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Marketing 1 min read Published 17 June 2026

Why your marketing budget should be a COGS line, not a fixed cost

Treat marketing as a percent of revenue, not a monthly cap. The fixed-cap thinking is what makes growth feel scary.

Most independent venues budget marketing as a fixed dollar amount per month. That treats it like rent. It isn’t — it’s a cost of revenue. Treating it as such changes how you think about growth.

The reframe

Pick a marketing % of revenue target (3–5% is normal in hospitality). Spend that percentage every month. When revenue grows, marketing grows. When you have a quiet month, you spend less but you don’t panic-cut.

Why this matters

Fixed-cap marketing budgets are the reason most operators feel like growth is risky. If marketing scales with revenue, growth funds itself. You stop seeing a marketing spend as a sunk cost and start seeing it as a variable margin line.