20 Apr 2025
Marketing

I want to build a SMS Marketing Service for restaurants in order to ...

...increase restaurant traffic and profits exponentially

Confidence
Engagement
Net use signal
Net buy signal

Idea type: Swamp

The market has seen several mediocre solutions that nobody loves. Unless you can offer something fundamentally different, you’ll likely struggle to stand out or make money.

Should You Build It?

Don't build it.


Your are here

You're entering a crowded space: SMS marketing for restaurants. Our analysis shows that there are at least 9 similar products already out there, so the competition is real. The general engagement for similar products is low. Given that we didn't detect any explicit positive signals for product use or purchase (i.e. nobody explicitly said they'd use or buy these products), it suggests that people aren't necessarily clamoring for another solution in this space. The AI POS system is getting traction in increasing customer loyalty for food, however, food businesses are facing closures due to cost and customer variety. You need to bring something genuinely novel and highly effective to the table to stand out and succeed.

Recommendations

  1. First, deep-dive into why existing SMS marketing solutions for restaurants haven't become runaway successes. Talk to restaurant owners, understand their current challenges with marketing, and identify unmet needs. Look for pain points that current solutions aren't addressing effectively.
  2. If, after your research, you still see potential, narrow your focus. Don't try to be everything to every restaurant. Identify a specific niche within the restaurant industry – perhaps a certain cuisine type (e.g., Mexican restaurants), a specific service model (e.g., fast-casual), or a particular target demographic (e.g., college students). Tailor your SMS marketing solution to their unique needs.
  3. Instead of building a completely standalone SMS marketing platform, consider creating tools or integrations that enhance existing restaurant management systems (like POS systems) or popular marketing platforms. This approach allows you to leverage established user bases and workflows, making adoption easier. The similar product 'Treply' was noted to have good UI and user-friendly platform and effective for SMS marketing.
  4. Explore adjacent problems within the restaurant industry that might be more promising. For example, instead of SMS marketing, could you focus on improving online ordering efficiency, streamlining table management, or enhancing customer loyalty programs through a different channel?
  5. Given the 'Swamp' category designation, seriously consider whether this is the best use of your time and resources. Building a successful product in a crowded and unenthusiastic market is an uphill battle. Consider pivoting to a related but less saturated market or focusing on a different problem altogether.
  6. Carefully evaluate features like analytics dashboards and customer segmentation. How will you provide restaurants with actionable insights from their SMS campaigns? The product 'inTrack' was able to improve e-commerce business by over 200%, so how will you improve marketing automation?
  7. Given that a similar product was criticized for focusing excessively on marketing efforts, think about whether you will focus on marketing or growing customer loyalty and retention.
  8. Given that one product was questioned if it would be exclusively US-focused, think about what market segment will be best to test your product.
  9. Given that one product needed more info and interactive demo, make sure the landing page and product onboarding are complete.

Questions

  1. What specific, measurable advantage will your SMS marketing service offer restaurants compared to existing solutions, and how will you validate this advantage before launch?
  2. Considering the low engagement observed in similar products, what innovative strategies will you employ to capture and retain restaurant owners' attention and ensure they actively use your service?
  3. How will you create a sustainable competitive advantage in a market where many restaurants may already be using basic SMS marketing and loyalty tools provided by their POS systems?

Your are here

You're entering a crowded space: SMS marketing for restaurants. Our analysis shows that there are at least 9 similar products already out there, so the competition is real. The general engagement for similar products is low. Given that we didn't detect any explicit positive signals for product use or purchase (i.e. nobody explicitly said they'd use or buy these products), it suggests that people aren't necessarily clamoring for another solution in this space. The AI POS system is getting traction in increasing customer loyalty for food, however, food businesses are facing closures due to cost and customer variety. You need to bring something genuinely novel and highly effective to the table to stand out and succeed.

Recommendations

  1. First, deep-dive into why existing SMS marketing solutions for restaurants haven't become runaway successes. Talk to restaurant owners, understand their current challenges with marketing, and identify unmet needs. Look for pain points that current solutions aren't addressing effectively.
  2. If, after your research, you still see potential, narrow your focus. Don't try to be everything to every restaurant. Identify a specific niche within the restaurant industry – perhaps a certain cuisine type (e.g., Mexican restaurants), a specific service model (e.g., fast-casual), or a particular target demographic (e.g., college students). Tailor your SMS marketing solution to their unique needs.
  3. Instead of building a completely standalone SMS marketing platform, consider creating tools or integrations that enhance existing restaurant management systems (like POS systems) or popular marketing platforms. This approach allows you to leverage established user bases and workflows, making adoption easier. The similar product 'Treply' was noted to have good UI and user-friendly platform and effective for SMS marketing.
  4. Explore adjacent problems within the restaurant industry that might be more promising. For example, instead of SMS marketing, could you focus on improving online ordering efficiency, streamlining table management, or enhancing customer loyalty programs through a different channel?
  5. Given the 'Swamp' category designation, seriously consider whether this is the best use of your time and resources. Building a successful product in a crowded and unenthusiastic market is an uphill battle. Consider pivoting to a related but less saturated market or focusing on a different problem altogether.
  6. Carefully evaluate features like analytics dashboards and customer segmentation. How will you provide restaurants with actionable insights from their SMS campaigns? The product 'inTrack' was able to improve e-commerce business by over 200%, so how will you improve marketing automation?
  7. Given that a similar product was criticized for focusing excessively on marketing efforts, think about whether you will focus on marketing or growing customer loyalty and retention.
  8. Given that one product was questioned if it would be exclusively US-focused, think about what market segment will be best to test your product.
  9. Given that one product needed more info and interactive demo, make sure the landing page and product onboarding are complete.

Questions

  1. What specific, measurable advantage will your SMS marketing service offer restaurants compared to existing solutions, and how will you validate this advantage before launch?
  2. Considering the low engagement observed in similar products, what innovative strategies will you employ to capture and retain restaurant owners' attention and ensure they actively use your service?
  3. How will you create a sustainable competitive advantage in a market where many restaurants may already be using basic SMS marketing and loyalty tools provided by their POS systems?

  • Confidence: High
    • Number of similar products: 9
  • Engagement: Low
    • Average number of comments: 2
  • Net use signal: 7.5%
    • Positive use signal: 7.5%
    • Negative use signal: 0.0%
  • Net buy signal: 0.0%
    • Positive buy signal: 0.0%
    • Negative buy signal: 0.0%

This chart summarizes all the similar products we found for your idea in a single plot.

The x-axis represents the overall feedback each product received. This is calculated from the net use and buy signals that were expressed in the comments. The maximum is +1, which means all comments (across all similar products) were positive, expressed a willingness to use & buy said product. The minimum is -1 and it means the exact opposite.

The y-axis captures the strength of the signal, i.e. how many people commented and how does this rank against other products in this category. The maximum is +1, which means these products were the most liked, upvoted and talked about launches recently. The minimum is 0, meaning zero engagement or feedback was received.

The sizes of the product dots are determined by the relevance to your idea, where 10 is the maximum.

Your idea is the big blueish dot, which should lie somewhere in the polygon defined by these products. It can be off-center because we use custom weighting to summarize these metrics.

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