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.

A popular marketing vehicle used by restaurants is the limited time offer, or LTO.  

Typically, LTOs are special menu items or offerings made available for a short period, often offered in unison with a holiday or celebration of some sort.  These opportunities work especially well with online ordering.

NetWaiter has assembled a list of non-holiday events that are great for online ordering LTOs:

•    Do you have a local minor league baseball team, or a major league team for that matter? Offer a combination of foods for a pre-game tailgate party.  You can set the offer to be available after a certain time on game day.
•    The Saturday wedding special - a bag of sandwiches for the groom and groomsmen, or finger foods for the bride and her bridesmaids as they get ready.
•    Do local parks offer summer evening movies or concerts?  Customers can order dinner online and pick it up on the way.

NetWaiter and limited time offers - a combination that can help your bottom line.  Develop your offering and use the NetWaiter Management Console to email it to your database of online customers.

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.

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. 

“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.

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.

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.

Good waiters and waitresses work hard to upsell dine-in customers - to gently suggest they add items to their order, whether it’s a side of sautéed mushrooms with their filet mignon or an order of breadsticks with their pizza.

Does this same upselling occur with phone-in orders?  Probably not.

Why?  The employee taking the order is multi-tasking three other jobs simultaneously and the customer placing the order is more concerned that the employee get it right, rather than add more items.

NetWaiter, however, guarantees each customer ordering online from your restaurant will be properly upsold, netting larger orders and greater profits. This upselling happens in two phases.  The best thing – both are done in an unobtrusive way to generate larger orders, without slowing down the customer’s ordering process.

The first phase allows a customer to select additional options while customizing an item.  This can be done with any item.  If someone is ordering a sandwich, you may need to ask which type of bread they want (along with their topping choices).  You can also upsell the sandwich with additional suggestions, such as adding “Extra Turkey” for $1.50 or a “Bag of Chips” for $1.25.

The second phase tracks which categories a customer has ordered from and prompts them to add items from categories that haven’t been selected.  NetWaiter highlights the three or four most popular items from a suggested category and allows a customer to make a selection after adding any item to their order.  The specific categories are set based on a hierarchy configured by the restaurant. 

As mentioned in a recent blog post, appetizers, desserts, and beverages are the most overlooked items for takeout.  The hierarchy of categories for upselling can be set with this in mind.  You should set appetizers and desserts towards the top of the hierarchy.  Other categories at the top should include those with high profit-margin items and items with price points that make them an easy add-on to any order. 

The next time you update your online menu, make sure the categories in your upselling hierarchy are optimized to maximize online sales.  If needed, a NetWaiter Success Specialist can help you with your configurations.

Social Embarrassment, in connection to a restaurant order, is a term that refers to a customer who holds back and doesn’t order everything they want - the extra toppings on a pizza, for example, or chili fries rather than regular fries - for fear the employee will judge them for their selections (unhealthy or otherwise).  If you remove human interaction from the ordering process, customers will have no shame ordering the high-calorie, and often more expensive, options.

For example, a regional pizza chain that implemented online ordering quickly noticed a shift in the nature of orders coming from customers who previously called in.  Social embarrassment seemed to no longer be a factor.  Customers loaded on additional toppings, spending an average of 61 cents more per order.

Although social embarrassment is surely a factor in human interactions at a restaurant, there is another, and perhaps more significant factor, at work here.  It deals with the social embarrassment of stumbling through a phone order with an employee who is also doing three other jobs.  Add in the background noise of ringing phones, other customers, and the kitchen and the result is a customer who feels pressured to keep their order simple and fast.  It’s not worth the hassle.  They will forego the double cheese and the sun-dried tomatoes on just half of the pizza (those are extra toppings and extra profits).

NetWaiter online ordering, though, takes this out of the equation because customers have full control of their ordering experience, without any pressure.

The other social embarrassment alleviated by online ordering is the pressure on employees who just don’t like to sell.  Most restaurant owners will agree that extra profits are lost because employees don’t always (or properly) upsell customers. NetWaiter, however, does this automatically.

People criticize the ever-increasing trend of taking human interaction out of business transactions.  It turns out, though; there are more benefits (for everyone involved) than downfalls when it comes to online ordering for restaurants.

The studies and research all agree.  The biggest attraction for ordering online is customer convenience and control.  Whenever we make changes and upgrades to the NetWaiter system, we always put them through our ‘convenience filter’.  Above and beyond our recent Group Ordering release, other upgrades have been made to improve convenience for customers.  Here’s a recap:

Group Ordering

As discussed in our last newsletter, group ordering allows any customer, but particularly people like administrative assistants, pharmaceutical reps, or anyone organizing a group lunch/dinner, to conveniently place orders for everyone involved.

To start, an organizer invites friends or co-workers via email.  Your NetWaiter site allows the organizer to select invitees and include an optional message.  Each person accepts or declines the invitation.  If they join the group, they are directed to your menu to select their items.  When completed, their selections are sent to the organizer, who submits the Group Order, with the desired pickup/delivery time.  Each item of a Group Order is identified with the person’s name that ordered it.  If possible, your restaurant should write the name of the corresponding person on each item before packaging up the entire order.

Other Front-End Changes

Editing Orders – Customers will discover they now have a faster and easier way to edit and delete order information, if needed.

Site Appearance – We’ve tweaked a couple of visual elements (fonts, etc.) to improve consistency throughout the ordering process.

Site Layout – We’ve increased customer usability of the NetWaiter website.  Additions include a ‘breadcrumb’ to help with navigation, easier access to Log In/Off, and a link to view the status of a pending Group Order.

Management Console Changes 

Email Marketing and Social Widget Upgrades – You now have more options for editing content of email messages and those on your social widget.

Promotions Upgrade – When offering promotions that include specific items, NetWaiter will automatically add those items to an order when the customer enters the Promo code.

One of the things we like to do at NetWaiter is provide restaurants as much information as possible about the benefits of adding online ordering to your business plan.  A version of the following article recently appeared in Restaurant Hospitality Magazine.

A 30% boost in your takeout business within a matter of weeks.  What restaurant owner would not want that?

Those are the kinds of success stories we hear over and over from restaurateurs who have made online ordering part of their marketing plan.

Every day, restaurant owners are confronted with the costs of doing business.  The fixed expenses and staples are no brainers – rent, utilities, payroll for a great staff, the cost of quality food, etc.  The more difficult expenditures are discretionary ones like marketing. Where can a restaurant spend to get the best ROI?  Owners are bombarded with choices daily.

When asked, many successful restaurant owners have a similar response: “Online ordering has been one of our most profitable investments.  NetWaiter should be at the top of every restaurant’s to-do list if they don’t already have it.”

Companies such as NetWaiter offer a fully branded online ordering service through a restaurant’s website (a NetWaiter site can be customized with the look and brand the restaurant).  Customers order in seconds from an online menu.  They can make special requests, indicate future delivery or pickup times, and even make payments (NetWaiter electronically deposits the money to the restaurant immediately).  Custom delivery zones can be set by the restaurant (if they offer delivery), or customers can come in and pick up their order.  

The benefit to customers is convenience. They can order from anywhere (desktop, iPad, Smartphone, etc.). Imagine a mother getting off work. While still in the parking lot, she can order dinner from a restaurant and pick it up on her way home.  There is also the control given to the customer. Since they placed the order, there is less chance of error.  Customers who use online ordering typically use it again and again, quickly becoming regular customers.

Customized online ordering is a game changer for restaurants.  Using a restaurant portal that promotes online ordering for a variety of restaurants is very expensive (10-20%+).  Online ordering via a custom ordering site, such as NetWaiter, creates more business and is significantly more cost effective.  In addition, restaurants get a great tool that builds loyalty and extends and strengthens their brand.  Some NetWaiter clients even have ROIs in excess of 7,800% (the average is closer to 2,000%).

Where can a restaurant get a better ROI with their marketing dollar than online ordering?  There are many marketing options available, but none can come close to the ROI of a custom online ordering site.

When they first came out, daily deals like Groupon swept across the industry.  Smart restaurateurs, however, realized them for what they were—a trap.  An article in The New York Times more than two years ago addressed the pitfalls of these services:  "The consumers were being told: You will never pay full price again.  The merchants were hearing: You are going to get new customers who will stick around and pay full price.  Disappointment was inevitable."

Years ago, a newspaper advertisement might have been a restaurant’s ‘go-to’ way to bring in business.  Readership has dropped significantly, though, and even when newspapers were widely read, buying an ad didn’t provide a very good ROI.  It’s very hard to measure the success of such an advertisement unless you offer a redeemable discount.  Those discounts, however, significantly impact the ROI of the advertisement. 

Even more modern and effective marketing and advertising opportunities, such as email, loyalty programs, text marketing, social media marketing, etc. (which are all certainly worthwhile to deploy) would have a hard time beating the ROI of online ordering.

According to a study and paper done by The School for Hospitality Leadership at Cornell University, one of the things that draws customers to online ordering is convenience.  Once they experience it, they use it again and again.  Plus, because NetWaiter is integrated with Facebook, it allows people to share their ordering experience with their friends.  The more people ordering online, the more people learn about the restaurant’s online ordering site.

The Bottom Line – Why would you not offer online ordering?  There is no replacement for a well-run online ordering system such as NetWaiter, which gives customers the control and convenience of ordering takeout and delivery online.  Other marketing opportunities can’t come close to the ROI an online ordering site can produce.  Just as our clients say – online ordering should be at the top of the list for every restaurant.

Launching later this month, NetWaiter's new Group Ordering feature will allow offices and other groups to order more easily.

When someone visits your NetWaiter online ordering site, they will have the opportunity to organize a Group Order.  To start a Group Order, the organizer simply invites friends or co-workers to join their group.  NetWaiter provides the ability to easily enter the email addresses of invitees, along with the option to include a message.  Each person receiving the email can accept or decline the invitation.  If they join the group, they are immediately guided to the restaurant’s menu to select their items.  When done, their items are submitted back to the organizer.  Once all orders have been collected, the host can submit the Group Order, along with payment and their desired pickup/delivery time.

The organizer can view their Group Order and the progress of each invitee.  The Group Order status shows the organizer who has accepted/declined the invitation, who is browsing the menu, and the order information from the people that have completed their order.

The group ordering function includes several convenient features for organizers, including the ability to save invitees.  The next time an organizer places a Group Order, they can automatically select people to include that they previously invited.  The host can also delete names as needed.  In addition, if someone was left out of a Group Order that should have been included, the organizer can invite them, even if the order is in progress.

Online group ordering is a major benefit for both customers and restaurants.  For instance, if an office is having a staff meeting during lunch, it’s easy for employees to initiate a Group Order at a local restaurant.  This saves the hassle of everyone ordering individually.  From the restaurant’s perspective, the orders are larger and more organized for easy preparation.

Group Orders mean more convenience, and for restaurants, more convenience means more business.