how to measure restaurant marketing roi?
May 19 , 2025

How to Measure Restaurant Marketing ROI?

“The most successful restaurants in your city can’t survive one single day without marketing.” 

  • Mark Khoder

This great quote showcases the relevance of restaurant marketing, but it must be taken with a pinch of salt. It’s because measuring your restaurant’s marketing ROI is equally important while carrying out strategic restaurant marketing campaigns. 

In this insightful blog post, you’ll learn about how you can measure your restaurant marketing’s ROI. So, let’s begin!

Calculating the ROI of your Restaurant Marketing Strategy

 

calculating the roi of your restaurant marketing strategy

 

Knowing about the return on investment (ROI) of your restaurant’s marketing strategy is quite important. It’s because learning about the effectiveness of your marketing efforts will help you make better decisions regarding your future campaigns. 

It will help you determine whether the amount you’ll spend on your marketing is providing you with enough returns in terms of better revenue and profitability. 

Here’s how you can calculate the ROI, along with all of the factors that you need to consider:-

ROI formula

The simplest ROI formula that you can utilize to calculate ROI is:-

ROI=(Net Profit/Marketing Investment) x 100%

  • Net profit: It is the total revenue generated with the help of your marketing campaign. However, the cost of goods sold, along with the total marketing expenses, must be deducted from it. 
  • Marketing investment: It includes the different types of costs that are associated with the marketing campaign. Some of such investments are advertising spend, promotional discounts, staff time, and other types of expenses as well.

Also Read: How to Create a Restaurant Marketing Budget?

Finding out the net profit

The biggest challenge that you’re going to face is to attribute the revenue in the most accurate manner to distinct marketing activities. 

For example, let’s say you run a social media campaign for a new delicacy. How do you know which of the new or existing customers came to your restaurant because of that campaign?

You also need to track the sales generated because of some specific campaigns. For this purpose, you can address some of the following trackable metrics:-

  • Provide unique codes within your promotions to know how many customers have used them.
  • Create dedicated landing pages on your website for each one of your campaigns. 
  • You can ask your customers how they got to know about your restaurant.
  • Tracking the reservations that have a particular promotion.
  • Incorporate all of the direct costs and indirect costs for your restaurant’s marketing. 

Calculating your marketing investment

You can calculate your marketing investment by knowing about your direct and indirect costs:-

  • Direct costs: These costs are easiest to track and include advertising spend, promotional materials, discounts, and coupons offered, along with the fees paid to the agencies. 
  • Indirect costs: These costs are often overlooked and include staff time spent planning the campaign, softwares used, and overhead costs. 

Knowing the ROI

A net positive ROI is a clear indication that your marketing efforts are bringing in a lot more revenue than the costs. On the other hand, a negative ROI means that the campaign is in the red. 

The higher the ROI percentage, the more effective the marketing campaign. A good ROI depends on the type of industry you work in, along with the type of marketing campaign. 

In the restaurant industry, a great ROI is in the 20-50% range. 

Key Metrics to Track for Restaurant Marketing ROI

 

key metrics to track for restaurant marketing roi

 

Tracking the most useful metrics is crucial to know about the effectiveness of your restaurant’s marketing efforts. 

Some of the important metrics that you need to monitor are as follows:-

  • Website Traffic

Your website’s traffic shows how many individuals visit your restaurant’s website. For this purpose, you can utilize Google Analytics to track page views, unique visitors, bounce rate, and all of the traffic sources. 

  • Social Media Engagement

With these metrics, you will be able to know how many people are interacting with your restaurant on different types of social media platforms. Some of these metrics are follower growth, reach, engagement rate, and click-through rate(CTR). 

  • Email Marketing Performance

You can track email marketing performance based on metrics such as open rate, CTR, conversion rate, and unsubscribe rate. 

  • Customer Acquisition Cost (CAC)

This metric will help you measure how much it costs to get a new customer. You can calculate it by dividing your marketing expenses by the number of new customers you’ve acquired within a given time. 

  • Customer Lifetime Value (CLTV)

This metric will estimate the total revenue that you can expect to earn from a single customer over their relationship with your restaurant. 

  • Average Money Spent

It is basically the average amount of money each of your customers spends per visit. 

  • Table Turnover Rate

This metric measures how quickly tables are occupied and available for new customers. 

  • Online Ordering Metrics

In case your restaurant provides online ordering, track metrics such as online order volume, online order value, and conversion rate. 

  • Cost of Goods Sold

It is one of the most important metrics that you need to know to determine the profitability of your marketing campaigns. 

Tips to Improve Your Marketing ROI for Restaurants

Some of the tips that you can follow to better your restaurant’s marketing ROI are as follows:-

  • Before you launch any marketing campaign, you need to set clear goals. It will help you track the progress and even determine whether your efforts are bearing any fruit or not. 
  • You should identify your ideal customer and customize your marketing messages and channels according to your target audience. For this purpose, you can utilize demographic data, customer surveys, and website analytics to know about your prospective customers. 
  • Ensuring that your website is mobile-friendly, easy to navigate, and search engine optimized will go a long way for your restaurant’s marketing. A website that’s designed wonderfully can improve your online visibility, get you a lot more visitors, and even improve the conversion rates. 
  • You can use social media platforms to have a lot better engagement with your customers, build brand awareness, and even get a great amount of foot traffic. To achieve these outcomes, you need to post high-quality content on a regular basis, run targeted ads, and even interact with your followers.
  • Leveraging email marketing can go a long way in promoting special offers, events, and new delicacies for your restaurant. Personalize your emails and even segment your email list to better your engagement and conversion rates. 

Conclusion

Measuring your restaurant marketing’s ROI can ensure that you are able to sustain your marketing for a long time. In fact, it will help you make every dollar work for your restaurant. So, find out how much ROI you’re getting with your restaurant marketing and optimize it as per your restaurant’s needs to get great returns. 

Want to get the best ROI for your restaurant marketing? If yes, SrveUP will prove to be your best bet! Get in touch with us now to get top-notch restaurant marketing, bringing in plenty of foot traffic and online orders. Contact us right away to book our restaurant marketing services. 

FAQs

Q1. What is the ideal ROI for a restaurant?

There’s no ideal ROI for a restaurant, but you can aim for a 15% ROI as a starting point. However, the ideal range of a restaurant’s ROI is between 15-25%.

Q2. What is the average ROI for the restaurant industry?

The average ROI for full service restaurants and quick service restaurants is around 10%.

Q3. Which marketing channels give the best ROI for restaurants?

Some of the channels that give a great ROI for restaurants are as follows:-

Q4. What tools can help me track restaurant marketing ROI?

Here are the tools that you can use to track your restaurant marketing’s ROI:-

  • Point of Sale (POS) Systems
  • Google Analytics
  • Social Media Analytics
  • Email Marketing Platform
  • Dedicated Phone Numbers
  • Surveys & Feedback Forms
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