How to get more clients for your restaurant | Tablein blog

5 Benefits of SMS Marketing for Restaurants

Written by Tablein Team | Oct 2, 2024 12:28:29 PM

If you've stumbled upon this article, take it as your sign to start using SMS marketing for your restaurant as soon as possible. 

Not convinced it’s worth your time? 

Then keep reading. 

You’re about to discover five incredible—and perhaps unexpected—benefits of using SMS marketing that will not only bring more customers through your doors but also boost your restaurant’s overall efficiency.

In fact, by the end, you just might start wondering why you didn’t start sooner!

Enables Instant Communication

Text messages are one of the world's favorite means of communication.

So, it’s no surprise they often get read almost immediately after being sent. 

In fact, a study by Podium indicates that the vast majority of messages are opened within three minutes of being received.

Illustration: Tablein / Data: Podium 

Other marketing channels just can't compete with that. 

For example, research by GetResponse suggests that most emails are read within the first 26 hours, with some sitting in inboxes for days before their recipients even look at them.

This lightning-fast communication enabled by SMS represents a golden opportunity for restaurants to deliver messages that demand quick action, such as flash sales, daily specials, or event promotions. 

Jennifer Partin explains that’s exactly how they use SMS at Hickory Farms, where she works as a Director of Retention Marketing.

Illustration: Tablein / Quote: Validity

Now, although Hickory Farms is a food gift retailer, similar tactics can be employed by restaurants as well. 

For instance, a simple text like this can be extremely effective in creating buzz and driving more foot traffic to your restaurant:

“🎉 Flash Sale Alert! Enjoy 50% off all appetizers from 3 PM to 5 PM today! Show this text when you order. 🍽️” 

This is because such messages create a sense of urgency, and if the deal is attractive enough, it will make people more likely to respond impulsively. 

The immediacy of SMS and FOMO (fear of missing out) marketing is indeed a match made in heaven.

However, be careful not to overwhelm your customers with too many messages. 

This could have the opposite of the desired effect and potentially annoy them, regardless of how appealing your offers may be. 

Research shows that most people prefer receiving one promotional text message every other week.

Illustration: Tablein / Data: MarketingProfs

So, while the ability to reach customers in real-time may be enticing to you, remember that they don’t want to be contacted constantly, especially via SMS, as that can feel invasive. 

But, if you use this channel wisely and strategically, it could definitely take your marketing game to a whole new level. 

Is Cost Effective

When you stack it up against other channels, like print or radio, SMS marketing is quite cost-effective.

This makes it ideal for restaurants with tight budgets. 

Now you’re probably wondering: but how much does it actually cost? 

Textline, a web-based application for text messaging, provides an answer to that very question. 

On their website, you can find a breakdown of SMS marketing expenses that takes into consideration all relevant costs, like platform subscriptions, average message costs, and various other fees. 

So, in total, this form of marketing typically costs between $75 and $250 a month, depending on your messaging volume and subscription plan.

Illustration: Tablein / Data: Textline

The good news is that thanks to the pricing flexibility of these SMS platforms, you can easily tailor the plan to your needs and ensure you only pay for the messages you actually intend to send. 

You can also always switch plans if your current one isn’t working for you. 

Still, no matter how you look at it, this is a modest investment, especially when you consider the potential ROI.

As it turns out, text messages rank among the top communication channels, yielding substantial engagement. 

Research from CTIA confirms this, showing that American consumers sent approximately 2 trillion messages in 2021. That’s about 63,600 texts per second! 

Not to mention that the open rate for SMS is very high as well—an impressive 98%.

Illustration: Tablein / Data: CTIA

This means tapping into SMS marketing allows you to connect with an extremely wide and engaged audience, all without breaking the bank. 

It's no surprise that marketers across different industries love this channel so much. 

In fact, did you know that, according to a survey by Attentive, 73% of marketers believe SMS drives incremental revenue for their businesses?

Illustration: Tablein / Data: Attentive

This just goes to show how much actual value this channel can bring to the company.

With its low costs and high returns, it’s a must-have tool for anyone looking to achieve significant results with a relatively small investment.

Reduces No-Shows

One significant perk of SMS marketing that many people overlook is its ability to reduce no-shows

For most restaurants, this is a major game-changer that can significantly boost operational efficiency and profitability. 

Think about it: when customers fail to show up for their reservations, it leaves you with serious scheduling complications and empty tables that could have generated additional revenue. 

As Larry McCabe, the owner of the French restaurant Cafe Bouffon in Stratford, Ontario, explains, the financial losses in those situations can really add up.

Illustration: Tablein / Quote: CBC News

However, with a solid SMS marketing strategy, you can turn the tide and minimize those frustrating no-shows along with the disruptions they cause. 

And if you’re using a table booking system like our Tablein, you’re already a step ahead. 

Tablein can automate various types of SMS messages related to reservations, streamlining the customer booking experience.  

This makes it less likely for customers to miss their reservations without giving you notice. 

For instance, Tablein sends out confirmation SMS messages as soon as a table is booked, ensuring that your diners have all relevant details right at their fingertips. 

Then, the day before their visit, our system ensures they receive a reminder SMS, too. 

Considering that 18% of people don’t show up at restaurants precisely because they forget about their reservation, these types of messages can definitely make a difference.

Illustration: Tablein / Data: Carbon Free Dining

And when everything else fails, Tablein sends a no-show SMS

While this may not change the fact that the customer missed their reservation, it serves as a gentle reminder of the impact their absence makes on the restaurant and its staff. 

Andrew Dean, Director of Client Services at CGA, a company providing consumer intelligence for food and drink brands, brings up an interesting point

Many customers don’t even realize that they cause problems by not showing up.

Illustration: Tablein / Quote: The Drinks Business

But a no-show SMS can help increase their accountability and potentially decrease the chances of this happening again. 

Helps Increase Guest Loyalty

SMS marketing is incredibly versatile.

It enables you to send a wide range of messages, from holiday greetings to personalized offers tailored to your guests' preferences. 

This can help keep your brand top-of-mind while also building a connection with your guests, ultimately boosting their loyalty.

Just take Bubbakoo’s Burritos, a Mexican-fusion fast-casual restaurant, as an example. 

In 2024, they integrated two marketing platforms to grow their SMS subscriber list, gather customer data, and deliver personalized offers via SMS. 

As their Chief Financial Officer, Chris Ives, says, the diners certainly appreciate the effort.

Illustration: Tablein / Quote: FOX 40

And the numbers don’t lie: one of their latest campaigns boasted an impressive 16.7% click-through rate, generating $5.32 in revenue for every message sent. 

Generally speaking, customer loyalty is a vital asset in any type of business, including restaurants. 

And you’ve probably heard that famous statistic from Bain Capital about how it costs five times more to acquire a new customer than to keep an existing one. 

While that piece of information may be a bit older now, it still has value. 

Henry Tabansi, Global Vice President of People and Strategy at a non-profit organization, AIESEC International, elaborates:

“Repeat customers are much-needed support that helps in keeping your business running. Your existing customers have the largest short-term potential to increase your revenue at low sales costs. They also have higher chances of making referrals, spending more money, and forging meaningful long-term relationships with your brand.”

Of course, SMS marketing can support both customer retention and acquisition.

However, due to its inherent versatility and personalization capabilities, it’s particularly effective for fostering strong bonds and creating loyal fans of your brand. 

This is especially true when you pair customized messaging with enticing offers. 

Customer birthdays are a perfect example. 

Celebrating your diners' birthdays is a great way to demonstrate that you really care while providing an incentive for them to visit your restaurant. 

Shane Murphy, co-founder of restaurant text marketing platform Boostly, agrees.

Illustration: Tablein / Quote: BackOfHouse

No wonder that this tried-and-true technique is a favorite among marketers.

Now, to send real-time birthday promotions, you need to know your customers’ actual birth dates. 

The easiest way to gather this information is by leveraging your existing tech stack, like your online reservation software

So, when someone makes a reservation through the system, you could ask them to share their birth date alongside their contact details. 

Just be sure to communicate the “why” behind your request. 

For instance, you might say: 

“Share your birthday with us, and we’ll send you a special gift when the big day arrives!”

With transparent communication and a bit of personalized SMS marketing, customers are bound to feel more valued. 

As a result, you'll likely see them coming back to your restaurant more often. 

Simplifies Guest Feedback Collection

Considering their high open rates and unmatched convenience, SMS messages are an excellent way to collect feedback from your customers. 

Zack Oates, CEO and Founder of Ovation, a reputation management platform for restaurants, explains why gathering feedback is so important in the first place.

Illustration: Tablein / Quote: QSR Web

He also goes on to say that simplicity is key when it comes to successfully compiling this kind of data:

"The key is making it frictionless for the guest to share feedback and easy to take action on that feedback for both the individual guest and the root issue.”

SMS surveys provide just that: they are quick, easy, and take just a few seconds to complete—no hassle at all. 

And the best part? 

Guests can respond from anywhere, whether they're relaxing on the couch or out and about. 

But it’s not just your patrons that benefit from SMS feedback collection—these messages can simplify the process for you, too.

If you use table reservation software, you probably already know they can send feedback requests automatically, usually the day after a reservation. 

And you’re likely aware of how much time that can save, too.

After all, unlike the manual method, the software is quick, doesn’t make mistakes, and can reach many people at once.

Marsha Middleton, Director of Public Relations at Four Seasons Hotel Atlanta, offers another interesting insight:

Illustration: Tablein / Quote: Restaurant Hospitality

This shows that diners are more than willing to share opinions about their dining experience, so it’s vital for you to take advantage of that. 

Instead of waiting for them to write an online review, proactively reach out to them and ask for their feedback directly. 

This is a perfect opportunity to tap into that SMS immediacy we discussed earlier! 

Just remember to keep it as short and user-friendly as possible. 

Since your feedback form will be viewed on a small screen, consider using shorter sentences or even providing a rating system instead of requesting detailed responses.

For longer surveys that require more in-depth answers, you can build your survey on your website and then send customers a link via SMS. 

But, overall, no matter how exactly you choose to design your survey, one thing is certain: SMS messages are guaranteed to bring in more responses than any other marketing channel. 

Conclusion

With its exceptionally high open rates and cost-effectiveness, SMS marketing is a surprisingly powerful tool for any restaurant, regardless of its size or budget. 

If done right, of course. 

To make the most out of this channel, make sure you dedicate enough time to developing a solid SMS marketing strategy. 

Keep in mind your messages should be short, personalized, and well-timed, all while staying compliant with privacy laws and regulations.

Using technology—whether a table booking system, a dedicated SMS marketing platform, or a combination of both—can help. 

These solutions automate the majority of repetitive and time-consuming tasks, while also gathering valuable data on your customers, enabling you to make strategic, informed decisions. 

In any case, with a bit of patience and the right plan, you’re bound to witness the power of SMS marketing firsthand.