How Much Should I Spend on Restaurant Marketing?
- Caramel
- Jun 24
- 3 min read
Updated: Jun 28
One of the most common questions we hear from restaurant and cafe owners is “How much should I actually be spending on marketing?” It usually comes up after a few quiet weeks, a failed promotion or a moment where bookings just aren’t where they should be.
The truth is, marketing isn’t some emergency lever you pull when things get slow. It’s not a backup plan but rather an engine behind consistent growth. Done right, it helps people discover you, crave your food before they’ve even visited and choose your venue over the 10 others nearby.
This guide is here to break it all down clearly with no vague advice and no marketing jargon - just practical thinking based on real numbers and what actually works in today’s hospo landscape.
1) The benchmark: 5 to 10% of monthly revenue
A solid rule of thumb in the hospitality world is this - if you’re serious about growth, set aside 5 to 10% of your monthly revenue for marketing. That includes everything - your content, campaigns, paid ads, strategy, creators and any external help.
Let’s say your cafe does $25,000 per month. That means your marketing budget should sit between $1,250 and $2,500 per month. Less than that, and you’re likely just playing catch-up or throwing out low-impact content with no real impact.
From our +10 years of experience, we have seen so many venues fall into the trap of spending what’s left over after costs. Instead, treat marketing as a growth investment - a necessary thing that creates revenue, not just drains it.
2) Understand your own numbers first.
Before locking in a budget, take a moment to understand what a customer is worth to you. You don’t need to go full spreadsheet mode but just understand how much customers (or tables) spend on average, how often they return and what the rough cost is to acquire that customer.
Just understand, if you’re getting 3 to 5 times return on your marketing spend, you’re doing well.
3) Know what you are paying for.
Marketing isn’t just someone posting pretty pictures or running random ads. Done right, it’s a full system built to drive bookings and brand loyalty. Here’s where your marketing budget really goes.
First is strategy - knowing who you're targeting, why and how to position your venue. Without it, you're just guessing.
Then there’s content: high-quality photos, reels and videos that actually sell your vibe online.
Add paid promotion to get that content seen by the right people, not just your followers.
And finally, execution and optimisation - posting, replying, tracking results and tweaking campaigns while you run the service.
4) What not to do.
Most venues underinvest and then blame marketing itself. Here’s what not to do:
Spend $400 a month and expect to go viral.
Hire your “creative cousin” with no experience in hospo marketing.
Rely solely on influencers without content or a conversion system.
Spend all on ads but none on creative.
Post without purpose, just to “stay active”.
5) Learn when to spend more.
Spend more when:
You're launching a new venue or location.
You’re rebranding or overhauling your menu.
You’ve had strong growth and want to scale further.
Your competitors are outpacing you on digital.
Also, learn when to spend less:
You have no clear brand identity, audience or vision
Your content is outdated and inconsistent
You’ve never tracked ROI - start with clarity first
Final thoughts.
Marketing is not your cost - it’s your conversion. The venues that win today aren’t always the ones with the best food. They’re the ones who show up the best online, build trust and stay top-of-mind.
If you’re serious about standing out, stop asking “What’s the minimum I can spend?” and start asking “What’s the smartest way to grow?”
Want a breakdown of what you should be spending?
We normally charge for full discovery workshops, but if you found us through this article, we’re offering a free 20-minute Starter Discovery Workshop - no strings attached.
Let’s chat about your venue, goals and the marketing system that’ll get you fully booked.