We saw three trends, among many, changing the restaurant industry this last year, and they can all be addressed with online ordering from NetWaiter. 

Have It Your Way — This used to be the marketing line of Burger King, but now everyone is on the customizable bandwagon.  Extra meat, extra cheese, replace the bun with a lettuce wrap. NetWaiter’s online ordering system makes it easy to allow for this type of customization.  Even when a customer has pre-paid for their online order and throws in a special request that should cost extra, NetWaiter has enabled a way for you to politely go back and charge them the additional fee (see our March newsletter, out in a few weeks).

Unconventional Hours — A substantial number of people saw their traditional jobs go away for good over the last decade.  Some estimates have as much as one-third of the workforce in “freelance” jobs.  Others are working two jobs to replace the one that went away, or commuting a considerable distance. The 9-to-5 workday has been replaced by “whenever and wherever."  Online ordering accommodates these new and unconventional work hours by making your menu always available and easily accessible.   

More Competition from Unconventional Places — Some hotels are pondering takeout parking spots for their in-house restaurant as they struggle for new ways to bring in more revenue.  Supermarkets and even big-box retailers like Wal-Mart and Target are offering pre-packaged meals for shoppers that are on-the-go.  To compete with these places, you need to be more convenient and innovative than they are, and never let your customers forget it.

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.

Your restaurant should want as many customers as possible to order online.  Here are 5 simple reasons why:

•    You capture valuable information.  You can see ordering frequency and ordering habits.  You also get customer contact information such as email addresses and phone numbers.
•    Online orders are larger than phone orders by as much as 45%, although the average is around 20% larger.
•    Reduction in errors.  How many times have you given a credit to a customer because their order was wrong?  Also, you free up employees from all that time on the phone.
•    Customers order more frequently.  Once they experience the ease and convenience of online ordering, they keep coming back.  NetWaiter online ordering takes good customers and makes them better.
•    Customers are happier. Online ordering is quick, it’s convenient, and customers love being able to order from anyplace, at any time, and know their order will always be right.

5 simple reasons why your customers prefer to order online:

•    It’s convenient.  How many people have memorized your telephone number, let alone know your current menu?  With NetWaiter, your customers can view your up-to-date menu and not worry about speaking to anyone.
•    It’s quick.  With just a few clicks on their mobile device or laptop, their order is complete.
•    Their order is accurate.  Order accuracy gives customers the peace of mind that items won’t be missing from their order.
•    They can order from anywhere—as they’re leaving the office or on the soccer field in the final minutes of their kid’s game.  They also won’t feel rushed by an employee on the phone.
•    The ability to use discounts and promotions is much easier online and they can pay in advance.

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.

It’s accepted industry wisdom that a good contributor to building business at a restaurant is new-product introductions.  Those new dishes bring back customers, goes the logic.

If this is true, why does NetWaiter remind online customers what they last ordered when they visit your online ordering site?  

Because what we’ve long suspected turns out to be right… according to a recent industry study, less than 30% of diners are inclined to try new menu items or limited time offers (LTOs).  The other 70% stick with what is tried and true. 

The study also shows that for those culinary adventurers, there is a preference for permanent new-menu items over LTOs, by about 56%. 

There is also a distinct difference between the types of restaurants where customers are more likely to expand their menu selections.  The Casual-Dining segment is most likely to draw in customers who want to get adventurous and order something new for the first time.  40% of those customers may try a new or unfamiliar item.  Compared to only 19% for QSRs and 12% for Fast Casual restaurants, Casual-Dining is relatively high, but the overall incidences of people ordering something new are low.

For takeout and delivery, customers use Online Ordering for its tremendous convenience, and being reminded of what they last ordered, only helps increase that convenience.

The statistics are stunning: 95% of smartphone users conduct restaurant searches, and 64% of those searches convert to purchases within one hour.  Knowing this, it’s important to understand that mobile websites come with their own specific set of challenges.  Here’s what to keep in mind:

Keep it quick. Think about your own experiences.  When you’re using your smartphone to look up information, you could be in your car, walking in or out of an appointment, or traveling.  Time is a premium.  Your mobile site should include the important things within one click (i.e. a link to your online menu and online ordering).  Quick access is important.

Highlight your menu.  Sixty percent of consumers say a menu is the most important factor in selecting a restaurant online.  Keep that menu updated, too.  No one likes bad information, especially when it’s directly from the source.

Keep your brand prominent.  Who you are is important.  Make sure your logo and colors are reflected on the first page and all other pages of your mobile site.

Choose the right mobile partner.  At NetWaiter, we quickly saw the potential of online ordering from smartphones.  That’s why every NetWaiter client gets a custom mobile website for online ordering, branded to their restaurant.  Furthermore, we make it easy to update your mobile menu and settings through the NetWaiter Management Console. 

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.

January 1 is rapidly approaching. There is no better time to go over a list of things that will help you maximize the benefit of your NetWaiter online ordering system. 

1. One Click Access from your Homepage.  Attention spans on websites are measured in nanoseconds.  Don’t make your customer look – have at least one link clearly visible, at the top of your homepage.  Have at least one more button, shown consistently in the same place, on every page of your website.

2. Don’t Post a Link to Any Portal Listing.  Portals bring in the occasional new customer who might not have found your restaurant otherwise.  The costs, however, can be up to four times, or more, than NetWaiter.  Let portals send you new customers, not the other way around.  Remember, almost half of customers visiting a portal site (47.1%) said they clicked over to the restaurant’s own website to order their food once they found a restaurant they liked.  Capturing those customers is critical to save money.

3. Menu Priority.  Your online menu needs to be well crafted, just like your table menu.  The most profitable dishes, or those most popular with your customers, should have prominent positioning towards the top of each category.

4. Updated Menus.  Keep your online menu updated.  It only takes a second through your NetWaiter Management Console.  This is a big one: 68% of people are not likely to visit a restaurant, café, or bar after encountering incorrect online information about the business.

5. Don’t Forget About… Appetizers, desserts, and drinks are categories most frequently overlooked in takeout orders.  Make sure the hierarchy of your up-selling categories gives preference to these types of items. 

6. Market, Market, Market.  Use the database from your NetWaiter Management Console to promote off-hours business, special offers, and other incentives to make sure your favorite customers are well informed and come back often.

7. Seeing is Believing.  Photos sell product.  Are you making maximum use of photos on your NetWaiter site?  Click here for some tips and to learn more about the impact of photos with online ordering. 

8. Encourage New Customers.  Do you have an incentive for a first-time online customer?  The long-term value of an online customer is huge (considerably more than a phone-in customer), and the best part is – you can track it.  Consider offering an ongoing discount for first-time online customers (maybe 15% off, or more).

9. Take Advantage of Online Payments.  68% of customers pay online with NetWaiter, and the figure is even higher for delivery orders.  This saves time for both you and your customers.  In addition, the funds are deposited directly into your bank account. 

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.

Pre-paid orders are one of the best benefits for restaurants using online ordering.  The question is: how many of your customers take advantage of this option? Recent internet reports cite less than 19% of customers choose to pre-pay online.

Our figures are substantially different. With NetWaiter, we see 68% of customers choosing to pre-pay for their online order, if given the chance.  For delivery orders, that number jumps to 77%.

Pre-paying for an online order is just one of the ways NetWaiter streamlines the takeout business.  A customer who pre-pays can quickly pick up their order.  There is no fumbling with money or credit cards at the cash register.  It’s a time saver, especially during those peak hours, for both restaurant and customer.

Some NetWaiter restaurants report frequent instances of twenty or thirty online customers during their lunch rush.  Imagine the logjam that would be caused if they didn’t pre-pay online for their order.

Another major advantage NetWaiter provides restaurants is immediate access to their funds.  Some online services charge customers and do not transfer the payments to the restaurant for as long as a month.  NetWaiter allows restaurants to charge their customers directly and the money is immediately deposited into their merchant account.

“Allowing a third-party to take control of your receivables and then hold your money for up to 30 days is never a good business move,” said Jared Shimoff, Senior Director at NetWaiter. “Then again, if less than 19% of customers chose to pre-pay with that service, you’re probably not missing much!” 

Why does NetWaiter have higher rates for pre-payment?  A significant reason is that we are constantly evolving the NetWaiter system, making changes to increase convenience and improve the customer experience.  Cleary, the results show – producing 3 to 4 times the number of pre-paid customers.