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What is ROI profit?ROI means "Return On Investment"- Profit you receive on the money you invest in your Marketing Promotions or campaigns. It is gross revenues from redemptions LESS all the marketing costs, and food costs. ROI is important. Sales will only help solve problems in your restaurant if they are profitable sales. I remember a story I was told about two small boys with a red wagon. They used to take that wagon across the railroad tracks, go down to the market and buy two watermelons for 50¢ each. They would put them in their wagon, go back across town and sell them for a quarter. After several trips, one boy turned to the other and said, “You know, were not making any money.” The other boy said, "You’re right. I think we need a bigger wagon." A bigger wagon, or more sales, won't help if you're not marketing profitably. You must measure the profit of your sales and marketing. But if you are covering all your costs, the increased sales from additional marketing can be very profitable. . Recently an independent company took a survey of our customers. They found that the average restaurant using the techniques we taught them and the tools that we gave them were averaging a 528% Return on Investment on their marketing dollars over a 90-day period of time. Back To Questions |