Better Understanding of Yelp Restaurant Marketing for Owners


Better Understanding Yelp Restaurant Marketing For Owners

1. Love it or hate it, understand what advertising on yelp actually means

2. What to all these numbers mean?

3. What is the bottom line? What am I getting for my money?

Hello, My name is Shannon Panaro and I have been helping hundreds of restaurants and other small businesses get customers in the door for 8 years, with digital and social media marketing. I want to write a short article about my personal knowledge of yelp and how there is a better way to get customers back again and again.




1. Love it or hate it, understand what advertising on yelp actually means

I talk to about 50 restaurant owners per month. Mostly they hate yelp, it stresses them out, it keeps them awake, and the telemarketers call them non-stop. Since I administer a few yelp account’s for my clients, I often get calls to advertise. I ask all kinds of questions and this is where I get my knowledge from.

1. They start out by telling you, you are currently getting x amount of leads from your free listing. Now knowing you currently are not on your computer, because that is the last place you want to spend your time, they throw out some pretty big numbers. Let’s look at what those actually mean.


This means out of almost 7000 “views” and 1476 “leads” 135 called your business in one year. In marketing conversions, this sucks. Your only alternative is to pay to get more views to get more leads, to get more “calls”. This is about a 1.75% conversion. The revenue calculator asks you to use “leads”, but “calls” are the only true number we can use. Should you invest in conversions that low? Next, let’s take a look at the cost.

2. What to all these numbers mean? A true conversion rate is what a business owner should use to determine where to spend marketing dollars. When I ask business owners, how many customers or what return they get per month from a certain advertising medium. They rarely know. This means if you spend $5000 on marketing and you get 100 customers, each of those customers is costing you $50.00 to get in the door one time. What they spend on that is your ROI, return on investment. So if those 100 customers spend $50.00 each, you break even. Anything over and above that is your profit. So if those 100 customers you spent $50.00 to get in the door come in one time and your average check is $100.00, then your return is $5000 minus your food cost, 30% on average. So you made $3500.00 on a $5000 investment to get that customer in the door one time. So the next question is what does yelp cost and what will your return be?

yelp spend

So the $250.00 per month will get you an extra 284 clicks, but how many calls? Ask the telemarketer that! This is a $3000 per year for the minimum, to increase your clicks. Add onto that a $2.50 per day to increase the promised 38% increase in leads to which there will be a 1.75% conversions to CALLS.

1. First option for $3000.00 This will add 3408 clicks per year. And 1.75% of that is 59 more CALLS. So you would be paying $3000 for 59 calls to your restaurant.

2. To pay to remove competitor ads, from your page, which show up when people initially search anyway, to increase your leads 38% another $912.00 for a 1.75% conversion of 1.75% for 15 CALLS. How many calls from yelp turn into visits? Who knows.

3. What is the bottom line? What am I getting for my money? So if you did the minimum program for yelp to reach a customer one time, you would be spending $3000 to get 59 customers assuming those calls turn into visits. This basically puts your reviews on other competitors pages. And guess what. I asked the telemarketer, “What reviews are chosen? For instance could a bad review be part of your advertisement?” And bless the guy for being honest, he said “technically, yes”. $3000.00 to get 59 customers in the door, is a cost of $50.00 per customer assuming they come alone minus your cost of food of course ($35.00). If they spend an extra $50, is a $1,130 profit for your 3000 investment.

In closing, don’t be fooled. There are better ways. For the last 5 months I have been introducing a new tool to Restaurant owners that blows away the conversions you would get from any other digital or social media. In advertising you are always paying to reach someone else’s audience. Business owners have become addicted to “views” and “likes” and “shares” and “opens”. All that matters is that you have a tool to get the people who come back in the door to come back more often to increase your sales. There is one fast, inexpensive way to do that, where once you acquire this customer as a VIP subscriber you can reach them within minutes of sending out a one or two sentence promotion that takes 5 minutes to create. You don’t need an Agency, or a Social Media Manager. This tool has a 98% seen within 3 minutes rate and a 23% conversion rate. The cost can be less than $3.00 per day. The cost remains the same no matter how many subscribers you get.


That is the smart tool to invest in your business. If you look back at the charts for yelp, it says 72% found on MOBILE. Why would you not want to be able to reach your customers by mobile when they look at their phones 150 times per day before they ever go on yelp?

Have I given you enough of a reason to call me for an appt to learn more ?

Shannon Panaro