Online ordering is the best weapon for addressing change in the restaurant industry…

The Orlando Sentinel, citing several respected industry sources, reports that restaurants that have not spent a huge amount of energy trying to capture the lunch crowd are now refocusing their efforts.

Mid-day meals typically mean lower profit margins and diners that are in a hurry.  Competition for the business, however, has forced restaurants to refocus their efforts.  Some restaurants are at a disadvantage here, reports the article, “… when diners eat out at lunch, they often want something quick — a problem for some sit-down chains.”

A weakness for restaurants in the lunch business is the lack of a good online ordering system.  Ordering online is ideal for the mid-day customer who wants to spend a limited time away from their desk or, better yet, get it delivered.

To compete, it’s important to emphasize the convenience of online ordering to customers, either for pickup or delivery.  You can do this through conversations with customers, in-store signage, messages on receipts, and email campaigns through your NetWaiter Management Console.

“A recent industry survey revealed that the lunch crowd accounts for 34% of restaurant traffic,” said Jared Shimoff, Sr. Director at NetWaiter.  “If that’s part of your business, you certainly want to keep it and expand it.  Online ordering is a key tool for that opportunity.”

Social media offers an excellent opportunity to reach customers on an emotional level using photos.  Here are three suggestions of photos you can post to Twitter and Facebook:

Photos of Dishes - Presentation is everything.  Post a photo of your popular entrées and desserts to Twitter and Facebook.  You can even add an offer:  ‘Surprise your sweetheart with pie tonight – order an entrée online and get 50% off one of our delicious pies.’

Photos of Employees – Highlight your employees and how well they do their job.  Post photos of employees so customers feel like they know them the next time they come in to eat.

Photos of Customers - Patrons are also part of your restaurant family.  When a customer comes in with a new baby, capture it on your camera phone.  How about the folks who order online at your restaurant three times a week for lunch?  Snap a picture (with their permission) the next time they pickup an order and use the photo for promoting ordering online at your restaurant by posting it to Facebook and Twitter.

The restaurant industry continues its love-hate relationship with daily deals. There is even some research that the customers are not as bad as once thought, although they still are not the most profitable. The main drawback is that once you start using them, customers come to expect them.

Online ordering, however, proves a far better way to grow business--and is more profitable. As noted in a recent NetWaiter blogpost:  "Almost 98% of operators say the ROI of online ordering met or exceeded their expectations, with 52.4% saying their expectations were surpassed.

Everyone likes to feel as if they are an insider, that they know things other folks don't know.  This includes secret menu items at restaurants.

What's better than a secret menu?  A ‘secret’ menu only available to online customers.

"Online ordering is a natural for ‘secret’ menu items," says Jared Shimoff, Sr. Director at NetWaiter.  "Obviously, it’s impossible to keep things a secret when you post information online, but keeping certain menu items exclusive to your online menu will encourage people to gravitate to your online site and help set your online menu apart from menus at other restaurants."

Often times, secret items are similar to regular items, but in different presentations.  For instance, McDonald's purported Monster Mac - a Big Mac with eight patties (can you say heart attack?).  The ingredients are already on hand.  Alternatively, secret menu items can also allow you to experiment with new offerings before rolling them out to the mainstream.

"If you have a secret menu or customers know the secret menu, they feel like they're insiders," Bret Thorn, senior food editor of Nation's Restaurant News, told NPR News.  "They feel a kind of personal connection to the restaurant; they feel they know something that maybe not everybody else does.  And everyone loves that."

Takeout continues to grow as a percentage of takeout business for restaurants. No wonder when many popular meals are more expensive to make at home (according to this Yahoo article) than ordering at a restaurant. And that says nothing about your time involved in putting the meal together. 

Take full advantage of that takeout market with online ordering from NetWaiter. 

Jose Davila, manager of The Sub and Pizza of Amherst, located not far from the University of Massachusetts, setup a new marketing tool in 2012 - NetWaiter.

"I looked at online ordering systems for a year," said Jose. "I have a big file of all the companies I reviewed.  NetWaiter made me feel very comfortable.  Their system is very easy to use, very easy to make changes, and they walked me through all the steps.”

Jose reports that his average takeout ticket size prior to NetWaiter was about $11.  Now his average takeout ticket ranges between $17 and $19.  "The cashier, who takes orders over the phone, does two or three jobs at once," says Jose. "They don't always think to suggest an appetizer, another dish, or another topping. But NetWaiter allows me to do this."

NetWaiter has also opened up an entirely new client base for The Sub and Pizza of Amherst.  Whereas they rarely received orders from delivery services catering to the college crowd, NetWaiter allowed them to expand access to that customer base.  “NetWaiter has opened that market for us,” he said.  “Younger people really like online ordering."

This may be a big shock, but studies reveal that only 4% of Facebook fans return to your page after visiting and liking it.

This means if your messages don’t end up in a user’s newsfeed, they probably won’t be seen.  So, how do you get your Facebook posts to as many followers as possible?

Posts on a newsfeed are based on an algorithm called EdgeRank.  If you do things the algorithm likes, then your posts will get in front of more people.  Here's what the algorithm looks for:

Affinity:  The more posts a fan likes, comments on, and shares, the more likely they will see your future updates.

Weight:  Closely linked to affinity, this measures the action of each individual update.  The more action an update gets, the more likely it will be shown on more newsfeeds.

Decay:  If you are posting the same thing all the time, or you wait too long between posts, the algorithm starts to forget about you.

TIPS:  Try to post at least once a day, and pay attention to when you post and what kind of responses you receive.  Your followers may be more prone to responding at specific times.  Look for patterns of high response, make posts or ask questions that elicit answers, and try to be interactive.

A popular marketing vehicle used by restaurants is the limited time offer, or LTO.  

Typically, LTOs are special menu items or offerings made available for a short period, often offered in unison with a holiday or celebration of some sort.  These opportunities work especially well with online ordering.

NetWaiter has assembled a list of non-holiday events that are great for online ordering LTOs:

•    Do you have a local minor league baseball team, or a major league team for that matter? Offer a combination of foods for a pre-game tailgate party.  You can set the offer to be available after a certain time on game day.
•    The Saturday wedding special - a bag of sandwiches for the groom and groomsmen, or finger foods for the bride and her bridesmaids as they get ready.
•    Do local parks offer summer evening movies or concerts?  Customers can order dinner online and pick it up on the way.

NetWaiter and limited time offers - a combination that can help your bottom line.  Develop your offering and use the NetWaiter Management Console to email it to your database of online customers.

Delivery Areas

Coming soon, your restaurant will have the ability to customize more specific delivery zones.

Within the NetWaiter Management Console, restaurants will be able to 'draw' and configure custom delivery areas on a map.  Each delivery zone can be configured with a simple click-and-drag function to encompass the exact area in which delivery is available.  As allowed now, restaurants can configure more than one delivery zone, each with its own associated settings, such as a delivery fee and an estimated delivery time.  The new delivery area configurations provide restaurants in densely populated locations the ability to configure their zones more precisely.

The current delivery zone options, based on a radius, will remain available to restaurants offering delivery based strictly on distance.  

Holiday Hours

You can now configure your holiday hours for the entire year.

Just in time for Easter - a new feature is now available in the Location Information section of the NetWaiter Management Console that allows restaurateurs to customize hours for annual holidays.  The Holiday Hours feature allows restaurants to indicate special holiday hours or if they are closed for a particular holiday.  It also allows for the creation of custom holidays throughout the year that a typical calendar might not recognize.

This new feature alleviates the need for restaurants to re-adjust their normal open/close hours each holiday.  If the Holiday Hours are configured, it will automatically account for them.  It’s an ideal tool to accommodate Thanksgiving or Easter, both of which have different dates each year.  Do you close early on New Year’s Eve?  No problem, you can configure that as well.

When it comes to social media, your restaurant probably has one or all three of the following: a Facebook page, a Twitter account, and a presence on Instagram.

What should you talk about?

A recent survey of more than 1,200 restaurant consumers asked what guides their choices when they decide where to dine or order takeout/delivery.

• 83% said that treating employees well is important. Highlight your employee-of-the-month on social media. Did someone get a promotion, graduate from college, or do something great for a customer? That’s more social media material. 
• 73% indicated that support of their local community influences their restaurant choice.  When you support a local community event, take some photos and post them online.  It makes a difference. 
• When you promote menu items, keywords such as “fresh”, “locally-sourced”, “whole grain”, and anything “all-natural” are great to mention.

And to no one’s surprise …

• The survey revealed that the convenience of an online ordering system shares the top spot with taste and quality, which is why you should always make your online ordering easily available to all customers.

In a blog post earlier this month, we talked about how NetWaiter’s online ordering system can help you cater to increased demand for customization - requests for extra meat, double avocado, or other add-ons.

To help accommodate these requests, in addition to upselling the order, it’s important to include any paid option as a selection customers can click to add.  But what happens if a customer enters a separate request in the Special Instructions field that should incur an additional charge?

These special instructions, which restaurants are happy to fulfill, can cause a difficulty when an order is pre-paid. Do you honor the request for extra turkey, even though you haven’t been paid for it, or do you hold off and not include it?

To address this, NetWaiter has developed a Secondary Transaction Feature to allow a restaurant to run a separate charge on a customer’s card, after the initial transaction, to pay for that special request.

This is also a handy feature to add a tip.  A customer may not have thought about a tip when placing their online order, but the Secondary Transaction Feature allows delivery drivers to add a tip to an order, after the initial payment, if the customer tells them to.

Another new addition to NetWaiter is the Hidden Item list.  NetWaiter has always allowed restaurants to “hide” items on their menu, most often because the kitchen has run out of a key ingredient or the item was a limited special that may come back in the future.

This new feature shows “All Hidden Items” in one section of the Management Console for easy management.  Managers can see all items on their menu that are hidden, in one place, and then unhide those that they want to be available again.

In sales and marketing, the tipping point is the moment when all the market factors merge, tipping in favor of a specific product service. Sales skyrocket and no one looks back. 

Online ordering may quickly be approaching its tipping point. For restaurants that do not yet have online ordering, now is the time to get a NetWaiter site. For those restaurants who already offer NetWaiter, you’re already on the right path and riding the next big wave of change for restaurants.

Consider the market factors that have led to this tipping point…

The Consumer. Each year the percentage of consumers, aged 18 to 34, who indicate that they would order takeout or delivery on a mobile device goes up. The latest figure is 74%. Just a few years ago that number was below 50%.

The Technology. More than half of the mobile devices in use are smartphones, capable of accessing the internet and placing online orders. Public Wi-Fi is commonplace, and 3G and 4G runs things at breakneck speed. Placing orders online, not just by mobile, but tablet, laptop or desktop, is virtually flawless, and will only get better.

The Marketplace. It is estimated that the totality of mobile payments will top $720 billion/year by 2017, most of that being driven by the largest generation and demographic – the Millennials - which, not by surprise, is also the largest demographic who use online ordering.

The Capabilities. NetWaiter does much more than process online orders. The NetWaiter Management Console allows you to collect and analyze data, target customers, and send them special offers.

Remember the 2013 Super Bowl and the 34-minute power failure? It has a special place in football history. 

It was also a legendary moment in marketing. Somewhere in those thirty-four minutes, the marketing guru’s for Oreo tweeted a simple graphic—a photo of an Oreo cookie on a semi-darkened screen and the words “You can still dunk in the dark.”

It’s called moment marketing – marketing that takes advantage of unique circumstances. What if your restaurant, during that power failure, had tweeted, “You can still order online in the dark, and we deliver in case the lights come back on.” It would likely bring your NetWaiter online ordering site some action. 

But how can you prepare for moment marketing?  Here are some tips:

Have a plan. We just concluded the Olympics, a true global event. Imagine sending your customers a message in Facebook or Twitter—“Need a pizza to get you through the lady’s figure skating finals?” or, “How about celebrating the U.S. sinking the Russian hockey team with one of our submarine sandwiches?” If you prepare for an event, when the unexpected happens, you’re that much closer to being ready to pounce. 

Choose the best channel. Email might not be the best vehicle to reach folks during a weekend event. It is primarily a business tool, and after hours and outside of work, people are not as tuned into it. Facebook or Twitter are more appropriate. In the middle of a weekday, though, email might well be the best way to reach someone. 

Be authentic. Be part of what’s happening. If you can make people laugh with the cleverness of your promotion, you are apt to be more successful. Oreo didn’t send out an ad for their cookies. They suggested that their cookies would be appropriate for the moment, and they did it in a humorous way.

A recent study shows the branding advantage of a mobile site, especially for a restaurant. 

Consider these facts:

• Consumers attach to a brand faster using mobile devices than anything else, because they hold the device in their hands, as opposed looking at a computer screen or television.  They make it a part of their identity, and therefore, trust it more (the study calls it psycho-haptic — “what I touch is real”). Amazing factoid: Studies report that 65% of mobile owners admit to sleeping with their device next to their bed.

• Choices to messages on a mobile device tend to be Yes or No, and responses come fast.  This is because mobile devices are designed, in part, to make things convenient and quick.  Amazing factoid: According to a Litmus study, entitled Email Analytics, as of December 2013, 51% of emails were opened by a mobile device.

• Branded content on a mobile device is more likely to get a positive response.  This goes back to how people take personal ownership of their mobile device, which is much more than a desktop or laptop computer. 

• Want to counter a couple of bad reviews on Yelp?  Spend a little money for a great mobile site.  Consumers are more likely to change their perception of a brand if the message or experience comes via a mobile device.  Remember, their device is their personal property.  They are emotionally attached to it.  It wouldn’t lie to them.