Statistics from UBS Evidence Lab show that, in the U.S., online sales for restaurants and hotels increased by almost 60% by the end of November 2020. The staggering figure was alarming to restaurateurs with business models that depend upon dine-in guests as it proves there is a viable alternative for keeping sales up despite the ups and downs of the pandemic. Implementing a commission-free delivery system is their best bet in terms of affordability, management, and productivity.
There is a huge groundswell in the hospitality industry that is bucking against the high commissions charged by the popular third-party delivery apps. It is nearly impossible for small- and medium-sized brands to generate profits when using these due to already-tight margins. It is now possible for a restaurant of any size to move to direct online ordering, allowing them to retain customer data and generate higher profits from each order.
Lunchbox, a digital savior for restaurants and the creator of NotGrubHub, states, “Most restaurants actually LOSE money to third-party apps. Ordering directly from the restaurants you love is the number one way to actually help save them.” Click here to view our delivery commissions calculator to see how much restaurants pay over the course of a year when using third-party delivery marketplaces.
Adopting new technology is a challenge for any business, so let’s break it down into practical, actionable steps. Starting with online pickup orders, we will talk through choosing the right online menu solution, menu optimization, and social media marketing.
Set Up Your Online Ordering Menu for Direct Orders
Move Customers From Phone to Direct Online Ordering for Curbside Pickup
Jen from @harvestbrooklin comments, “Ninety-five percent of all our guests have adapted to online ordering for dine-in and takeaway.”
Moving curbside orders from over the phone to online is the easiest place to start for any brand worried about guests and staff adopting new technology. Start by choosing a web-based ordering solution designed for restaurants and made for mobile. We mention a few options in the next section.
Let your staff know that this will eliminate – or at least reduce – the time and attention required for manually entering phone orders into the POS. They will have insight into setting up your menu as they will have an idea of the most popular pickup orders and the nuances of entering special requests or discounts. There is a better use of their time than spending three minutes on the phone when a guest would prefer to order from their phone using an online menu.
Post your menu on social media and let your guests know they have the option of ordering directly from your restaurant over the web. It is vital to start promoting this direct ordering option as part of the move to in-house commission-free delivery. Explain how this supports you directly.
If you typically use an answering service during peak periods, consider adding an automated message to inform guests that they can more quickly order via your restaurant online ordering system before transferring the call to the answering service. Eventually, you will be able to get rid of the answering service entirely.
To encourage adoption, offer a discount or special menu option for direct orders. Gradually, when the regulars start to use the online system for orders, the restaurant can permanently remove the phone order option.