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
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.  

Important Stats on Mobile Devices and Restaurant Technology

Posted by Tim on November 14, 2014
Recent research by the National Restaurant Association reveals stats that show just how important your restaurant's online ordering business is to certain customer segments:

Consumers that own smartphones or tablets:
  • 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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