"Point of Service: Click to Order"

Powers, V. (March 2007). Point of service: click to order. Hospitality Technology, March 2007. Retrieved April 9, 2007 from http://www.htmagazine.com/HT/archive/0307/0307_05.html.


Summary:

Vicki Powers’ article “Point of Service: Click to Order” discusses online ordering systems and the benefits enjoyed by their use. Today’s diners are more computer-savvy and time-starved than in the past; this has changed the face of to-go service. In the beginning consumers placed orders at the to go counter and waited for the order, drive-through windows soon followed, and consumers then began calling ahead placing orders. Through this evolution and progression of consumer behavior and technological application, there is a common trend, waiting times still exist and the process is not completely streamlined.

The use of personal computers to place orders is a prevalent trend among restaurants. Diners are able to order ahead at their convenience and food is either delivered or picked up at a specified time. The increase of use of click to order systems provides many advantages to restaurants or establishments that use the technology effectively.

Online ordering provides financial benefits in terms of labor cost savings, increased sales, and improved marketing strategies. Dining establishments with high levels of to go orders often rely on employees to answer the phone and take the order; during periods of high demand, more than one employee may be needed. Utilizing an online ordering system can potentially offer cost savings for the company. After the system is in place, fewer employees would be needed.

Increased sales and profits often result as online ordering systems provide more opportunities to order additional items, make additions to item choices, or upsell. When placing an order online, companies are able to provide more information, pictures, and utilize other tactics to increase sales that are not possible utilizing more traditional methods.

Once customer data and preferences are obtained, marketing efforts and special promotions can be directed to consumers for future orders, thus increasing brand loyalty and profitability.

Restaurants who use these systems have found that the easier the systems is for consumers, the more effective it will be for improving sales. An opportunity for improving the quality, accuracy, and convenience of the product/restaurant exists.

The article also cites the website www.foodler.com and its popularity. Foodler is an online network of restaurants available for select cities in Washington, DC. Georgia, Illinois, Massachusetts, Maryland, New Hampshire, New Jersey, Pennsylvania, and Rhode Island. This website utilizes a pay-per-click system of advertisement. Restaurants are listed with their menus for online ordering free of charge; the restaurant pays 5% of the total if a customer places an order. This provides restaurants with a user-friendly low cost means of advertisement and order taking. Customers may create their own profiles, saving credit card information, addresses, or email addresses.

The use and popularity of online ordering should only increase in the future. It creates a win-win situation for both the restaurant and the diner. Operators and managers should embrace this technology and strive for effective implementation to increase sales and reduce costs.

Reflection:

I found this article very interesting, and believe that online ordering is a trend that will only increase in the future. While I have never personally ordered online, it is quite evident the benefits these systems offer. The convenience provided is unmatched; diners are able to order whenever they wish and may do so while completing other tasks. For a working individual this is a very important benefit.

To better understand the principle behind the Foodler website, I visited the site. I was quite impressed by this website in terms of its usability and the information provided. After viewing the website I would be more inclined to order online than place an order over the phone. Order specifications can be made, pictures are featured, and online specials offered. I would recommend that more restaurants place their menus on Foodler or similar websites to increase awareness.

Effective use of online ordering systems can also add a unique competitive advantage. If a foodservice establishment offers online ordering and its competitors do not, they may be able to set themselves a part from the competition. Panera Bread has established itself with a sizable presence in their market; while their service is quick, there is often a wait and call-ahead orders may be inaccurate. If an online ordering system were implemented, Panera may experience the benefits cited above. It would be more convenient for diners, larger orders could be filled with more accuracy and speed, and hopefully, increased profitability would result.

In utilizing an online ordering system, employees may be able to focus their efforts to improving the guest experience due to the streamlined processes. The ordering process may be less stressful as there are fewer opportunities for errors as the order is entered and confirmed by the user.

The expansion of marketing strategy to offer more specific focus to customers who have placed online in the past is especially interesting to me. This allows companies to create innovative promotions that diners would actually use; too often, coupons and promotions are offered that lack focus or utility, data capturing and analysis would reduce this. Diners have a greater incentive to place orders online and become more loyal to a particular establishment or brand.

The use of online ordering systems should be embraced to increase overall profitability and adapt to, what should be, an important trend both now and in the future.