As we approach April 1st, 2024, operators across various sectors are gearing up for the implementation of the National Living Wage (NLW) and other wage rate increases. This move, following the acceptance of the Low Pay Commission’s (LPC) recommendations, aims to fulfil a Conservative manifesto pledge to abolish low pay, defined as below 66% of median earnings. While this is a significant step towards ensuring fair compensation for workers, it also poses challenges for businesses, particularly those in sectors where labour costs constitute a substantial proportion of turnover.
Throughout the year, industry representatives have been actively engaging with the LPC and government officials, highlighting the potential adverse effects of such significant wage increases on businesses within the sector. It’s essential to recognise that these increases do not merely impact entry-level staff but have broader ramifications throughout the management structure.
Let’s delve into the new rates set to come into effect:
National Living Wage (21-years-old and over)
Rate from 1 April 2024: £11.44
Increase in pence: £1.02
Percentage increase: 9.8%
18- to 20-year-old rate
Rate from 1 April 2024: £8.60
Increase in pence: £1.11
Percentage increase: 14.8%
16- to 17-year-old rate
Rate from 1 April 2024: £6.40
Increase in pence: £1.12
Percentage increase: 21.2%
Apprentice rate
Rate from 1 April 2024: £6.40
Increase in pence: £1.12
Percentage increase: 21.2%
Accommodation offset
Rate from April 1, 2024: £9.99
Increase in pence: £0.89
Percentage increase: 9.8%
The LPC’s aim was to ensure that the NLW reached 66% of median earnings, a target they believe has been achieved. However, the forecasted level to reach this, as of March 2022, was £11.16 per hour. The significant rise in average earnings has pushed this target level higher. Additionally, other wage bands have also increased to prevent too great a discrepancy between them.
Strategies for Operators to Navigate the Wage Increase:
- Better Align Staffing Needs to Optimise Labour Costs: It may sound obvious, but it’s often overlooked, cutting staff isn’t the solution. The key is to manage the value equation in the eyes of customers and avoid raising prices while cutting service levels. Operators should align staffing needs with consideration given to peak versus off-peak staffing rotas.
- Take a Demand-Based Approach to Pricing: Reviewing item-level data across the estate will reveal which restaurants could be organised into different price bands based on customer reactions to previous price moves. Understanding customer willingness to spend ensures they see value for money without crossing price barriers.
- Leverage Technology: In today’s hospitality landscape, technology plays a pivotal role. From kitchen automation to online ordering, technology can enhance the customer experience while allowing staff to focus on delivering exceptional service.
- Have a Long-Term Game Plan: Unlike food inflation, labour costs can be planned for. Operators need a long-term plan to address these costs, making price changes in smaller increments spread over time. This approach allows for testing and assessment before full implementation.
- Streamline Your Menu: Reduce labour costs and improve execution by streamlining the menu. Evaluate menu items for operational impact and consider whether profitable items may be slowing down service. Identify bottlenecks and adjust menu offerings accordingly.
While the upcoming wage increases present challenges for operators, proactive planning and strategic decision-making can help navigate these changes effectively. By prioritising employee well-being, investing in development, and leveraging technology, businesses can adapt to the new landscape and continue to thrive in the ever-evolving market. Let’s embrace these changes as opportunities for growth and progress.
We spent the morning on Tuesday this week, networking with the hospitality tech community and the operators they serve.
The restaurant industry is witnessing a significant transformation, propelled by the integration of automation into its operations. This change is not just about adopting new technologies but also redefining the customer journey to enhance their experience and streamline business processes. As we delve into various industry verticals, from upscale dining at JKS Restaurants to the bustling environment of Ballie Ballerson and the unique demands of food halls like Sessions and Market Halls, the impact of automation becomes increasingly apparent.
A recent survey by Tech on Toast highlighted a critical issue: 78% of customers stated their experience could be negatively impacted by delays in being seated, ordering, and paying. These are pivotal moments in the customer journey where efficiency can either make or break the dining experience. Further research by McKinsey supports this, showing that reducing wait times can not only improve customer satisfaction but potentially increase restaurant revenue by nearly 15%.
Addressing Efficiency and Productivity
In response to these challenges, industry leaders are turning to automation to streamline operations. For example, innovative solutions like restaurant ePOS software are being implemented to reduce wait times during crucial customer journey stages. These technologies are not just about speeding up transactions but also enhancing the overall service quality, leading to a more satisfying dining experience.
The Perceived Wait Time Dilemma
Insights reveal that once a wait surpasses three minutes, customers’ perception of time begins to distort, feeling much longer than it actually is. This perception can deter customers from returning, highlighting the importance of adopting technologies that minimise wait times and simplify transactions.
Operational Benefits and Customer Satisfaction
The adoption of automation technologies has shown substantial benefits in operational efficiency and customer satisfaction. For operators, this means not only smoother day-to-day operations but also an opportunity to significantly enhance the dining experience, turning first-time visitors into regular patrons.
The Shift Towards Off-Premise Dining
With off-premise dining expected to account for over 50% of restaurant sales by 2025, the need for efficient, automated systems becomes even more critical. This shift demands solutions that can handle the increased volume and complexity of orders without compromising service quality.
Looking to the Future
The ongoing advancements in hospitality technology promise to reshape the industry landscape further. As automation becomes more integrated into operations, we can anticipate improvements in customer experiences and significant business growth. This evolution towards a more digital, efficient operation model offers a win-win for both operators and customers alike.
In conclusion, the journey towards operational efficiency through automation is not just a trend but a strategic move to adapt to the evolving expectations of customers and the dynamic needs of the restaurant industry. By embracing these changes, restaurants can look forward to not only saving time and money but also securing a competitive edge in the market.
Investing in a new EPOS software solution is a significant undertaking both in terms of time and money. It is easy to make mistakes when choosing a restaurant EPOS software.
When considering the implementation of a restaurant EPOS software system to streamline your restaurant’s operations, selecting the right one is obviously crucial. The POS system you opt for will serve as the engine of your operation ensuring efficiency and streamlining operations.
Given its significance, it’s imperative to avoid errors during the purchase process, as a poor choice could result in being saddled with an ineffective system that offers no benefit and will leave you out of pocket. Below are the five most common mistakes made by purchasers of POS systems.
1. Buying the cheapest EPOS
The saying is “buy cheap, buy twice”. You certainly don’t want to be buying a restaurant EPOS twice – it needs to be a carefully thought-out and balanced decision. Unlike the worst restaurant pos systems, a great EPOS for restaurant will generate a return on investment from day one.
You may find a cheap restaurant EPOS system that does the basics, but you need to carefully weigh up whether it will give you the functionality you need – not just today but in the future.
Also, look into the hidden costs – the basic EPOS for restaurant software may be “cheap’ but if you need to pay extra to unlock features then it is a false economy and it can quickly start to add up and even surpass the more expensive solution.
With a fully-fledged EPOS software for restaurant, you will get more than just order processing and you will get additional features such as stock control, multi-site reporting, guest management and handheld ordering.
2. Choosing the wrong supplier
A trustworthy supplier ensures a dependable EPOS system for restaurant. Therefore, investigate potential EPOS system for restaurant suppliers before deciding.
Key questions to pose to your prospective EPOS supplier might encompass:
What is the duration of the company’s operation in the industry?
• What is the scale of the company? How many staff members are dedicated to support the EPOS systems for restaurants?
• What does the after-care service consist of? Is it phone based? Is there an actual human you can speak to?
• What can they provide in terms of client references? Are they successful businesses and can you speak to them for an unbiased view?
• Do they offer any value addition? Can they offer unbiased consultancy, and do they offer the full solution such as hardware and integrated software?
• What do their support contracts cover? Are there any hidden charges?
• Do they offer any training sessions or guidance materials for the product?
3. Overlooking future needs
An EPOS system becomes a repository for a vast array of your business information, making it crucial to choose a solution that won’t require replacement in just a few short years.
Therefore, it’s advisable to seek a solution that not only resolves your current challenges but also aligns with your future needs. Begin with a forward-looking strategy, outlining your objectives for the next five years (or more!), prioritizing your requirements, and ensuring that your plan is in harmony with your financial resources.
A cloud-based solution offers scalability as and when you need it – simply increase user licenses as your business grows and you open more sites. With a monthly licensing model, you can keep track of your investment while also ensuring that your software is fully up to date with all the latest features. New functionality is updated automatically – you never get left behind. With minimal implementation required and working on iPad/Android tablets the initial investment of time and money is very affordable.
4. Expecting a one-size-fits-all system
Every sector comes with its distinct demands, and each enterprise has its specific needs as well.
Discovering an EPOS that fulfills all your criteria right off the bat can be challenging. Therefore, aiming for a system that meets roughly 95% of your needs, with the option for customisation to cover the remaining aspects, is a practical approach.
Look for a solution which integrates online ordering, mobile payment apps, kitchen automation and loyalty programmes to manage all the key aspects of your operation.
5. Insufficient Training and Support
You may be tempted to cut costs on training and support. Resist this temptation at all costs.
It is a vital investment in your business to ensure that your staff get the most and best training they can. Learning from product experts means they will get exposure to the best practices that will ensure you get the best from your investment and will increase your staff’s efficiency in using the system.
Great after-care is vitally important. Look for a solution that covers all your opening shifts – having to pay per call outside covered hours can prove much more costly than investing in an annual support contract!
What NFS Technology offers
As a leading supplier NFS Technology offers:
Award-winning training and support – available 24/7, 365 days a year. Your support calls will be answered by a real human – not a chat bot. With their extensive IT expertise and hospitality experience you can rely on them to answer any questions promptly and knowledgeably.
Our helpdesk team is comprised of industry experts. Our training plans are designed so that you and your teams get the maximum return on your investment.
You will also be assigned a dedicated account manager to support you and guide you post-installation. We are supplier agnostic so we will only give advice and recommend solutions that align with your long-term business goals.
A long-term partnership – we have been supplying solutions for nearly thirty years and we work with many leading bar and restaurant operators from award-winning independents to large international chains. Our client references speak for themselves.
Check out this success story to discover how our solution is driving growth at the leading bar operator BrewDog.
Best of breed solutions – we provide best of breed solutions managing all aspects of our clients’ operation encompassing order processing, kitchen automation, enterprise management reporting, guest management, handheld ordering, stock control and labour management. And much more!
For group operators we offer enterprise solutions custom built to enable them to manage their whole estate from one powerful dashboard enabling them to make impactful decisions even on the fly.
Integration with leading partner solutions – we work with a carefully selected partner network. One size does not fit all so integration is a great way of delivering the solution that will truly meet your needs.
NFS solutions are designed to integrate seamlessly with loyalty programmes, kitchen display systems, mobile ordering apps, digital signage and online ordering to digitally transform your operation and provide an ecosystem that is future proof.
Conclusion
Choosing the right solution for your restaurant needs to be a considered choice – one that cannot be made on cost alone.
As we have shown, there are several factors to consider – from scalability to support to integration capabilities. You need to evaluate whether your supplier is going to be a long-term partner who can offer the best solutions that will help your business grow – today and into the future.
Contact us today to see how we can digitally transform your business.
Customer satisfaction has always reigned supreme in the hospitality business – probably more than in any other consumer-facing industry.
So restaurants constantly seek innovative ways to keep their clientele happy and engaged. These days, technology plays a huge role in achieving this.
Among the tools available, Customer Engagement Platforms (CEPs) and Customer Relationship Management (CRM) systems stand out as powerful instruments for nurturing customer relationships and driving business growth.
So what’s the difference between the two – and which one is for you?
Understanding the distinctions between these differing client engagement software platforms can help you make informed decisions about which solution best suits your needs.
So, let’s dig into the comparison between Customer Engagement Platforms and Customer Relationship Management systems – and explore how each customer engagement tool can elevate your business.
Customer Engagement Platform (CEP)
Comprehensive insight: CEPs offer a comprehensive view of your customer interactions across various touchpoints, including social media, email, website visits and more. This fully rounded perspective gives you a deep understanding of your customers’ behaviour patterns and preferences in depth.
Customised engagement: Through advanced analytics and AI-driven insights, CEPs help you create personalised engagement strategies. With the help of data-driven intelligence, you can tailor your interactions with customers – such are marketing emails and offers – delivering relevant content and offers at the right time and through the preferred channels.
Omnichannel ability: One feature of these customer engagement tools is their ability to integrate seamlessly with multiple communication channels. Whether it’s email, messaging, live chat, or social media, these customer engagement platforms put you right in touch with your customers across diverse platforms, making sure your messaging is consistent and cohesive.
Making predictions: CEPs use predictive analytics to forecast customer behaviours and identify the potential opportunities and risks for your business. By analysing historical data and trends with these customer engagement platforms, you can anticipate your customers’ needs and proactively address issues.
Automated workflows: CEPs streamline your business processes by using workflow automation, eliminating the need for manual tasks while improving the efficiency of your operations. By automating routine processes such as nurturing leads, follow-ups and customer support ticketing, your business can make the most of its resources and focus on the activities that add value.
Customer Relationship Management (CRM)
A centralised database of customers: A CRM is a customer interaction platform that centralises your customer information – everything from contact details to purchase history and communication preferences. By consolidating data from various sources in a single place, CRM systems provide a unified view of customer interactions, so your different departments can collaborate and co-ordinate their efforts.
Sales pipeline management: By tracking leads, opportunities, and deals throughout the sales cycle., your CRM provides a real-time view real-time of sales performance and forecasting.
Enhancing customer service: The CRM streamlines support processes and supports resolutions. By tracking customer inquiries, complaints and feedback, they ensure you can deal with issues promptly, enhancing customer satisfaction and encouraging loyalty.
Managing marketing: With a CRM, you can create targeted marketing campaigns by segmenting customers based on their demographics, behaviour and preferences. Then you can use automation tools to create personalised campaigns that resonate with specific audience segments.
Integration ability: CRMs integrate seamlessly with other business applications, such as marketing automation platforms, ERP systems and epos platforms. This means your company has consistent data., even across a broad group.
5 factors you need to consider
So – is a Customer Engagement Platform or a Customer Relationship Management system right for you?
Every business is different, but this is exceptionally so when it comes to hospitality, and there are 5 things you should consider when making your decision about your customer experience management platform:
- Your business goals: Is your main focus customer engagement and loyalty, or are you more interested in firming up sales processes and driving revenue growth?
- Customer insight: How deep do you need to go when capturing and understanding customer insights? Do you need advanced analytics capabilities to draw actionable insights from customer data, or is a centralized database for managing customer interactions enough?
- Scalability and flexibility: How scalable and flexible is the platform you are looking at? Will it grow to fit in with your future plans, and is it flexible enough to integrate with other systems you need?
- Your users: Who’s going to be using the system in your restaurant, and how user-friendly is it? Will deployment and training be easy?
- ROI: Assess the cost carefully and determine what level of return on investment you expect to achieve – don’t forget to factor in implementation costs, maintenance and potential revenue gains or cost savings.
The expert touch
There’s no doubt that both Customer Engagement Platforms and Customer Relationship Management systems are huge assets to any hospitality business, fostering insightful relationships with customers and enabling your business to provide the kind of exceptional customer experience you need to succeed.
Both are an essential part of the digital toolkit now available to restaurateurs to sharpen up their business. They integrate in particular with epos systems that enable operational efficiencies such as tableside ordering and payment, speeding up service, and also online reservations and ordering.
The modern-day diner is highly demanding, and competition remains intense. Providing diners with the convenience, choice and seamless service they now require is essential if your business is to stand out from the rest and foster the loyalty that brings repeat business.
Ultimately, though, the key to success lies in selecting the right solution that best aligns with your business needs and empowers you to cultivate lasting relationships with your customers.
Expert help is, of course, on hand from companies such as NFS Restaurant Technology, and you should seek those who offer a consultative approach that understands your business and guides you through the maze of good decision making.
Platforms that provide you with deep customer insight are an invaluable part of this. By understanding the unique strengths and capabilities of CRMs and CEMs, and aligning them with your business objectives, they will help you elevate your hospitality business and deliver exceptional customer experiences.
Explore more benefits for your restaurant:
Restaurant operations are notoriously difficult to organise, because of their immense complexity – not only are there everyday issues of the business to sort out, but there are also the ever-evolving behaviours of customers to satisfy.
It’s not surprising, then, that the integration of restaurant management technology has become the secret of success for many operations.
Restaurant systems are sophisticated solutions designed to streamline operations, enhance customer experiences and elevate profitability. From optimising order processing to facilitating inventory management, it’s fair to say that these systems are revolutionising the way modern restaurants operate.
A restaurant management platform integrates various functionalities, including point of sale, inventory management, and customer relationship management, eliminating the need for multiple disparate systems.
As your restaurants grow and evolve, management systems offer scalability, allowing for seamless expansion and integration of additional features and modules.
In helping you grow your business in what is always an incredibly crowded market, restaurant management software helps give you a competitive edge, whether you run a single independent outlet or a whole group.
7 top benefits of restaurant management systems:
- Better relationships with your customers
- An end-to-end view of your business
- Analysis and forecasting
- Employee satisfaction and retention
- Better labour and stock control
- Enhanced financial management
- Targeted marketing for wider reach.
Better relationships with your customers
Restaurant’s relationships with customers have always been intense and important, but since the days of the pandemic they have evolved to cater for new and changed demands.
Customers now have a strong emphasis on convenience and speed as well as on the quality of food and service you provide. Restaurant systems that include EPOS are an immense help in this area, making it quicker for customers to place their order and also to pay.
For instance, serving staff provided with Epos on a tablet or phone can send orders direct from the table to the kitchen so food preparation can begin immediately, and service is faster. There’s no room for human error, either, so fewer dishes get sent back and there’s less waste.
Once the meal is over, your staff can take payment at tableside so the customer can pay and go. It adds up to a satisfying customer experience that encourages loyalty and repeat visits.
Restaurant management systems also make it easy for customers to order online or to make a table reservation, a valuable and convenient service that also cuts down the time your staff have to spend on the phone.
An end-to-end view of your business
The complexity of restaurant operations can mean it’s tricky to keep an overview. A restaurant management system is available online and provides up to date reports on all aspects of your business from automated inventory showing stock levels to sales.
For groups, this online availability of reports is invaluable when keeping track of the position of the business at any given time.
Analysis and forecasting
Data has become the lifeblood of most organisations these days. Coupled with effective analysis, it gives insight into everything from customer preferences to your busiest times and best-selling dishes. It can even provide forecasts to help you anticipate when extra labour etc is likely to be required.
Employee satisfaction and retention
A real hot potato in the industry, which has seen such labour shortages in recent years that some outlets have decided to curtail their hours or even shut on certain days of the week.
Restaurant management systems can help you provide a healthy and enjoyable working environment that encourages valuable staff to stay and reduces the time you need to spend recruiting and training.
A restaurant order management system reduces the amount of time serving staff need to spend running back and forth to the kitchen with orders, and also minimises admin when it comes to taking reservations – when customers can do it themselves online, staff involvement is minimised.
It all allows more time for your people to engage with customers, building loyalty and creating the friendly impression they will appreciate – and it makes the working day more rewarding for your staff and encourages them to stay.
Managers can also track employee performance metrics, identify training needs, and recognise top performers, fostering a culture of accountability and excellence.
Better labour and stock control
The cost of living crisis has exacerbated problems for the industry as restaurants struggle to cope with increases in the cost of supplies and balance that with keeping customers happy.
A restaurant order management system will give you far better control of your stock, providing real-time information on inventory and also on your supply chain.
The same systems make it easier to control labour, highlighting busy and quiet times and enabling you to have the right staffing levels at the right times.
A further enhancement that keeps things running smoothly is integration with restaurant maintenance software, which helps identify potential equipment issues, enabling proactive maintenance and minimising downtime.
Enhanced financial management
Using the reports generated by your restaurant software on sales, expenses and profits, empowers you and your managers to make data-driven decisions and take measures that optimise financial performance.
By tracking costs and identifying areas of inefficiency, restaurant management platforms enable proactive cost control measures, ultimately boosting your profitability.
Targeted marketing for wider reach
Special offers can make a huge difference to your hospitality business, keeping existing customers happy and enticing those who have never tried your restaurant to give it a to.
When it comes to loyal customers, your restaurant management platform and CRM can give incredible insight into their preferences. By capturing data every time they book or eat, you identify their preferences so you can produce timely and appropriate marketing emails that you know will hit the mark.
For instance, if you know they visited last Valentine’s Day, you can offer them two free glasses of champagne this year; or you can send them a birthday greeting that will put your restaurant top of their mind when they want to celebrate.
Restaurant management software also helps you with your social media presence, alerting you to any adverse reviews so you can put the situation right immediately and put a shine on your reputation.
Conclusion
Deploying carefully-selected restaurant software represents a strategic investment in operational efficiency, customer satisfaction, staff retention and financial performance – and it’s an investment that provides definite ROI.
By leveraging the power of technology, you can optimise your processes, empower their staff, and deliver unparalleled dining experiences. From order management to inventory control, these systems serve as the cornerstone of modern restaurant operations, paving the way for sustained success.
Whether your business is a bustling bistro or a multi-location group, the benefits of a restaurant management system are undeniable. And in a world where customers are increasingly demanding, staff are hard to find and competition is raging, it can give you the edge you need to succeed.
Discover more about how a restaurant management system will benefit you:
As the curtain fell on 2023, restaurant operators gathered at trade shows and industry conferences, reflecting on the challenges faced and absorbing crucial insights that will undoubtedly influence the trajectory of the dining landscape in the coming years. From loyalty programmes to the rise of AI and the resilience of takeout services, three pivotal lessons emerged, charting a course for success in 2024.
1. Loyalty Programmes: Beyond Discounts and Deals
Trade shows in 2023 echoed a resounding message: loyalty programmes have become instrumental in determining restaurant success. The data unveiled a staggering statistic: 57% of consumers express a heightened likelihood of visiting a restaurant equipped with a loyalty programme. However, the lesson learned transcends the mere allure of discounts; it’s about offering an elevated experience. Loyalty programmes have evolved beyond conventional tactics, incorporating perks like queue skipping and exclusive experiences. Restaurants have discovered that strategic loyalty programmes, designed with insight, can be powerful tools for not only retaining existing customers but also attracting new ones. In an era of intensifying market competition, loyalty programmes stand as gateways to sustainable growth.
2. AI and Chatbots: The Groundbreaking Frontier
The pervasive growth of artificial intelligence (AI) took centre stage in 2023, with a particular focus on the revolutionary potential of ChatGPT. While the full spectrum of AI applications in restaurants is still unfolding, one consensus emerged: it is a groundbreaking technology that demands attention. Restaurants, fascinated by the possibilities, began experimenting with AI chatbots to unravel their capabilities. The future portends a transformative role for chatbots in customer interactions and service delivery, promising to revolutionise the entire restaurant experience.
3. Traffic Challenges and the Resilience of Takeout
Amidst the ebb and flow of traffic challenges, restaurants discovered an unexpected bastion of resilience in takeout services. The percentage of pickup and delivery orders relative to the total remained unwavering, signifying an enduring demand for off-premise dining. Despite indications of a plateau in this channel, operators expressed an unwavering commitment to investing in takeout services. The lesson learned was clear—restaurants must strategize and innovate in the takeout space. Adapting to consumer preferences and ensuring a seamless experience for those who prefer the convenience of dining at home is paramount in navigating the evolving dining landscape.
The trade shows of 2023 not only provided a retrospective on the challenges faced by the restaurant industry but also illuminated a path forward. Loyalty programmes, the transformative potential of AI, and the enduring significance of takeout services are the pillars guiding restaurants in 2024. Armed with these insights, restaurants can boldly face the challenges ahead, adjusting strategies to align with evolving consumer behaviours and harnessing technology to craft unforgettable dining experiences. The future of the restaurant industry lies in embracing innovation, staying attuned to customer preferences, and unlocking the transformative power of emerging technologies.
In the wake of its initial surge during the pandemic, online ordering has transformed into an indispensable revenue driver for restaurants and convenience stores. Recent data from Paytronix highlights that, on average, digital orders contribute to 25–30% of a typical restaurant’s overall revenue. As the digital landscape continues to evolve, the question arises: should businesses opt for third-party marketplace services, first-party online ordering platforms, or find a balance between the two to maximise their benefits?
The Dilemma of Third-Party Marketplaces
While third-party marketplaces offer a quick entry into the digital realm, convenience comes at a significant cost. These external platforms can absorb nearly a third of the profits from the digital ordering channel, compelling restaurants to increase prices. However, this strategy becomes unsustainable due to inflation and the lack of ownership over customer data.
Despite the drawbacks, third-party delivery aggregators play essential roles in guest acquisition and cost-effective outsourcing of delivery services, especially for smaller operators looking to establish an online presence swiftly.
The Power of First-Party Online Ordering
Recognising the limitations of third-party solutions, businesses are strategically transitioning to first-party ordering platforms. The 2023 Online Ordering Report from Paytronix emphasises the advantages of first-party guests over those who come through third-party platforms.
First-party guests tend to
– Order more frequently and choose higher-value items.
– Tip more generously, especially in times of inflation.
– Show a higher likelihood of participating in a brand’s loyalty programme.
Ordering directly from a restaurant’s website or mobile app provides businesses with valuable, actionable data, including customer identity, dining behaviour, and demographics. Armed with these insights and greater control over the guest experience, businesses can formulate a comprehensive guest engagement strategy, fostering customer loyalty and maximising revenue.
Guest Preferences Drive the Shift
The shift towards first-party ordering aligns with customer preferences. DoorDash’s admission in 2021 revealed that 43% of its customers preferred ordering delivery through a restaurant’s website or app, compared to only 27% who preferred third-party platforms. Customers opt for third-party marketplaces primarily for convenience, while some believe they cannot order delivery directly from their desired restaurant or convenience store.
Building a Comprehensive Digital Guest Engagement Strategy
Implementing first-party ordering platforms is about more than just maximising profits; it’s about meeting customer expectations. Over the past three years, customers have consistently shown a preference for the convenience and direct interaction offered by ordering directly from businesses.
While the transition may require a commitment to change, the long-term benefits outweigh the challenges. By embracing first-party online ordering, restaurants and convenience stores can cater to their best customers’ preferences, foster loyalty, and, most importantly, take control of their digital destiny in an ever-evolving market. As the digital landscape continues to evolve, businesses must make strategic decisions to stay ahead and provide the seamless, personalised experiences that today’s consumers demand.
Tips for Converting Guests and Seizing Opportunities
Now that online ordering is considered table stakes for most operators, first-party online ordering systems have become powerful platforms that integrate fully with other critical guest engagement functions and operational systems. Combining first-party ordering and loyalty programmes, for example, delivers more personalised digital guest engagement that leads to longer-lasting, more profitable relationships.
Once a first-party online ordering platform is in place, businesses can follow these tips to convert guests from third-party marketplaces:
- Raise awareness:
– Utilise in-store signage, compelling website offers, targeted email campaigns, retargeting ads, and engaging social media posts to create awareness about your online ordering system.
- Exclusive Loyalty App:
– Develop a loyalty app with exclusive offers for online take-out and delivery orders.
– First-party ordering shows a loyalty attachment rate of 41%, a significant contrast to the meagre 3% associated with third-party ordering.
- Utilise third-Party assistance:
– Redesign take-out and delivery bags with a QR code or URL, encouraging guests to use your website or mobile app for future orders.
– Leverage third-party marketplaces to promote your loyalty programme and facilitate the conversion effort.
- Curate Marketplace Presence:
– Adjust the number of items you sell on third-party platforms, and use the bio section to highlight the option of ordering the full menu directly from you.
As the online food ordering landscape undergoes significant changes, businesses must adapt and take control of their digital guest engagement. To stay competitive and navigate ongoing changes, restaurants and convenience stores must assert control over their digital presence, enhance customer retention, and leverage the benefits offered by first-party online ordering platforms. In a landscape where customer loyalty is paramount, mastering the digital shift through first-party online ordering not only secures a sustainable revenue stream but also establishes a direct and enduring connection with guests. As businesses prepare for continued transformation, the integration of technology and strategic engagement becomes the key to thriving in an ever-changing market.
In today’s fast-paced world, customers prioritise convenience, speed, and personalised experiences, driving the escalating demand for online food ordering, delivery, and takeout. While off-premise dining boasts advantages like increased revenue, an expanded customer base, and higher check sizes, some restaurant owners remain hesitant due to concerns about losing valuable in-person customer interactions. To address these apprehensions and empower restaurateurs to elevate their online ordering experiences, here are four insightful tips for staying connected with customers in the digital realm.
Tailor Your Platform Listing and Online Menu
Consider your restaurant’s page on third-party platforms as a virtual storefront—a canvas that needs to captivate potential customers. Infuse it with the essence of your brand’s voice and personality. Craft a compelling introduction that narrates the story of your restaurant, its culinary offerings, and your vision. The menu, the heartbeat of the experience, should showcase delivery-friendly, high-quality, and customisable dishes.
Engage potential customers through visually appealing content, such as high-definition images of your culinary creations. Complement this with imaginative dish names and clever descriptions that evoke curiosity. For instance, would you prefer ordering a “Large Cheese Plate” or a “Sweet Dreams are Made of Cheese Plate?” Descriptions offer a unique opportunity to let your brand personality shine in the digital space.
Harness the Power of Social Media
Social media stands as a potent tool for fostering customer interaction. Establish a connection with your followers through contests, giveaways, and user-generated content. Organise engaging photo contests, encourage customers to share their culinary experiences, and create custom hashtags exclusive to your restaurant. Use the platform to share behind-the-scenes stories, communicate hygiene measures, and introduce the faces behind your brand.
Invest time in nurturing your social media accounts to establish a genuine connection with customers. The organic growth of these accounts over time can serve as a cost-effective means to disseminate messages to your loyal customer base.
Infuse a Personal Touch in Each Order
Once an order embarks on its delivery journey, it’s essential to maintain a connection with the customer. Employ a point-of-sale (POS) system integrated with your online ordering solution to ensure precision and completeness. Timeliness and order accuracy resonate deeply with customers, making it imperative to get these aspects right.
Elevate customer interaction by personalising food orders. Consider including handwritten thank-you notes, short messages, or branded freebies like stickers or utensils. Thoughtfully branded packaging contributes to a unique ‘unboxing’ experience, potentially prompting customers to share their delight on social media.
Consider offering a ‘build your own’ meal option to provide customers with an ultra-personalized dining experience. This showcases an understanding of personal preferences without burdening your kitchen staff.
Actively Seek and Welcome Feedback
While reaching customers who utilise third-party services can be challenging, actively seek feedback through alternative channels. Utilise polls, surveys, and social media platforms to encourage customers to share their thoughts. Include a feedback card in delivery and take-out bags, complete with a custom QR code for seamless online submissions. Consider incentivizing feedback with discounts or coupons.
Monitor and respond to reviews on delivery platforms, transparently communicating actions taken based on feedback. For those with their own delivery service or online ordering app, leverage customer relationship management (CRM) data to send personalised offers, discounts, and feedback forms.
In conclusion, fostering customer interaction in the online realm may pose challenges, but it’s far from impossible. By tailoring your platform, leveraging social media, infusing a personal touch into each order, and actively seeking feedback, you can bridge the gap and forge meaningful connections with customers. Embrace these strategies not only to streamline operations but also to cultivate growth and customer loyalty in the competitive landscape of online food ordering.
The festive season brings joy, celebrations, and a surge of first-time customers to your restaurant. While the Christmas spirit is contagious, turning these one-time patrons into loyal customers can be a game-changer for your business. A well-crafted loyalty programme is the key to not only keeping the holiday momentum alive but also ensuring a steady stream of repeat customers well into January and beyond.
1. Unleash the Power of the Festive Menu
The holiday season often introduces special menus filled with seasonal delights. Leverage this opportunity to create a unique and enticing offering exclusively for Christmas. Ensure that your festive menu is not only delicious but also memorable. Use this as a starting point to capture the attention of first-time customers, providing them with a taste of what sets your restaurant apart.
2. Introduce a Christmas Loyalty Kick-Off.
Launch a limited-time Christmas-themed loyalty programme that aligns with the festive spirit. Offer customers special rewards, such as exclusive discounts, free desserts, or holiday-themed merchandise, for their loyalty during the Christmas season. This creates an immediate incentive for first-time customers to return and experience more of what your restaurant has to offer.
3. Seamless Sign-Up Experience
Make it easy for customers to join your loyalty programme. Simplify the sign-up process, allowing them to register quickly and effortlessly. Utilise various channels, including in-person sign-ups, online forms, and even QR codes at tables. The goal is to minimise barriers and ensure that customers can engage with your loyalty programme without any hassle.
4. Personalised Post-Holiday Offers
As the Christmas festivities wind down, transition seamlessly into the new year by sending personalised offers to your loyalty programme members. Craft messages that express gratitude for their holiday visits and extend exclusive offers for January. Highlighting these personalised deals makes customers feel valued and encourages them to continue their relationship with your restaurant.
5. Tiered Rewards for Continued Engagement
Create a tiered loyalty programme that rewards customers based on their level of engagement. Encourage repeat visits by offering escalating benefits as customers move up the tiers. For example, starting with a complimentary appetiser in January for basic members and reaching up to a free meal for top-tier members. This tiered approach keeps customers excited to climb the loyalty ladder.
6. Continuous Communication
Maintain open lines of communication with your loyalty programme members throughout January. Keep them informed about upcoming promotions, new menu additions, or exclusive events. Use email newsletters, SMS alerts, and social media updates to ensure that your restaurant stays top of mind even after the holiday fervour subsides.
A Year-Round Celebration
Transforming first-time Christmas customers into January repeat customers requires strategic planning and a commitment to ongoing engagement. A well-designed loyalty programme serves as the bridge between the holiday season and a year-round celebration of your restaurant. By offering enticing rewards, personalised experiences, and continuous communication, you create a loyal customer base that will keep coming back, ensuring a prosperous and joyful new year for your business.
Restaurants have always excelled at giving customers what they want, but consumers have changed in recent years – and that’s where on-demand food delivery systems come riding to the rescue.
Convenience and speed now dominate consumer preferences, and the hospitality industry has undergone a significant transformation to shape itself to these needs.
Restaurants recognise the huge competitive advantages deploying an online food ordering system provides to the business, streamlining operations, enhancing customer satisfaction, and boosting revenue. Check out these advantages:
7 ways an on-demand food delivery system benefits your restaurant
- Streamlined operations
- Better customer convenience and satisfaction
- Broader reach
- Effective marketing
- Increased average spend
- Brand loyalty and great control
- Data-supported decision making
Streamlined operationst
The best restaurants are based on exquisitely organised chaos, we all know that – but technology can really help add efficiency to hospitality operations.
By integrating online food ordering and delivery with hospitality epos systems, you can optimise your restaurant’s internal processes from order placement to delivery. This efficiency not only reduces the workload on staff but also minimizes the likelihood of errors, ensuring that customers receive accurate and timely orders.
Better customer convenience and satisfaction
A huge priority, naturally; happy customers are loyal ambassadors for your brand, while dissatisfied guests never return – and might damage your reputation on social media into the bargain.
On-demand food delivery systems are a massive help in your efforts to meet the evolving expectations of your consumers. One of the advantages of online food delivery is that customers really appreciate convenience, and with this type of software can effortlessly browse menus, place orders and track deliveries in real time.
This level of ease not only enhances customer satisfaction but also encourages loyalty by providing an experience that suits fast-paced lifestyles.
Broader reach
The advantages of an on-demand food delivery system extend way beyond the walls of your restaurant. They’re a great way to bring its offering to a broader audience, and who wouldn’t want that?
By partnering with popular delivery services or putting in place your own delivery system, you can reach customers who may not have considered dining in at your establishment. This extended reach is a powerful marketing tool that not only brings in new customers but also strengthens your restaurant’s brand presence.
Effective marketing
There are definite marketing benefits that come with deploying an on-demand ordering and delivery service for your restaurant. For example, fast food ordering systems, integrated with epos, provide opportunities for targeted promotions and advertising within their apps.
This allows you to provide tailored marketing for your offerings aimed at a specific audience, driving sales and increasing brand visibility. These platforms also provide valuable data insights, so you gain an in-depth knowledge of customer preferences and behaviours.
Increased average spend
Because digital browsing and ordering is so easy, customers are more likely to explore additional menu items and add-ons, which contributes to an increase in the average order value. On-demand food delivery systems create opportunities for you to implement dynamic pricing strategies, with surcharges during peak hours and discounts during slower periods.
Brand loyalty and great control
By managing your own direct online ordering system, you retain control over the entire customer experience – from placing the order to the delivery process.
This control not only ensures a consistent brand image but also allows for personalized interactions that resonate with customers. By building a direct relationship with your diners, you can cultivate loyalty and reduce dependence on third-party platforms, ultimately maximising your revenue.
Data-supported decision making
The data generated by on-demand food delivery systems – for example, by an online ordering platform for small businesses – is a treasure trove of insights that can be harnessed for strategic decision-making.
They capture information about your customers’ preferences, order patterns and even which menu items are most popular. By analysing this data using your restaurant management software, you can make informed decisions about a range of topics including menu optimisation, pricing strategies and marketing campaigns.
Obviously, restaurateur expertise and sense remain hugely influential, but a data-driven approach provides robust foundations so you can continue to adapt to changing market dynamics and stay ahead of your competitors.
Conclusion
Adopting an on-demand food delivery system is a transformative step that can propel your restaurant to new heights of success. From operational efficiency and enhanced customer satisfaction to increased visibility and revenue growth, the benefits are multifaceted.
By embracing the digital shift in consumer behaviour, your restaurant will thrive and build a lasting connection with your audience. Happy diners, happy restaurant – welcome to increased customer satisfaction and revenue growth in 2024!
Discover more about on-demand food delivery systems and epos:
