The 5 Marketing Metrics Every Restaurant Should Check

The success of every restaurant hugely depends on knowing and communicating with the customers. A good marketing strategy helps you reach the right customers through the right channels but how do you measure its effectiveness? In this article, we will be sharing 5 marketing metrics that every restaurant owner should track to set their strategies for a win.


Your marketing budget should be based on your sales and expansion plans. The most commonly used figure out there is between 3% to 6% of your sales. Although these figures are general guidelines, it is important to understand that there is no one-size-fits-all percentage.

Brand-new restaurants need to do more marketing to get their business known and for them, the ideal percentage would be between 25% to 35%. Read more about promoting a new restaurant here.

If your restaurant is well established and is looking to expand, keeping in mind your profit-margins and competition in the market, the percentage is between 12% to 18% For restaurants with declining or stagnant sales, you can increase your revenue by spending more on marketing at a suitable percentage between 3% to 10%.
Once the budget has been finalised, you can decide what percentage of the budget should be spent on branding, customer acquisition, and engagement.

Brand Engagement

Website and App

These are the 2 pillars of your own online food ordering system. The orders that come in through this platform give you higher margins and helps solidify your brand in your customer’s mind. Creating an online food ordering system that stands out is essential to succeed here. Let’s get to the 2 individually now.

Research indicates that almost 89% of internet users research restaurants online while 62% of diners research online before eating out. As a restaurant owner, you need a clean and informative website which increases your visibility to potential customers. Your restaurant website is also a great way of engaging customers and keeping followers informed about events, food festivals and specials.

Kebab Xpress Website

You must also keep a close watch on your restaurant’s website metrics such as conversion rate (visitors converting into customers), bounce rate (visitors leaving the site without exploring your site) and visitors coming through a marketing campaign. A high bounce rate indicates that your landing page is unable to capture the visitors’ attention or might be due to irrelevant information. It is therefore recommended that you carefully analyse each page on your site and avoid poor UI/UX, attacking ads/pop-ups and outdated information.

Just like your website, your online food ordering app must also be tracked for key metrics such as – app downloads, number of orders, time spent, daily activity users. There has been a surge of app usage gauged through the metrics mentioned and this needs to be a part of your online ordering strategy (if it isn’t already).

Here is a quick resource on how you can increase orders through your own online ordering system.

Social Media

Forming an emotional and rational attachment to your customers is the base for the success of your restaurant as a brand. The most effective way of brand engagement is by keeping a strong social media presence for your restaurant. Social media keeps you fresh and accessible to your customers who spend a considerable amount of time reading content posted by businesses they follow.

There are over 200 million posts tagged with #food on Instagram which makes it one the most popular types of content on social media. You can combine metrics such as unique views, completion rate, and direct messages, to get a decent idea of how your Instagram posts & stories are performing. Facebook offers several metrics for you to use like engagement, reach, impressions, referral traffic, like/follows, click-through-rate, cost per click and cost per action. For platforms like Zomato, and TripAdvisor, focus your marketing efforts on monitoring what people are saying about your restaurant.

Customer Acquisition

The first step in customer acquisition is understanding what part of your business is coming from new customers. After analysing your target customers, you will be able to decide which marketing channel would be best for initiating a relationship.

It is crucial to determine the Customer Acquisition Cost (CAC). This is a key metric for you to keep track of. It can be calculated by dividing all the costs spent on acquiring new customers (including discounts given) by the number of new customers acquired (conversions) in that timeframe.
For example, if your restaurant spent Rs.1000 on marketing in one year and acquired 1000 customers that year, your CAC is Rs.1.

Customer Retention

It is more expensive to sell to a new customer than it is to sell to an existing one. If you are looking for a reliable and easy source of revenue, it will come from customers who already know your restaurant. It is therefore important to estimate the restaurant customer lifetime value (LTV).

LTV is the expected revenue that a customer will generate during their lifetime. When calculating LTV, you would measure the gross margin you expect to make from a customer over the lifetime of your relationship keeping in mind all costs. A great business model is one where CAC is significantly less than LTV, and a terrible one is where CAC exceeds LTV.

An essential tool to manage your existing customers is a Customer Relationship Management (CRM) system. These systems help in engaging your customers and improving relationships using email & SMS campaigns.

By segregating your existing restaurant customers into different groups based on demographics, geographics, psychographics and behavioral data, you will be able to send more focused and fine-tuned content to your customers. This content will help you in increasing your customer’s loyalty towards your brand and stay connected with them even after you’ve made a sale.

According to a study conducted by Bain & Company, 60-80% of customers who rate their experience as ‘satisfied’, end up never going back to the same business. This can happen because of a lack of connection with the restaurant. When you connect with your customers on an emotional level, they never go anywhere else.

Campaign Effectiveness

Marketing campaigns are critical to the continued success of every restaurant, and therefore you must measure if your efforts have paid off or not. You can measure your return on investment (ROI) that you are getting from your marketing campaigns using different marketing metrics such as online & offline conversions, click through rate, bounce rate, page views, search engine referrals, and engagement on all campaigns.

Once the initial marketing strategy has been created, the actual campaign tracking would be done by measuring your restaurant’s search performance, increase in organic traffic and orders/restaurant visits. On Facebook, you can measure the effectiveness of a campaign by regularly uploading customer data. This would let you know whether your customers have seen your Facebook advertisements or not.

A systematic Restaurant Analytics Platform helps you keep track of all your goals and performance against each. It ensures that all the data and insights get stored in one single dashboard and provides a single view of your restaurant performance across outlets.

Wish to set up a restaurant analytics platform which is integrated with your overall restaurant management system? Get started here


It becomes easy to measure the outcome of your efforts when you have defined your restaurant’s goals. Outlining the objectives for your online marketing strategy will help you measure its success. By knowing your numbers, you will know where to reinvest your profits, instead of just guessing what works for your customers and what doesn’t.



Shreya is an explorer who loves to dive deep into the sea of innovations and products. She considers herself 'forever student', eager to learn and discover all that she can about food, cultures, and technology.