How seamless is the smartphone ordering experience you offer customers? Between 2015 and 2018, the percentage of consumers who ordered food via smartphone or mobile app more than tripled, according to a report from Grit Daily, and research from Business Insider Intelligence predicts mobile orders will comprise 11 percent of all quick-service sales this year. Enabling voice ordering – which is on the rise in other areas of ecommerce – may help to set your business apart. A presentation from Mastercard at the National Restaurant Association show last year reported that of the 74 million Americans who use smart speakers every month, 62 percent of them have used voice ordering to purchase retail items but less than 8 percent have purchased food and beverage. Considering the room for growth, voice ordering is likely to be among the next improvements mobile apps offer to make ordering food as easy as asking Alexa to play your favorite song.
Mobile loyalty apps will have a significant impact on the industry this year. That was the sentiment of 31 percent of respondents to a recent TD Bank survey of 254 owners, operators and executives of independent and franchised multi-unit restaurants. A separate survey from TrendSource found that diners are more interested in using a restaurant’s app for delivery and pick-up than a third-party app. Part of what makes restaurant-branded mobile apps an easy win for restaurants is that whether you operate a food truck, pop-up restaurant or fine-dining restaurant, there is mobile app functionality that can ease ordering and payment, deliver customized promotions and build loyalty – and at accessible price points.
A recent Technomic report, “Harnessing Technology to Drive Off-Premise Sales,” found that when consumers are ordering restaurant food, 60 percent of the time they are ordering it for off-premise consumption – whether at their home, office, or other location convenient to them. However, there still isn’t a smooth connection between what consumers want and what restaurants currently provide, particularly when it comes to technology. While there are certainly outliers – Taco Bell, for one, is tapping into artificial intelligence to deliver a more personalized in-app ordering experience – Technomic’s report found that 56 percent of consumers want to be able to order delivery from a restaurant’s website, but only 45 percent of operators offer the option. Similarly, 43 percent of those who order delivery do so via a restaurant’s app, but only 18 percent of operators offer that option. More broadly, consumers expressed an interest in having more ordering flexibility via technology than they currently have: For example, 31 percent of consumers said they would like to be able to place a food order via a smart speaker such as the Amazon Echo, but only 12 percent of operators make that possible. As you consider new technology – or how to adapt your restaurant service model for off-premise sales – are you aware of how your guests want to connect with you and how you can best facilitate those connections?
Who hasn’t had the experience of trying in vain to catch a server’s eye to ask for the check after a meal? Mobile payment isn’t just for your online orders. If you’re looking for ways to improve the experience your restaurant delivers for guests, whether they eat with you or take their food to go, consider the process you require them to go through to pay for an order. While speedy payment is helpful in any category of restaurant, it can ease a major pain point in full-service restaurants or other establishments that take payment following a meal. Consumers are likely to use mobile payment more frequently in the next few years: Research from emarketer forecasts that by 2023, 80 million people – or about 34 percent of smartphone users – will be making mobile payments, up from 59 million in 2018.
If you’re looking to steer your restaurant away from third-party delivery this year – whether due to the expense, customer data ownership, development of your in-house technology or some combination of the above, you will need to find a way to bring customers to you online while third-party delivery companies try to compete for their business. Noah Glass, founder and CEO of the mobile and online food ordering platform Olo, said restaurants need to take steps to protect their territory amid the rise of delivery companies and ghost kitchens. He told Forbes that one of the simplest steps restaurant operators can take to protect themselves and ensure customers find them via the restaurant’s app and website is to use a non-compete agreement that prevents third-party vendors from bidding on certain brand-related keywords used in online searches. Such agreements can prevent vendors from redirecting online traffic that would otherwise go to your restaurant.
There is a lot of noise in the restaurant technology space. How do you know which new technology is a solid investment — or even when it’s worth upgrading your existing tools and systems? CIO Review identified five E’s that can help you sift through the clutter. Asking yourself these questions can help you narrow down your options. First, is it easy to use? If it’s not, your team won’t use it and it may even motivate their decision to leave. Next, is it effective in tackling intended challenges — enough so that it makes the investment worthwhile? Third, is the technology efficient? It should either automate or reduce the steps you must take to complete a task, not create new ones. Fourth, is it engaging to use? In addition to being intuitive to use, the interface should provide feedback and visual cues to guide someone through a task. Finally, how tolerant of errors is the technology? Can you easily undo a task initiated by accident? It should have controls in place to minimize the impact of user errors and above all, safeguard your data
The age-old nuisance of technology is that as soon as one gadget or tool comes out to address a business challenge, there’s a new one ready to do the same job faster, better and cheaper. A new example of this is Dash Now, one company (among a number of them) that says mobile phones serve as more convenient payment vehicles than tableside tablets in restaurants. Nation’s Restaurant News reports that the company, which plans a July launch, will let guests use their phones to pay a check by scanning a QR code listed on their receipt. During the payment process, the guest is asked to provide feedback about their experience — much like the prompt you receive on your mobile phone at the end of an Uber ride.
The purpose of restaurant apps is evolving. According to research from App Annie, Gen Z, as compared with other generations, is 30 percent more engaged in apps that aren’t about gaming and other forms of entertainment. Instead, they value apps that are key to the mobile checkout process and help to keep them loyal to and engaged in a brand. Last year, Americans overall spent 140 percent more time in food and drink apps than they did during the two years prior to that. While there are certainly more apps joining the market that help account for that growth, operators are also becoming more savvy about guest engagement. Connecting with consumers and elevating their level of engagement is less about having an app that entertains and more about providing a simple, relevant, customizable experience whether the person is accessing the restaurant online or in person.
At the pace restaurant technology is evolving, it can feel like restaurant manager candidates should be just as capable of navigating IT challenges as they are of handling guest complaints. But according to The Spoon, one nascent tech tool — voice-enabled ordering via Google Assistant or Alexa — could soon be an easy, plug-and-play solution for operators, with some help from a firm called Orderscape. The company makes a voice-ordering software layer that works with browsers, mobile phones and watches, and Alexa speakers, and partners with restaurant platforms like Olo, Onosys and Monkey Media. Orderscape can then tell users where a desired food item is available in their area. If someone asks Alexa where to find a bacon cheeseburger nearby and you serve a popular one, your restaurant would be suggested among other options in the area. Marrying a menu with voice-enabled tech isn’t normally a seamless process for restaurants but Orderscape is looking to make the process possible with no installation or training on the restaurant’s part, and no downtime.
While third-party delivery gets a lot of press lately, 78 percent of all delivery orders are currently placed directly from restaurants — not from third-party delivery providers, according to the 2018 Takeout & Off-Premise Consumer Trend Report. That could continue as savvy consumers lean toward ordering direct in order to check on potential deals and avoid excessive delivery fees. Cake advises operators to make that process as streamlined as possible by placing an “order now” button and phone number in plain view on their websites. These web visitors are also prime candidates for your loyalty program, so make sure your invitation to join appears front and center on your site.