Geofencing Campaigns: How to Use Location-Based Ads to Drive More Customers to Your Restaurant
If your restaurant is spending money on digital ads, but still not seeing a rush of foot traffic, it may be time to get hyper-local—and hyper-strategic. Enter: Geofencing Campaigns.
Geofencing is one of the most underutilized (but insanely effective) marketing strategies for restaurants. It allows you to target potential customers in real time based on their physical location and serve them personalized offers, ads, or reminders right when they’re nearby and ready to dine.
Whether you’re a fast casual spot, coffee shop, fine dining restaurant, or food truck, geofencing helps you reach the right people at the right place and time—and that’s exactly where the conversions happen.
What Is a Geofencing Campaign?
A geofencing campaign uses GPS, RFID, or Wi-Fi technology to create a virtual perimeter—or “fence”—around a specific geographic area, such as your restaurant, a competitor’s location, a mall, a stadium, or an event venue.
When a smartphone enters that boundary, it triggers a pre-set action:
✔️ A mobile ad
✔️ A push notification
✔️ A special offer or promotion
✔️ An invitation to visit
It’s like having a digital billboard follow the right people—except smarter, trackable, and personalized.
Why Geofencing Is a Game-Changer for Restaurants
✔️ Targets hungry people who are nearby and ready to make a decision
✔️ Drives last-minute decisions and impulse visits
✔️ Lets you steal attention from competitors (by setting a geofence around their locations)
✔️ Boosts ROI by only targeting people who are in your physical service area
✔️ Creates time-sensitive urgency that moves people to act now
Example: A user walks past your location at 6:30 p.m. and receives a mobile ad for “Happy Hour Until 7 PM – $6 Margaritas.” That’s smart targeting in action.
How Geofencing Works (Simplified)
You define a virtual perimeter around your chosen area (from a 100-foot radius to several miles).
Someone enters the geofenced area with location services enabled on their smartphone.
They receive your ad or offer via apps, mobile websites, or push notifications.
If they visit your restaurant, their action can be tracked for conversion attribution.
This allows you to track in-store visits and purchases based on who saw your geofenced ads—something traditional media can’t do.
Best Practices for Restaurant Geofencing Campaigns
1. Geofence More Than Just Your Location
Yes, you should geofence around your own restaurant—but also get creative.
Consider targeting:
Nearby offices or coworking spaces during lunch hours
Hotels and Airbnbs for out-of-town guests
Gyms or fitness studios for post-workout meals
Event venues (concerts, sports games, conferences)
Competitor locations to intercept diners before they choose someone else
2. Create Time-Sensitive, Irresistible Offers
The secret sauce to geofencing campaigns? Urgency.
Use language like:
“Nearby? Show this ad for a free appetizer – today only.”
“Walking distance from the Strip – 10% off when you dine before 6 PM.”
“Flash Lunch Deal: Grab a bowl + drink for $12 – until 2 PM only.”
Make it easy for someone to say, “Why not?” and walk in now.
3. Use Geofencing for Loyalty & Retargeting Too
Don’t just target new foot traffic—re-engage past visitors.
✔ Create lookalike audiences based on users who responded to your last campaign
✔ Send loyalty reminders to previous customers who re-enter the area
✔ Offer perks like: “Welcome back—this one’s on us 🍷”
4. Keep Messaging Local, Relatable, and Branded
Generic “20% off” deals won’t cut it. Use creative, branded copy that feels human.
✅ Lean into your personality (are you upscale, cheeky, health-focused, family-friendly?)
✅ Mention landmarks: “Just steps from The Arts District” or “Next to the Bellagio fountains”
✅ Add emojis, humor, or strong calls-to-action
📈 How to Measure Success
Key performance metrics to track:
Click-through rate (CTR) on mobile ads
Foot traffic lift during campaign periods
Redemptions of in-store offers
Dwell time and frequency of repeat visits
Cost per visit (CPV) or cost per acquisition (CPA)
Tip: Run A/B tests with different messages and locations to see what converts best.
Final Thoughts: Go Beyond “Awareness”—Drive Real Foot Traffic
Geofencing isn’t just a flashy tool—it’s a location-intelligent marketing strategy that restaurants of every size can use to get measurable, local results.
✅ Target people in real time
✅ Create urgency with smart offers
✅ Track walk-ins and ROI
✅ Stand out in a crowded dining market
At Golden Hour Co., we specialize in building data-backed, community-focused marketing strategies for restaurants and hospitality brands that want to grow smarter—not just louder. From geofencing campaigns to experiential activations, we help you reach the right diners, at the right time, with the right message.
📍 Want to turn local traffic into loyal customers?
Let’s build your geofencing strategy. Contact us to get started.
