We did a quick restaurant case study on one of our clients in January 2016 which traditionally is the slowest month in the restaurant industry in the Midwest region. It’s right after Christmas, the weather is at its coldest, and families don’t go out as much. This is a case study on a Fine Dine restaurant in the region.
In a conversation with the owner, we agreed that 90% of the phone calls made to the restaurant are reservations and the average dining party is 3.2 people. The average diner is valued at just over $28.oo each so each reservation is worth a gross $89.60.
Food Costs are 27%.
We’ll assume for this example that 75% of the calls resulted in a reservation.
$89.60 X 73% = $65.40 per reservation after food costs.
143 X 75% = 107 calls
107 calls X $65.40 = $6997.80
1250 unique visitors to this app, with a great number of them returning multiple times during the month. We are currently using a blend of SMS text marketing (1200 people in that permission based database), along with our 100% trackable loyalty incentives in an effort to move the conversion rate total closer to the 10% mark. Every 1% is worth $1450 to the business owner. The marketing starts in-house with diligent front of house staff under the attentive eye of the owner and great management.
This was done with a $1200 App. The app has a monthly hosting and update plan of $30/month.
Interested in a similar case study for your business?