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4 Factors of Successful Restaurant Promotions

Ben Beddow

Ben Beddow

Date Published January 26th, 2022

A restaurant’s marketing budget is generally expected to equate to 3-6% of its total sales. This varies depending on multiple factors including, but not limited to: location, competition, business volume, and cash flow. This marketing budget expectation is just that, an expectation. There are certain times of the year when a venue will spend more than this on marketing, and rarely will they spend less.

How much capital is available for a restaurant’s marketing plan is a small element of achieving success with a promotion for a restaurant. What is more important is how that budget is applied to produce marketing materials for restaurant promos and how they fit into a restaurant’s marketing plan.

There are four factors of successful restaurant promoting that can be viewed as 4 simple questions: Who?, What?, When?, and Why? The answers to these four questions can underpin any and all marketing strategies for a restaurant, and can help to increase the success of individual promotions by better informing their intent during the concept and design processes. Before delving into the four factors of successful restaurant promotion it is important to first touch on business analytics.

Table of Contents
    promotion for restaurant

    Business Analytics

    To have a better chance of success a restaurant promotion should rise from solid foundations, and those solid foundations are built out of data. When you involve business data to inform the promotion decision making process it can increase the efficiency of a marketing budget.

    A venue’s owner or manager might have an intuitive sense of the What, When, Who, or Why for a specific restaurant promotion, but using data sourced from their POS system will allow them to inform their decision making in a much more accurate and confident way. Data that can be pulled from a POS system to better inform a restaurant’s marketing efforts include:

    • COGs
    • Sales volume/Menu item popularity
    • Guest count by time period (be that hour, day, week, or month)
    • Party size
    • Average check size
    promotion for restaurant

    Different data points pulled from a location’s POS will inform each of the factors below that can impact a promotion’s level of success.

    To have a better chance of success a restaurant promotion should rise from solid foundations, and those solid foundations are built out of data. When you involve business data to inform the promotion decision making process it can increase the efficiency of a marketing budget.

    A venue’s owner or manager might have an intuitive sense of the What, When, Who, or Why for a specific restaurant

    promotion for restaurant

    promotion, but using data sourced from their POS system will allow them to inform their decision making in a much more accurate and confident way. Data that can be pulled from a POS system to better inform a restaurant’s marketing efforts include:

    • COGs
    • Sales volume/Menu item popularity
    • Guest count by time period (be that hour, day, week, or month)
    • Party size
    • Average check size

    Different data points pulled from a location’s POS will inform each of the factors below that can impact a promotion’s level of success.

    To have a better chance of success a restaurant promotion should rise from solid foundations, and those solid foundations are built out of data. When you involve business data to inform the promotion decision making process it can increase the efficiency of a marketing budget.

    A venue’s owner or manager might have an intuitive sense of the What, When, Who, or Why for a specific restaurant promotion, but using data sourced from their POS system will allow them to inform their decision making in a much more accurate and confident way. Data that can be pulled from a POS system to better inform a restaurant’s marketing efforts include:

    • COGs
    • Sales volume/Menu item popularity
    • Guest count by time period (be that hour, day, week, or month)
    • Party size
    • Average check size

    Different data points pulled from a location’s POS will inform each of the factors below that can impact a promotion’s level of success.

    restaurant marketing plan

    Who: Target Market

    restaurant marketing plan

    The vast majority of restaurant promotions will be aimed at a specific group of patrons, either existing patrons or new ones. New customer acquisition can cost five times more than focusing on keeping existing customers returning, and the cost of results can be a big factor in this decision.

    Once a target customer group, new or existing, has been established the next step is to tailor the marketing material to better suit the venue’s target market. Both data analytics and a location’s general target market can influence this. If, for instance, a venue has seen a drop in the number of children’s meals sold over the past few months then it is possible that fewer families are visiting the location. This provides the venue with a clear potential target audience for their promotion. Knowing the target audience a promotion is aiming at can greatly inform the verbiage and visual content of said promotion.

    restaurant marketing plan

    The vast majority of restaurant promotions will be aimed at a specific group of patrons, either existing patrons or new ones. New customer acquisition can cost five times more than focusing on keeping existing customers returning, and the cost of results can be a big factor in this decision.

    Once a target customer group, new or existing, has been established the next step is to tailor the marketing material to better suit the venue’s target market. Both data analytics and a location’s general target market can influence this. If, for instance, a venue has seen a drop in the number of children’s meals sold over the past few months then it is possible that fewer families are visiting the location. This provides the venue with a clear potential target audience for their promotion. Knowing the target audience a promotion is aiming at can greatly inform the verbiage and visual content of said promotion.

    The vast majority of restaurant promotions will be aimed at a specific group of patrons, either existing patrons or new ones. New customer acquisition can cost five times more than focusing on keeping existing customers returning, and the cost of results can be a big factor in this decision.

    Once a target customer group, new or existing, has been established the next step is to tailor the marketing material to better suit the venue’s target market. Both data analytics and a location’s general target market can influence this. If, for instance, a venue has seen a drop in the number of children’s meals sold over the past few months then it is possible that fewer families are visiting the location. This provides the venue with a clear potential target audience for their promotion. Knowing the target audience a promotion is aiming at can greatly inform the verbiage and visual content of said promotion.

    restaurant promoting

    What: COGs

    If a restaurant promotion includes discounted or free menu items as a way of enticing people through the door then knowing and managing the COGs of these items is imperative to ensuring that the promotion doesn’t hurt the business as it tries to help it.

    Completing a COGs analysis for a promotion, using the latest pricing data from suppliers, can provide “big picture” insights into the promotion and ensure that it provides value to the business, instead of taking value away from it. At a very minimum the promotion price should cover the COGs of the items in the promotion, and, ideally, a restaurant should breakeven on all of its promoted items.

    restaurant promoting

    <span class="s1">If a restaurant promotion includes discounted or free menu items as a way of enticing people through the door then knowing and managing the COGs of these items is imperative to ensuring that the promotion doesn’t hurt the business as it tries to help it.</span><span class="s1">Completing a COGs analysis for a promotion, using the latest pricing data from suppliers, can provide “big picture” insights into the promotion and ensure that it provides value to the business, instead of taking value away from it. At a very minimum the promotion price should cover the COGs of the items in the promotion, and, ideally, a restaurant should breakeven on all of its promoted items.</span>

    restaurant promoting

    If a restaurant promotion includes discounted or free menu items as a way of enticing people through the door then knowing and managing the COGs of these items is imperative to ensuring that the promotion doesn’t hurt the business as it tries to help it.

    Completing a COGs analysis for a promotion, using the latest pricing data from suppliers, can provide “big picture” insights into the promotion and ensure that it provides value to the business, instead of taking value away from it. At a very minimum the promotion price should cover the COGs of the items in the promotion, and, ideally, a restaurant should breakeven on all of its promoted items.

    marketing strategies for restaurants

    When: Timing

    marketing strategies for restaurants

    The timing of when a restaurant promotion is released can seriously affect its effectiveness and the value it generates for a venue. The timing of a restaurant promotion is dependent on multiple factors, all of which will be unique to each restaurant, its clientele, and its location.

    Seasonality can affect restaurant promotions in many ways. Colder and warmer periods of the year will affect the content of promotional materials, and seasonality is also an important factor for many restaurants located in resorts, towns, or districts where there is a seasonal fluctuation in business levels. If a restaurant or area has an off-season, when there are fewer potential customers in the area, then any marketing conducted during this period will largely be a waste of time, effort, and capital.

    If sports are an element of a venue’s offerings then the coming and going of the region’s popular sports can impact the effectiveness of a venue’s sports based promotions; and general promotions. Combining promotions with the beginning of sports season can help to bring customers in through the door who may then become a regular for that season; and maybe for other seasons to come.

    Time, in terms of restaurant promotion, can also define the scope of an individual promotion. When analyzing data from their restaurant an owner or manager may find that there is a particular day or time period where business numbers could be improved by bringing in more clientele. Time is also a factor in LTOs where a promotion, like a 2-4-1, only runs for a limited period of time.

    marketing strategies for restaurants

    The timing of when a restaurant promotion is released can seriously affect its effectiveness and the value it generates for a venue. The timing of a restaurant promotion is dependent on multiple factors, all of which will be unique to each restaurant, its clientele, and its location.

    Seasonality can affect restaurant promotions in many ways. Colder and warmer periods of the year will affect the content of promotional materials, and seasonality is also an important factor for many restaurants located in resorts, towns, or districts where there is a seasonal fluctuation in business levels. If a restaurant or area has an off-season, when there are fewer potential customers in the area, then any marketing conducted during this period will largely be a waste of time, effort, and capital.

    If sports are an element of a venue’s offerings then the coming and going of the region’s popular sports can impact the effectiveness of a venue’s sports based promotions; and general promotions. Combining promotions with the beginning of sports season can help to bring customers in through the door who may then become a regular for that season; and maybe for other seasons to come.

    Time, in terms of restaurant promotion, can also define the scope of an individual promotion. When analyzing data from their restaurant an owner or manager may find that there is a particular day or time period where business numbers could be improved by bringing in more clientele. Time is also a factor in LTOs where a promotion, like a 2-4-1, only runs for a limited period of time.

    The timing of when a restaurant promotion is released can seriously affect its effectiveness and the value it generates for a venue. The timing of a restaurant promotion is dependent on multiple factors, all of which will be unique to each restaurant, its clientele, and its location.

    Seasonality can affect restaurant promotions in many ways. Colder and warmer periods of the year will affect the content of promotional materials, and seasonality is also an important factor for many restaurants located in resorts, towns, or districts where there is a seasonal fluctuation in business levels. If a restaurant or area has an off-season, when there are fewer potential customers in the area, then any marketing conducted during this period will largely be a waste of time, effort, and capital.

    If sports are an element of a venue’s offerings then the coming and going of the region’s popular sports can impact the effectiveness of a venue’s sports based promotions; and general promotions. Combining promotions with the beginning of sports season can help to bring customers in through the door who may then become a regular for that season; and maybe for other seasons to come.

    Time, in terms of restaurant promotion, can also define the scope of an individual promotion. When analyzing data from their restaurant an owner or manager may find that there is a particular day or time period where business numbers could be improved by bringing in more clientele. Time is also a factor in LTOs where a promotion, like a 2-4-1, only runs for a limited period of time.

    restaurant promos

    Why: Press or Customers?

    Press and customers are the goal of all promotions and marketing efforts, combining for the common goal of helping a venue increase its revenue. But each individual promotion will lean toward one over the other. Knowing whether press or customers is the overarching goal of a particular promotion helps to better inform marketing decision making.

    If the purpose of the promotion is to bring attention to an existing menu item, part of a location, or a service offered, e.g. an award winning dish, a new app, a private dining room, or delivery service, then the goal of increased revenue is being reached through press. These types of promotional materials are often aimed more at existing customers than new customers.

    restaurant promos

    Other marketing materials could contain an offer that is aiming to bring guests through the doors at a particular time of the day or season. Here the purpose of the promotion is more directly focused on customers, and can often be considered to be aiming more at new customers rather than existing ones.

    Press and customers are the goal of all promotions and marketing efforts, combining for the common goal of helping a venue increase its revenue. But each individual promotion will lean toward one over the other. Knowing whether press or customers is the overarching goal of a particular promotion helps to better inform marketing decision making.

    restaurant promos

    If the purpose of the promotion is to bring attention to an existing menu item, part of a location, or a service offered, e.g. an award winning dish, a new app, a private dining room, or delivery service, then the goal of increased revenue is being reached through press. These types of promotional materials are often aimed more at existing customers than new customers.

    Other marketing materials could contain an offer that is aiming to bring guests through the doors at a particular time of the day or season. Here the purpose of the promotion is more directly focused on customers, and can often be considered to be aiming more at new customers rather than existing ones.

    Press and customers are the goal of all promotions and marketing efforts, combining for the common goal of helping a venue increase its revenue. But each individual promotion will lean toward one over the other. Knowing whether press or customers is the overarching goal of a particular promotion helps to better inform marketing decision making.

    If the purpose of the promotion is to bring attention to an existing menu item, part of a location, or a service offered, e.g. an award winning dish, a new app, a private dining room, or delivery service, then the goal of increased revenue is being reached through press. These types of promotional materials are often aimed more at existing customers than new customers.

    Other marketing materials could contain an offer that is aiming to bring guests through the doors at a particular time of the day or season. Here the purpose of the promotion is more directly focused on customers, and can often be considered to be aiming more at new customers rather than existing ones.

    The Takeaway

    Marketing and promotions are a crucial element of a restaurant’s success, and well informed and thought out promotions and marketing material can substantially increase the chances of success with a marketing campaign. Taking the above four points into consideration when creating a marketing campaign can not only increase its chance of success but can also help to make a restaurant’s marketing budget much more efficient.

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    The importance of Guest Data in a Post-Pandemic World of Takeout and Delivery https://activemenus.com/the-importance-of-guest-data-in-a-post-pandemic-world-of-takeout-and-delivery/ https://activemenus.com/the-importance-of-guest-data-in-a-post-pandemic-world-of-takeout-and-delivery/#respond Sat, 10 Jul 2021 16:33:47 +0000 https://activemenus.com/?p=2032 The trend curve for consuming restaurant food off-premises may be flattening, but surveys tell us that higher than normal levels of takeout and delivery and business are here to stay for the long term in a post-COVID-19 world...

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    The trend curve for consuming restaurant food off-premises may be flattening, but surveys tell us that higher than normal levels of takeout and delivery and business are here to stay for the long term in a post-COVID-19 world.

    Delivery and takeout, however, omit one crucial part of the restaurant experience for consumers: service. They also seem to leave out a crucial part of dine-in interactions for restaurants, guest data, and without this, it is hard for a restaurant to know much about itself or its customers. But all is not lost! The technology now employed to facilitate takeout and delivery orders simultaneously facilitates data capture too.

    In a now overcrowded field of restaurants clamoring for each and every customer’s attention, restaurants need to be smart about how they collect and use customer data to increase the chances that their business will continue to thrive and survive in this new data-driven world.

    What is Guest Data?

    Guest data is exactly that, information about a specific restaurant’s guests. Guest data falls into two categories:

    Customer Information - Who they are, what their ages are, who they eat with at a location, etc.

    Customer Feedback - My meal was great”, “my meal was inedible”, etc.

    Guest data is vital to the continued success of a restaurant because, without it, there is only so much managers and owners can improve as they look at their location from an inside-looking-out perspective. Customer information and customer feedback provide a valuable, unbiased, outside-looking-in perspective that only a customer can provide. 

    order food google

    How to Collect Guest Data

    Now that restaurants no longer interact in-person with many of their guests, data collection seems to has become trickier, but it is not impossible. In fact, it may even have become easier, and many restaurants have developed intuitive methods of collecting unbiased data from takeout and delivery orders.

    order food google

    Packaging - Placing a QR code, phone number, or web address, on the packaging used for off-premises orders provides the recipient with an easy and highly visible way of interacting with a business.

    Leaflets - Placing a leaflet inside an order bag with a QR code, phone number, or web address on it is another way for restaurants to obtain guest data.

    Phone Calls - If an order was placed by phone the restaurant manager can use this to contact the customer a certain amount of time after they’ve received their order to check on the quality of their food.

    In-App Signup - If a restaurant has a proprietary app they can offer customers the opportunity to sign up, thus providing their data.

    All of these methods offer some form of data capture, whether it be customer feedback, or the opportunity to capture marketable information like emails and phone numbers. All of the above methods allow for the capture of data that can allow a restaurant to contact this customer further down the line; either to inform them of a promotion or to just send them some marketing materials designed to entice customers back through their doors.

    The chance of data capture through packaging and leaflets can be significantly improved if the customer is motivated by a promotion tied to the signup. Promotions are an excellent way to capture customer data because the customer has extra motivation to give the data to the restaurant.

    hand, screen

    Where Can Guest Data Be Utilized?

    Guest data can be used to improve a restaurant in two areas:

    1. To better inform marketing materials designed to draw customers both new and old into a location.
    2. To improve the quality of various aspects of a restaurant’s services and offerings.
    hand, screen
    social media flags

    How Can Guest Data Be Utilized?

    social media flags

    Customer information can be utilized to inform improvements related to area No. 1 above. Customer information can help a restaurant to improve their understanding of who their target market should be along with how to best target that market with their marketing materials; from individualized targeted marketing to general promotional materials designed to draw both new and existing customers into a location.

    Customer feedback is related to improvement area No. 2 above. Customer feedback is vital to the continued improvement and success of a restaurant. If customers are not happy with the product they’ve received then they are not going to purchase it again, and will warn their friends about it. If a business doesn’t know this they cannot change or improve their product and sooner or later this lack of feedback is going to catch up with them.

    Arguably restaurants should first focus on improvement to area No. 2 before improvement area No. 1 because offering a good product is more vital to the long term success of a restaurant than the quantity of customers who come through the doors.

    order, online

    The Benefits of Online Guest Data Collection

    Collecting data from takeout and delivery orders is actually much easier than it is from in-person service. This means that location’s can utilize these platforms as springboards to learn much more about their customers and their operations.

    From a customer information perspective, customer’s are required to leave some form of contactable information to help facilitate their takeout or delivery order; whether that be through a third party service or a proprietary one. This provides restaurants with at least a basic customer data to help them inform their marketing, and also for them to send marketing materials to.

    order, online

    From a customer feedback perspective offering customer’s the opportunity to leave feedback through a digital platform can provide more transparent feedback than that given in a face-to-face environment. In a face-to-face environment people are always aware of their words and that means that, more often than not, negative feedback -which is the most useful kind of feedback- is either toned down or left out entirely. Utilizing digital feedback platforms allows customers to provide honest feedback without the fear of offending anyone.

    Closing Statement

    We are living in a data driven economy. Utilizing customer data is how Amazon got to where it is today, and it is how the likes of Google and Facebook -companies who provide free services and sell their consumers data for others to use to better inform their marketing- became some of the most highly valued and most powerful companies in the world.

    From this data driven viewpoint we can see that guest data is crucial to a restaurant’s success and that both customer information and customer feedback are important data points that can offer a restaurant different insights into how to improve their products and their strategy; increasing their chance of long term success.

    With customer’s no longer dining on premises en masses, restaurants have to become creative about how they continue to capture the crucial data points that are critical to their continued improvement and overall success.

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    Improving Takeout and Delivery for a Post-Pandemic World https://activemenus.com/improving-takeout-and-delivery-for-a-post-pandemic-world/ https://activemenus.com/improving-takeout-and-delivery-for-a-post-pandemic-world/#respond Tue, 08 Jun 2021 08:30:42 +0000 https://activemenus.com/?p=2046 The global COVID-19 pandemic turned a bright spotlight onto restaurant’s takeout and delivery services. As customers became accustomed to eating restaurant food at home and restaurants began to focus on takeout and delivery services it became clear that these...

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    Table Of Content

      The global COVID-19 pandemic turned a bright spotlight onto restaurant’s takeout and delivery services. As customers became accustomed to eating restaurant food at home and restaurants began to focus on takeout and delivery services it became clear that these services were less than perfect.

      Turning what had been, at best, an ancillary business into their main source of revenue meant many restaurants had to scramble to wrap their head around all the elements involved in running successful takeout and delivery programs. On the other side of the coin, customers began eating the foods they loved from their favorite restaurants in their own homes, often with mixed experiences.

      We’re now more than a year past the forced changes of the pandemic and things have evolved for both the restaurant and the customer. Customer’s have had a myriad of experiences with these services and now have a much clearer idea of what they expect from them. Restaurants have adapted and loyal customers have been lost and gained. Moving forward, how can a restaurant further improve their takeout and delivery programs to create exceptional customer experiences which make and retain loyal customers? Restaurants around the globe are also wondering how to increase delivery orders.

      waiter-screen-order-online

      Enhance The Ordering Experience

      Waiter-Screen-300x300

      This means both orders placed via phone or, more than likely, orders placed via a digital platform. If we’re discussing analogue, phone based ordering it is best to have someone who can give the customer their full attention, i.e. without restaurant distractions, so the customer on the phone feels that their business is valued.

      The world is increasingly digitizing itself and digital ordering is the way forward in a post-pandemic world. Digital platforms need to be as fluid and as intuitive as possible to ensure that the customer has the best possible experience. This is one of the many reasons Google Food Ordering is a great option for restaurants because the look, feel, and workings of the platform are already familiar to a vast majority of the general public, because they are already familiar with the Google platform through their other services.

      The most important thing is that the digital platform enhances and facilitates a positive customer experience. After more than a year of using a wide variety of different ordering solutions, customers have come to know that these platforms work, and will quickly leave an ordering platform which is clunky and ill-functioning.

      Menu-chalkboard

      Limit Menus for Takeout and Delivery

      Menu-chalkboard

      Some locations have tactically limited their menus to increase order volume without compromising speed of service. This is an intuitive idea which can certainly increase dollar-amount sales, but it falls short of the customer service focused mantras heard all too often throughout the industry.

      Other locations are tuning their takeout and delivery menus to ensure that the items on these menus fit the purpose of takeout and delivery. That is to say that, be it on the dinner table, coffee table, or even into the lap of whomever may be consuming them, the dishes left on the menu will be as close to restaurant perfect as possible when they’re finally consumed. Focusing on items which will continue to stay fresh in the packaging helps to ensure customer satisfaction.

      Paper-bag-coffee-takeout

      Innovative Packaging

      If the pandemic showed the restaurant industry anything about takeout and delivery it is that, previously, it was a second thought. The generic containers used by almost everyone to package food prove that. Not only did the pandemic bring to light how much waste comes out of takeout and delivery food, but it also brought to light how terrible -for most foods- the generic packaging is.

      Since the pandemic new forms of food packaging that keep the foods inside them fresher for longer have surfaced. Many of these were available before the pandemic but were often shunned because of higher costs.

      Now the tables have turned and restaurants are clamoring for packaging that will stop fries and sandwiches from arriving soggy, keep wings crispy, and prevent that added protein option from coating the salad underneath it with lukewarm condensation.

      Paper-bag-coffee-takeout

      These innovative packaging options are allowing locations to put items back onto their delivery and takeout menus that they had previously removed. They’re also severely enhancing the customer experience. The simple move of switching to more suitable or sustainable packaging can create a loyal customer out of a single order.

      pizza-box-label

      Label Each Box

      pizza-box-label

      It seems simple but so many restaurants fail to undertake this step. Writing what is inside each container on each container is a simple customer service trick missed by many restaurants. It is attention paid to details like this which shows customers that a restaurant cares about them. This can cause them to feel even more satisfied with the meal in front of them.

      chinese-box-no-label

      Personalized Print Marketing

      When food is presented on a plate in a restaurant it is combined with the decor, the music, the interactions with staff, and the overall ambiance of that moment to produce an experience which can keep customers returning again and again. How does that experience compare to food pulled from generic boxes, plucked from a generic bag, eaten at the same table as every other meal? It doesn’t compare. So how can you recreate the experience?

      Personalized print marketing allows a restaurant to connect with the customer without being there at the dining table with them. During the pandemic some locations went as far as to include handwritten notes from their employees in each takeout or delivery meal. This is not always necessary and a simple sticker with, say, a logo and the words “please enjoy!” may simply be enough to help spark that connection.

      Similarly, personalized print media can be used to entice order recipients to place future orders or leave feedback. A simple leaflet explaining how much their feedback can help a restaurant, along with a QR code or a phone number could provide invaluable feedback. There are many creative ways personalized media can help a restaurant up their game and build a better connection with their off-premises customers.

      chinese-box-no-label
      delivery-scooter-pizza

      Timely Deliveries

      delivery-scooter-pizza

      Delivery times are being factored into the decision of ordering food much more frequently than they were pre-pandemic. With so many options, why should a customer wait longer for their food?

      If a kitchen gets overwhelmed by takeout and delivery orders it is not only going to affect the customers placing the orders but it is also going to affect those dining at that location. To begin with, utilize a knowingly manageable region for delivery orders and then, once the system is up and running smoothly, the program can be reassessed and potentially opened up to a larger area. Delivery zones can always be expanded, but if they’re shrunk someone somewhere is going to be irate.

      Last week we put together the pros and cons of using third party delivery services to cover last mile delivery, alongside the pros and cons of running a proprietary delivery service, check it out here!

      red-carpet

      Dedicated Takeout Parking and Pickup

      Facilitate the takeout customer’s experience by providing VIP treatment. Dedicated spaces for takeout or curbside pickups right outside a location can make customers feel like VIPs, and it also stops them from trawling the block for 10 minutes whilst their order waits.

      Furthermore, don’t make the customer wait. Make it clear inside the restaurant where they go to pick up their order. Making this experience as seamless as possible means that the customer, as well as the employees, will enjoy the fluidity of the process.

      red-carpet

      Last Words

      It is well quoted that customers who have placed an order online visit the restaurant 67% more frequently than those who haven’t. Therefore, these off-premise functions are an excellent avenue to help generate greater on-premise business.

      Off-premise restaurant dining is still about the experience. If a restaurant takes every step possible to improve that experience, and continues to work to enhance the experience, they will increase customer satisfaction and, potentially, build customer loyalty, and increase delivery orders to that location.

      Finally, whilst takeout and delivery are a great means of creating new customers they also offer the dangerous opportunity for restaurants to lose customers without ever knowing it. Finding a connection and bridging the gap between your location and their home is critical to receiving feedback and building long lasting relationships.

      The post Improving Takeout and Delivery for a Post-Pandemic World appeared first on Online Ordering For Restaurants | ActiveMenus.

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      In a Post-COVID World is 3rd Party or Proprietary Delivery the Way Forward for Restaurants? https://activemenus.com/in-a-post-covid-world-is-3rd-party-or-proprietary-delivery-the-way-forward-for-restaurants/ https://activemenus.com/in-a-post-covid-world-is-3rd-party-or-proprietary-delivery-the-way-forward-for-restaurants/#respond Tue, 25 May 2021 08:39:17 +0000 https://activemenus.com/?p=2056 Excitingly, the demand for the off-premises, in-home consumption of restaurant food has continued to stay strong as states across the nation begin to relax their dining restrictions. For some segments of the industry delivery was a large portion of their business...

      The post In a Post-COVID World is 3rd Party or Proprietary Delivery the Way Forward for Restaurants? appeared first on Online Ordering For Restaurants | ActiveMenus.

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        Excitingly, the demand for the off-premises, in-home consumption of restaurant food has continued to stay strong as states across the nation begin to relax their dining restrictions. For some segments of the industry delivery was a large portion of their business before the pandemic, but, for the larger majority of the industry, the need for survival dictated a necessary and expedited pivot into the delivery business during 2020.

        With foods of all styles -from fast food to fine dining- having now been available to consumers through delivery everyone in the industry expects the demand for these services to continue post-pandemic. If a customer cannot get a meal delivered from their preferred location then there’s the chance they will take their business elsewhere. This opens up the opportunity for the permanent loss of business as these, previously loyal, customer fulfill their needs elsewhere and find new favorites that fulfill all their needs.

        If you’re thinking of offering delivery the time is NOW! Before your customers go searching for someone else to drop the succulent meal they’re craving onto their doorstep for them.

        In today’s heavily connected world there are two delivery service options available to restaurant operators: 3rd Party Delivery Services and Proprietary Delivery Services. Both have their pros and cons and deciding which method best suits a venue can be a challenge, but the final decision rests entirely upon the personal circumstances of each restaurant. We’ve delved into both 3rd party and proprietary delivery services to work out the pros and cons of both, and have laid these out to help restaurant operators better choose which option they may want to use to facilitate delivery from their location.

         

        3rd Party Delivery - What is 3rd Party Delivery?

        Firstly, What is 3rd party delivery? A 3rd party delivery service is a company whom restaurants can hire to take care of their delivery service for them. 3rd party delivery services possess the cars and the drivers need to execute deliveries and they often work will multiple restaurants in the same area.

        Many 3rd party delivery services rose to stardom during the pandemic, but not without criticism. Hiring a middleman to do your business for you, especially when you’re in a customer-service-centric industry, can be a roll of the dice. But that dice roll, just like on the craps table, has huge potential.

         

        Positives

        • Easy Setup - With everything already in place these 3rd party providers can have you up and rolling on their app or website within a week.
        • Increased Visibility and Discoverability - Being present on a 3rd party marketplace increases a restaurant’s exposer to potential customers that may not have known of the restaurant’s existence until they scrolled upon it.
        • Loyal Customers - 3rd party delivery services, just like restaurants, have loyal customers, and they often have reward schemes enticing them to stay loyal.
        • No Advertising Costs - Being on a 3rd party marketplaces means that a restaurant is automatically being advertised to hungry customers scrolling through the app.
        • Tested and Successful - The 3rd party companies that are out there are out there for a reason.
        • You Can Focus Elsewhere - With all elements of delivery taken care of by a 3rd party, you can spend more time focusing on what already makes you great, your product!

         

        Negatives

        • High Commission Fees - It has been noted many times that 3rd party delivery services can charge extortionately high delivery fees, which can have had a hugely detrimental impact on restaurants and their employees.
        • No Control - The delivery drivers and last mile delivery are out of a restaurant's control. They’re placing their faith entirely in the 3rd party.
        • Highly Competitive - Whilst being on display on a 3rd party marketplace is a positive it also has a negative side. Each restaurant is displayed alongside tens, many hundreds, of other brands, and users are just scrolling through looking at logos.
        • You Take The Blame - The restaurant will receive the blame for any bad experiences, regardless of whether they are the fault of the location or the driver.
        • No Communication with Customers - The restaurant has no direct line of communication with their customers. Leaving any bad experiences unanswered, and any complaints or critiques un-hearable.
        • No Access to Customer Data - The 3rd party provider keeps all the information about the customers ordering from a restaurant.

        Proprietary Delivery

        Many 3rd party delivery services rapidly became household names during the pandemic, however, it is important to note that before the pandemic 74% of consumers said they would prefer to order food directly from a restaurant rather than an intermediary 3rd party. So, whilst the rise of delivery conglomerates may now fill the airwaves and seem like the only option, there’s a high chance that there are a large percentage of customers out there who still want to connect directly with restaurants.

        Positives

        • No Commission - Managing a proprietary food delivery service means that the owner can reliably predict how much it’s going to cost each month.
        • Freedom and Flexibility - 3rd party delivery services come with a criteria which must be met by restaurants participating in their program. Managing their own delivery service means restaurants can manage the service to best suit their location and its level of business.
        • Control of Delivery Experience - The restaurant hires and trains the delivery staff to their own standards, ensuring that customers receive the same service as if they were sat in the location itself.
        • Direct Contact with the Customer - When a customer orders directly through a restaurant there is a link between them through which information can be exchanged; say, if there’re any errors, or feedback is wanted.
        • Collect Customer Information - Owning the system allows the restaurant to keep track of who is ordering through their platform, giving them insights which allow them to better direct their marketing.
        • Easy Menu Changes - Adjusting item availability, pricing and a variety of other factors is easy, and often instant, when a restaurant owns and operates its own delivery platform.

        Negatives

        • Requires Capital - To set up a delivery system requires the capital to do so, which many restaurants don’t have on hand.
        • Requires Knowledge - Vehicles, insurance, ordering programs, payments systems, and delivery tracking are all piece of the puzzle which require in-depth researching before the implementation of a working system.
        • Full Accountability - Restaurants can’t pass the buck off to someone else if there’s an error or a mishap along the way.
        • Lower Visibility - Proprietary apps are restricted to existing customers and to whomever and however a location chooses to advertise.
        • Overwhelmed During Peak Times - A system structured around everyday use may fall flat on its face during surges in business, resulting in a poor customer experience.

        In Conclusion: Choosing a Delivery Service?

        Some say that 3rd party delivery companies best suit chain restaurants and franchises, whilst proprietary delivery service are best suited to privately owned, often single unit, locations.

        No one can tell a restaurant, be that an individual or a group, whether they should partner with a 3rd party service or source and provide their own delivery service, there’re too many factors affecting the final decision which only those closely connected to the business will have an intimate knowledge of.

        The extra burden of managing a proprietary service may be enough to put off many an operator. On the flip side of the coin, the high commissions charged by these 3rd party delivery services is enough to turn away a large majority of proprietors.
        In the end the choice is down to individual owners and operators, but a decision never has to be final and, whilst it may take a good amount of capital or sacrifice for either of these options, it is never too late to change over to the other side. What is for sure is that post-pandemic consumers are going to continue to demand that delivery options remain available to them.

        The post In a Post-COVID World is 3rd Party or Proprietary Delivery the Way Forward for Restaurants? appeared first on Online Ordering For Restaurants | ActiveMenus.

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        In The News: Could ‘ghost kitchens’ be the future of the restaurant industry? https://activemenus.com/in-the-news-could-ghost-kitchens-be-the-future-of-the-restaurant-industry/ https://activemenus.com/in-the-news-could-ghost-kitchens-be-the-future-of-the-restaurant-industry/#respond Sat, 20 Mar 2021 17:45:39 +0000 https://activemenus.com/?p=2035 Could ‘ghost kitchens’ be the future of the restaurant industry? Ghost kitchens focus on food engineered to travel TAMPA, Fla. — To-go orders and delivery are now the new normal for restaurants across the country and Tampa Bay. The owner of a newly launched restaurant venture, Quality Delivered, focuses entirely on their delivery game with…

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        Could ‘ghost kitchens’ be the future of the restaurant industry? Ghost kitchens focus on food engineered to travel

        TAMPA, Fla. — To-go orders and delivery are now the new normal for restaurants across the country and Tampa Bay. The owner of a newly launched restaurant venture, Quality Delivered, focuses entirely on their delivery game with a new ghost kitchen concept that he believes is the future of restaurant delivery; eliminating the restaurant part entirely.

        The concept of ghost kitchens aren’t new, but the business model during the pandemic is quickly catching on, and many others are also predicting that ghost kitchens are the future of the restaurant industry.

        “You look at us as a restaurant, full kitchen, just no dining room,” Joe Murgio, the CEO of DeliverLogic, said. “The order comes in everything is connected with the technology using ActiveMenus. So, the order hits us goes right to our point of sale, hits a driver, a driver comes and picks it up delivers it to the consumer.”

        The ActiveMenu’s suite of offerings, from branded mobile apps, to POS system integrations with Google Food Ordering, to integrated loyalty and reward systems, can help chefs and entrepreneurs setup their desired ghost kitchens and get their business off on right foot. They also have the potential of  helping existing ghost kitchens increase their current profit margins.

        Murgio has three different brands operating in the kitchen, or “ghost restaurant”, of Quality Delivered, QD Chick, Cluck’N QD, and QD burger.

        The post In The News: Could ‘ghost kitchens’ be the future of the restaurant industry? appeared first on Online Ordering For Restaurants | ActiveMenus.

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