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WHAT'S THE BUZZ IN HOSPITALITY?

3 Key Reasons Why Restaurants Use In-house Ordering Systems

Apr 24,2020

Through the challenges presented by the COVID-19 outbreak, restaurants have stepped up by quickly adopting in-house online ordering solutions – shifting their business models to promote takeout and delivery alternatives. In addition to practicing social distancing, here are three of the most common reasons why restaurants use in-house ordering solutions:

  1. Significant Savings

Third-party delivery apps require restaurants to not only pay a fee for their services but they also complete with area businesses that offer similar products. The cost alone will eat into your profits. A recent study from the National Restaurant Association indicated that a well-known third-party app charges a commission of 12- 18% for each customer order, and yet another popular app charges as much as 30%. With rates like these, the costs quickly eat into your margins. Your best bet is to implement an in-house ordering system to save third-party fees while reducing the potential to compete against other restaurants that also use the apps.

  1. Better Data & Better Loyalty

Prior to COVID-19, a survey from the National Restaurant Association indicated that nearly three-fourths (74 %) of millennials reported that they would order from a table service restaurant if delivery were available. For restaurant operators, an in-house solution is an ideal way to collect guest data. With online ordering, you often get your customers’ emails, or phone numbers – or both. Equipped with this contact data, you can stay connected via email or text. You can thank them for their business, suggest that they check out a new menu item, or extend a discount on their next order. Data derived from direct, online ordering solutions help you nurture those relationships further and build a base of repeat customers.

  1. Control Over Your Brand

From the customer’s perspective, it could not be simpler. With a few clicks on their phone, it’s easy to place and pay for food directly on your website. For operators, an in-house online ordering platform allows you to make real-time adjustments to your menu. Promote just a few menu items, daily specials, or the entire menu with detailed images and item descriptions. The solution is flexible enough to allow users to customize their orders to their personal tastes. You can plan and launch promotions anytime it is convenient for you, as well as manage your brand appearance which is often a limitation of third-party apps.

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