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Onlineordering has transformed the restaurant industry, turning what was once a convenience into an absolute necessity. In 2025, the US online food delivery market is expected to reach $424.9 Customers expect to browse menus, place orders, and pay for their meals with just a few taps of their phones. billion in revenue.
Many restaurant operators have misconceptions about average order volume (AOV) and how it works, making statements like: I need more customers to make more money. For example, lets say you have 50 orders in a day that total $2,000 in revenueall you need to do is divide the total revenue by how many orders you have for the day.
“Every guest touchpoint–whether it’s a dine-in experience, an onlineorder, or even a response to a review – can influence future business,” Mike Eng, Senior Director of Vertical Expansion at Klaviyo, told Modern Restaurant Management (MRM) magazine.
2024 was a year of experimentation with AI, with restaurants testing it on customer-facing interactions, like AI drive-thru ordering, with varying degrees of success. The 700+-store chain had a challenge with the amount of time it took to schedule an interview for a new applicant once the candidate had submitted their application online.
Every restaurant is unique, which means that you have to do a bit of research in order to find the best restaurant reservation system for your specific venue. You have to sift through reviews of the best online restaurant reservation systems and sit through countless demos just to find the information you're looking for.
Mobile orders were expected to drive $38 billion in restaurant revenue in 2020. Although mobile ordering isn’t the new kid on the block, it has certainly become the most popular because it’s one of the safest – and easiest – ways to order and pay for food.
Menu pricing isnt just about covering costsits about finding that sweet spot where profitability, customer perception, and operational reality meet. Set prices too low, and youre leaving money on the table. Most operators aim for food costs to be around 28-35% of the menu price, though this can change from restaurant to restaurant.
For a long time, third-party delivery apps seemed like the easiest way to get your restaurant online and in front of new customers. Instead of giving up control to outside platforms, some restaurants are shifting to a more direct approach: first-party ordering. First-Party vs. Third-Party Ordering: Whats the Difference?
.” With months of experience under their belt, many restaurants have established their own takeout ordering system. Most modern POS services make it easy to set up an onlineordering form that integrates with the rest of your operations. But how do you let customers know to bypass the delivery apps and order direct?
This edition of Modern Restaurant Management (MRM) magazine's Research Roundup features news on summer restaurant employment, indecisiveness ordering, onlineordering trends, and the world's best cities for food. percent of diners noting that recent price increases have altered their spending habits, and 58.5
Steady OnlineOrdering Brings Food Waste, Donations to the Forefront of Priorities Ordering food online increases restaurant sales, but it also can potentially increase wasted food if proactive measures aren’t taken – for both the business and consumers at home. Now, the process is fully digitized.
With egg prices increasing by 30 percent over the past year and expected to rise more, MRM asked Stasko for his best advice on what strategies restaurant owners can implement to prevent sharp menu price increases and innovative menu solutions they can implement. How can you avoid rising prices on egg-focused menu items?
In this guide, youll learn how to use ChowNow tools along with a handful of other effective strategies to increase order volume, boost your current customer traffic, and grow your overall sales. Email marketing is one of the most effective ways to stay top-of-mind with customers and remind them its time to order again from your restaurant.
While there was a brief dip in consumer awareness of menu price increases in late 2024, the spring of 2025 has seen a moderate rise, affecting dining habits and consumer perceptions of value. “With rising prices tied to eggs and imported goods, restaurants will need to think creatively about their menus,” Fink said.
While these platforms do bring in orders, they also come with the price of high commission fees, loss of customer data, and a weaker connection between you and your guests. Its up to you to educate them on the impact and show them why ordering direct makes a difference. can be an eye-opener for customers.
Minimizing Menu Price Increases : Just because diners are still eating out and ordering in, does not mean they are happy about higher menu prices. Restaurant operators should limit significant menu price increases, explore value menus when possible, and avoid implementing any sneaky service charges.
If you want to increase order volume for your restaurant, focusing on online takeout and delivery is key. But growing onlineorder volume isnt always easy. Many restaurants struggle with high third-party app fees, low website traffic, and clunky ordering experiences that drive customers away.
When COVID-19 erupted earlier this year, scores of restaurants relied on online delivery marketplaces to deliver meals to their customers. The role these marketplaces have played during the pandemic, delivering restaurant orders right to people’s front doors, has become invaluable to many consumers.
Surging prices have been top of mind for consumers for two years and counting, leaving restaurant leaders questioning how inflation might influence diners’ behavior and overall spending habits, including their usage of digital ordering and third-party delivery apps– both of which gained momentum during the pandemic.
If youre one of the thousands of restaurants that added online food delivery in recent years, you might be wondering: is it actually helping my business grow? These metrics give you a clear picture of your delivery performancefrom order volume and customer retention to delivery speed and profitability.
However, 30 percent of high-income consumers are dining at TSRs more frequently than before, signaling room for premium offerings at the right price. Value Isn’t Just About Price—It’s About Experience Price sensitivity may be at an all-time high, but focusing solely on discounts risks missing the bigger picture.
Understanding your target market is the foundation of making smart decisions for your menu, pricing, and overall guest experience. Meanwhile, a fine-dining steakhouse targeting business professionals will prioritize a refined menu, premium pricing, and marketing efforts that focus on corporate events and high-end experiences.
If your restaurant uses delivery apps like Uber Eats, DoorDash, or Grubhub, you already know how overwhelming order volume can get when the rush hitsespecially when youre bouncing between tablets, updating menus in three places, and relying on staff to manually punch in each delivery order.
Every onlineorder, email sign up, and reward program interaction generates valuable insightsbut if that data just sits there, youre missing a major opportunity. Think about it: What if you could automatically send a special offer to a customer who hasnt ordered in a while? Restaurants collect a ton of customer data.
Financial restaurant KPIs give you visibility into your costs, pricing, and ultimately, your profitability. Monitoring your COGS helps you spot food waste, theft, over-ordering, or supplier price hikes before they eat into your gross profit margin. Most restaurants aim for a Net Profit Margin around the 3%-9% range.
Keeping menus updated across various onlineordering systems and third-party delivery apps can feel like a never-ending game of catch-up. Manually updating menus across multiple onlineordering channels is tedious, time-consuming, and prone to mistakes. Without it, updating a menu is a long and laborious process.
Is onlineordering inefficient? Experiencing over-ordering or last-minute shortages? Are you aiming to speed up service, cut labor costs, or increase online sales? A higher-priced system that saves time and reduces errors might be more valuable than a cheaper, less effective alternative. Are labor costs too high?
Two-thirds of Gen Z and Millennials admit to spending more time online than they’d like, driving a desire for balance between online and in-person connections. Now is the time for restaurant brands to ask: Are we merging human insight with technology to craft meaningful customer journeys?
It allows AI to understand and respond to human language, which is how virtual assistants can answer customer questions or take onlineorders. These botsoften built into your website or onlineordering platformcan handle tasks like: Taking reservations Answering FAQs (Are you open on Mondays?)
Diners want the convenience of ordering, booking, and engaging with their favorite restaurants straight from their phones. Beyond mobile ordering, restaurant apps support operations in ways that were never available before. Onlineordering and delivery apps. Here is an example of a restaurants branded app.
Here are some key takeaways: Each generation discovers and researches restaurants differently, with younger generations relying more on online review platforms and social media. Theres also a visual element here, with diners eating with their eyes first and being reeled into new restaurants by food imagery and what I ordered videos.
Customers on average will order more menu items, resulting in a larger bill for the restaurant and a larger tip for the employee. Especially with buyers juggling 300+ ingredients each week, it can be difficult to stay on top of deals and prices. Luckily for restaurant managers, several tech solutions exist to cure this headache.
Youre delivering a great dining experience, yet foot traffic remains inconsistent, online engagement is low, and new customers arent coming in as often as youd like. Optimize Your Restaurants Online Presence Your restaurants online presence is often the first touch point for potential guests, so make it count.
77% of diners look at a restaurants website before going out to eat or ordering takeout or delivery. If you dont have a website, that means over three-quarters of the people near your restaurantyour potential customerswill never come in or place an order because they have no way to find you when theyre looking for a place to eat.
Today, customers rely on Google searches, online reviews, and social media to decide where to eat. People want convenience, transparency, and a connection to the brands they support, and that starts with how you market your restaurant online. A strong online presence means more visibility, more orders, and, ultimately, more revenue.
The concept goes far beyond a simple online menu or QR code. Every dine-in experience starts with a menu, so having yours available online is the first step to going contactless. However, restaurants have discovered that not all online menus are made the same. Every restaurant should look into hosting its own onlineordering.
Some great examples for restaurants are: How often the customer orders. What the customer orders. Which of your locations the customer orders from most. What the customer orders. How the customer prefers to order (for delivery, for pick-up or to dine-in). How many people does the customer orders for at a time.
Some operators are willing to have you work today, get paid tomorrow in order to get people in place to handle their minimum requirements. Order at the table through apps and kiosk ordering for fast casual/fast food is being embraced to reduce the need for wait staff. 200 onlineorders a month with one to two people. .
The tool from the East Coast vegan chain — a digital take on a split-flap mechanical display that appears on its website and in the chain’s ordering app — estimates the amounts of water, land, CO2, and oil saved by eating vegan burgers. The “ PLNT Impact Tracker ” on PLNT Burger’s website wants you to think about what you’re eating.
Online food delivery thrives as phones become one-stop shops for ordering and tracking meals. This convenience has made the online food delivery market massive, with global revenues of over $1 trillion in 2023 alone. They must choose whether to use third-party onlineordering platforms or handle delivery in-house.
In fact, as digital platforms have become more prominent during the pandemic for ordering takeout and delivery, restaurants can use the time their customers spend on their smart phones to their advantage. The Customer Online Journey Needs to be at the Forefront.
In the restaurant business, operating costs are the day-to-day expenses required to keep your doors open and your kitchen firingeverything from rent to payroll to the packaging your to-go orders go out in. If youre pushing out more orders, getting more ingredients, and staffing more servers, these costs will reflect that.
Each system has its own tablet, order flow, and set of requirements, making it difficult to keep up with operations smoothly. Each platformUber Eats, GrubHub, DoorDashrequires its own tablet, login, and order management system. Order management issues. Consumers report that 24.4% Staff training and inconsistent efficiency.
From managing an off-premise presence with onlineordering platforms to navigating the labor shortage and keeping costs down, it’s clear from the emerging trends we are seeing that technology is at the heart of helping FSRs not only survive but make gains during these extremely challenging times.”
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