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.

Online ordering is one of the best tools restaurants can use to position themselves against larger chains that dominate the market.  Indeed, there might not be a better time to be an independent or small chain than right now, especially if you offer online ordering.

Yahoo Finance reports that customer traffic at large casual-dining restaurants slid 2% this past December. Reasons cited for this traffic decrease? Oversaturation, to be sure. How many large intersections in a city contain two or more casual-dining concepts?

Another is the rise of fast casual chains, the most prominent examples of which are Chipotle and Panera. Restaurants like these have seen sales increase 15% annually for the last five years. What do they offer? Made-to-order meals, made in a hurry. To sum it up in one word we all know well, they offer - convenience.

Also, a consumer trend we are seeing return is called “cocooning”, a word first coined back in 1981. Large-screen HD televisions, services such as Netflix, and the ability to buy almost anything online has resulted in more and more consumers coming home from work and never leaving the house again.

If they don’t want to go out for a meal or cook at home, their only alternative is the convenience of takeout. This is why online ordering is so helpful.  Customers crave convenience, especially takeout customers.  Offering customers the ability to order from your NetWaiter site helps them just as much as it helps your restaurant.

Social Embarrassment, in connection to a restaurant order, is a term that refers to a customer who holds back and doesn’t order everything they want - the extra toppings on a pizza, for example, or chili fries rather than regular fries - for fear the employee will judge them for their selections (unhealthy or otherwise).  If you remove human interaction from the ordering process, customers will have no shame ordering the high-calorie, and often more expensive, options.

For example, a regional pizza chain that implemented online ordering quickly noticed a shift in the nature of orders coming from customers who previously called in.  Social embarrassment seemed to no longer be a factor.  Customers loaded on additional toppings, spending an average of 61 cents more per order.

Although social embarrassment is surely a factor in human interactions at a restaurant, there is another, and perhaps more significant factor, at work here.  It deals with the social embarrassment of stumbling through a phone order with an employee who is also doing three other jobs.  Add in the background noise of ringing phones, other customers, and the kitchen and the result is a customer who feels pressured to keep their order simple and fast.  It’s not worth the hassle.  They will forego the double cheese and the sun-dried tomatoes on just half of the pizza (those are extra toppings and extra profits).

NetWaiter online ordering, though, takes this out of the equation because customers have full control of their ordering experience, without any pressure.

The other social embarrassment alleviated by online ordering is the pressure on employees who just don’t like to sell.  Most restaurant owners will agree that extra profits are lost because employees don’t always (or properly) upsell customers. NetWaiter, however, does this automatically.

People criticize the ever-increasing trend of taking human interaction out of business transactions.  It turns out, though; there are more benefits (for everyone involved) than downfalls when it comes to online ordering for restaurants.

According to the Pew Research Center, as of 2013, 56% of all adults living in the U.S. have a smartphone.  Even more notable, within the important demographic range of 18 to 49 years of age (a sweet spot for online ordering customers), the number of smartphone owners jumps to 74.5%.

That works out to about 137 million people with smartphones.  It is still too early to say and be taken seriously, but we, at NetWaiter, believe online and mobile ordering is to restaurants what drive-thru windows were to fast-food places in the '60s - a game changer for how the public gets their takeout food.

Online ordering, however, offers enhanced accessibility from a customer's mobile device.  That's why NetWaiter places so much emphasis on mobile ordering and provides each client their own branded mobile site for easy menu navigation and ordering.   Consider these recent statistics from Google:

•    95% of smartphone users conduct restaurant searches.
•    64% of those searches convert to purchases in one hour; 90% convert within one day.
•    77% of those using NetWaiter for a delivery order prefer to prepay online rather than pay in person.
•    30%: The average industry increase in ticket size seen from mobile and online orders.

Where are you?  It’s the underlying question when asking customers for their delivery address.  The problem is - people aren’t always at an exact address.

A recent article in the New York Times chronicles the growing trend of restaurants delivering not only to homes and offices, but often to places with no address.  This included someone waiting in his car in the Upper West Side of Manhattan (he ordered breakfast delivered to his car), a public beach, and even a local neighborhood playground.

These unique delivery locations are a natural progression to an industry that is making it increasingly easier to order takeout and have it delivered.  These are also the types of takeout dining experiences that customers will talk about through social media and word-of-mouth: “Just had Chinese food ordered to a park bench #awesome #nolongerhungry” (with a picture of their orange chicken included) 

With NetWaiter’s online ordering system, customers ordering delivery can enter special instructions regarding their delivery order.  When an interesting delivery request is made, embrace the challenge, make the delivery, and tout your capabilities on your own Facebook and Twitter steams (protecting your customer’s identity, of course).  Word will get around.

Some interesting and funny requests just from this week:

• “Grove Arcade but outside on O'Henry Ave between Barber and Printville - directly in front of the loading zone and covered in roof construction scaffolding. Have a midget dog who will bark at you when you come inside office.”
• “I'm on the roof. Please ask doorman to call my cell (xxx-xxx-xxxx) when you arrive. Thanks!”

Does your restaurant have any funny or interesting delivery requests/stories?  We’d love to hear them.

The NetWaiter Management Console captures and tracks information about your online customers.  You can also use it to send out email campaigns.  As you know, however, not all emails get opened.  It's all about the subject line.  These tips will help your emails get opened more often.

1. Exclusivity - Your customers like to be called VIPs, get invitations, and sent limited time offers.  These are words that make them act.

2. Don't Shout - Capital letters on the web signify that you are SHOUTING AT PEOPLE.  Also, too many words in upper case tend to get flagged by Spam filters.

3. Avoid Problem Words - Stay away from the words free, help, percent off and reminder in your email title.  They negatively affect open rates.

4. Go Negative – As sad as it sounds, titles with negative words have higher open rates.  Use words and phrases like worst, absolutely wrong, and no fewer.  Sample: Don't wait in line, order online at (your restaurant).

5. People Don't Like to Read - Don't say in a paragraph what you can say in a bullet point.  Bullets are more likely to get read.

6. Keep It Short - 27% of emails are opened on mobile devices, and even short messages look long on those smaller screens.  Keep the subject line to a few words. 

Google's Think Insights recently published statistics that reminded us that not only is it important to have a mobile website, but it is also important to have a mobile website that delivers users quickly to what is important.

First, the broad view:

• When they visited a mobile website, 74% of people say they're more likely to return to that site in the future.
• 67% of mobile users say that when they visit a mobile website, they're more likely to buy a site's product or service.
• 48% said that if a site didn't work well on their smartphones, it made them feel like the company didn't care about their business.

Then there is the importance of a functional mobile website.

• 61% of users said that if they didn't find what they were looking for right away on a mobile website, they'd quickly move on to another site.
• 79% of people who don't like what they find on one site will go back and search for another site.
• 50% of people said that even if they like a business, they will use them less often if the website isn't mobile-friendly.

Think in terms of what an online ordering customer is looking for. Menu is at the top of the list. On the mobile website pages NetWaiter makes available for client restaurants, we design them so that the prospective customer is taken directly to the menu.

When designing a mobile  website, make sure a link to the menu is clearly visible on the first screen. 

If you are trying to decide on increasing the amount of money and energy you put into social networking for your restaurant, this might help you make the decision.

According to a recent study by the Pew Research Center, the number of U.S. adults using social networking stands at 72%. That's up from 67% less than a year ago. When Pew first did this study in February 2005, only 8% of online adults used any of the social networks.

No one is surprised that the highest numbers are in the younger age brackets, but seniors are making gains. Consider this information:

• Six out of ten Internet users age 50-64 are social networking site users.
• Adoption rates for those 65 and older have tripled in the last four years (from 13% in the spring of 2009 to 43% in 2013).

If your customer base boasts some diversity, also consider that, according to the study, social media usage extends across a broad range of demographic groups, with especially high adoption rates among Hispanics, college graduates, and those with incomes of $75,000+. 

Read more: http://www.marketingprofs.com/charts/2013/11514/who-uses-social-networks-age-race-gender-and-income-breakdown#ixzz2dxEsLWVB

Recent articles in respected business publications reveal that restaurants are seriously questioning the business sense of portal sites that offer online ordering.  An article in Bloomberg BusinessWeek relates how Pedro Munoz, owner of Luz, a Latin American restaurant in Brooklyn, NY, has decided to drop his portal service with Seamless.

The good news is that Munoz has been sending out information with his takeout and delivery orders, directing customers to use his custom online ordering site – powered by NetWaiter.

In the articles, Munoz cites the factors that make portals an untenable situation for his restaurant, and others:

High fees.  Munoz paid Seamless a 14% commission on all orders, plus additional charges for advertising and credit-card transactions.  Considering that some restaurants don't realize a high profit margin on some dishes, this doesn’t leave much profit.

Turnaround time for payment.  Munoz and other restaurant owners had to wait up to 30 days for payments that were processed through Seamless to reach his account.  He says that Seamless was holding as much as $20,000 at some points.

Similar complaints have been made by other restaurants against other online portals.  “It’s awesome if you’re a customer.  It’s great,” Munoz told Bloomberg. “But in all aspects, it’s killing the restaurants.  It’s a model that cannot be sustained.”

When NetWaiter brings you a new online ordering customer, our statistics show the likelihood is that they will return to place their second order within 14 days.  This is important.  New customers, and specifically ones that come back again and again, are one of the principal engines of growth.

It is safe to say that the convenience of online ordering is what draws them in, and is part of what keeps them coming back. What can you do to make sure your online ordering process is as convenient as possible, so they keep coming back to your restaurant?  Here are some quick tips:

Make the pickup process smooth and easy.  If you can, have a separate area for pickup orders, preferred parking, and your most personable employee working the counter.  These are all things we’ve talked about before, but are worth repeating.

Take advantage of NetWaiter’s pre-payment capabilities.  While one industry study indicated that less than 19% of online customers pre-pay for orders, that number is significantly higher with NetWaiter.  When given the option, 68% of all NetWaiter customers choose to pre-pay online.  The figure jumps to 77% when looking at just delivery orders.  Be sure to enable online payments and receive funds directly to your merchant account.

“If you can’t measure it, you can’t improve it.” Those were the words of the late Peter Drucker, one of the top management experts, an educator, and consultant with businesses across the world.  Knowledge is power!

So, what do you know about your takeout customers?  If a customer called to place their order – you probably don’t know anything about them.  If they ordered online, you know a lot.

An added value of online customers (above and beyond their larger orders) is the customer information you receive, and something you don’t get from phone orders.  You can see patterns, track results, and view a customer’s history/profile.

With this in mind, NetWaiter will soon be offering enhancements to the NetWaiter Management Console that allow restaurants to access more statistics about their online customers.  Owners and managers will be able to quickly break down and compare information regarding mobile vs. non-mobile orders, pickup vs. delivery, orders that are paid online vs. orders that are paid in-person, and group ordering.

Follow NetWaiter on Facebook, Twitter, and through our Blog for news on when these new features become available.

A recent industry white paper cites ten percent of online purchases come from a smartphone or tablet computer.  The same source predicts that by 2017, that percentage will be up to 50 percent.

There is no doubt that online and mobile commerce is getting more pervasive.

Some may refer to this as the beginning of Web 3.0, the convergence of social and commercial media, or what is becoming known as social commerce, wherein smart marketers use the power of social media to drive word-of-mouth information and then offer customers a way to make an immediate purchase.

As we look towards the future, we see social commerce as a turning point for online businesses.  It gives users the power to make direct purchases of products recommended by friends.  Their credit card, address and personal information may even be eventually synced with their social media accounts.  The act of making purchases will be easier.

NetWaiter has provided restaurants an early avenue into social commerce for several years in the form of our Facebook integration.  When a customer places an online order through NetWaiter, they have the opportunity to use their Facebook account to login, which also provides the option to post a message about their order to their Facebook page.  Not only does the post give restaurants immediate promotion, but there is also a link back to the restaurant’s NetWaiter site for others to view the menu and place their own orders.

The truth is - customers have always had the power of word-of-mouth advertising.  For the most part, it was simply passed on in personal conversations.  Because much more is on the web now, word-of-mouth advertising provides restaurant owners significantly more leverage and the ability to capture additional sales.

Google's Think Insights recently published statistics that reminded us that not only is it important to have a mobile website, but it is also important to have a mobile website that delivers users quickly to what is important.

First, the broad view:

• When they visited a mobile website, 74% of people say they're more likely to return to that site in the future.
• 67% of mobile users say that when they visit a mobile website, they're more likely to buy a site's product or service.
• 48% said that if a site didn't work well on their smartphones, it made them feel like the company didn't care about their business.

Then there is the importance of a functional mobile website.

• 61% of users said that if they didn't find what they were looking for right away on a mobile website, they'd quickly move on to another site.
• 79% of people who don't like what they find on one site will go back and search for another site.
• 50% of people said that even if they like a business, they will use them less often if the website isn't mobile-friendly.

Think in terms of what an online ordering customer is looking for. Menu is at the top of the list. On the mobile website pages NetWaiter makes available for client restaurants, we design them so that the prospective customer is taken directly to the menu.

When designing a mobile  website, make sure a link to the menu is clearly visible on the first screen. 

A recent article in the online version of QSR quotes a 2012 Nielson study revealing that more than 90 percent of consumers say that recommendations from friends and family have the biggest effect on their purchasing behavior.

The Zocalo Group, a marketing agency in Chicago, reveals which social media tools work best for restaurants.

Although it is frustrating that they don't include any quantifiable numbers in the article, according to Paul Rand, the CEO of Zocalo, the #1 most credible source is YouTube. This is followed by someone liking a brand page and sharing it. The third favorite online vehicle for consumers is online brand reviews. 

The information was collected for Highly Recommended, a book Rand will release soon.

Rand says brands also shouldn’t be afraid to ask guests to give a recommendation. “Whether you’re large or small, give people opportunities to do what you want them to do," he told QSR Magazine. "People will recommend all day long when you ask them to do it.” 

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.