NINETY-THREE PERCENT OF U.S. RESTAURANTS ANTICIPATE STRONG SALES IN 2006, ACCORDING TO CONSTANT CONTACT SURVEY

Internet-based tools emerge as primary marketing vehicles for small business restaurant owners

To help U.S. restaurants more effectively reach their customers, Constant Contact launches new email templates specifically designed for restaurants

Waltham, MA. - May 04, 2006

With the U.S. restaurant industry continuing to grow (The National Restaurant Association predicts 5.1 percent growth in 2006), many small business restaurants express confidence in their sales prospects for this year. In fact, according to the 2006 Restaurant Business Outlook* survey from Constant Contact® (www.constantcontact.com) the leading email marketing service for small businesses, associations, and nonprofits, 93 percent of U.S. restaurant owners anticipate strong sales in 2006.

Strong industry growth has increased competitive pressures among restaurants, making it more important than ever to step-up marketing efforts that attract customers and keep them coming back. When asked about the biggest business challenges they face, U.S. restaurant owners cited filling seats during slower days or seasons (50 percent) and building their establishment's brand and reputation (27 percent) as the top two difficulties.

With restaurants continuing to take advantage of the Internet to reach current and prospective customers, survey respondents also indicated that access to online marketing tools with even more flexible features, functionality, and customization would help them achieve greater success with their brand building and marketing efforts. According to the survey, 90 percent of restaurateurs said they maintain a website, and 84 percent said they use email as part of their marketing strategy. In fact, nearly half of those surveyed (45 percent) said email marketing is their most effective marketing tool. Direct mail was a distant second at 18 percent, followed by print advertising at 16 percent.

Constant Contact Launches New Restaurant Email Marketing Program

In line with the growing online marketing trend, Constant Contact is introducing new email marketing templates and features designed to help restaurant owners build their brand and reputation with their clientele. Accessible from the restaurant market page at: http://www.constantcontact.com/market/restaurants/index.jsp, the new templates will provide restaurants with the following features and functionality:

• Dozens of email template designs for restaurants, including sections for promotions, coupons, menu updates and specials, and announcements for special events and holiday offers
• Customization features that will allow restaurateurs to tailor the templates to match the brand image of their establishment
• Styles and images to suit a wide range of restaurant types, including template designs for ethnically-focused establishments, such as Asian, Mexican and Italian, in addition to template designs for seafood, wine bar, steakhouse restaurants, and more

"With the competition continuing to grow in the U.S. restaurant industry, it's important for restaurant owners to communicate effectively with their customers to generate increased business," said Gail Goodman, CEO of Constant Contact. "Email marketing is one of the most effective and affordable marketing methods for staying in touch with customers and enticing diners to keep coming back to your restaurant. By introducing a wider selection of customizable email marketing templates designed to meet the specific needs of restaurants, Constant Contact aims to help restaurants communicate their unique offerings with customers and continue to fill seats."

Sample questions and results from Constant Contact's restaurant survey include the following:

Which of the following marketing vehicles do you use (check all that apply)?

Email marketing	91%
Print advertising	70%
Direct mail	50%
Yellow Pages	37%
Radio or television advertising	33%
Online advertising- banners, paid search	31%

What would you say is the most effective vehicle you use to promote your business?

Email marketing	45%
Direct mail	18%
Print advertising	16%
Radio or television advertising	10%
Online advertising- banners, paid search	8%
Use as bonus for employees	3%

Which of the following online methods do you employ (check all that apply)?

Website	90%
Email promotions	84%
Search engine marketing	26%
Online reservation system	24%
Online advertising	22%
Online loyalty program	16%
Other	8%

What is the biggest challenge for your business?

Filling seats during slower days or seasons	50%
Building your establishment's brand/reputation	27%
Rising costs	11%
Employee turnover	8%
Competition from other restaurants	8%

For more information about the survey or to view the full results fact sheet, please visit: http://corp.constantcontact.com/pdfs/2006_restaurant_survey.pdf, or contact Kevin Mullins at kmullins@constantcontact.com

* The survey was conducted through targeted online distribution to U.S. restaurant owners, who are current customers of Constant Contact, recording results from nearly 300. The majority of respondents are owner/operators of single-location, small business establishments that have been in business for five years or more. The survey was conducted from March 20th through April 11th, 2006.

About Constant Contact
With over 50,000 customers, Constant Contact® is the leading email marketing service for small businesses, associations, and nonprofits. Constant Contact is a web-based email marketing solution that enables small organizations to easily create and send professional email newsletters, promotions, announcements and more with no technical expertise required. Designed and priced for SMBs, Constant Contact is affordable, easy-to-use and includes a free 60-day trial at: www.constantcontact.com. The service is marketed through over 1,500 Business Partners and more than 100 marquee channel partners including American Express OPEN, AOL, Corel, FTD, IBM, Interland, Network Solutions, Register.com, Website Pros and Yahoo Search Marketing. Constant Contact is a founding member of the Email Service Provider Coalition (ESPC), a group formed to fight spam while protecting the delivery of legitimate email. Constant Contact is funded by Morgan Stanley Venture Partners, Commonwealth Capital Ventures, Longworth Venture Partners and Hudson Ventures. For more information, please call 781-472-8100.

Please direct all press inquiries to:

Rosalind Morville Constant Contact 339-222-5772 rmorville@constantcontact.com