Restaurants are finding that text messaging is the most cost effective way to reach local customers, topping other methods such as digital coupons, social media networks and traditional email marketing. One example is Scotty P’s Hamburgers in Dallas, which has been using a text message platform for the past month and already reports redemption rates of 12% for its seven restaurants, according to Restaurant News.

Other advertising options are too expensive, says founder and president, Scott Pontikes. "The smart-phone apps and even mobile ordering would be cost-prohibitive for us," he said. "Texting is low-tech, simple and quick, and the response rate is probably three times what it is for e-mailing. Our e-mail program has a larger list, but we’ve seen a 12-percent adoption rate on 25-word messages that take a few minutes to prepare." Another example is Ever Santana of Totowa, N.J.-based Fabris Companies, who also uses texting to promote his two IHOP units, 17 Dunkin’ Donuts locations and Sonic Drive-In, Restaurant News also reports. He has found that messaging spreads virally beyond the original users who had opted in.

Waffle House recently launched a 2-way SMS text marketing campaign for many of the same reasons, writes Wireless Federation. The company says it has already seen 47% increase from January to February for opted-in subscribers.

SocNets versus Email versus Text

Such stories along with new findings from eMarketer suggests the debate over whether social networking with trump email marketing needs to be expanded to include text marketing as well.

Text messaging was preferred by almost one-half of respondents in a MarketingSherpa study, eMarketer reported. "With all the focus on social media's effect on e-mail, the influence of text messaging has been a sideline discussion," said eMarketer senior analyst Debra Aho Williamson. "Yet text messaging seems far more likely to pose a challenge."