We try to stay data informed over here. If there are any reports, analytics, or insights we can get our hands on . . . we will. One source we use a lot is the Toast Restaurant Management Blog. The Toast team is very thorough, and their reports are always very accurate and up-to-date. They recently released a comprehensive "Restaurant Success in 2017 Industry Report". Here are the relevant facts for WutzGood:
Revenue: The restaurant industry's total annual revenue is $800 billion.
Social Media Use: 97% of restaurants use social media. Currently, the most used social network by restaurants is Facebook with 74%. A distant second is Instagram with 18%.
Social Media Advertising: Restaurant social media advertising is set to increase by 20%.
YouTube's Potential: YouTube will be adopted by more restaurants than any other social network in 2017, with 28% of restaurants reported their intention to start using the platform. (They don't know about WutzGood yet.)
Snapchat's Unpopularity: 0% of restaurants chose Snapchat as their preferred social media choice . . . zero percent.
Bar Social Media Use: Bars use social media more than any other restaurant category.
Restaurant Advertising: The three most popular methods of restaurant advertising are: Community/Event/Charity Sponsorship (66%); Social Media Ads (63%); and Newspaper/Magazine Ads (60%).
Digital Adversting: 2017 will be the year of digital marketing for restaurants. Social media ads will see an increase of 20%, while search engine ads will see a 36% increase compared to historical ad spend. Areas of decreased spend will be direct mail (6% decrease) and TV ads (34% decrease).
Marketing Spending: Over 40% of restaurants will increase their marketing spending in 2017, while less than 10% plan to decrease their budget.
Not all restaurants spend money on advertising. 8% of restaurants have reportedly never invested money in marketing at all. However, this number decreased to 6% when asked about their intention to pay for advertising in 2017, implying that the need for paid ads is increasing in 2017.
Bars - which are the most likely to use social media - are also the concept most likely to pay for advertising or marketing, with only 3% saying they do not spend money on marketing.
Attracting and Retaining Customers: 19.6% of restaurants say that attracting and retaining customers” is their biggest challenge. Second only to staff issues.
Technology Adoption: The majority of both restaurant owners and restaurant-goers agree that technology is beneficial to the restaurant industry and business operations. Features like text message marketing and restaurant smartphone apps will each be adopted by more than one-fifth of restaurants in 2017 - changing the game for how restaurants interact with their guests moving forward.
More Information: If you would like to read the full report, just email us (Airion@wutzgoodapp.com) and we'll send it your way!