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:
In the restaurant industry, crafting messages that resonate with your customers is an art form. Marketing campaigns wield the power to influence loyalty programme members, compelling them to revisit and spend more. The key lies in delivering compelling loyalty programme messages with meticulous attention to format, relevance, and timeliness.
When you send a guest the right message over the right channel at the right time, it cuts through the clutter and forges a meaningful connection. This strategic approach not only conveys information effectively but also maximises the impact of your message. To guide you through the nuances of successful loyalty programme engagement, this article will delve into the basics of tried-and-true messages.
Imagine sending a warm email adorned with enticing food visuals, enticingly stating, “Hey, we’ve prepared something special for you!” It’s not just a message; it’s like playing a melody that evokes sentiments of “I miss that place!” This interaction serves as the initial chord to draw them back into your establishment.
The key to mastering this art of customer communication lies in understanding who they are. What culinary delights ignite their enthusiasm? What dishes did they savour previously? Tailoring your messages to their preferences ensures that your words strike the right chord, forging a meaningful connection.
Timing is another crucial element in this symphony of customer communication. Dispatch messages that align with the season or local events, such as introducing a cosy winter menu or a weekend indulgence. It’s akin to saying, “This is tailor-made for you right now!” Timing elevates the importance of your message, prompting customers to take action.
Social media serves as the grand finale in this orchestrated plan to engage with customers. Showcase behind-the-scenes glimpses, introduce the culinary maestros behind your kitchen, and extend invitations for customers to participate. Run entertaining contests to transform customers into fervent fans who amplify your restaurant’s reach.
Provide incentives for return visits by offering exclusive deals or freebies. Loyalty programmes and discounts not only make customers feel valued but also establish a bond that encourages repeat patronage.
Post-visit, expressing gratitude is paramount. Inquire about their experience and encourage them to leave a review. Positive reviews act like reverberations, attracting new customers and elevating your establishment’s reputation.
Your guests will love being able to participate in fun and unique promotions and campaigns, enjoying a dynamic experience through engaging challenges. Enhance their experience by connecting them to your brand with added benefits and promotions. Make it easy for guests to stay up to date through their preferred channel, whether online, in the app, through email, or SMS. They can easily identify themselves online or on-premises, having multiple opportunities and avenues to accrue rewards. Thrill your guests by allowing them to redeem and accrue awards online as well as on-premises. Surveys enable your guests to let you know their thoughts, fostering a deeper connection to your brand.
To master customer communication, leverage technological tools that analyse customer preferences and gauge the efficacy of your messages. Familiarising yourself with these tools enables you to converse with customers in a manner that leaves them craving more delightful experiences.
So, we will do the heavy lifting; you just have to download our latest insight into building strategic communications for your raving fans!
The 4 signs it’s time to revamp your loyalty programme:
It’s a big decision for restaurant owners investing in POS systems – should you go for on-premises technology, or would a cloud-based system suit you better?
It’s a decision as individual as your business, and can be tricky. And because one size definitely doesn’t fit all in the hospitality industry, the most savvy restaurateurs seek expert help deciding what’s best for their own circumstances and set-up.
But there are some clear differences between the two ways you can host your point of sale system, and in this guide by NFS Technology we outline some of the things you should know.
What’s the difference between on-premises and cloud-based POS systems?
A full point of sale system enables:
• your staff to take orders at tableside on tablets or mobiles and send them straight to the kitchen
• offers prompts for upselling
• supports kitchen automation
• enables accurate billing and payment by card at tableside
• allows customers to see menus and place orders online or from a kiosk/tablet
• integrates with your other restaurant systems, eg inventory and accounts
• captures important customer data to support targeted offers
• integrates with customer loyalty programmes
The difference between a cloud-based system and an on-premises restaurant management system is that there’s no need for a server on your premises. All data is stored in the cloud – for instance, Microsoft’s Azure – and accessed via the internet.
What are the pros and cons of cloud-based systems for restaurants?
It’s important to stress that every restaurant business is individual, and you need to think carefully about what you want your EPOS system to achieve for you. The areas outlined below will give you some food for thought.
Footprint
On-premises POS systems base a server to be within your restaurant, which does take up some space but not much – the box is about A5 sized and is the backbone of the processing power for your EPOS system. Getting a full server of the correct power is more cost-effective than fitting it into a POS terminal.
A cloud-based POS system does not need any hardware on your premises as the processing is done in Azure.
Resilience
Being based in your restaurant, an on-premises server offers the best possible redundancy for that location if the internet fails at any time. On the other hand, in a busy environment the server can be accidentally damaged – for example, by being knocked or spilled upon.
In cases of internet outages or slowdowns, businesses using cloud-based technology may experience disruptions in functionality, leading to potential delays in service and transactions.
Updates
Cloud-based systems score highly here because they often benefit from the fast and remote release of updates and new functions. In addition, they are API-driven and designed for interoperability. Scaling up can also be done quickly if needed.
However, some cloud-based systems can offer limited options for customization when compared to more traditional software.
Cost
On-premises POS systems can require significant upfront investments in hardware and software, and may require the purchase of a licence.
Cloud-based POS systems, on the other hand, usually operate on a subscription-based model, eliminating the need for expensive infrastructure. This can be beneficial for small and medium-sized businesses with budget constraints, but the lifetime cost of the system should be taken into account before you make a decision.
Cloud-based POS systems frequently include automatic updates and maintenance as part of the subscription. This reduces any burden on internal IT resources and keeps additional costs down.
Scalability
When a business expands, its operational needs change and grow with it. Cloud-based POS systems for restaurants offer scalability, enabling hospitality organisations to add or remove functionalities and adapt the system without a large overhaul.
Overall benefits of a POS system
When choosing a POS system, it’s wise to select one that’s specifically designed for restaurants, rather than one of the cloud-based POS systems for retail. But whether you choose software that’s based on your premises or hosted in the cloud, your business will still gain the huge benefits that digital technology can bring. These include:
Customer service
This will benefit whether you choose an on-premises or cloud-based POS system. Point of sale streamlines the customer’s journey by making service quicker and more efficient, and by allowing diners to pay swiftly and conveniently.
Labour management
Staffing also benefits from any kind of restaurant management system. By capturing data, the EPOS highlights the busiest times, enabling managers to match staffing to demand.
Tableside ordering, with orders sent directly to the kitchen, saves servers from running back and forth, enabling them to spend valuable time liaising with guests. It also eliminates human error, which also saves time and money, and helps cut down on the potential for staff fraud because all transactions are clearly logged.
Efficiency
EPOS systems are designed to integrate seamlessly with your other business applications, such as inventory management, customer relationship management (CRM) and accounting systems. This integration enables you to streamline operations and reduces manual data entry errors.
Reporting
Restaurants, and particularly restaurant chains, are complex businesses that can be hard to control. EPOS – both on-premises and cloud POS – provides comprehensive reports on all aspects of the business that give an end-to-end view of the business in real time.
POS systems give managers access to these reports via the internet wherever they are based, eliminating the duplication of head office functions and promoting efficiency.
Conclusion
Any hospitality business investing in a POS system should consider carefully a wide range of pros and cons.
The accessibility, reporting and cost-saving benefits can significantly enhance your operational efficiency and customer satisfaction, and will also make your restaurant a better place for staff to work.
However, you need to be mindful of potential challenges such as internet dependency, customisation options and long-term subscription costs.
It’s a good idea to seek expert help from a provider with a consultative approach who will help you define your aims, requirements and priorities, and who can also keep you up to date with the latest advances in technology.
With expert help, you can weigh the pros and cons for your own individual business – and make an informed decision that aligns with your operational goals and contribute to long-term success.
We are seeing a huge shift in marketing; gift cards have transitioned from being a pleasant addition to a must-have strategy for driving brand engagement and boosting visits. With digital cards, economic fluctuations, and diverse purchasing channels, staying ahead of the curve is crucial.
Drawing insights from The Annual Gift Card Report: 2023 by Paytronix, let’s delve into three key strategies that can elevate your gift card programme to new heights.
Year-Over-Year Card Sales
The data reveals a +6% change in total gift card revenue, counterbalanced by a -2% change in total gift cards sold. However, the silver lining is an impressive +8% change in the average £ loaded per gift card. We delve into the three strategies for gift card marketing success
1. Harness-Changing Gift Card Purchasing Behaviour
Embrace the Digital Shift:
The rise of digital gift cards is undeniable. Guests redeem digital cards faster, and they are loaded with up to 74% more value. To capitalise on this trend, ensure a seamless online and mobile app purchase experience. Incorporate digital cards into multi-channel campaigns, leveraging email, social media, and paid search.
Third-Party Partnerships:
Explore third-party channels, which accounted for 42% of all gift card sales in 2022. Collaborate with grocery stores, pharmacies, or hardware stores, extending the reach of your gift card programme.
In-Store Appeal:
In-store gift cards constituted nearly half of the sales in 2022. Maximise in-store purchases by strategically placing gift cards around the checkout area and encouraging staff to promote them.
Denomination Mix Optimisation:
Analyse the performance mix of physical card denominations and introduce higher denominations based on the increased average load in 2022. A/B tests different denominations digitally for deeper insights into customer preferences.
2. Make every day a Great Day to Gift
Target Special Occasions:
Beyond the holiday season, capitalise on year-round gifting opportunities. Promote unique gift card designs and special occasions such as Valentine’s Day, Easter, Mother’s Day, Father’s Day, graduation, and back to school.
Encourage Everyday Gifting:
Facilitate everyday gifting by promoting digital cards, which accounted for 19% of sales throughout the year. Provide customization options and convenient delivery methods via email or mobile.
Self-Gifting Incentives:
Recognise the growing trend of self-gifting. Incentivize loyalty members to load balances on their gift cards by offering bonus cards, fostering repeat business.
Holiday Cheer:
While the traditional holiday season remains the peak period, offer a variety of holiday-themed gift cards and packaging to enhance the festive spirit.
3. Promote Gift Cards as a Brand Experience
Loyalty Rewards:
Incorporate bonus gift cards to reward brand loyalty and increase average balances. Limited-time promotions like “Bonus Mondays” can create a sense of urgency.
Flash Sales for Loyalists:
Engage loyal customers with one-day flash sales, creating instant demand. Leverage email, social media, and mobile alerts for effective promotion.
Seamless Loyalty Integration:
Connect loyalty programmes with gift cards to deliver exclusive offers directly to loyal customers, enhancing their overall experience.
Supporting Causes:
Enable local organisations to benefit from your brand by offering bulk gift card purchases, aligning with community causes.
Gift Cards Drive Meaningful Guest Engagement
In conclusion, gift cards present a unique avenue for restaurant marketers to engage and acquire guests while generating immediate revenue. By adopting these strategies, you can not only enhance your gift card program’s performance but also align it with broader guest engagement goals. Stay ahead of the curve, adapt to changing behaviours, and turn every day into a great day to gift.
The 4 signs it’s time to revamp your loyalty programme:
In the intricate tapestry of restaurant operations, gift cards stand as not just transactional tools but powerful conduits of guest engagement. However, the dynamics of the industry demand that businesses evolve, and sometimes, this evolution involves a strategic switch in gift card providers. Embarking on such a transition may seem like a daunting task, but with careful planning, it can be a transformative step toward enhancing brand presence, optimizing operations, and delivering unparalleled customer experiences. This article is your guide to successfully navigating the process of switching gift card providers and making this transition a seamless success.
Why Switching Matters:
As of 2022, 32% of restaurateurs recognized the installation of a new Point of Sale (POS) system, including gift cards, as a priority. This signals a collective understanding in the industry that the choice of technology providers, including gift card platforms, plays a pivotal role in staying competitive and meeting evolving customer expectations. Switching gift card providers is not just about the physical or digital card itself; it’s about choosing a partner that aligns with your restaurant’s goals, enhances efficiency, and ensures a delightful experience for both guests and franchisees.
Understanding the Need for Change:
Before delving into the switch, it’s crucial to evaluate your current gift card provider. Identify its limitations, assess guest and franchisee satisfaction, and determine if it aligns with the evolving needs of your restaurant. Create a list of pain points and areas that could be improved, from the ease of purchase and redemption to the robustness of reporting and integration capabilities.
Finding the Right Gift Card Provider:
Choosing a new gift card provider is a critical decision that requires a strategic approach. Consider the following factors:
Automation and Efficiency:
Look for a provider that delivers automation to eliminate manual tracking of gift card costs and discounts. This is crucial for recognizing expenses accurately on a card-by-card and transaction-by-transaction basis.
Movement Tracking:
Ensure that the new provider can facilitate the tracking of money movement across different stores, franchises, and corporations. This includes both centralized and decentralized systems.
Reporting Capabilities:
Verify that the new provider offers reporting capabilities that match or exceed your current system. Reliable and robust reporting is essential for liability and redemption tracking, audit preparedness, and overall program management.
Tips for a Successful Transition:
Making the switch requires careful planning and execution.
Here are ten tips to guide you through the process:
1. Data Ownership: Ensure you own and can easily access your gift card data. This is critical for a smooth transition and ongoing management.
2. Cross-Functional Team: Assemble a cross-functional team comprising marketing, IT, finance, and operations to handle the migration process collaboratively.
3. Streamlined Process: Streamline the migration process by ensuring that all appropriate parties weigh in. Clear communication and collaboration are key.
4. Timeline Understanding: Clearly understand the timeline of the migration process and communicate this timeline effectively to your customers. Transparency builds trust.
5. POS Configuration and Testing: Perform thorough POS configuration and testing to identify and resolve any issues before the full implementation of the new system.
6. Inventory Management: Take inventory of your current gift card stock to ensure you can meet demand during and after the transition.
7. Online Ordering Integration: Integrate online ordering to provide a seamless experience for customers. The switch should not disrupt their ability to use gift cards for online orders.
8. Third-Party Consideration: If considering third-party channels, understand that they can add complexity to the program. Evaluate the benefits against the added complexities before making a decision.
9. E-Gift Card Exploration: Explore the possibility of introducing e-gift cards for added convenience and flexibility. This aligns with the mobile-oriented preferences of modern customers.
10. Reporting Alignment: Verify that your new provider not only meets but enhances your current reporting capabilities. This includes tracking sales fees, discounts, breakage across programs, and money movement.
Switching gift card providers is not just a logistical move; it’s a strategic decision that should align with your broader guest engagement strategy. Integrating gift cards into a holistic approach that includes loyalty programs, ordering systems, and comp cards can create real and lasting value for your restaurant and its patrons.
The switch is not just about upgrading technology; it’s about elevating the overall experience for your guests and streamlining operations for your team. With a well-thought-out plan and the right provider, this transition can be a transformative journey toward a more efficient, engaging, and successful restaurant operation.
The 4 signs it’s time to revamp your loyalty programme:
