If your restaurant volume, guest demographics, guest psychographics, and other factors are the right mix, you might be a good fit for marketing cooperatives from vendors. What kind of deals are out there? How does it work?
Menu Strategy: Marketing Cooperatives
Are You a Good Candidate for Marketing Cooperatives?
Your suppliers generally want you to sell more and they are often willing to put up some money to help you do that. Some of those old Coca-Cola and Budweiser promotional signs are now worth a fortune. Depending on your restaurant volume, and the demographics and psychographics of your core audience, you may be a good candidate for cooperative funds from vendors.
The deals are usually commensurate to the size, scale and negotiating skills of the restaurant company and supplier.
Types of Marketing Cooperatives
The cooperative program could come in the form of your wine distributor paying to print new menus, or a large vendor offering a rebate that may be used for marketing, or could even be a jointly sponsored promotion or special event.
One of our clients received $60,000 per year in cooperative advertising funds from a credit card company ($40 million run on that one card type). The only stipulation for receiving the cooperative advertising funding was that their logo be used on any of the ads or promotional materials.
Impact on Menu Design
I mention this in the context of menu design because it could have an impact on future menu designs and is a consideration when looking at new LTO’s, long-term purchasing contracts with minimum volume requirements, and also finding that additional funding for marketing and menu improvements.