If I were running a restaurant, I'd market my business through several different avenues. In addition to the traditional -- and necessary -- local newspaper advertising, I'd create a list of the residences within a 6-block radius of my business. Everyone within walking distance would get a monthly bulletin announcing what I'm doing to enhance the neighborhood, what events others are planning around my restaurant, and I'd of course mention the specials of the month and give several good reasons to come and eat at my place. But my overall objective of the bulletin would be to get the neighbors involved in the restaurant, to get them talking about us, and to give them reasons to stop in my place over the place a block away. Cost for this advertising would be about $400/month for printing and mailing 1,000 bulletins, or about 20 meals per month, assuming an average cost of $20 per diner.
In addition, I'd compile or buy a list of all the businesses within a one-mile radius and send each one my lunch menu. I'd repeat this mailing every 4 weeks, making sure my phone number is prominent, with the fax number right under the phone number (for people who prefer high-tech ordering). Depending on the type of restaurant, I'd either list the entire menu (in easy-to-read form) or the type of food we offer, along with several suggestions. Again, the cost for 1,000 mailers would be about $400/month, or about 60 meals per month, assuming an average lunch cost of $7 per meal. But this will be made up quickly because business people eat out much more often for lunch than they do for dinner.
I'd also hold regular drawings where I'd request patrons to put their names and addresses (or business cards) into a bowl (probably situated by the front "welcome" area). The prize would be a free dinner, valued at $20 or so. My main objective will be to capture the names for regular mailings to my "best" prospects -- people who have already entered the restaurant and, assuming they are happy (and they must be, since they're taking a chance on winning another dinner) will want to come back soon, as long as I remind them that I still want their business.