EXECUTIVE INSIGHT: Leveraging Online Ordering and Payment Technology

What definitive advantages that do online ordering and payment present to hospitality operators?

STEIN: According to most industry estimates, online order tabs average 30% higher than telephone or counter order tabs, most likely because customers can take their time deciding what they want and upselling is automatic rather than dependent on a restaurant employee. Orders needn’t be re-entered into the POS system, leading to a sharp decrease in errors, in turn reducing waste and food costs. Fewer staff members are needed to answer the phones, and/or high-value employees, such as bartenders, are free to serve customers instead of taking orders.

Additionally, since orders are paid for ahead of time, there is a lower incidence of “no show” and unpaid orders, again minimizing loss and waste. Finally, guests’ credit card details don’t come into contact with the payment system, removing theft and fraud from the equation.                                                                                                    

What key features should operators look for in online ordering and payment systems?

STEIN: The functionality to build and amend menus as needed, including on the fly removal or “86-ing” of items that have sold out or become unavailable, is a must. So, too, is the ability to quickly change lead times to ensure a great customer experience and fewer delays/complaints. On the payments side, consider a role-based security infrastructure that restricts access to the system  — and users’ payment data — to those who need it to do their jobs, again mitigating the risk of fraud. The online ordering component should integrate with the POS system for a seamless payment experience. Finally, the system should harness tokenization and vaulting to enhance overall security while allowing guests the option to re-order from a given restaurant easily without re-entering payment information.

What best practices should restaurant operators employ to ensure success with a restaurant that accepts online orders and payments?

STEIN: Proactive measures, such as promotion at the POS, in advertising, and through social media, make customers aware of the online ordering option and are imperative. Restaurants should also handle their own online orders rather than engaging “aggregator” partners. There’s a very compelling reason to do so: Instead of paying 10% to 25% of tickets to these services, operators can pass along the cost of online ordering to consumers, who will gladly pay the price.

Just as important is the need to provide customers with an incentive to create a free account that allows them to save order history and payment details. This cultivates enhanced customer loyalty and encourages guests to order from the restaurant more frequently than they would without the convenient options afforded by stored order and payment details. When customers have an account with the restaurant, their credit or debit card information is more secure than it would otherwise be, and there is no chance that orders will go unpaid.