How to use zero restaurant marketing budget to promote your outlet

Most restauranteurs will agree is that most of you have almost zero or very little restaurant marketing budget (other than the bigger food and beverage chains). And using data from SingStats (Singapore Statics Department), we can show you the reason.

The two images below showcase the allocation of budget for service-based businesses in Singapore. 

  • Administrative & Management fees: 5.8%
  • Freight & transport charges: 17.1%
  • Purchase of goods and materials: 6.1% 
  • Remuneration: 21.9%
  • Subcontract charges/work give out: 7%
  • Others: 42.2%

For most service-based businesses, after deducting their main expenses, they are left with 42%, some of which, would, of course, be used for marketing and advertising. 

But, when it comes to food services (it includes, restaurants, cafes and all food and beverage outlets), 

  • Renting of Offices and premises: 16.4%
  • Purchase of goods and materials: 25.5% 
  • Remuneration: 30.3%

The above three expenses took up 72.2% of the average restaurant budget. They are only left with 27.8% for all their other expenses, and this means there is a likelihood of having very little or nothing left to do any marketing or advertising for their food and beverage outlet. 

We placed InfoComm and Business services as a comparison and their top three expenses took up around 50% of their entire budget.

From this comparison, InfoComm and Business services has around 50% to be used for other expenses compared to food services (it includes, restaurants, cafes and all food and beverage outlets) that has only 27.8%. 

With only 27.8% to be shared amongst all other expenses, it is easy to see why most restaurants have little or no restaurant marketing budget.

So, what can you do to reduce your restaurant marketing expenses? 

Working in a team, collaborating with other partners is the best way to market your restaurant using a minimal marketing budget. 

Below is a case study of a local restaurant chain that is using augmented reality to market their outlet. By collaborating with ePrism, an augmented reality company in Singapore, they are able to execute an AR game for their restaurants at zero cost. 

In another example, a coffee chain team up with a local art studio to offer free coffee art painting classes to kids of parents that patronise their coffee shop. 

The coffee chain manages to increase its sales and the art studio better their exposure, a win-win situation for both companies. 

For more information on how to enjoy free marketing and sponsorship, do read: 

3 free restaurant marketing solutions 

F&B marketing: 5 Steps to getting sponsorship 

Or, if you like to have some help (complimentary) in your restaurant marketing, drop us a line below. 

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About US | OCM Profile

OCM was started in 2007, focusing first on coffee machines, then marketing for F&B outlets, subsequently training and consultation. OCM’s Chatbot for the F&B industry is used in the Singapore Skillsfuture Classes in Temasek Polytechnic Skillsfuture Academy and also ITE College East COC classes. 

OCM’s Augmented Reality Apps - ePrism is also the only AR apps used in the SkillsFuture framework in both Temasek Polytechnic and ITE College East. Learn More about OCM

Contact us to enjoy any of these free restaurant Marketing solutions today! 

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