If you want to learn about the advantages of an online Restaurant Management Platform for your business, this article is here to help.
Implementing an online restaurant management platform offers multiple benefits conventional methods like in-person ordering or phone orders can’t match.
We’ll discuss the benefits and some cons of an Digital mall platform throughout this article by looking at:
- What is the purpose of an online restaurant management platform?
- The advantages of using an online restaurant management platform the pros and cons as well).
We’ll also introduce you to a great online ordering solution you can easily set up and enjoy the full benefits of having an restaurant management platform.
Let’s begin with the purpose of an Digital mall platform.
What is the purpose of an online restaurant management platform?
The whole purpose of an online restaurant management platform is to make it easier and more convenient for customers to place orders through your website or mobile app.
It simplifies the ordering process for customers, allowing them to:
- Browse your online menu.
- Select a dish, customize their order, and place a special request or instruction for the kitchen on preparing their food.
- Then, make payment online without needing to call the restaurant.
This journey ends when the food is delivered to a customer’s address or location. Or they drop by your restaurant to pick up their food.
But why might a food business use this system?
As a restaurant business, you would use this online system to streamline food ordering processes and other operations within your establishment.
Most importantly, Digital Mall systems offer additional advantages that conventional methods like in-person ordering or phone calls don’t provide.
For instance, online food ordering is open around the clock, meaning customers can place orders at any time. It also reduces order mistakes, mixups, and misunderstandings. It lets you reach more customers by providing a convenient way for them to access your services.
All these are reasons enough to convince you to use ordering software. This system also helps restaurants manage their workflow better by automating orders and tracking customer preferences. This can improve your overall efficiency, enhance customer satisfaction, and increase revenue at the same time.
It is much harder to achieve such convenience, speed, and accuracy with conventional methods. That being said, let’s dive deeper into the benefits of online ordering systems.
What are the advantages of an online restaurant management platform ?
There are multiple advantages your restaurant or any other food business will reap if they implement an online restaurant management platform .
So, if you’re still on the fence about this ordering software, the following are some benefits that you might be missing out on.
What are the pros and cons of an online restaurant management platform?
We’ll take an all-rounded approach by examining both the pros and cons. Let’s start with the pros.
Pros:
1. Increased convenience for customers
Online restaurant management platform allow customers to place orders anytime and anywhere. They don’t need to call or visit your restaurant to order.
This 24/7 accessibility means that they can order at their own convenience – whether they’re at home or in their workplaces. The 24/7 availability also means customers can pre-order outside your business hours (if you want to). When you open, you’ll already have a list of orders to start working on and fulfill orders.
Online food ordering is literally at the customer’s fingertips. They can easily browse your menu, customize their orders, and complete their purchases on smartphones, tablets, computers, etc.
Mobile ordering represents 60% of all digital restaurant orders today. More than half of restaurant customers prefer to order from their mobile devices.
This convenience often leads to higher customer satisfaction. It can also encourage repeat business as customers appreciate the ease, speed, and efficiency of the process.
2. Expanded customer reach
More than 70% of customers prefer to order food online for deliveries and takeout.
Implementing an online restaurant management platform allows you to target a new customer base who prefer to order directly from you.
It also makes it easier to reach new customers who may not live nearby and are searching for delivery options from the comfort of their homes. One way to do this is opening a new restaurant business location so you’re as close to these new customers as possible and save on delivery fees.
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By catering to both local customers and those further away, restaurants can significantly expand their potential customer base and increase sales.
3. Improved order accuracy
One of the key advantages of an online restaurant management platform is its ability to improve order accuracy.
When customers place orders online, they can review the menu, select specific items, customize their meals, and include special instructions directly through your ordering app. This reduces the risk of miscommunication often associated with phone calls or in-person orders, where details might be missed or misunderstood.
This ordering system is also automated to ensure that every order is clearly recorded. Customers can verify the accuracy of their order details before they can checkout. The kitchen can see the exact order details on a live order screen, so they don’t miss a thing.
This further reduces errors such as incorrect menu items, missing modifications, or wrong quantities. The result is fewer customer complaints and wasted food. Ultimately, this enhanced accuracy not only saves time. It also leads to higher customer loyalty as customers trust they will receive exactly what they ordered.
4. It increases restaurant operational efficiency
Automating the order-taking processes allows you to focus on other parts of your restaurant operations, like food preparation, packaging, and delivery. It also enables you to provide excellent customer service to your online audience so they remember you after their food is delivered.
For instance, the kitchen usually receives detailed order information, including special requests or instructions. This info can help your staff prepare meals exactly to the customer’s preferences, such as adding extra toppings or condiments.
At the same time, the delivery personnel can use the customer’s address or location details to plan the delivery route earlier. This will ensure the food arrives hot and fresh.
Updating customers of their order progress through SMS notifications doesn’t only give them peace of mind. This gesture (plus other unique customer services) can keep them coming back again and again.
Customers can take their time deciding without the hassle of tying up staff. For instance, switching from phone calls to online orders eliminates the hassle of handling indecisive callers and saves staff time.
5. Accurate customer data collection and analytics
The following are some examples of customer data online restaurant management platform usually collect:
- Order history. Like details of past orders, specific food items, and customizations.
- Customer preferences. Such as their favorite dishes, dietary restrictions, frequently ordered items, etc.
- Contact information. Like email addresses, phone numbers, and delivery addresses.
- Preferred payment information. Like credit card and other digital wallets
- Reward or loyalty program participation. Data on customers enrolled in loyalty programs, including points earned and redeemed.
- Location data for delivery or pickup.
- Order frequency
- Peak ordering times, etc
The benefits of collecting customer data and analytics
Collecting these customer data points can help owners or restaurant management in several ways:
- Restaurants can implement targeted marketing campaigns, such as personalized promotions or special offers for specific customers.
- It improves menu planning and pricing. Understanding popular dishes and dietary preferences will allow you to adjust your menu accordingly. You can highlight best-selling menu items, introduce more of what customers prefer, and even remove less popular dishes.
- Payment and location data can help you optimize your delivery routes, delivery times, and the overall delivery system.
- Loyalty programs tied to order frequency encourage customers to order more often.
- And more.
6. More upselling opportunities
Most online restaurant management platform suggest complementary items such as sides, drinks, or desserts based on what the customer has selected.
For example, if a customer orders a pizza, the system might recommend additional toppings like premium cheese, pepperoni, or fresh veggies for an extra cost. This automated upselling strategy can encourage customers to add more food items to their carts.
Consequently, this will increase a customer’s average spending on an order. If done correctly, upselling dishes in this manner can increase your revenue.
Suggesting complimentary items also makes it easier for customers to discover new items they might enjoy with their dishes. In the long run, these small additions can positively impact a restaurant’s bottom line, increase profits, and improve customer satisfaction.
7. Enhanced customer experience
Features like order tracking, multiple payment options, personalized recommendations, etc., in an ordering system, are designed to improve the overall customer experience.
- Order-tracking. Real-time order tracking allows customers to monitor the status of their order from preparation to delivery. They’ll have peace of mind if they know exactly when their food will arrive. Plus, this transparency builds trust and keeps customers informed every step of the way.
- Multiple payment options. Offering a range of payment options, such as credit cards, digital wallets, and cash on delivery, gives customers flexibility and convenience.
- Personalized recommendations. Providing food recommendations based on past orders and customer preferences creates more personalized and rewarding customer experiences. It can lead to more frequent orders.
- Other features like user-friendly interfaces, easy mobile ordering, customizable orders, loyalty programs, and discounts also contribute to this experience. They make the ordering process faster, more convenient, and customer-friendly.
8. Increased sales potential
Every restaurant owner aims to increase their sales potential. Online ordering provides you with just that opportunity to generate more sales.
With the ability to accept orders around the clock, restaurants can tap into new customer segments. This includes customers who prefer to place orders late at night or early in the morning when walk-in traffic is low.
Moreover, an online ordering system allows an unlimited volume of orders to be processed concurrently. It’s completely different from dine-in experiences where space and staff can cap the number of patrons served.
This scalability, paired with efficient operations, means that generating more revenue is no longer constrained by the restaurant’s physical space.
Now, let’s look at the other side of the coin and highlight some drawbacks you may expect.
Cons:
If you want to implement an online ordering system in your restaurant, here are some drawbacks you might face and overcome.
1. Initial setup costs
Implementing an online restaurant management platform requires an upfront investment in technology, software, and possibly staff training.
For example, restaurants may incur:
- Costs for integrating the ordering system with your restaurant website.
- Purchase or upgrade hardware, such as tablets, computers, or point-of-sales systems, to sync with the new ordering software.
- Train staff on managing online orders, updating the system with new menu items, and troubleshooting technical issues.
These upfront costs may dig deep into the pocket of a small restaurant with a tight budget. However, the costs vary widely depending on the provider and the scale of the ordering system you choose.
2. Ongoing maintenance and fees
One of the biggest drawbacks of third-party food delivery apps like Uber Eats, Doordash, Grubhub, etc., is that they charge commission fees on transactions.
On average, restaurants make 30% of the transaction value of a delivery order. Unfortunately, the commission they pay per order received from online food delivery apps makes up 15% per transaction.
This means you’ll have to share your profits with these platforms.
In addition to commission rates, some online food delivery apps even charge transaction fees to cover payment processing costs. Some can charge ongoing maintenance costs for software updates, security patches, server hosting, etc.
If you factor in additional charges like service charges, pickup fees, marketing fees, customer support fees, etc., if any. These fees add up over time and eat into overall profit margins.
3. Technical challenges
Technical challenges in an online ordering platform can disrupt service and damage the customer experience. Common issues such as website downtime or software bugs can prevent customers from placing orders. Integration problems with POS systems or other restaurant software can complicate this process further.
For example, a system crash during peak hours could result in missed orders, incorrect charges, or service delays. Ultimately, this can lead to lost sales and customer frustration.
So, as a restaurant owner, ensure your system is reliable and easily integrates with existing in-house operations. This is critical if you want to offer smooth service and boost customer satisfaction.
4. Delivery logistics
If a restaurant manages its food delivery service, it must handle logistics. This can be quite complex and expensive. It includes hiring and managing delivery staff, maintaining vehicles, planning delivery routes, and ensuring that orders are delivered on time. Poor logistics management can result in late deliveries, higher costs, and dissatisfied customers.
In contrast, using a third-party delivery service shifts these responsibilities to the delivery platform. But as we’ve seen, this often comes with added fees.
70% of customers say they’d rather order and pay their money straight to their favorite restaurants and not to a third party.
With all these in mind, it’s time to find the best online restaurant management platform and set it up immediately.
Conclusion
In today’s digital age, when every restaurant requires a food ordering app, there’s no better place to start than online. Our platform provides everything you need to create a professional ordering website, share it with the world, and you can reach even more customers by sharing your website across social media or emailing it directly to potential diners. So, what are you waiting for? Get started today and see how easy it is to market your restaurant online with digitalmall.pk!