How Influencers Negatively Impact Restaurants

In the age of social media, food influencers and bloggers seem to provide light to a dark tunnel, access to a vast untapped market of thousands of “followers” whom can be converted into paying customers… However, beneath the glossy veneer of their social image lies a dark reality, built on inauthentic engagement and the negative impact they can have on restaurants’ brand image. In this exposé, we delve into the pitfalls of relying on influencers for marketing, from their lack of authenticity to the distortion of real reach and the erosion of consumer trust.

The Illusion of Influence

Many food influencers portray themselves as passionate foodies with discerning palates, offering authentic recommendations to their followers. However, the reality often falls short of this ideal. Inauthentic influencers accept payment or freebies in exchange for positive reviews, glamorous posts, and endorsements (not recommendations), prioritizing financial gain over genuine experiences. This lack of authenticity from most undermines the credibility of all and erodes the consumers trust in the advertised restaurant brands, who use influencer marketing.

Fake Followers and Low Engagement

A key metric used to assess the influence of an influencer is their follower count. However, this metric can be easily manipulated through the purchase of fake followers or engagement pods. Influencers may resort to these tactics to create the illusion of a larger audience and attract paid partnerships with restaurants. As a result, restaurants may invest in influencer marketing campaigns based on inflated follower counts, only to discover that their reach is far smaller than anticipated. According to multiple sources, engagement rates for influencer accounts (their organic reach, likes, etc.) can range anywhere from 1-6%, where typically the larger the follower count, the lower the engagement rate.

Unknown Customer Acquisition

One of the primary challenges restaurants face when working with influencers (or any kind of digital marketing) is the inability to accurately measure the impact of these partnerships on customer acquisition. While influencers may drive traffic to a restaurant's social media profiles or website, it can be difficult to attribute these visits to actual conversions (until now, Papaya can help precisely track online to offline conversions). As a result, restaurants cannot quantify their return on investment from influencer marketing, which undoubtedly leads to a misallocation of marketing budgets and missed opportunities for more effective customer engagement strategies.

Paid Content vs. Authentic Recommendations

Perhaps the most damaging aspect of influencer marketing is the erosion of consumer trust. When followers discover that an influencer's recommendations are paid for rather than authentic, it undermines the credibility of both the influencer and the restaurant brand. Consumers are increasingly wary and aware of sponsored content (even if it’s not explicitly stated) and will start viewing influencers’ “recommendations” with skepticism, ultimately leading to disengagement with the influencer and the associated restaurant brands.

Data-backed Insights

Recent studies have shed light on the negative impact inauthentic/paid influencers can have on consumer trust and brand image, where as User Generated Content (UGC) and Word of Mouth Recommendations are amongst the best forms of engagement. According to Nielsen, in its global Trust in Advertising Study in 2021, found that 88% of consumers said that they trusted recommendations from people they know, above all other forms of marketing messaging.

Conclusion: Navigating the Influencer Minefield

In conclusion, while food influencers and bloggers can be valuable partners in restaurant marketing efforts, their inauthenticity and lack of transparency pose significant risks to marketing ROI, brand image, and consumer trust. Restaurants must exercise caution when engaging with influencers, prioritizing authenticity and genuine connections over follower counts and paid endorsements. By cultivating meaningful relationships with influencers who align with their brand values and maintaining transparency with consumers, restaurants can navigate the influencer minefield with integrity and confidence.