How Much Should a Restaurant Spend on Marketing? A Practical Way to Decide
Why doesn't a fixed percentage work?
Two restaurants with the same revenue can need very different budgets. One has a high average ticket and loyal regulars; the other sells low-ticket items to mostly one-time customers. A rule of thumb ignores the only thing that matters: whether the orders you buy are profitable once they arrive.
How do you calculate what you can spend?
- Margin per order: average ticket minus food, packaging, labor share and any commission.
- Orders per customer: how many times a new customer orders in their first few months, on average.
- Value of a customer: margin per order multiplied by orders per customer.
- Maximum cost per new customer: a share of that value you are comfortable investing.
| Item | Example |
|---|---|
| Average ticket | $40 |
| Margin per order after costs | $12 |
| Orders per new customer in 3 months | 3 |
| Value of a new customer | $36 |
| Target cost per new customer | Up to $18 (half the value) |
Where should the budget go first?
Usually to the channels closest to an order: Google search ads for people already looking, and Meta ads in your delivery area, both pointing to your own ordering page. Before spending more on traffic, make sure the ordering page converts and that there is a follow-up flow for repeat orders.
When should you increase the budget?
When cost per new customer stays below your target for several weeks and the kitchen can handle more volume. Scale in steps, watch whether the cost holds, and stop scaling if it rises above what a customer is worth.
The bottom line
Your budget is the answer to one question: how much can you pay for a customer and still make money? Know that number and the rest is testing.
Frequently asked questions
How much should a small restaurant spend on marketing?
Start from your numbers: margin per order and how often a new customer orders again. That tells you the most you can pay to win a customer. Then test paid ads with an amount you can sustain for several weeks, measure cost per new customer and order, and increase spending only when that cost stays below what a customer is worth.
What should a restaurant spend its marketing budget on first?
On the channels closest to an order and on the path to checkout. That usually means Google search ads for people already searching, Meta ads in your delivery area and a fast direct ordering page. Add a simple follow-up flow for repeat orders before scaling traffic, so you don't keep paying to win the same customers.
How do I know if my restaurant marketing is working?
Track orders, new customers, cost per order, average ticket and repeat rate every week, by channel. If cost per new customer stays below what a customer is worth to you and repeat orders grow, it is working. If you only see reach, likes and clicks without orders, the setup needs to change.
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