Social Media Marketing in the Restaurant Business

by Justin Levy on December 6, 2009

I’m often asked about the story of my little steakhouse, Caminito Argentinean Steakhouse, in Northampton, MA.  It’s not often that I write about our full story.  Well, recently I was asked to contribute a case study to the WOMMA Metrics Guidebook.  I thought it may provide for an interesting read for you and may give you some insights or be helpful to you for application into your industry.  Once you’re done reading, or even before you start reading, make sure you download the WOMMA Metrics Guidebook.

In general, restaurants have a few main ways that they typically market their business: You can run ads in the local grillnewspapers, buy radio spots, have television commercials produced, and grab prime billboard locations.  All of these marketing tools will help gain a restaurant visibility and exposure.  They’re part of most restaurants’ marketing toolboxes.  But, these marketing tools don’t help when an increasing number of eyeballs are turning to Google as their primary source of information.

When my best friend and now-partner, Joseph Gionfriddo, purchased Caminito Argentinean Steakhouse, the extent of the restaurant’s web presence consisted of, essentially, just a copy of the menu.  Joe was spending most of the marketing budget on local newspapers and radio spots.  The restaurant was struggling to survive even though the food that Joe prepared was some of the best I, and everyone else that came through Caminito’s doors, had ever tried.

Recognizing an opportunity to lower our marketing budget and use the web as the primary tool to drive more bodies through the front door, I approached Joe with the offer of a partnership.  My primary responsibility: create the strongest presence, both offline and online, for Caminito, in as short of time as possible.

We immediately sketched out a 12-month strategic marketing plan that included:

  • A complete revamp of the website.
  • Developing an online presence through social networks, a blog, and a video blog.
  • Creating a listening station that allowed us to monitor for conversations across the web about us, our restaurant, our competition and our industry.

Since many of these tactics provide for solid SEO, as part of our goals, it helped us to gain several thousand links in Google and other major search engines.  As our online presence became stronger and we developed a more engaged community, we began to rank for prime keywords that we targeted as being important for our restaurant to drive business through search results.

Our take: if prospective customers ran searches for restaurants in the area while making a decision of where to dine and our restaurant dominated the front page of Google, they would be more likely to visit Caminito.  Though we had made the decision to decrease our traditional marketing spend by approximately 80% we still continued to run local newspaper and some radio spots.  Since not all of our customers use the Internet to do their research, it was important to us to continue to use these avenues to reach our customers.  We also contacted each of the newspapers, other print publications, radio and associations to negotiate for digital advertising options, linkbacks on their websites, logo, bio and/or menu publishing.

The first month of this strategy being in play we saw a sales increase of 20% as compared to the same month the previous year.  Over the past almost two years we have maintained an increase in sales every single month as compared to the same month the previous year.  Additionally, we have finished each year approximately 20-25% up in sales as compared to previous years.

As time has continued, we have tweaked our strategic marketing plan but still maintain the above tactics.  This has helped to continue to create conversations, both online and offline.  To measure the continued increase in online conversations we use a combination of Google Alerts and Twitter Search.  While this does create some duplication, it ensures that we never miss any conversations happening around us, our brand, our competition, or our industry.  We monitor offline conversations through anecdotal interactions we have with our community and inferred through the continued increase in new customers and increased sales.

To further guide decision-making we also measure everything from the number of comments we receive on a blog post, to the number of hits on a video, the total number of subscribers, where those subscribers come from, how and where our blog and video posts are shared, who shares them, the level of engagement we have, the number of conversations that are started and tons more.  The challenge is keeping up with all of this data flowing in and bringing it all together to analyze our overall online impact.

As a result of the measurement systems we have in place the impact of online and offline conversations is clear to us.  Online conversations help to further our online brand, increase conversations, improve search rank for evolving prime keywords, demonstrate and expertise in the food industry, create new opportunities, and increase sales.  The offline conversations translate to word of mouth marketing that helps to drive increase and repeat sales.

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  • I am like the rest. I run a RMDA and would like to hear more about this strategy and listening stations
  • cblack99
    I love Twitter -always learning something new! Had no idea Google Alerts existed and now with a couple of key strokes I can follow all conversations regarding my restaurant. Thank you for sharing your knowledge
  • I hope that you find Google Alerts useful. Also, make sure you set up
    searches in Twitter and pull them into a feed reader via RSS. You can
    also check out SocialMention.com as another free resource. If you want
    to move to a premium and more robust service, Radian6 is awesome!
  • AmberNaslund
    Thanks, Justin. :) And I love that you shared this case study for your readers and the community at large. Great proof that it's not only big biz that can take advantage of opportunities in social.
  • What I love about these tools is that the same exact tools can be used by
    both big and small businesses as well as individuals. Each can benefit in
    the same or different ways and the tools can even be used in either the same
    or different ways. :)
  • cblack99
    Thanks! If you have time - how do I pull the searches into a feed reader via RSS? I will check out SocialMention.com. I coincidently live in Fredericton where Radian6 is located
  • I think restaurants are perfect venues for social media marketing. People really are already talking about you, especially when the food rocks. They want to give you feedback and get recommendations from other patrons. Sharing what's new on the menu and experiences of your staff and chefs is bound to create a ton of interest. It surpises me that more restaurants don't follow your example, but I'm sure they will soon enough. If/when I'm in your neck of the woods I'll be sure to stop in for a great steak.
  • Also, with the foodie revolution that we're in, more people want to connect
    with the chef and learn what takes place in the kitchen. Some of the best
    feedback we get is from the posts where we teach kitchen techniques. We'd
    love to have you over to the restaurant :)
  • Funny, I knew your story but not your connection to Caminito. My experience is similar to many of the comments below: it's an outstanding dining experience. My point is to reinforce the idea that social media, and online media in general can definitely help small business grow, but the most important thing is to have a compelling offer/product/service to begin with.
  • Thank so much Kai! I'm really glad that you've enjoyed your experience! We
    hope to see you back again soon!
  • Funny, I knew your story but not your connection to Caminito. My experience is similar to many of the comments below: it's an outstanding dining experience. My point is to reinforce the idea that social media, and online media in general can definitely help small business grow, but the most important thing is to have a compelling offer/product/service to begin with.
  • Terrific article. Having owned a small chain of restaurants pre - Twitter and Facebook and now a cupcake store, I can really see the difference in how media can be used.

    I am going to share this with my restaurant friends.
  • Awesome! What type of restaurants did you own?
  • Justin - I owned 3 healthy fast food restaurants in Chicago called: Chapman Sisters Calorie Counter - for 10 years and served over a million people. In addition to my consulting company of 20 years I founded a cupcake store in Chicago 3 years ago - I was diagnosed with Celiac or being intolerant to wheat. So my cupcake store has 90% regular cupcakes and the rest gluten-free and vegan. www.swirlzcupcakes.com @swirlzcupcakes - thanks for asking.
  • Nicely Done.
  • Thanks Done! :)
  • Thanks for sharing the story, Justin. I have followed you since I started on Twitter and Facebook. You demonstrate how it can be done and how it will be done in the future. I know that the tools will change in the future, we have gone through such a dynamic change in the past three or so years but I know developers are busy imagining and then creating the next tools. The important thing is what you said "conversations" The consumer no longer wants to be talked "At" but "to" and "with." I wish you continued success and if I ever leave the Midwest, I'll come visit.
  • I'm glad to see that you made that distinction. It's definitely not the
    tools that matter, it's what you do with them. Tools will come and go but
    it's how we can use these tools that are important.
  • melissaleon
    Great strategy Justin! Btw I second what AJ said ... after eating at Caminito its not hard to see why sales have increased steadily. The service and the food were tremendous!

    Justin do you see people talking often about Caminito on twitter?
  • I'm really glad that you and AJ enjoyed when you were there and look
    forward to having you back again soon! We do monitor all online
    conversations including those on Twitter. We're integrating Twitter
    into the new release of our website this week so that will probably
    drive more conversations.
  • You are awesome. period.

    PS For the record, I have eaten at Caminito ... and DAMN!
  • What I do is not awesome. You and Melissa are out there changing the
    world and making a difference in people's lives. Keep up the great
    work that you're doing!
  • iizLiz
    Cool Justin - I HAVE often wondered what your story was. Great example of how innovative use of new media can reap rewards. Well done.

    Would love to know more about your dashbard of listening stations (you mentioned Google Alerts and Twitter search). How regularly do you check, do you just have it feeding via RSS or to email, have you pulled it into some dashboard-type interface, have you considered using paid tools?

    Thanks!
  • Thanks Liz! Now, back to eating the chips & salsa I talked you into
    today :)
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