Know Your Food Cost Percentage. Know Your Restaurant Profits.
Calculate Food Cost Percentage
Online ordering systems are changing how restaurants operate and profit. These systems allow customers to browse menus, select options, and pay quickly. Studies show that customers who order online visit 67% more frequently than those who don't.
While an online restaurant ordering system offers substantial benefits, its implementation has some challenges, too. These include managing increased order volume, ensuring timely delivery, and maintaining food quality. This guide details ten proven strategies to capitalize on online ordering and optimize your restaurant's earnings through these systems.
A restaurant online ordering system makes it easier for your restaurant to take orders, reach more customers, and offer greater convenience. Working with third-party delivery services increases sales by 10 to 20%. It's worth noting that 87% of Americans who use these services greatly appreciate their convenience.
You have two primary choices for a restaurant's online ordering systems: third-party platforms and direct ordering systems. Services like Uber Eats, Skip the Dishes, and DoorDash extend your reach and manage logistics, simplifying the process. Conversely, direct ordering systems control customer interactions and branding and enhance your service's personal touch.
Pro Tip: Balance your choices between third-party and direct platforms based on your brand recognition and desired control over the ordering process. Remember that direct platforms often allow quicker menu updates and lower fees than third-party platforms.
You can sell online directly from your website to capture more profits and connect with your customers. Recent findings show that 70% of consumers prefer to order from a restaurant. They value knowing their payments benefit the business instead of a third party.
Choosing a direct restaurant online ordering system gives you complete control over your menu and promotions. You can swiftly update your offerings and adapt to customer tastes or seasonal changes. Moreover, setting up your online ordering system with your point of sale (POS) system further smoothens operations. It ensures orders feed into your kitchen workflow without delay or error.
Pro Tip: Apply SEO techniques to boost your website's online visibility. Strong SEO practices ensure your restaurant appears in more search results and attracts more customers to place orders with you.
A mobile app opens a direct marketing channel between you and your customers. It enhances the online ordering experience by allowing customers to place orders with a few clicks, save their favorite meals, and customize orders without communication barriers.
Additionally, using an app allows you to track customer preferences and buying trends to create customized promotions. This insight helps tailor your offerings to meet customer demands more effectively.
Pro Tip: Implement push notifications in your app to send real-time updates and promotions to your customers. This will keep your audience engaged with timely information and exclusive deals for more frequent orders.
A well-crafted marketing strategy increases your visibility and attracts more diners by showcasing your offerings compellingly and consistently across various online platforms.
Social media platforms like Instagram and Facebook offer integration tools with your website. This seamless integration ensures that the path from discovery to order is as short as possible, which can enhance customer experience and increase sales.
Proper integration also means your marketing efforts have a consistent message across all platforms. Whether customers find you through Google searches, see your posts on Facebook, or come across your Instagram profile, they should encounter a uniform brand image that directs them effortlessly to your restaurant's online ordering system. Regular engagement on these platforms and strategic use of hashtags and fresh content keep your audience connected and informed.
Pro Tip: Regularly update your social media content with relevant keywords. This practice boosts your search engine optimization and keeps your restaurant high in search rankings and easy to find.
Strategizing your online menu can turn a simple order into a larger sale. For this, you must focus on structuring your menu to naturally guide customers toward premium items and add-ons. This strategic placement will boost your average order value.
Consider arranging your menu to showcase premium dishes and customizable options prominently. By listing these choices at the beginning, you grab attention early and set the tone for higher spending. Additionally, implementing a visual hierarchy on your menu can help highlight these items and make them more appealing and more accessible to choose from.
For add-ons, integrate suggestions seamlessly into the ordering process. For example, when a customer selects a main dish, prompt them with compatible sides, drinks, or appetizers. This method feels less intrusive and more like a service.
Pro Tip: Use enticing images and brief, compelling descriptions for premium items and add-ons. Display them in critical areas of your ordering platform to draw attention and tempt customers to indulge in a little extra.
When customers see payment options they recognize and find easy to use, they're more inclined to complete their orders and return. Embrace technology by integrating digital wallets and local payment options to appeal to modern and traditional shoppers.
Offering various payment options streamlines the checkout process and reduces the chance of customers abandoning their carts. Customers appreciate paying with their preferred method, whether a credit card, digital wallet, or local payment system.
Pro Tip: Add payment options like Apple Pay, Google Wallet, and various local methods. This move makes transactions more accessible for your customers and showcases your restaurant as a forward-thinking, customer-focused entity.
Today, customers expect convenience and flexibility when ordering food. Offering diverse modes of food collection not only caters to different customer preferences but also adapts to various levels of comfort concerning health and safety measures. As a result, you can attract a broader audience, from tech-savvy millennials to older customers who appreciate traditional service but with a modern twist.
To effectively manage different service options, consider their needs:
Proper training for your staff in these areas will help ensure a seamless and positive customer experience.
Pro Tip: Boost your restaurant's appeal by introducing curbside pickup, drive-thru, and contactless delivery options. These additions meet customers' desires for both convenience and safety.
An effective loyalty program could boost the frequency of online orders, with 45% of consumers saying they'd order more if they received rewards for their loyalty. To fully leverage a loyalty program in your restaurant's online ordering system, implement clear, targeted strategies that impact customer behavior.
Start by incorporating your loyalty program into your restaurant's online ordering system to enhance the user experience. Ensure customers can easily access their rewards and clearly understand the redemption process.
OneHubPOS’s e-Loyalty & Rewards app simplifies the management of customer loyalty programs. With its intuitive dashboard, you can easily monitor rewards and engage with your customers more effectively. Contact us to learn how we can make your rewards system more straightforward and manageable.
Provide tiered rewards to suit various levels of customer involvement. For instance, you might give a free appetizer after five orders and a discount on the entire bill after ten orders. This approach encourages customers to aim for higher tiers, boosting their engagement and loyalty.
Pro Tip: Analyze the ordering patterns and preferences captured through your loyalty program. Use this data to personalize rewards, such as suggesting dishes based on past orders and offering special deals on favorite items. With personalized interactions, you encourage repeat business.
Introduce irresistible promotions and discounts to increase your customer base and sales. Such offers draw in new patrons and encourage them to return. For example, offering a temporary markdown on select dishes can quickly spark interest and drive traffic to your restaurant.
OneHubPOS features a sleek dashboard that puts control at your fingertips. You can update, edit your menu, and manage inventory anytime, anywhere and ensure smooth operations.
Designing promotions for your new or classic dishes can reveal customer preferences, which is crucial for refining your menu. Additionally, applying discounts during slower periods can regulate patron' flow, minimize wait times, and improve the dining experience.
Pro Tip: Sync your promotions with local events or holidays for a more significant impact. People are often searching for places to eat during these times. By offering discounts on national holidays or local festival days, you not only boost your sales but also deepen your ties with the community.
Customer reviews impact the reputation and perceived reliability of your restaurant online ordering system. Featuring these testimonials prominently encourages potential customers to trust your service and menu offerings. The positive experiences others share provide social proof that can sway decision-making and enhance your restaurant's appeal.
Engaging with the reviews by responding to them shows commitment to customer service. This will improve your relationship with existing customers and demonstrate to newcomers that you value feedback and are actively working to maintain high standards.
Pro Tip: Integrate a section on your ordering page dedicated to top customer testimonials. This strategic placement can directly influence browsing customers to complete their purchases, boosting conversion rates.
As restaurants adapt to a digitally-oriented environment, the importance of an effective online ordering system becomes apparent. The strategies we've discussed provide a route to improve operational effectiveness and boost both customer engagement and satisfaction.
Keep your systems and strategies fresh by regularly updating them to meet customer needs and technological trends. Being attentive to feedback and proactive about introducing new solutions will help your restaurant stay competitive and favored by your customers.
To explore the best solutions for your restaurant, book a call with OneHubPOS for expert guidance on ordering systems.
Federal law allows including only employees who customarily and regularly receive tips. This typically excludes back-of-house staff like cooks and dishwashers. However, some states might have different regulations.
Tips are typically collected throughout the day and pooled at the end of the shift. The pool is then distributed among eligible employees based on the chosen method.
In some states with allowed tip credits, employers can take a portion of the minimum wage based on tips received by employees. This essentially allows employers to pay tipped employees a lower base wage.
Non-compliance can lead to fines and penalties from the Department of Labor, wage-and-hour lawsuits from employees, and employee morale issues.
Tip sharing is voluntary. An employee might choose to share some of their own tips with colleagues. Tip pooling is a mandatory system where all tips are collected and then distributed among eligible employees based on a predetermined method.
No, managers and supervisors cannot participate in the tip pool.
There are no standard percentages by law. However, 15-20% is a common tipping range for good service in the USA. Tip pooling eliminates the need for individual tip calculations.
Tip pooling can be beneficial for restaurants of all sizes. It can foster teamwork, ensure everyone benefits from good service, and simplify tip distribution.
Yes, tip pooling is legal under federal law (FLSA) with some key restrictions. However, some states might have additional regulations. Always check your state's Department of Labor website to ensure compliance.
Pricing is a balancing act! You need to cover your costs (including the food cost per portion) while offering a price point that feels valuable to your customers. Consider factors like competition, target audience, and the overall dining experience you create.
Food cost calculators are great for initial estimates, but consider restaurant management software for ongoing success. This software tracks inventory, automates cost calculations, and generates reports to identify cost-saving opportunities.
Absolutely! Many online food cost calculators can handle various cuisines. Look for tools that consider ingredient types, portion sizes, and even regional pricing variations.
Consider your food cost percentage your restaurant's financial fitness tracker. It's the total cost of recipe ingredients divided by your total menu sales. Ideally, calculate this regularly, like weekly or bi-weekly, to monitor profitability and adjust pricing or portions as needed.
The standard costing model is like a recipe for consistent pricing. It uses historical data and market trends to predict ingredient costs, allowing you to budget, purchase, and maintain profit margins even when prices fluctuate.
Food cost per portion is the actual cost of creating a single serving of a dish. It considers all ingredients, including spices, garnishes, and even waste! This number helps you understand your profitability and set menu prices effectively.
Satheesh Kanchi is the Founder and CEO of OneHubPOS, He is the restaurateur behind several popular Indian restaurants in California and India. He started his career as a technology CEO, bringing that same level and learnings innovation and drive to the restaurant industry.
