Boosting Restaurant Revenue: Integrating Online Ordering Systems
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The Growing Need for Online Ordering in Restaurants
Over the past decade, online ordering has moved from a novelty to a necessity. With more consumers opting for takeout and delivery, restaurants that offer an easy, streamlined ordering process have a clear advantage. While third-party platforms like Uber Eats and DoorDash offer a temporary solution, they come with high commission fees and limit access to customer data. In contrast, online ordering systems for restaurants allow businesses to retain control over their operations and profits, while providing a direct line of communication with their customers.
Restaurants embracing online ordering report increased order frequency and larger average tickets. This shift is about more than adapting to consumer preferences; it’s about future-proofing your business by building a digital infrastructure that can grow with your restaurant.
1. Streamlining Operations and Reducing Human Error
A direct online ordering system simplifies operations by allowing orders to flow straight from the customer to the kitchen. Without the need for manual input from staff, there’s less room for error, which is a significant benefit. Whether it’s miscommunication between servers and kitchen staff or forgotten modifications to an order, mistakes can cost restaurants money and hurt the customer experience.
SpotOn’s system, for example, integrates with point-of-sale (POS) systems, syncing menu updates, pricing, and promotions in real time. The result? Fewer errors, faster order processing, and a more organized workflow from start to finish.
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Real-World Example:
A mid-sized pizzeria implemented SpotOn’s online ordering system and reduced order errors by 20% within the first three months. By allowing orders to automatically update in their POS system, staff could focus on customer service rather than managing multiple devices and platforms.
Action Tip: Test your online ordering system’s integration with your POS to ensure smooth data flow. Run simulations with your staff to ensure everyone understands how the system works, and fix any friction points before going live.
2. Higher Order Frequency and Increased Ticket Size
The convenience of online ordering leads to repeat business. When customers have a seamless experience ordering from their favorite restaurants, they’re more likely to return. Beyond frequency, online ordering systems also encourage customers to spend more. Studies show that customers typically spend more when ordering online than in person, thanks to the ability to browse the entire menu without feeling rushed.
Upsell opportunities are also easier to integrate into the ordering process. SpotOn allows restaurants to offer add-ons at checkout, like extra toppings, sides, or beverages. These subtle upsell prompts can significantly increase the average order size with little to no extra effort.
Real-World Example:
A family-owned burger joint saw a 15% increase in average order size after introducing online upsell suggestions through SpotOn. By offering customers options to add fries, drinks, or desserts at the checkout screen, they successfully increased the value of each transaction without appearing pushy.
Action Tip: Set up upsell suggestions for popular items or meal bundles at the checkout stage of the online order process. Make sure these suggestions are clear, well-priced, and relevant to the customer’s current order.
3. Owning Your Customer Data for Targeted Marketing
When you rely on third-party platforms, customer data remains with the service provider. This lack of access limits your ability to build long-term relationships with customers. An integrated online ordering system gives you full control over your data, allowing you to gain insights into customer preferences, ordering habits, and demographics. This data is invaluable for crafting personalized marketing campaigns that drive engagement and loyalty.
SpotOn’s platform collects this data in real time, making it easier to segment your customer base and deliver targeted promotions. With insights into what your customers love, you can send personalized offers, such as birthday deals or discounts on frequently ordered items, boosting return visits.
Real-World Example:
A sushi restaurant using SpotOn’s online ordering system identified their most loyal customers based on ordering frequency. They launched a targeted email campaign offering discounts on their customers’ favorite rolls. This campaign led to a 25% increase in repeat orders within just a few weeks.
Action Tip: Start collecting and analyzing customer data from your online ordering system. Use this information to create segmented marketing campaigns that offer personalized promotions based on ordering history or preferences.
4. Cutting Costs by Reducing Reliance on Third-Party Platforms
While third-party platforms may seem like an easy solution for delivery, their commission fees—ranging between 15% and 30%—can quickly eat into your profit margins. In addition, these platforms limit your control over the ordering experience, and often you lose valuable customer data. Transitioning to your own online ordering system helps keep more revenue in your pocket and gives you greater control over the customer journey.
SpotOn’s platform, for example, eliminates these commission fees by allowing restaurants to manage direct online orders through their own website or app. This also gives restaurants the flexibility to manage delivery logistics in-house or partner with local couriers on their own terms.
Real-World Example:
A local sandwich shop saved thousands of dollars annually after switching from a third-party platform to SpotOn. By managing delivery orders directly, they eliminated commission fees and saw their profits increase by 18%.
Action Tip: Offer exclusive promotions for customers who order directly through your website or app to incentivize them to avoid third-party platforms. Communicate the benefits of direct ordering, such as lower prices and faster service, to your customers.
5. Expanding Reach and Building Customer Loyalty
Integrating an online ordering system also provides a powerful way to expand your reach. It opens your restaurant to customers who might not have the time to dine in or who prefer to order takeout or delivery. Additionally, it strengthens your relationship with existing customers by offering a consistent, reliable experience.
When combined with loyalty programs, online ordering can significantly increase customer retention. SpotOn’s online ordering system integrates seamlessly with built-in loyalty programs, allowing customers to earn points for each order and redeem rewards directly through the platform. This makes it easy to keep customers engaged and coming back for more.
Real-World Example:
A taco restaurant saw a 30% increase in repeat customers after launching their online ordering system with a loyalty program through SpotOn. Customers earned points for every order, and after five orders, they received a free meal. This incentivized customers to keep ordering, resulting in increased revenue and customer satisfaction.
Action Tip: Launch a loyalty program within your online ordering system that rewards frequent orders. Create a clear and compelling rewards structure that encourages customers to return regularly and redeem their points.
Practical Example: SpotOn’s System in Action
Imagine a local restaurant struggling with thin margins and high commission fees from third-party platforms. By switching to SpotOn’s online ordering system, they were able to eliminate these fees entirely and control the entire customer experience from start to finish. This allowed them to increase average ticket size with upsell options and capture customer data for future marketing efforts. Over the course of a year, the restaurant saw a 20% increase in revenue, largely due to repeat customers taking advantage of personalized promotions and loyalty rewards.
Conclusion
Integrating an online ordering system is one of the smartest moves a restaurant can make to increase revenue and improve operations. It provides an easier way for customers to order, enables targeted marketing, and reduces costly reliance on third-party platforms. Tools like SpotOn not only facilitate seamless order management but also empower restaurants to capture valuable customer data, boost average order size, and enhance customer loyalty.
By offering customers a seamless online experience and retaining control over every aspect of the transaction, restaurants can ensure sustainable growth and profitability. Whether you’re looking to improve operational efficiency, boost repeat business, or expand your customer base, an online ordering system provides the infrastructure needed to achieve these goals. Take control of your restaurant’s future today by integrating the right system and building deeper connections with your customers.