I had just a few thoughts on this advertising thread, as it's a subject I seem to have been dealing with a lot lately. It's not just about reaching people, it's about reaching people who are potential customers. Thats why, IMHO, mass media is not always cost effective for smaller operators.
The exception to that, for some, might be yellow pages advertising, as Roger mentioned above. While everyone gets the yellow pages, your ad will only reach those people who are looking to buy your type of product, so you are hitting your target market. The downside is that the larger the area your yellow pages book covers, the more expensive the ad will be. (In my area, it's pretty pricy, plus, there are two competing books with about equal readership.)
As everyone knows, the least expensive type of advertising is word-of-mouth. It is also the most effective, in my opinion. It's effectiveness is shown in Peggy's post above. "We had a lot of customers who said, "I heard your brisket is great." If you, as an operator, are dealing with your customers personally, I'd ask for it. Something along the lines of, "I hope you enjoy your sandwich, if you do, please tell your friends to come see me!" Or something along those lines anyway.
I've found that couponing should not be entered into lightly. I'm not saying it's a bad thing, but you don't want to create a situation where your customers will not purchase your goods without a coupon. If you do decide to coupon, you again want to make sure those coupons that you paid to have printed get into the hands of the people that use them. Giving coupons to your existing customers hit your target market, but that practice MAY result in the situation I descibed above. I like to focus any couponing I do on generating new customer trial. I have done direct mail to homes in my trading area with great success. When I do coupons, I give them a short expiration date so I can gauge the coupon's effectiveness quickly. Of course, if someone comes in with an expired coupon, I honor it.
I've also had good luck with talking to local businesses and handing out menus and coupons there (a little sample plate of food will get you in most doors). At events where I've vended, I've had good luck handing out coupons to event-goers. Just walking around eating a plate of tasty looking food is suprisingly effective also (people will ask where you got it).
This is sort of a no-brainer, but the best marketing move you can make is to take care of your existing customers. It's way cheaper to keep them coming back than to get new ones to try you out. I try to remind my people of that fact constantly.
I'm sorry this post is kind of long, but it gave me a chance to put my thoughts down, and reflect on what has worked for me and what hasn't. Doing this should give me a bit more perspective when I deal with the 2 or 3 advertising solicitations I will most likely recieve tomorrow (Seems like thats the average number. And I thought the restaurant biz was tough, I coulda been in ad sales!) I hope you can gain from reading this post, if not, thanks for giving me a place to think out loud. I've also dealt with most widely available ad mediums (TV, radio, print, web, etc.), so if you think I can be of any help, please don't hesitate to ask. I'm always listening and looking to learn from the posts here myself.
Matt