Final answer:
Marketing budgets for restaurants can vary, and while Harvard Business Review does not provide a specific percentage, a general guide is to spend 3% to 6% of revenue on marketing for established businesses, potentially more for new ones. the decision should be based on numerous factors including industry competition and business goals.
Step-by-step explanation:
When considering how much should be put on marketing for a restaurant according to the Harvard Business Review, it's essential to look at the business's revenue and variable costs. the provided information indicates that the center earns revenues of $20,000, and the variable costs are $15,000. while there are no specific percentages from Harvard Business Review given in this context, a common recommendation is to allocate between 3% to 6% of revenue to marketing for established businesses, and up to 20% for new businesses. Since the center is making a profit, as the revenues exceed the variable costs, it's prudent to use a portion of this profit for marketing.
Marketing budgets can vary based on the industry, scale of operations, competition, and the stage of the business. For a restaurant, which is a highly competitive industry, a more aggressive marketing strategy might be necessary to stand out. Therefore, a restaurant might consider setting aside a higher percentage of revenue towards marketing efforts. However, the exact figure will depend on factors like target audience, location, and specific business goals.