Restaurant Technology Increases Business

Posted by Tim on January 23, 2015
Research from the National Restaurant Association indicates that technology, including restaurant online ordering, is playing a larger role in how restaurants attract more customers.

A quick look at some of the information reveals that:

    36% of customers say they are more likely to use technology options in restaurants than they were two years ago.
    65% have noticed that restaurants offer more of these options.
    8 in 10 consumers agree that restaurant technology enhances convenience.
    7 in 10 say it speeds up service and increases order accuracy.
    About one-third say that technology options compel them to choose one restaurant over another.
    About one-third also say that technology options cause them to order takeout and delivery more often.

And interestingly enough,  
    45% say that technology makes interacting with restaurants more fun.  

NetWaiter’s Dine-In Option

Posted by Tim on July 18, 2014
Last month, we reported that NetWaiter now offers the option for restaurants to accept Dine-In orders.  Customers can select the Dine-In option when completing their online order and then come to the restaurant to have their meal served to them.

What’s the importance of this?

Let’s look at a simple statistic that was recently released: Google reported that 50% of consumers stated they prefer self-service to full-service in retail environments.   It’s faster, more accurate, and with today’s technology, can be more tailored to their needs.

Faster, more accurate, and tailored to their needs.  In other words – convenient.

We often hear anecdotal reports of customers who order meals well in advance of their arrival because their time is limited.  Rather than wait at their table for a waitress to take their order, they call in advance to save time and have the meal waiting for them upon their arrival.  With this new feature, they can forget the phone and simply place their order online.

With a limited amount of time, employees can still get out of the office for lunch – by ordering in advance, they can get back to work on time.

Again, it all comes back to convenience, even in a Dine-In situation.

Enabling the option for customers to place Dine-In orders is easy through the NetWaiter Management Console.  The updated Reporting section and the new Sales Dashboard also include the Dine-In order statistics.

Some Statistics to Kick Around

Posted by Tim on May 30, 2014
Here are some interesting statistics from the 2014 Restaurant Industry Forecast, put out by the National Restaurant Association, and how they can be interpreted regarding restaurant online ordering

It often comes down to your website – The NRA reports that 61% of those consumers responding have visited a restaurant’s website. If you offer online ordering and your NetWaiter site is prominently linked to your site, you can capture the customer’s order when they visit your site.  It’s all about convenience. 

If you offer it, they will use it – 52% of customers said they would use a smartphone or tablet for delivery or takeout if the restaurant offered that option. That’s over 50% of your customers, who would likely increase the frequency of visits to your restaurant, if they could order from their mobile device. 

More reasons for mobile – Another survey finds that restaurants are the most searched industry on a mobile device and that 75% of those searching will make their dining decision based on the restaurant’s mobile site producing the information they were seeking. NetWaiter will make sure the important parts of your site (i.e. your menu) can be easily viewed from a mobile device. The good news is that your mobile site instantly reflects any changes made to your regular site through your NetWaiter Management Console. 

New NetWaiter Features Make it Easier to do Business

Posted by Tim on March 21, 2014

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.

 

Online Ordering to the Rescue

Posted by Tim on February 21, 2014

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.

Encouraging Return Visits from Online Customers

Posted by Tim on January 9, 2014

 

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.

The Impact of Virtual Touch on the Restaurant Buying Decision

Posted by Tim on December 13, 2013

In past articles, we’ve discussed the benefits of using photos on your NetWaiter menu.  Now there is another reason to show photos, and this is especially pertinent for tablet and mobile users.

As reported in the Journal of Consumer Psychology, if you touch something you like, you’ll want it more. It might also explain, in terms of dollars, why online orders tend to be larger than phone-in orders.

When a customer holds something in their hands, they imagine themselves in control.  They get a sense of ownership.  Research has found this to be true even on touchscreen devices, where the viewer has some control.  Customers don’t handle the food in your restaurant before deciding to order, but the ability to touch an image or menu item on a handheld device or tablet gives them a sense of ownership and control.  It precipitates that thought of, “Yeah, I want to order this.”

All the more reason to drop in as many photos as you can of your menu items.  Customers will feel as if they are holding and touching the actual item.  Pay attention to the quality of the photography, too. Other studies show that the sense of ownership is enhanced when the photography is particularly vivid.

NetWaiter and Photos: a winning combination for larger orders and a healthy bottom line.

 

Keeping it Personal with Online Ordering

Posted by Tim on November 7, 2013

Restaurant customers are, of their own will, flocking to convenient technologies such as using online ordering for takeout & delivery.  But, as one hospitality executive observed in The Wall Street Journal last month, "When you lose the experience of ordering with somebody who can give you an intelligent answer, you lose, well, hospitality."

Although it’s the ideal way to order, personal touch is still important in online ordering.  How can restaurants that grow their business with online ordering keep customers happy by maintaining a personal touch?  Consider some of these tips and tactics:

1.    Select your pickup counter personnel and delivery crew based, in part, how personable they are. A friendly greeting and exchanging quick, pleasant niceties goes a long way with customers and your brand.

2.    Make sure the personnel who handle pickups and deliveries know and use the names of the customers.  As Dale Carnegie said, “Remember that a person’s name is to that person the sweetest and most important sound in any language.”

3.    As an owner, pick up the phone periodically and call a customer who ordered online.  Ask them how their order was, how the delivery driver treated them, and thank them for their business.  Not only will you make a personal contact, but you will receive invaluable feedback and respect.

The True Cost of Portals

Posted by Tim on August 30, 2011

Many restaurants have a philosophy about using multi-restaurant online ordering portals - they grit their teeth and do it. 

Most of the time restaurants allow themselves to be listed on portal sites to get any exposure they may bring.  According to a Cornell Hospitality Report, though, “nearly half of the consumers on multiple-restaurant sites (47.1%) said they clicked over to the restaurant’s own website to order their food” once they found a restaurant they liked. That’s good news for restaurants using NetWaiter – it can, not only save the restaurant a lot of money, but also allow the restaurant to interact with their customers directly, rather than be ‘commoditized’ on a restaurant portal.

The bottom line – portals can charge some outrageous fees.  According to a recent piece in Gourmet Marketing, a well-known portal site they investigated "keeps their contract terms behind close(d) doors, and the rates vary by restaurant. This incredible lack of transparency shortchange(s) restaurants… It gives restaurant owners little room to compare in competitive markets, especially as many times restaurant owners are bound by a non-disclosure agreement.”

The article notes that fees can range from 11% to as high as 20%.  In addition, restaurants don’t directly receive money from incoming orders – they have to wait for the portal to send them a check (minus their fees).  Not only that, as one restaurant owner admits, portal sites also use a restaurant’s customer list against you.  "I never see a report of who ordered through the portal," he said.  "I'm sure they are using my customer information to market themselves to other restaurants."

The message to restaurant owners is simple - if you use portal sites to help promote your restaurant, you should be very aggressive about converting those customers to your own online ordering site.  Rather than pay huge fees to a portal, customers that order directly from your site will allow you to extend your brand identity to them, receive payments directly, and capture your own customer information.

To capture those 47.1% of visitors that would rather order directly from your website, you need to make sure your ‘Order Online’ link is prominently displayed on your homepage.  Additionally, you should inform guests that have already used a portal to order from your restaurant that you have your own online ordering system, guaranteed to be up-to-date with the latest offers and menu information.  Including a flyer with each portal order or offering a first-time discount for using your system are good ways to make sure their next order will be “NetWaitered” from your restaurant.

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All posts tagged 'Statistics'

Numbers You Can’t Ignore

Posted by Tim on February 20, 2015
A number that everyone in the restaurant industry has consistently speculated about was recently revealed.  According to BI Intelligence, Americans spend $70 billion a year for takeout and delivery of restaurant food.  Of that amount, the share that is ordered online is a whopping $9 billion, or just under 13%.

Here are some other important numbers to consider:


•    When restaurants enable online ordering, total orders per month at their establishment increase by an average of 11%.

•    The mobile component of digital ordering is growing at an even faster rate and now makes up about 23% of online food orders.

•    An online customer is more likely to re-order within 60 days, compared to a walk-in customer, simply because online ordering is so convenient.

With these kinds of numbers, the next question becomes, what type of online ordering should you choose for your restaurant?

•    Branded or Not?  NetWaiter is a branded online ordering system.  As opposed to portals, which feature hundreds of restaurants, NetWaiter provides an online ordering site specific to your restaurant, reflecting the look and feel of your brand.
 
•    Get Paid or Not?  NetWaiter processes payments instantly and directly to clients.  Portals are infamous for charging customers directly and then holding onto the money for weeks or longer.  Full control over payment processing is an important question to answer.

•    Mobile or Not?  The numbers clearly indicate how critical mobile ordering is to your restaurant.  Make sure your site is fully functional on all mobile devices.

•    Customer Access or Not?  Online ordering opens up a world of opportunities for restaurants.  Having access to your customer information is the first step to maximizing those benefits.  Not all systems provide that access, especially portals.

If you already have a NetWaiter site, rest easy knowing that you have the premier online ordering system in the industry.  If you want to read more about implementing online ordering and the various options available to restaurants, read this whitepaper from NetWaiter.

Restaurant Technology Increases Business

Posted by Tim on January 23, 2015
All posts tagged 'Facebook'

How a Restaurant Doubled Its Online Business in Two Months

Posted by Tim on January 20, 2015
Recent articles about a Florida-based restaurant chain focused on how they doubled their online ordering in their restaurant in two months, from 2 to 3 percent of their volume to more than 5 percent.  Some of what they did was just good sense.  Other things were a bit more innovative.

Here are three that worked well:

  • Revamped their website.  Their new website was easier to navigate and, more importantly, the button for online ordering was moved right up to the front where visitors could find it quickly.
  • Updated Directory Listings.  Each store did a painstaking search of all the directories they were listed in, correcting erroneous info and making updates.  Google algorithms like correct, consistent information. Click-through rates skyrocketed after that information was corrected.
  • Wooed Influential People.  Food bloggers and Yelp Elite members were invited for special events and private tastings.  This resulted in a lot of buzz on social media – Facebook, Twitter, Instagram, and blogs.  Some locations jumped as many as two stars in their Yelp rating.  A half-star increase in your Yelp rating can result in a 19% increase in business, according to a 2012 report by Economic Journal.  That’s worth the investment. 

Tips for Effective Facebooking and Tweeting for your Restaurant

Posted by Tim on October 3, 2014
  • 90% of 18 to 34-year-olds.
  • 89% of 34 to 44-year-olds.
  • 62% of 45 to 55-year-olds.
  • 60% of 55 to 64-year-olds.
  • 34% of those 65 and over.
Takeaway: Mobile devices are quickly becoming the instrument of preference when it comes to online ordering.
 
Consumers that report they use restaurant technology more than they did two years ago:
  • 53% of 18 to 34-year olds (Millennials).
  • 43% of 35 to 44-year olds.
  • 26% of 55 to 64-year olds (Baby Boomers).
 
Takeaway: Millennials are still the sweet spot for online ordering, but the customer base is expanding in all age segments.

Increasing Loyalty and Other New Data About Online Ordering

Posted by Tim on August 1, 2014

A piece in PMQ Pizza Magazine reveals some new data about online ordering.  It’s good stuff to review: 

  • Online ordering has an average customer return rate of 95%.  This means you can boost customer loyalty with minimal effort, other than implementing an online ordering system.
  • The younger generation (i.e. millennials) is much more comfortable online, compared to talking with someone.  That’s how they’ve grown up.  It’s not hard to imagine why they flock to online ordering. 
  • Some restaurants report that a popular promotion to drive customers to their online ordering site, and keep them coming back, is a weeklong offer of deep discounts; 25% to 50% off a high-profit menu item seems to do the trick.
  • According to one restaurateur, twice-a-week email blasts from your NetWaiter Management Console to customers with a special offer is another way to generate more business.  NOTE: Be careful with this type of customer engagement, you don’t want to alienate customers by emailing them too much. 

Customer Demand, and Other Reasons You Can’t Ignore Tech in Your Restaurant

Posted by Tim on May 16, 2014
63%... and climbing.

That’s how many restaurant customers, according to the National Restaurant Association, have used technology to interact with a restaurant - including reviewing a menu, checking nutritional information, and placing an order.

Equally important is that most consumers, once they use a technology, are more apt to want to use it again.  Nevertheless, many restaurant owners remain hesitant about online ordering.  They site various factors and although they may not admit it, we suspect some of them simply fear technology.

Here are three reasons that should overshadow any doubt about online ordering:

Brand Engagement - Online engagement is critical for brand awareness.  The more your customers can touch you, and you can touch them, the more likely they will patronize your restaurant.  The NetWaiter Management console gives restaurants valuable data for analysis and the ability to reach out to customers via email campaigns (another form of engagement).

More Customers – Obviously, takeout expands your restaurant beyond the seating capacity of your ‘brick-and-mortar’ location.  Because NetWaiter can expand your takeout and delivery business, you are now able to handle an even greater amount of business.  Most importantly, NetWaiter online ordering increases repeat visits and loyalty, so you’ll be seeing customers more often, which is good for your bottom line.

Improved Efficiency - Without NetWaiter, your takeout business is limited to how fast phone calls can be processed.  Customers don’t have to wait on hold or listen to a busy signal. NetWaiter also increases the accuracy of your takeout orders – which is critical for customer satisfaction.  There are much fewer ‘do-overs’ (which can cost a lot of money) and fewer upset customers.  Happy customers = repeat business = more revenue. 

Takeout Container Considerations

Posted by Tim on May 5, 2014
Most concerns about takeout containers come down to: 1) The container keeping the food at an ideal temperature for a reasonable amount of time (long enough to get it home and on a customer’s table); 2) The container not leaking; and 3) The container keeping the food intact (an item should look similar to how it is served in the restaurant). 

A recent study, however, revealed some additional considerations for takeout containers. 
  • 46% of takeout customers eat their food directly from the takeout container.
  • 44% indicated that it is important to them that they can store leftovers in the original packaging. 
  • 40% indicated that it is important that they can reheat leftovers in the original packaging. 

While none of the numbers cited here represent a majority, they do indicate a sizable chunk of takeout customers, which is a group you want to keep happy (because they tend to be your most loyal customers).  Things to consider: 

  1. Customers expect restaurants to offer packaging that is versatile.  They don’t look at the packaging simply as a delivery vehicle. 
  2. Let customers know that your packaging can be used for storage and reheating.  That added information will go a long way and give them positive thoughts about your restaurant for as long as they use the packaging.  A simple note with each takeout/delivery order will grab their attention.

The Tipping Point for Online Ordering is Here

Posted by Tim on March 21, 2014

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.

 

What Mobile Device Love Means to Your Restaurant

Posted by Tim on February 13, 2014

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.

 

 

Know Thy Customer

Posted by Tim on December 13, 2013

“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.

Email Tips: Write Subject Lines That Get Opened

Posted by Tim on October 7, 2013

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. 

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