Restaurants Gobbling Up Social Media Marketing

Restaurants have always relied on word of mouth marketing and repeat customers to keep their businesses thriving. Social media platforms offer the restaurant industry unique strategies for public relations, by encouraging their customers to return and spread the word about their establishments. Restaurant owners are gobbling up these marketing opportunities.
As mobile devices proliferate, restaurateurs are using geo-location technology to offer discounts and instant coupons to drive traffic into their locations. For example, when consumers check in on Foursquare with their specific location, they may automatically receive digital specials on their smart phones, including discount coupons or offers for free desserts.
Other restaurants are running more sophisticated promotions. The Olive Valley Restaurant in Brooklyn launched the first photo contest on Foursquare. Their clientele could enter a contest for a free diner for two by submitting photographs of their Olive Valley meals through Foursquare. Last summer, Chilis offered free chips and salsa for every Foursquare check in, and entry into a gift card drawing for check ins via Twitter.
Customers are participating actively in these social media teasers. The promotions are fun and provide entertainment that makes them want to come to the restaurant establishment. They develop deep brand awareness, and they strengthen brand loyalty.
As more and more restaurants jump into social media marketing to attract and entertain their customers, it is important to note some of the legal issues that surround this kind of marketing activity. The same legal standards apply in social media that apply offline. Unless the promotion is structured to eliminate chance or consideration for entry, restaurant owners may find themselves running afoul of lottery and gambling laws.
In addition, many restaurants are using these promotions to collect personally identifiable information about customers and develop more targeted behavioral advertising efforts. In so doing, restaurant owners may not have protected themselves fully with privacy policies, data security policies, and informed consent from the consumers. If a promotion is appealing to children, even more stringent legal guidelines may apply and lack of compliance can lead to investigation by the FTC.
Restaurant owners are savvy business people who understand the competitive nature of the marketplace. As they launch their social media efforts, they should remember the legal implications and seek qualified legal counsel.