Karan Shah
Sep 16, 2024

The role of personalised marketing in a changing restaurant landscape

As marketing budgets in the restaurant industry have increased—from roughly around 8% to as much as 20% of overall spending—Emerald Dreams' partner notes that the focus has shifted from creativity alone to relevance.

By using insights from customer data, restaurants can create targeted promotions based on trending topics, seasonal shifts, or local events. Image source: Pixabay
By using insights from customer data, restaurants can create targeted promotions based on trending topics, seasonal shifts, or local events. Image source: Pixabay

In today's competitive restaurant industry, simply offering great food and service is no longer enough to stand out. As consumer preferences evolve, particularly among digital-native generations like Gen Z, the pressure on restaurants to connect meaningfully with their customers has intensified.

Personalised marketing has emerged as a critical tool, enabling restaurants to go beyond the one-size-fits-all approach to create authentic connections that resonate on an individual level.

With traditional marketing methods struggling to capture attention, restaurants are finding that personalised campaigns are no longer just a marketing strategy—they are a necessity. By leveraging customer data and engaging with individuals based on their preferences, restaurants can build loyalty, increase customer engagement, and ultimately drive growth.

In a crowded restaurant landscape where competition is fierce and foot traffic is fluctuating, personalised marketing offers a way to cut through the noise. Rather than delivering generic messages, restaurants are now crafting tailored experiences that speak directly to the tastes and preferences of individual customers. This approach is particularly appealing to Gen Z, who value authenticity and crave customised experiences.

For restaurants, personalised marketing goes beyond being a trend—it’s a way to create genuine connections. In a world where marketing budgets are stretched, investing in personalisation means getting more value out of each interaction, turning casual diners into loyal patrons.

Campaigns in action

As marketing budgets in the restaurant industry have increased—from roughly 4-8% to as much as 20% of overall spending—the focus has shifted from creativity alone to relevance. Restaurants are now investing in strategies that are timely and tuned into customers’ preferences. By honing in on personalisation, restaurants can craft experiences that resonate on a deeper level, ensuring that each marketing pound spent contributes to stronger customer relationships and enhanced loyalty.

A few standout examples from the industry highlight how personalised marketing has evolved. At Mumbai's Next Door, a campaign featuring local influencers successfully showcased the restaurant's multi-level dining experience. By using live videos and stories, these content creators were able to create engaging content that drew more foot traffic and built stronger connections with the audience.

Other restaurants have also embraced the power of tailored campaigns. Motifs such as seasonal menu items or events tied to cultural moments are proving to be successful in attracting diners.

Cases in point are Kitty Su's Drag brunch and Gigi, which invited actor Jim Sarbh to try out its new cocktails and introduced a cocktail book. These targeted campaigns go beyond just offering food—they tap into moments that are timely, relevant, and meaningful for their customers.

Cutting through the clutter

Breaking through the noise in a saturated market is no small feat, but personalised marketing offers restaurants a way to do just that. By incorporating relatable, surprising elements into their campaigns, restaurants can stand out from the crowd. Many have found success in "newsjacking," where they align their messaging with current events or trends, as well as creating themed experiences that resonate with customers' interests.

Collaborations with local artists or hosting events that reflect the passions of their clientele also help restaurants carve out a unique space in the market. The key is to create experiences that are not only memorable but also data-driven and impactful, ultimately driving both engagement and profitability.

The return of the personal touch, powered by technology

In the world of personalised marketing, customer data plays a vital role. By analysing customer preferences, restaurants can develop campaigns that hit the mark. Aligning their offerings with popular culture or tapping into seasonal trends ensures that campaigns are not only engaging but also have the potential to foster long-term loyalty.

For instance, by using insights from customer data, restaurants can create targeted promotions based on trending topics, seasonal shifts, or local events. This data-led approach keeps the brand relevant while also showing customers that their interests are understood and valued. It’s this combination of relevance and responsiveness that helps build stronger connections and create lasting impressions.

Long before the digital age, personal service in restaurants was about remembering a regular customer’s favourite drink or dish. While that personal touch is still crucial, modern technology has taken personalisation to new heights.

Today, restaurants are using artificial intelligence and social listening tools to analyse customer behaviour and preferences. By tracking feedback and social media interactions, they can create tailored offers and services for their patrons.

This blending of personal service with technological insights means that restaurants can offer customers the best of both worlds. Guests feel valued, but the efficiency and accuracy of technology ensure that these personalised experiences can be delivered consistently and at scale.

A thoughtful approach for the future

As the restaurant industry continues to evolve, personalised marketing will likely remain a key strategy for businesses looking to thrive. The ability to connect with customers on an individual level—using data to craft meaningful, relevant experiences—offers a competitive edge that goes beyond simply serving good food.

Restaurants that invest in understanding their customers, leveraging data to offer personalised experiences, and engaging with them on a deeper level will find themselves better equipped to navigate the challenges of the modern market. Personalisation may be a trend today, but it’s one that’s shaping the future of the dining experience. For restaurants, it’s not just about standing out; it’s about creating lasting connections that keep customers coming back.

In an era where competition is fierce and attention is fleeting, personalised marketing provides restaurants with the tools to build genuine connections and foster loyalty. By investing in data-driven strategies and maintaining a personal touch, restaurants can ensure they are well-prepared to meet the demands of an ever-evolving customer base.

-Karan Shah, partner of Emerald Dreams and co-founder of Next Door.

Source:
Campaign India

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