology. Digital menus and online ordering systems are just a couple of significant changes restaurants have had to adapt to over the years.
Four of the most prominent challenges restaurant groups are facing today include:
1. Inflation and the rising cost of food:
Dramatic increases in food and labor costs significantly impact restaurants’ bottom line. Inflation makes everything more expensive for owners and consumers alike, and as costs rise, people are less likely to go out to eat. Aside from high expenses, inflation also impacts a restaurant’s menu. Inflation also makes sourcing ingredients more complex, resulting in menu changes.
2. High staff turnover:
Labor shortages aren’t unique to the restaurant industry, but the fast-paced environment, intense customer interactions, and irregular working hours have hit the industry hard. Because of this, the average annual restaurant industry turnover rate is at a record high of 79.6% over the past ten years. High employee turnover isn’t just frustrating, time-consuming, and expensive. Recruiting, training, and retaining employees requires extensive resources. On average, restaurants lose about $150,000 annually due to employee turnover alone.
3. Minimal marketing budget:
Marketing budgets are usually the last item on the to-do list; you have a restaurant to run, after all! Restaurant groups need to focus on inventory, staff, logistics, and more, so the time and expense of marketing often just aren’t in the cards.
4. Lack of foot traffic:
Foot traffic to restaurants has steadily declined over the last few years. Last April, restaurants saw foot traffic drop by 3.5%. As inflation chips away at consumers’ budgets and menu prices continue to rise, consumers are visiting restaurants less frequently. Restaurants have to find a new way to attract consumers without sacrificing their bottom line.
Tap Into The Newest Acquisition Strategy: Gifting
Traditional customer acquisition strategies aren’t making the impact they once were. Consumers are constantly bombarded with hundreds of emails and ads in their inboxes and social media feeds. Restaurants need to find a new way to attract customers that doesn’t require extensive effort and knowledge on their part. That’s why we developed Nift’s gifting model as an alternative customer acquisition strategy.
So, what is Nift exactly?
Nift is a closed ecosystem where consumers discover new brands and restaurants. Within our ecosystem of premium consumer apps, Nift gives over 12,000 brands and restaurants exclusive access to millions of engaged customers. Traditionally, consumers discover new brands and restaurants through paid advertisements, but we’re reshaping how consumers discover new brands and restaurants by introducing them as a ‘thank you’ gift.
The gifts offered through Nift are not ads or promo codes available to anyone; they are unique gifts shown to consumers within our ecosystem who are ready to purchase. For restaurants, these personalized ‘thank you’ gifts can be redeemed in person or through a direct online order. This unique acquisition model fosters positive customer experiences, drives revenue, and shows appreciation—all through the power of saying ‘thank you’.
Nift benefits restaurants’ customer acquisition strategy in many ways, including:
- Trackable acquisition: Every new customer and transaction is tracked with 100% footfall attribution.
- Cost and time-effective: Not only is Nift considerably cheaper than digital ads, but it is also a 100% managed service. We do all the heavy lifting, including creating assets and optimizing conversion strategies, so you can focus on other things (like operating your restaurant).
- First-party data and Geo-targeting: Bring in customers where traffic is needed the most and grow your database with name, email, and opt-in permission to re-market.
- Easy to process: No point-of-sale integration is needed, so your service team processes Nift like other promos.
- Transparency: We value transparency, so you always know what’s happening and where customers are within the funnel.
By implementing Nift’s gifting model, restaurant groups can save time and money by replacing an ad-heavy marketing strategy while welcoming customers through the door and driving database growth.
How Nift Works For Restaurants
Our model is unique—if Nift isn’t an advertisement or searchable promo code, then how does the process work? Let’s break it down into 3 easy steps:
Step 1: The consumer completes an action, such as leaving a review on TripAdvisor, paying for parking via ParkMobile, or registering for a yoga class via Mindbody
Step 2: The consumer receives a ‘thank you’ gift with personalized options of products or restaurants to try, like World of Beer.
Step 3: The consumer chooses their gift, discovers a new place to eat or drink, and becomes a consumer for life.
Success depends on several key factors, including the quality of the gifts offered, the restaurant’s story and unique selling points, and the willingness to leverage Nift’s expertise in optimization. The higher the gift value, the more likely you are to attract the attention of your target market. Premium gifts help restaurants:
- Bring in more customers: Drive traffic with gifts that can be redeemed in person. You can also grow your online orders directly on your website, bypassing third-party apps that eat away at your margins.
- Grow customer databases: Suppress your existing customers from seeing your gift. When someone selects your gift, you’ll acquire the customer’s name, email, and opt-in permission to market to them.
Nift Case Study: How A Craft Beer Restaurant Amplified Customer Growth
The entire restaurant industry has dealt with rapidly declining foot traffic numbers. To combat this, a craft beer restaurant sought out alternative growth strategies. Together with Nift, in one month, the restaurant:
- Added thousands of individuals to their email database
- Welcomed hundreds of first-time customers
- Increased the average check to 41% greater
With a 23% conversion rate, this craft beer restaurant had the opportunity to ‘wow’ more first-time customers than in years.
Other restaurants, like World of Beer, have utilized Nift to drive foot traffic and new customer acquisition. Because of our success, World of Beer expanded systemwide on May 20, 2024.
Get More New Customers Through the Door
Inflation, marketing costs, and lack of foot traffic are significant challenges the restaurant industry must overcome. Now may be the perfect time to try a new customer acquisition strategy that has been proven to delight consumers and grow your restaurant. Schedule a demo with our team today to learn more about the power of Nift.
About the Author
Brian Siemienas is a seasoned marketing professional with over 25 years of experience in the restaurant, hospitality, and entertainment industries. As the Vice President of Restaurant Solutions at Nift, Brian is passionate about driving customer acquisition and enhancing restaurant traffic.
Before Nift, Brian’s tenure as CMO at IMCMV was impactful. Overseeing 28 Margaritaville and Landshark Bar & Grill restaurants across the United States, he orchestrated a symphony of brand strategy, communications, partnerships, advertising, creative development, public relations, loyalty programs, and digital/social media. Brian’s fingerprints are all over the success of these iconic establishments.
When Brian isn’t shaping marketing landscapes, he calls Orlando, FL, home. An avid theme park enthusiast, he explores local attractions, travels, and passionately follows college and NFL football. Brian holds a Bachelor’s Degree in Telecommunications and a Master’s in Mass Communications from the University of Florida.
Connect with Brian on LinkedIn
