Once you know what a merchant cash advance is, the next question to pop into your head could be, “What can I use a merchant cash advance for?” With so many possibilities, it could seem daunting to make plans to use this cash infusion for your restaurant. This series will help you focus on aspects of your restaurant business that could benefit from a merchant cash advance.
Part 4 of this series focuses on how restaurants can increase sales through event marketing using the cash infusion from a merchant cash advance.
Merchant cash advance could be the solution to finance updates or invest in technology for your restaurant, but it can also finance events, helping you create buzz about your restaurant and drive more customers through your doors.
Live Events
Whether it’s a large “foodie” event like Feast Portland or a local street fest, these events get your concept outside the walls of your restaurant to reach new customers and boost your word of mouth marketing. Because you might need to build a booth and purchase additional equipment, your first live event could be costly, but could be balanced by a high return on investment.
Associated costs include:
- Special event permit application fee — Set by the local or city government, so the price varies by location.
- Booth space — Purchased from the event organizer, this could include basics like standard electric, sign poles, and a counter or table.
- Additional equipment — Items like a canopy, sidewalls, tables, or chairs that could be rented from the event organizers or a separate event production company.
- On-site kitchen equipment — Some items could come from your kitchen, but most likely you’ll need specific equipment for cooking outside your kitchen. Purchasing in bulk can help save on costs and help manage your inventory.
- Additional food — Depending on how much traffic you expect from the event and what you have in your inventory, you may need to factor these costs into your budget.
- Disposable plates and utensils — Limited-service restaurants may already have these in their inventory, so buying in bulk can save on costs. Those with full-service restaurants will need to purchase these items for the event, but can stock up for future use.
- Labor — If it’s a large event and your restaurant is also operating as usual at the time, you may need to hire temporary staff and recruit your employees to work during off hours.
Restaurant Week
Hosted by local restaurant associations, these culinary celebrations drive both new and loyal customers to your restaurant by promoting your prix fixe lunch or dinner specials. You can choose to feature favorites from your menu or create an entirely new menu just for the week.
Associated costs include:
- Participation fees — Set by the hosting organization, these fees may be waived for members of that restaurant association.
- Additional food and beverage — If you’re creating a new menu or increasing inventory on the items featured on your current prix fixe offering.
- Special menus — The prix fixe offering is the reason many of these customers will try your restaurant for the first time, so make a good impression with a high-quality menu.
- Advertising — This can include graphics for print (flyers, table tents, or check presenter inserts), additions to your website, and social media posts.
- Labor — Restaurant Week drives customers to your restaurant during slower days and off hours, especially during lunch, so you will want extra staff on hand.
Tasting Dinner
Like the Feast Portland dinner Rewards Network sponsored at program restaurant Bluehour, this prix fixe meal showcases your food with beverage pairings. The dinners are usually themed to feature a particular winemaker or brewery, but could also focus on seasonal ingredients or local producers.
Associated costs include:
- Food and beverage — These dinners usually serve the same courses and beverage pairings for all attendees, so you may need to increase your inventory of certain items.
- Special menus — Because it’s a one-time dinner, attendees will want to know the courses and pairings up front, making a menu that details the meal to come a perfect handout. Some customers may even save these menus as souvenirs!
- Advertising for print, web, and social media.
- Labor – Judge how many employees you’ll need on hand based on the number of tickets you sell. As “Best New Restaurant” demonstrated, serving a full restaurant each course at the same time is challenging, even with your normal number of staff.
Wine Tasting or Tap Takeover
Promote your bar with this event featuring samples from a particular winemaker, brewery, or distillery. Choose a brand that you know resonates with your customer base, or focus on producers from local companies or a particular region.
Associated costs include:
- Additional beverage — Ask your beverage rep what is available and whether there is a deal for purchasing from a particular producer in bulk.
- Information handouts or flight placemats — Your customers will want to know the details on what they’re drinking, but your bartenders and servers may not have the time to give them this in-depth information.
- Tasting-sized glasses — Unless it’s a wine tasting, serving beverage samples in full-sized glasses can look stingy to a customer. You may want to consider purchasing souvenir tasting glasses to include in cost of event ticket.
- Advertising for print, web, and social media.
- Labor.
Fundraisers
Whether it’s for a local charity campaign at restaurants or your business’s own initiative, these events bring your restaurant closer to your community and increases employee morale. Plus, giving back to those in need boosts your brand in the eyes of your customers.
Associated costs include:
- Proceeds or percentage of revenue for charity donation.
- Advertising for print, web, and social media.
- Additional food, beverage, and labor — Your contribution to some fundraisers could simply be to donate proceeds from a certain menu item, but you may want to consider hosting a dinner or other fundraising event, which would incur these added costs.
Inspired to do more with your event marketing using a cash infusion? We can help you decide which option is right for you and your business.
Remember that you must be at least 21 years old to drink in the USA and to always drink responsibly. This information is intended for informational purposes only, and not to promote the consumption of alcohol.
