Why Have an Online Ordering System for Restaurants?

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Online & Mobile Ordering

March 11, 2019

From Starbucks to Domino’s, mobile ordering is taking the fast food industry by storm.

According to Business Insider Intelligence, order placed through smartphones will make up over 10% of all sales of quick-service restaurants by the year 2020. Growing at a phenomenal pace, online mobile ordering is predicted to be a booming US$ 38 billion dollar industry in the foreseeable future!

Brands that heavily rely on online delivery include pizza chains like, Pizza Hut, Domino’s and Papa John’s. While Pizza Hut’s sales through digital channels are 46%, Domino’s and Papa John’s report at least half of their sales coming in via online ordering. The pizza industry is constantly pushing the envelope to grow that percentage further since the sales are 18% greater online compared to phones.

One of the most important factors for customers deciding to order their pizza online is convenience. Digital not only makes the ‘placing the order’ process much simpler, but it also gives customers a chance to track processes including order preparation, dispatch and the route that the delivery of their pizza is taking.

While the power of mobile convenience is highlighted by pizza chains, Starbucks shows how apps boost customer loyalty.

In this category, Starbucks has been a leader ever since the launch of its mobile payment in 2010.

At Starbucks, mobile enables for the linkage of ordering, along with payment and the rewards program of the chain, which is now stronger by 12 million.

More and more chains are catching up. Taco Bell reported an increase of 30% greater revenue than in-store orders. McDonald’s is planning to test mobile ordering this year across the US.

What Is the Future of Online Ordering?

Online ordering revolutionized different industry verticals including clothing and fashion, electronics, groceries and restaurants. For food delivery, the global market stands at 1% or €83 billion of the entire food market and 4% of the food sold through restaurants and fast food chains. Online food ordering has already matured in most countries with an annual growth rate predicted to be at 3.5% in the coming 5 years. The ever-increasing tide of digital technology has helped reshape the market and customers are getting comfortable with ordering through websites and their smartphones.

Two pieces of software is set to transform the dynamics of online ordering – Artificial Intelligence and Voice Technology. The timeframe for implementing these concepts could span up to 10 years. But at the rate that technology is growing, it simply won’t stop here. The industry’s prospects through innovative applications are simply endless. Artificial intelligence is also likely to influence the physical ordering of food and drive through procedures within the global franchise restaurants, such as McDonald’s.

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Benefits of an Online Ordering System

The food delivery market is reforming at an accelerated pace thanks to digital technologies. For restaurants wanting to survive, the online ordering system is the only way to go. The online delivery trend is proving to be beneficial to both restaurant owners and consumers.

Customers Can Satisfy Food Cravings Round the Clock:

From a customer’s point of view, an ordering system or mobile ordering app for a restaurant opens up the possibility of fulfilling food cravings at any given time. The 24/7 concept of the online world has been a real blessing. Even though the restaurant is not open around-the-clock, the online ordering system allows for the hungry soul to schedule a preferred pickup or a delivery time within the restaurant’s working hours. The consumer does not feel rushed or even judged when ordering from the comfort of his or her home. The opportunity to take as much time to ponder as one wants to before placing the final order can be equally liberating.

Eliminates Errors in Order Taking:

The transition from calling a restaurant to placing a quick order online, via the computer or phone have become rather quick and effortless, especially because of busy households and impatient millennials. This section of the population truly enjoys the luxury of having everything at their fingertips and the development, as well as, deployment of online ordering software has made that possible. Put simply, they can now easily and quickly place their food order whenever they want and from wherever they are.

But, that’s not all.

Online ordering eliminates the misunderstandings and frustrations that sometimes accompany orders, via phone calls. One of the biggest problems with phone conversations is that there is a high chance of misunderstandings. It can be due to the noisy environment of the restaurant or network issues. All it takes for an order to be compromised and a customer to get frustrated is a simple mistake.

Online ordering eliminates such mistakes as the consumer gets to browse the menu, zero in on their choice after carefully going through the order, confirms it. This leaves no room for error.

More Opportunity to Profit with Definite Customers:

Now, it is not all about consumer convenience and happiness. The restaurants also hugely benefit from adopting online ordering software. Having an online ordering option is a major priority when looking to increase sales. It's a fact that websites and mobile apps are very good platforms to upsell products to increase the average order value. When it comes to food, visual imagery is a trick you definitely need to master. Adding appealing photos to your online food ordering system will make your customers want to order more. That's how to increase restaurant sales. Apart from this,cross-selling, discounts, loyalty programs, combo offers and so on are some of the few strategies that marketers can use when designing their restaurant website. Due to these factors, orders received online have a larger ticket price that eventually adds to the revenue.

Source: Statista Survey @ 2019

Reports that help you understand your customers

Who's ordering from you, what, when and from where -  all these details and much more can help you plan and increase the value of the food delivery orders in the restaurant. An efficient and robust food ordering system automatically generates reports that help make decisions to optimize online sales and marketing. The data collected from online ordering can be utilized to personalize consumer emails and designing promotions based on the customers' spending habits, purchases and more.

Still thinking about adding online ordering software to your restaurant?

62% of diners say they usually prefer to order online at least once a week and usually end up paying anywhere between $35-$50 per order. With the average spend of $16-$30 per person, per order in a full-service restaurant, what’s there really to think about?

Customizable online ordering platform for your restaurant

Restolabs provides an online food ordering system tailored to your business, as well as the customer's needs. We provide convenient and effective food ordering platform to help restaurants attract and retain today's web-obsessed customers. Try it free without obligations for the first 30 days.

 

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