Can you get a return on a $200 a month Local Store Marketing budget?

I recently exhibited at the IFA (International Franchise Association) convention in Orlando. As the CEO of a neighborhood marketing company, I posed a question to every franchisor and franchisee that walked into my booth. Does your local store marketing budget evaportate with little or no measurable return on investment? 100% answered yes. Nobody is happy with their 1-1.5% of sales that are often focused on local marketing efforts. Yet we know that the biggest opportunity to increase top line sales is in your backyard. That is where more than 90% of yourcustomers come from (a 5-10 minute drive from your front door).

Over the past several years, we have helped thousands of locations nationwide tap into that market for less than $200 a month. The focus? Building new trial and concentrating on specifc life events that increase the propensity of the consumer to respond. Specifically, we focus on a 4 pronged neighborhood marketing approach. First, new neighbors. This lucrative group (when comnigled with a free offer) can consistantly produce double digit redemption rates and are hungry to try a new place. Next ,we already have birthday data on every market in the USA (no need to collect names and addresses of those that are already a customer). We send out a birthday card to new prospects right in your local trading area to stimulate new trial once again. Then comes Business to Business. We send out a monthly campaign to a select group of neighboring businesses with a BOGO offer to induce new trial and increase party size. It all gets rounded up with a quarterly or semi annual saturation mailer to round out the mix. The bottom line? Double digit top line sales increases, double digit redemption rates and a marketing budget that fits nearly every location in the USA.

Would love to hear your thoughts on small budgets for local store marketing efforts. If you are interested in learning more, I would love to discuss this topic in more detail for those that have questions.

Views: 0

Reply to This

Replies to This Discussion

Hey Brad,

We do have a Local Store Marketing Group here on FohBoh with about 50 members. It would be great if you would consider joining the group and contributing your knowledge and expertise.

Also, the answer is unequivocally YES. I helped build sales in Ryan's of Akron form 40,000/week to 60,000/week over a 6 month period through our local store marketing efforts. It got me promoted to GM and then I did the same thing in Columbus....raising sales from 19,000/week to 29,000/week over 6 weeks. It's really not that hard, it just takes organization and footwork....

I'll be posting those effective synergistic strategies in the not to distant future on the LSM group here on FohBoh.

It sounds great, but how do you make it happen for $200 a month? I am very aggressive in local store marketing and have raised sales but it costs my company more than $200 a month. (Please share your secrets.)

With all due respect, we disagree on this. New neighbors and birthday cards can be effective- but why waste that money before exhausting all the FREE creative marketing locally.

Here's a short list that any and all restaurant owners can and should pursue first-

Fundraising with high schools (Huge upside, when you get in)


Local Business partnerships and cross promotions

Creative strategies to build lunch time business (UPS drivers, policemen, firemen, cable tv drivers, etc.)

and the list of networking opportunities goes on.

Most of the restaurant owners I work with throughout the country spend very little cash to accomplish these objectives.

Just my spin on it.





Social Wine Club for Craft Wineries


QSRs squeeze into unconventional locations

Nontraditonal quickservice units are popping up wherever people are, moving beyond street-side and mall locations to military -More

Optimize efficiency with an applicant tracking system

Businesses increasingly are turning to software programs that make applicant tracking more efficient.  -More

Read the NRA statement on NLRB's joint employer decision


All-new pasta dish features Grand Cru® Alpine-style cheese
Roth® Grand Cru® cheeses have a complex and full-bodied flavor that's crafted to achieve excellence in your menu applications. Try it in Manicotti en Croute with Brandied Fig Dipping Sauce. This elegant and inventive dish recently won our recipe contest for postsecondary culinary students, and is perfect as a sophisticated appetizer, passed hors d'oeuvre or savory dessert.


Posting a job or finding a job starts here at FohBoh. Call us about special $50 posting packages to syndicate across all major jobs boards.

National News

Darden Announces Leadership Succession Plan

Darden Restaurants, Inc. (NYSE: DRI) announced that Clarence Otis is stepping down as Chairman and Chief Executive Officer of the Company. Darden's Board of Directors has appointed the Company's current Independent Lead Director, Charles A. Ledsinger, Jr., as Independent Non-Executive Chairman of the Board, effective immediately. The Company also announced that it has amended its corporate governance policies to provide for the separation of the Chairman and Chief Executive Officer roles.

National Restaurant Association Statement on NLRB Joint Employer Decision

Today the National Restaurant Association issued the following statement regarding the National Labor Relations Board’s (NLRB) decision asserting McDonald’s Corporation is a joint employer of its franchisees:

National Restaurant Association Issues Support for Clearer ACA Definition of Seasonal Employment

The bipartisan legislation will align the definitions of seasonal employment in the Affordable Care Act and streamline the applicable large employer determination process.

Rising India, Inc. Announces Acquisition Strategy Toward a Sizable Slice of the QSR Pizza Pie

Rising India, Inc. (OTC: RSII), announces today it will immediately begin work toward the acquisition of up to 5 profitable stores in the popular Quick Serve Pizza Restaurant segment. Current targets are currently earning about $450,000 in revenues per year, per store. Acquisition of targets would provide immediate cash flow identified from profitable longstanding, absentee owner operations with proven model success.

Panera Bread Company Reports Q2 2014 Diluted EPS of $1.82

Q2 2014 Revenue increased 7% to $631 million - Q2 2014 Company-owned comparable net bakery-cafe transactions up 0.4%


If you are looking for capital to start or grow your restaurant, create the next 501c3, develop and launch the next app for the restaurant industry,or want to help your peers in some meaningful way, we want to know about it.


TED: Ze Frank: Are you human? - Ze Frank (2014)

Have you ever wondered: Am I a human being? Ze Frank suggests a series of simple questions that will determine this. Please relax and follow the prompts. Let's begin …

TED: Heather Barnett: What humans can learn from semi-intelligent slime - Heather Barnett (2014)

Inspired by biological design and self-organizing systems, artist Heather Barnett co-creates with physarum polycephalum, a eukaryotic microorganism that lives in cool, moist areas. What can people learn from the semi-intelligent slime mold? Watch this talk to find out.

TED: Shih Chieh Huang: Sculptures that’d be at home in the deep sea - Shih Chieh Huang (2014)

When he was young, artist Shih Chieh Huang loved taking toys apart and perusing the aisles of night markets in Taiwan for unexpected objects. Today, this TED Fellow creates madcap sculptures that seem to have a life of their own—with eyes that blink, tentacles that unfurl and parts that light up like bioluminescent sea creatures.

TED: Nikolai Begg: A tool to fix one of the most dangerous moments in surgery - Nikolai Begg (2013)

Surgeons are required every day to puncture human skin before procedures — with the risk of damaging what's on the other side. In a fascinating talk, find out how mechanical engineer Nikolai Begg is using physics to update an important medical device, called the trocar, and improve one of the most dangerous moments in many common surgeries.

© 2014   Created by FohBoh.

Badges  |  Report an Issue  |  Terms of Service