How Restaurants Can Lower Their Cost Per Acquisition in Online Marketing
Lowering the Cost per Acquisition in online marketing
For restaurants, every euro spent on marketing needs to bring in real customers. How to know if the marketing is really working? That’s where cost per acquisition (CPA) comes in - it tells you how much you’re paying to turn a click, ad, or promotion into an actual guest. The lower your CPA, the more profitable your marketing.
But here’s the good news: restaurants have plenty of opportunities to reduce CPA without cutting their reach. Let’s break down the most effective strategies.
1. Focus on Local Targeting
Restaurants thrive on nearby traffic. Running ads across a whole city is expensive and wasteful if your customer base is mostly within your neighborhood area. Use geo-targeting in Google Ads, Facebook, or Instagram to narrow your audience within your delivery zone or few kilometers from your restaurant. This reduces irrelevant clicks and improves conversion rates.
2. Optimize Your Ad Creatively
Eye-catching photos of your best dishes outperform generic stock photos. Short videos showing menu highlights, chef specials, or behind-the-scenes moments will grab way more attention than a generic image, enhancing engagement and driving down ad costs. Add a simple button with a clear call-to-action like “Book Now” or “Order Tonight” so people know what to do next.
3. Leverage Retargeting Campaigns
Not everyone who clicks on your site or menu will order right away. Retargeting ads let you remind them later – “Hey, remember that pizza Margherita you were checking?”. These campaigns are usually cheaper and more effective than chasing brand-new customers, lowering your overall CPA.
4. Build and Use First-Party Data
Instead of relying only on paid ads, grow your email, SMS and especially push notification list. Offer a discount for first-time subscribers – a free appetizer or 10% off a first order if people sign up - or encourage loyalty program sign-ups. Once you have this data, you can market directly to your audience for almost no extra cost - slashing acquisition expenses over time.
5. Improve Your Landing Pages
If your website is slow or hard to use on a phone, you’re losing customers (and wasting ad money). Make sure your landing page (whether it’s your online ordering system, reservation page, or menu) loads fast, looks great on mobile, and makes it super easy to take action. Even small improvements here can dramatically improve conversions.
6. Track and Test Constantly
Restaurants often set ads and forget them. Instead, run two versions of an ad with different photos or headlines and keep testing:
- Which ad creative gets more clicks?
- Which audience converts best?
- What times of day deliver the lowest CPA?
By improving and focusing on what works and cutting what doesn’t, you’ll steadily lower costs.
7. Invest in Organic Reach Too
Paid ads are powerful, but organic content - like Instagram Reels, TikTok videos, or Google Business posts - can bring in new customers for free. The stronger your organic presence, the less you’ll need to spend on paid ads.
Bottom Line
Lowering your marketing costs isn’t about cutting corners, but mostly about effectiviness. Focus on locals, show off your food, and make it easy for people to book or order. Over time, you’ll get attract more guests without overspending.
And the best part? You can put the savings right back into what matters most: great food and a great experience for your guests.