This from the Open Forum Blog of American Express: 

Practice the "benevolent ambush." This tip for better customer service comes straight from psychiatric research that found people were more grateful for an unexpected dollar bill than they were for the $100 bill they knew was coming. Look for ways to surprise your customers with an extra benefit or bonus to build real and lasting goodwill. Try this idea:

• A random 50 percent off coupon sent via NetWaiter once or twice per year to each customer is a great start. 

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.”

The advantages of online ordering are undisputed.  Customers love the convenience and accuracy.  You love that you can sell more meals without the added traffic in your restaurant.

So how do you encourage your customers to order more online?  Here are some simple steps you can take to make the online option more appealing.

Make the Order Online button more visible on your website.  We at NetWaiter are forever amazed at restaurants that require you to click through two or three screens before there is anything that tells the customer they can order online.  That button should be on your homepage, preferably at the top so the client does not have to scroll down.

A call-to-action.  Something as simple as, "Order Now!" is enough to get folks to click on the button. Maybe enclose it in a blinking star - the web is so distracting that sometimes you need some extra pizzazz to call attention to the otherwise obvious.  If you want to get serious, you can add a discount offer - 50% off your second dessert when you order online.

Offer curbside service.  For some people there is only one thing better than walking into a restaurant and picking up an order ready to go - pulling up to the restaurant and having them bring it out to them.  They don't even have to get out of the car.  Allow the customer to enter their vehicle description when placing the order.

This incident could have been disastrous for this restaurant, but cooler heads prevailed.

New Orleans Saints quarterback Drew Brees ordered takeout at Del Mar Rendezvous, a Chinese restaurant in San Diego, CA, where he used to live and where he is still involved in the community.  The order was in excess of $70.  Somehow, a picture of the receipt got into the hands of a website called The Dirty.  The website posted the photo and called Brees a cheap (insert expletive) for tipping three dollars on the order. 

Daniel Shalom Schreiber, one of the partners of Del Mar Rendezvous, did several smart things very quickly.  1) He took responsibility for the incident and apologized to Brees for the unwanted attention.  2) He determined the receipt did not come from the restaurant staff (it sounds like a rogue guest snapped the photo during the brief moment the receipt was exposed).  3) He wrote and posted a very classy letter on the restaurant’s website explaining the situation, apologizing to Brees again, praising  him for his benevolence in the San Diego community, and also pointed out that the tip was, in fact generous, as most customers don't tip for takeout at his restaurant.  4) He donated $888.88 to the Brees Dream Foundation (eight being a lucky number in Chinese culture). 

In our opinion, Schreiber took a potential disaster and turned it into a PR success by being calm and thoughtful.  For that, we give him a NetWaiter salute.  In addition, his personal donation to the Brees Dream Foundation was above and beyond the call of duty.

Let the record reflect that THIS WAS A TAKEOUT ORDER.  Tips on takeout orders are not typically expected, because the level of “service” (if any) is miniscule, especially compared to dine-in orders.  As most waiters/waitresses would acknowledge, any tip on a takeout order is appreciated, regardless of the amount.  Mr. Brees, it doesn’t matter how much money you make or how many passing yards you throw, your tip should NOT be considered small.  The irony is, if no tip was left, there probably wouldn’t be any controversy.  Regardless, it sounds like Mr. Schreiber and the restaurant staff certainly do appreciate your business and tip.

 If true, it’s unfortunate that a rogue guest thought it was important to 1) take a picture of Brees’s receipt and 2) get it posted online in an attempt to embarrass him.  That’s completely classless.  For that, we think you’re a jackass.

Are you considering SEO--search engine optimization--for your restaurant? Read this.

According to OpenForum.com, Adobe recently put out a study of the importance of website optimization activities. The survey covered 1,800 digital marketers, asking them about their activities in this area.

Eighty-six percent of the companies spent less than 15% of their marketing budget on website optimization activities--search engine optimization and other web-based campaigns. Slightly more than a third of those reported website conversion rates below 1%.

Those companies who  upped that investment to 25% of their marketing budget were twice as likely to enjoy website conversion rates of at least 9%. That means increasing your SEO budget by two-thirds can net an increase in results of as much as nine fold.  

This survey was across all business types, so it is not specific to just restaurants, but the general results are probably close.  According to a 2013 survey released by IAB and Viggle, 69% of those polled have ordered food via the mobile internet at least once, and use mobile devices for information/research even more frequently.

Investing in SEO will bring customers to your website and subsequently through your front door or to your NetWaiter online ordering website. 

It's a question restaurant owners often encounter from employees.  Here is what we have found at NetWaiter:

1.    Activate the tip field on your restaurant’s online ordering site so customers can leave tips when they enter their payment information.  This makes it simple for customers to leave a tip, and simultaneously benefits your employees.

2.    For online ordering, tipping is done in advance, so it’s important employees live up to (and exceed) the customer’s expectations after they tip.  Since one of the principal benefits of ordering online is customer convenience, it’s important to follow through with that expectation.  The extra TLC is remembered when the customer receives their order and it can impact tips on future orders.

3.    By and large, takeout customers make their decision for takeout/delivery BEFORE they choose the restaurant.  Using NetWaiter, your restaurant is better positioned to win the next question: What restaurant should we choose?  So, not only is online ordering good for business, it’s good for employee relations because it provides them an opportunity to earn tips from orders that might have been placed at a different restaurant.

This threat to restaurants keeps coming back.

A new study by the NPD Group, as reported in FastCasual.com and Supermarket News, predicts that within the next decade the market for prepared food and ready-to eat meals will increase more than 10 percent, compared to a 4% increase for commercial foodservice.

Supermarkets, convenience stories and even drug stores will be taking a bigger chuck of the traditional restaurant business.

Clearly these are restaurant customers who are interested in convenience. The key to not losing business share is to be more convenient. Online ordering can be a valuable ingredient in your marketing toolbox to reach these customers.

Some of the benefits of online ordering over ready-to-eat meals at retail outlets:

Selection--Ready-to-eat meals rely on a limited selection to appeal to all customers. Online ordering allows your customers to tailor their meal  from your menu.

Freshness--Ready to eat meals are typically prepared days in advance. Even hot food in the supermarket deli has been on display for hours, and picked over. Restaurant meals are fresh and cooked to order.

Time--A meal that has been ordered online is ready to go. Customers only need to park, walk into the restaurant and walk out of with their purchase. A ready-to-eat meal means negotiating a crowded supermarket parking lot, finding out what selection is and is not available, standing in the check-out line and then getting out of the parking lot.

Online ordering is the boost you need in the ever-competitive food service industry. 

Online ordering is the best weapon for addressing change in the restaurant industry…

The Orlando Sentinel, citing several respected industry sources, reports that restaurants that have not spent a huge amount of energy trying to capture the lunch crowd are now refocusing their efforts.

Mid-day meals typically mean lower profit margins and diners that are in a hurry.  Competition for the business, however, has forced restaurants to refocus their efforts.  Some restaurants are at a disadvantage here, reports the article, “… when diners eat out at lunch, they often want something quick — a problem for some sit-down chains.”

A weakness for restaurants in the lunch business is the lack of a good online ordering system.  Ordering online is ideal for the mid-day customer who wants to spend a limited time away from their desk or, better yet, get it delivered.

To compete, it’s important to emphasize the convenience of online ordering to customers, either for pickup or delivery.  You can do this through conversations with customers, in-store signage, messages on receipts, and email campaigns through your NetWaiter Management Console.

“A recent industry survey revealed that the lunch crowd accounts for 34% of restaurant traffic,” said Jared Shimoff, Sr. Director at NetWaiter.  “If that’s part of your business, you certainly want to keep it and expand it.  Online ordering is a key tool for that opportunity.”

Social media offers an excellent opportunity to reach customers on an emotional level using photos.  Here are three suggestions of photos you can post to Twitter and Facebook:

Photos of Dishes - Presentation is everything.  Post a photo of your popular entrées and desserts to Twitter and Facebook.  You can even add an offer:  ‘Surprise your sweetheart with pie tonight – order an entrée online and get 50% off one of our delicious pies.’

Photos of Employees – Highlight your employees and how well they do their job.  Post photos of employees so customers feel like they know them the next time they come in to eat.

Photos of Customers - Patrons are also part of your restaurant family.  When a customer comes in with a new baby, capture it on your camera phone.  How about the folks who order online at your restaurant three times a week for lunch?  Snap a picture (with their permission) the next time they pickup an order and use the photo for promoting ordering online at your restaurant by posting it to Facebook and Twitter.

The restaurant industry continues its love-hate relationship with daily deals. There is even some research that the customers are not as bad as once thought, although they still are not the most profitable. The main drawback is that once you start using them, customers come to expect them.

Online ordering, however, proves a far better way to grow business--and is more profitable. As noted in a recent NetWaiter blogpost:  "Almost 98% of operators say the ROI of online ordering met or exceeded their expectations, with 52.4% saying their expectations were surpassed.