The Ultimate Guide to SMS Marketing for Restaurants

Nov 1, 2024 12:15:00 PM

Imagine reaching your customers with a quick, friendly message that feels personal—like a reminder from a friend about tonight’s special dish.

That’s the power of SMS marketing for restaurants.

But this tool goes beyond just quick reminders: it’s about building relationships, driving repeat visits, and engaging diners in a way that feels immediate and genuine.

This guide will break down the ins and outs of SMS marketing, from common pitfalls to best practices, so you can tap into this effective strategy while sidestepping challenges.

What Are the Key Challenges in SMS Marketing for Restaurants?

SMS marketing sounds simple, but as with most things, the reality is a little more complicated.

Many restaurant owners have tried using text campaigns, only to find themselves blocked by spam filters or weighed down by regulations they didn’t know about.

Here’s a closer look at some common challenges—and what can happen if they’re overlooked.

Regulatory Compliance

Staying compliant with region-specific laws and SMS regulations is essential for any restaurant that wants to keep customer trust intact and avoid hefty fines.

The two key regulations include the Telephone Consumer Protection Act (TCPA) in the U.S. and the General Data Protection Regulation (GDPR) in Europe.

At the same time, not complying with these laws is one of the biggest mistakes restaurants make in SMS marketing.

For example, Papa John’s UK was fined £10,000 after the Information Commissioner’s Office (ICO) found it had sent over 165,000 marketing messages without meeting the necessary opt-in standards under the Privacy and Electronic Communications Regulations (PECR).

an illustration explaining the papa john' marketing lawsuit

Illustration: Tablein / Data: Food Service Equipment Journal

In this case, Papa John’s relied on what’s known as the “soft opt-in” approach, which allows businesses to send marketing messages to past customers under certain conditions.

However, they missed a key requirement: providing these customers with a clear chance to opt out when they provided their details.

Andy Curry, ICO’s head of investigations, explained:

quote about sms marketing soft opt in

Illustration: Tablein / Quote: Food Service Equipment Journal

For some of Papa John’s customers, who ordered by phone, this wasn’t clearly communicated, leading to complaints and, ultimately, a costly fine.

So, if you want to avoid making such costly mistakes, make sure to research and follow local regulations!

Spam Filtering

To keep users safe from unwanted or malicious messages, mobile carriers use strict spam filters.

Unfortunately, these filters sometimes catch legitimate marketing texts, too, especially if they detect “spammy” patterns or wording.

What does this mean for you?

Well, let’s say you crafted a clever, well-timed SMS campaign with the perfect offer, but it never reached your customers because it was blocked as spam.

Essentially, you wasted time and money on the campaign that gave you no results.

So, what triggers these spam filters?

Providers like OpenMarket, for example, use filters that analyze message content and behavior to detect risky patterns and high-risk terms.

Here’s what they look for:

sms marketing spam filters

Illustration: Tablein / Data: OpenMarket

Even grammar and tone matter, as using all caps or repeating too many emojis can make a message look suspicious and get it blocked.

To avoid getting caught in these filters, it’s a good idea to adjust your messaging style.

TextAnywhere, the UK’s leading SMS provider, suggests using a conversational tone that’s unique and personalized.

Instead of:

“Get a free dessert NOW! Act fast.”

Try something along the lines of:

“Hi [Customer Name], enjoy a dessert on us with your next meal!
Just show this text when you visit.”

Not only will this message bypass spam filters, but it also sounds more natural and friendly, making the message more appealing to customers.

It goes without saying that you have to include a clear opt-out mechanism in every message you send to your customers.

This is not only to prevent being blocked as spam but also because it’s required by law.  

All in all, if you are aware of these filtering rules and follow them, your SMS campaigns are more likely to reach customers’ phones, ensuring your messages get read, and not blocked.

Service Reliability

Timing is everything when it comes to SMS marketing.

If a message about a limited-time lunch offer doesn’t reach customers until after lunch, it’s essentially wasted.

Unfortunately, technical hiccups like network delays and congestion happen more often than you think.

If you check the news, you’ll see plenty of reports highlighting instances where service interruptions affected mobile carriers, leading to frustrated users unable to send or receive texts.

Just take a look at some such instances below:

a screenshot of articles about service outages

Illustration: Tablein / Data: Google

Sure, some restaurants choose SMS providers that offer better service reliability, but let’s face it—sometimes, things are simply out of our hands.

Even the carriers can’t fix everything on the spot.

That’s why it’s crucial not to put all your eggs in one basket.

What we’re saying is, SMS is a fantastic tool, but it shouldn’t be your only line of communication with customers.

So, think about diversifying your marketing strategy.

Consider using email marketing, social media, or even in-app notifications alongside your SMS campaigns.

elements of a diversified marketing strategy

Source: Tablein

This way, if a lunch offer doesn’t reach your customers via text due to some unforeseen hiccup, you can still get the word out through other channels.

By investing in a reliable SMS provider and mixing up your communication methods, you can better navigate the unpredictability of marketing.

This will ensure your messages are seen one way or another—no matter what bumps in the road come your way.

How Much Does SMS Marketing Cost?

You might be wondering: Is SMS marketing worth the price?

It sure can be, but let’s look at what you’re paying for.

SMS marketing costs can vary depending on several factors, but generally, you’ll find three main pricing models:

Pay-as-you-go

You pay for each text you send, which can range from $0.024 to $0.049 per message.

It’s a good option if your needs vary month-to-month.

Subscription-based

A monthly or annual fee covers a set number of messages, so you always know your monthly costs.

For example, it can cost you around $20 to $1250 to send 500 to 50,000 texts per month respectively, while additional message credits cost around $0.02 to $0.055.

Hybrid model

It combines subscription fees with per-text charges, offering flexibility and control over costs.

Many providers offer discounts for large volumes, which can cut costs by 20% or more if you’re sending thousands of messages regularly.

 

The estimations mentioned above are based on pricing by Textdrip, SMS marketing software from the US.

According to them, SMS marketing could cost you somewhere between $0.01 and $0.055 per text.

cost of sms marketing per text

Illustration: Tablein / Data: Textdrip

However, there are some other factors you should keep in mind, such as:

  • SMS messages are affordable, but MMS messages (which include images or videos) cost more.
  • Texts over 160 characters count as two messages.
  • International messaging can increase costs, as rates vary by country.

At Tablein, we offer SMS as an additional feature within our restaurant reservation system.

The SMS feature is designed to help you with reservation confirmations, reminders, and gathering feedback.

tablein sms and email notification features list

Source: Tablein

Our pricing is based on character count, country, and operator.

We also have preferred operators to get you better rates, like:

  • Bite Latvija in Latvia for €0.0398,
  • 24 Seven Communications Ltd in the UK for €0.0368, and
  • AT&T Mobility in the US at €0.0120 per message.

If you want to find the specific rate for your country, feel free to check out our pricing list.

All of this brings us to the question we asked at the beginning of this section: is SMS marketing worth its cost?

Absolutely!

SMS marketing is highly effective, with a 98% open rate and strong customer engagement.

Around 33% of recipients respond to SMS CTAs, and nearly half make a purchase.

Plus, a survey by Attentive has found that 73% of marketers say SMS brings in extra revenue.

statistic on how sms marketing brings in extra revenue

Illustration: Tablein / Data: Attentive

When combined with the right restaurant reservation system, SMS becomes a powerful way to reach your customers, send timely updates, boost engagement, reduce no-shows, and so much more.

So, yes, SMS marketing can be worth every cent—especially with the right provider and a solid strategy to support your efforts.

How to Grow Your SMS Subscriber List?

Building a strong SMS subscriber list takes more than just a catchy line or two.

Subscribers need to see real value in joining, feel that their data is handled responsibly, and have an easy path to opt in and out.

So, let’s dive deeper into how you can make your SMS sign-up experience both enticing and transparent.

Offer Attractive Incentives

People are more likely to opt into SMS marketing when they feel there’s something special waiting for them, no doubt about it.

So, start your journey of getting SMS subscribers by offering a reward—a discount on their next meal, a complimentary dessert, or even entry into a loyalty club.

The example below shows the latter option:

the chicken roost screenshot showing the loyalty club signup option

Source: EZTexting

This approach not only boosts subscriptions but also builds customer goodwill.

Another tactic?

Use a fun giveaway where interested customers send a keyword like “BRUNCHCONTEST” via SMS to enter.

This lets them opt in seamlessly while giving them something to look forward to.

With a little creativity and a thoughtful reward, potential subscribers will be much more likely to sign up.

But remember, not every incentive needs to be a coupon or a prize.

Sometimes, sharing valuable information can be just as powerful.

When TGI Fridays invited customers to sign up via a pop-up on their website, they initially offered a 10% discount.

However, as their former director of digital marketing, Ana Guzman noticed, customers were also eager to learn about new menu items.

quote on how restaurant sms subscribers love finding out about new menu items via sms marketing

Illustration: Tablein / Quote: Restaurant Business

So, whether it’s an insider peek at upcoming menu items, special ingredients, or seasonal recipes, sometimes the promise of “first-to-know” updates is exactly what your audience craves.

Leverage Multiple Channels

Your SMS sign-up forms shouldn’t just live in one place, so promote them across multiple channels for maximum reach.

Add a pop-up on your website, post about it on social media, or share it in-house with a friendly reminder from the staff.

A website pop-up, explains the director of strategy at e-commerce growth marketing agency Homestead Studio, is crucial for SMS list growth.

He advises using a multi-step form that asks for an email address first, then follows up with an SMS opt-in option.

quote on the benefits of using a multi-step form that asks for an email address first

Illustration: Tablein / Quote: Klaviyo

If you’re active on social media, leverage that too.

Create posts that highlight the perks of signing up—maybe a post about an exclusive deal available only to SMS subscribers, or an early-bird special for a new menu item.

This makes it easy for your followers to see the value of joining your SMS list.

Or, if you have an app for ordering or online table reservations, add an SMS opt-in during the checkout process.

This can be an easy way to capture sign-ups right when customers are engaged with your brand.

Be Transparent

Transparency is key to building trust.

So, let your customers know exactly what they’re signing up for, how often they’ll hear from you, and how their data will be used.

A clear opt-in/opt-out process and an easy-to-read privacy policy on your website are must-haves.

Melissa Matusky, manager and implementation consultant at Klaviyo, an automation platform for email and SMS marketing, recommends being upfront about your messaging.

After all, it’s the only way people will want to willingly opt-in.

quote on sms marketing transparency

Illustration: Tablein / Quote: Klaviyo

Beyond content, you have to be transparent about how frequently your customers will receive SMS messages, too.

Tell your subscribers if they’ll be getting weekly messages, monthly updates, or just occasional alerts.

This way, they’ll know exactly what to expect—and you’ll have a much better chance of keeping them around for the long haul.

Im this context, it’s worth noting that too many messages can quickly become a turnoff.

In fact, 49% of customers report feeling annoyed by frequent messaging, and 58% will unsubscribe if they feel overwhelmed.

Even worse, 28% might stop purchasing from your business altogether.

statistics about annoyance with sms marketing

Illustration: Tablein / Data: Validity

So, be transparent about how often you’ll reach out, make it easy to opt in or out, and follow through on your promises.

And put all this information in a privacy policy!

How to Track the Success of Your Restaurant’s SMS Marketing Campaigns?

Once you have SMS marketing up and running, it’s not just about sending the messages—you also need to measure their impact.

Tracking SMS performance is crucial for assessing each campaign’s success, as well as identifying what’s working, and where there’s room for improvement.

Without these insights, it’s easy to miss the mark or worse, alienate your audience by blindly guessing what resonates with them.

Here are some of the key performance indicators (KPIs) to focus on in your SMS campaigns:

Delivery rate

Shows the percentage of SMS messages that were successfully delivered to recipients.

Open rate

Tracks the percentage of recipients who opened your SMS messages.

Click-through rate

Measures the percentage of recipients who clicked a link in your SMS.

Opt-in rate

Shows the rate of new subscribers joining your SMS list over time.

Opt-out rate

Measures the rate at which subscribers choose to unsubscribe from your SMS list.

Conversion rate

Tracks the percentage of recipients who take a specific action, like redeeming an offer.

Active vs. inactive subscribers

Shows how many subscribers are actively engaging versus those who aren’t.

Subscriber growth rate

Measures how fast your SMS subscriber list is growing.

 

Tracking each of these metrics will help you create better SMS marketing campaigns.

For example, if your delivery rate is low, it might be time to clean up your contact list to remove inactive numbers.

And if your opt-out rate begins to climb, it could signal that your messaging frequency or content isn’t hitting the mark.

A high conversion rate, on the other hand, shows that your offers resonate well with your audience, suggesting that you should continue similar campaigns.

All in all, by monitoring these KPIs regularly, you’ll be able to see what’s working, adapt quickly, and ultimately make the most of SMS marketing to engage your customers.

Conclusion

This brings us to the end of our guide on SMS marketing.

Hopefully, you now see the powerful potential of SMS as a marketing tool for restaurants—when it’s handled thoughtfully and with purpose.

After all, with nearly everyone carrying a phone in their pocket, SMS provides one of the most direct and reliable ways to connect with your customers, boost loyalty, and drive revenue.

However, as we’ve discussed, it’s essential to be transparent about your messaging intentions, avoid flooding customers with irrelevant information, and only send messages to those who have opted in.

Start today, and take advantage of a communication channel that can make a real difference in your restaurant’s growth!

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