Rise Against the Supermarkets

Posted by Tim on April 6, 2012

 

Astute restaurant owners know that other restaurants are not their only competition.  There are many other businesses attracting the would-be takeout customer from your place.  Among them is the local supermarket and convenience store.

Online a
nd mobile ordering can help you compete for more of those customers.


Jon Luther, chairm
an of Dunkin' Brands, in the keynote speech at COEX 2012 in Las Vegas last month, described supermarkets and C-stores as “the new elephant in the room" for restaurants, according to Restaurant Retailer News.


Shoppers are already at the store, and providing foodservice gives them an opportunity to integrate their meal purchases with other purchases.  Add to that an accessible location, plus lots of parking, and the choice is easy.  Because of this, many supermarkets are now including casual dining areas in their layout.

So, how do you compete against that level of convenience from savvy supermarkets?

Well - it’s an interesting challenge, and quite frankly, can be hard, but it’s not impossible.

First, think about what you have on your side.  Most customers carry a perception restaurants can provide a higher quality meal (and hopefully better value) than a supermarket
selling pre-packaged meals (a.k.a. “Home Meal Replacements”).  This is especially true if your restaurant offers unique menu items.


Second, you have to battle convenience with convenience.  This is where your mobile ordering site becomes important.  Customers need to be reminded that ordering from your restaurant is easy and accessible.

We know that convenience is the top reason people order online.  So, spread the news about your convenient mobile ordering site and remind customers your food is high quality.  Stress the fact that your online site offers access to your full menu (compared to a very limited supermarket menu).

"You (supermarkets and c-stores) win people with service and convenience...", said Luther.

Restaurants just have to do it better.
 

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Increasing Loyalty and Other New Data About Online Ordering

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. 

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