7 Ways Online Ordering System Can Boost Your Restaurant Profit

What Is an Online Ordering System & How It Works

A restaurant online ordering system is a system designed to make the ordering process easy for customers and restaurateurs. It allows customers to order products without the need to visit the restaurant.

The ordering system works when a customer interacts with your online menu via a website or application. A good restaurant’s online ordering system allows customers to securely pay online, personalize their order, and receive order updates, all with a few intuitive taps.

Online ordering helps the restaurant staff as well since the customer’s order pops into your KDS for swift order preparation. The customers' contact and order information get stored in your back-office software for future purchases, discounts, promotions, and loyalty rewards.

This makes the whole process easy and smooth, allowing both parties to save valuable time. But do you need online ordering, or is it just an extra cost for your restaurant?

Why Your Restaurant Needs an Online Ordering System

Online ordering has grown 300% faster, as compared to dine-in since 2014, and now accounts for up to 40% of the total restaurant sales.

Without having a robust online ordering system in place, you may lose 40% of potential sales. This is the biggest reason to have a reliable and secure online ordering system. Here are 3 other reasons why your restaurant should implement a restaurant online ordering system.

• Improve Order Accuracy

Phone orders can be inaccurate due to the different volume levels, loud background noise, or language barriers. This could result in poor customer experience and food waste. Online ordering gives the customer the comfort of selecting their favorite meal without talking or explaining to your staff.

• Save Money

Customers can take a long time to order food from your restaurant. This could not only occupy space for a longer time but also make it difficult for your staff to deal with confused customers. Online ordering prevents any lost time that staff might experience and allows customers to order food online.

• Enhance Marketing

An online ordering system helps you to improve your marketing by allowing more people to buy from you. By creating deals and offering promotional discounts, you can attract more customers. You can also capture emails and contact details, which allows you to remarket these individuals with special discounts.

7 Ways to Utilize Online Ordering System to Boost Your Restaurant Profit

Now that you are aware of the importance of an online ordering system, you might be wondering how it can boost profits. Here are the top 7 ways to utilize an online ordering system to maximize your revenue.

1. Personalized Experience

A robust restaurant online ordering system offers customers the ability to tailor their orders according to their preferences. Your customers can select from dietary restrictions or exclude specific ingredients. This personalized approach enhances customer satisfaction, allowing them to come back for more.

1. Improve Order Management

Order management is the backbone of your restaurant operations. A slight mistake in the order can ruin the customer's experience. A restaurant’s online ordering system can help you streamline your order management process. You can avoid costly mistakes, enhance customer experience, and save time while helping your bottom line.

1. Minimal Labor Costs

Cutting costs is the key for restaurants to maximize profits. An online ordering system can help you to avoid hiring more staff. You don’t need the waiters to take the orders that are from the online ordering system. Automation helps you to save money while bringing more accuracy. Cutting labor costs is a big strategy that a restaurateur can deploy.

1. Get Better Consumer Data

One of the significant benefits of an online ordering system is the data it generates. You can get a wealth of data related to order trends, popular items, customer feedback, and much more. This helps you to make informed decisions, identify areas of improvement, adjust price strategies, and make choices that positively impact revenue.

1. Be Available Everywhere

An online ordering system allows customers to conveniently place their orders from anywhere, at any time. This flexibility not only improves the customer experience but also helps you to reach a wider audience. The increased accessibility results in more sales, ultimately giving you more profits.

1. Upselling & Cross-Selling

Upselling and cross-selling are popular marketing practices to increase the average order value. By utilizing the online ordering system, you can implement suggestive selling techniques to sell underperforming products or items. You can suggest additional sides or beverages to encourage customers to spend more. This ultimately increases check size and adds more revenue.

1. Transparency

An online ordering system gives you complete transparency on your sales and orders. It also provides a secure gateway for your customers to order their favorite meals. They can know the exact price of the dish; with the time it will take to deliver or be picked up. Once the order is complete, the customer feels satisfied, and the restaurant earns their trust.

How To Set Up a Restaurant Online Ordering System?

No online ordering system is exactly the same, so when looking to set up a restaurant online ordering system, it’s always crucial to know your options. There are three ways to set up an online ordering system.

• DIY Restaurant Website Builder
• Third-party App
• First-party App

1. DIY Restaurant Website Builder

This is the most tedious and time-consuming way to set up a restaurant’s online ordering system. You have to build a website that can accept online food orders and payments. There are dozens of Website Builder tools that can help you build a site that you want. But if you are not a tech wiz, you will need to hire a tech-savvy person that can maintain your website. The whole process can be expensive if you are outsourcing the work. And chances are your website builder won’t integrate with your POS system. This will raise your labor cost as your staff will spend more time inputting online orders that can be prone to human errors.

1. Third-Party App

Third-party applications or delivery services might seem to be an attractive option. They are happy to handle the entire online ordering process. You can use their extensive network of delivery drivers, marketing reach on their platform, and the ability to quickly start your online restaurant ordering system. But with all these benefits, the platform cost that you need to pay is often higher. Normally, third-party apps charge between 15% to 30% commission on every order. Not only this, but usually, they retain control of all your guest data, including name, phone number, and email address.

1. First Party App

This is the latest restaurant POS system that gives you the freedom to own an ordering menu, guest data, and online payments. The best part is you don’t need to pay high per-order percentage-based commissions. First-party apps are the most cost-effective way to set up your online ordering system. You can integrate with your POS, and it even offers delivery integrations. In contrast, our Cartzie App is designed to meet your current and future needs while enabling you to keep all your profits and maintain total control of your pricing. A low monthly flat rate is charged every month with no hidden fees involved.

Let’s Get Your Restaurant Online Today

There is no point in setting up an online ordering system if it’s not profitable. It’s crucial for you to find the right balance between convenience and cost. If you rely too much on a third-party ordering app, they’ll be taking a higher percentage of your online revenue.

On the flip side, if you go with building your own website, the maintenance and development costs will eat all your profit. Therefore, a first-party POS online ordering system comes as a sustainable option for what most restaurants need in online ordering.

FAQs

1. How Much Does It Cost to Setup an Online Ordering System with Modisoft?

Setting up an online ordering system with Modisoft isn’t expensive. We offer a range of plans depending on your needs and preferences. You can always give a call to our sales team at 866-216-8707 to get answers to all your questions.

1. Does Online Ordering Increase Sales?

Online ordering is a smart way to reduce operational costs, attract new customers, and keep existing patrons coming back for more. By offering online ordering, you can maximize your profits by

• Improving customer satisfaction through tailoring your offerings
• Reducing costs by eliminating staff to take orders and process payments
• Providing convenience to order online without communicating or leaving the home.

1. How Can a Restaurant Increase Profitability?

To increase profitability in your restaurant, you will need to focus on managing costs and improving marketing. By analyzing menu items, streamlining inventory, and optimizing labor, you can make a significant impact on your bottom line.