Breaking into the foodservice industry requires careful planning and a viable marketing plan. Remember, you’re in a race with other businesses in the same niche to gain a competitive advantage. The ultimate goal of a marketing budget is to determine how much it will cost to achieve an organization’s marketing objectives.
Marketing budgets are vital for forecasting the necessary expenditures associated with promoting a company’s product or service and growing the brand. Are you looking to create a marketing budget for a restaurant but don’t know where to start? Not to worry, this article has got you covered.
Conduct extensive market research.
Before setting aside a specified amount of money for marketing, you need to determine the viability of the restaurant’s products or services. That’s where market research comes in. Research gives a business insight into its target market’s perception of a product or service. It’s standard practice for businesses to set their marketing budgets based on revenues.
Market research is integral for forecasting revenue and growth and research suggests that small business owners earmark 1 percent of their annual income on marketing. Do what works best for your business and remember, you’ll still have to budget for capital expenditures.
Capital expenditures are essential expenses you’ll need to start operations and continue to generate a positive cash flow over an extended period. Specifically, a capital expense is a cost of buying an asset that can help create revenues over a long period.
For example, the cost of purchasing restaurant equipment is a capital expense, given that it can show a return on investment for a period longer than the year it was bought. Most restaurant owners can’t afford the full purchase price of new equipment, considering all costs, including installation costs.
Thankfully, there’s the option of restaurant equipment leasing that allows a restaurateur to lease restaurant equipment instead of outrightly buying new restaurant equipment. Find a restaurant equipment leasing company that offers restaurant equipment financing options. As a rule, lease payments shouldn’t exceed the profits gotten from optimizing equipment purchases.
Today, QuickSpark—an acclaimed company that offers equipment leasing services—has a significant comparative advantage in the restaurant industry. The company has wholly revolutionized commercial restaurant equipment leasing. With QuickSpark, restaurateurs can lease commercial kitchen equipment without providing a down payment or collateral. They offer friendly payment terms spread across affordable monthly payments. The best part is that QuickSpark offers flexible financial options no matter your credit rating. More importantly, endeavor to read the fine print of the lease agreement before you sign.
Try to define fixed investments.
Before creating a marketing budget, try to define necessary expenditures that are vital for the smooth running of the restaurant. For example, you need to factor in the cost of printing menus, receipts, signs, memorabilia, and other essential items.
Many successful companies outsource their printing services to printing companies. If you own a restaurant in Dallas, consider Southwestern Blueprint (SWBP) for your printing needs. You may decide to use SWBP for your construction signage, construction plan printing, archiving document scanning, and marketing material printing. Besides printing in large format, SWBP also does smaller color documents such as flyers, books, and brochures. Interestingly, SWBP is a full-service sign company. All you have to do is send your draft document to them, and they take care of the rest.
Highlight the value proposition of the restaurant.
A value proposition is a critical component of a marketing plan. The value proposition outlines the value that the restaurant offers its customers that they can’t get elsewhere. A unique value proposition can give your foodservice business a competitive advantage over other restaurants in the same area.
Take the initiative and tailor your marketing plan to cover the cost of optimizing your unique value propositions. For example, if you intend to offer different ethnic cuisines, your restaurant’s value proposition can focus on menu choices. Keep in mind that a restaurant’s menu can bring in more customers.