Geofencing vs. Retargeting: What’s Better for Your Restaurant?

When it comes to digital marketing for restaurants, two buzzwords often come up: geofencing and retargeting. Both are powerful tools for increasing foot traffic and online orders—but they serve very different purposes.

So, which one is better for your restaurant? The answer depends on your goals, your audience, and how you want to reach them. In this blog, we’ll break down the difference between the two, the pros and cons of each, and how to choose the right approach—or combine them for maximum impact.

What Is Geofencing?

Geofencing is a location-based marketing strategy where you create a virtual boundary around a specific area—like a mall, stadium, business district, or even a competitor’s restaurant. When someone enters that area with their mobile device, they become eligible to receive your ads on apps, websites, or social platforms.

Best Use Cases:

• Promote lunch deals near office buildings

• Attract tourists near landmarks or hotels

• Target people leaving a concert or sporting event

• Convert competitor foot traffic with special offers

  
  

Benefits:

• Real-time targeting based on physical location

• High relevance due to proximity

• Excellent for walk-in traffic and time-sensitive deals

What Is Retargeting?

Retargeting focuses on people who’ve already interacted with your brand online—maybe they visited your website, clicked an ad, or viewed your menu but didn’t take action. Retargeting keeps your restaurant top of mind by serving ads to these users as they browse other sites or social platforms.

Best Use Cases:

• Remind users to complete an online order

• Promote a reservation after someone views your menu

• Bring back lapsed customers with a special offer

• Encourage app installs or loyalty program signups

  
  

Benefits:

• Warmer audience, more likely to convert

• Great for repeat business and online orders

• Reinforces brand awareness over time

Key Differences at a Glance

Feature	Geofencing	Retargeting
Audience	New prospects based on location	Previous visitors/engagers
Intent level	Medium	High
Best for	Walk-ins, promotions	Conversions, loyalty
Platforms	Mobile apps, Google, Facebook	Google Display, Meta Ads, YouTube
Setup Requirements	Geo coordinates, creative ads	Tracking pixel on site or app

How to Use Them Together

The best restaurant marketing strategies often combine geofencing and retargeting for a one-two punch.

Example Campaign Flow:

1. Step 1 – Geofence a Business District: Target people near office buildings with a mobile ad for your lunch combo.

2. Step 2 – Retarget Visitors: Those who clicked but didn’t convert are now served follow-up ads on Instagram or YouTube later that day or week.

3. Step 3 – Capture Leads or Drive Sales: Offer an incentive for their next visit—like 10% off or a free appetizer.

   
   

This approach keeps your brand in front of the customer through multiple touchpoints, increasing the likelihood of a visit or order.

Which One Is Better for Your Restaurant?

There’s no one-size-fits-all answer. Here’s a quick guide:

• Use Geofencing if: You want to capture new customers nearby, especially during peak hours, events, or holidays.

• Use Retargeting if: You want to nurture leads, boost online orders, or increase repeat business.

• Use Both if: You want to build a full-funnel strategy that attracts, engages, and converts customers on an ongoing basis.

Geofencing and retargeting aren’t competing strategies—they’re complementary. When used correctly, they help you attract more diners, stay top of mind, and grow your customer base consistently.

At Wise Roots, we specialize in building hyperlocal marketing campaigns that blend geofencing and retargeting to bring real, measurable results. Whether you’re looking to fill tables tonight or build long-term loyalty, we’ll design the right strategy for your restaurant.

👉 Book a free strategy session with Wise Roots to discover how geofencing and retargeting can drive traffic and revenue for your restaurant.