Blog For Restaurant Owners

OK! you now realize that it is imperative that you take online orders at your website. However, the fact - as of now - is that many customers are using Portals to place their online orders. The customers probably like having a choice of restaurants and the Portal brand is very strong. Before conceding that “Portals are a necessary evil”, look carefully … YOU might even be helping the Portals unknowingly by advertising for them to YOUR customers!

Here is an example:

Occasionally, I love to walk the streets of New York and pop into restaurants that are taking online orders or intend to take online orders. In New York (I love New York!) some of the restaurants allow Seamless Web to put bright red stickers on the restaurant doors stating “Order online at Seamlessweb.com”. In Chicago, I have seen delivery.com give restaurants free plastic bags for their food for delivery or pickup. On the side of the bag it says “Order online at Delivery.com”.

I was amazed that restaurant owners do not seem to recognize the serious consequences of these seemingly benign gestures. I guess the restaurant owners fail to think beyond free bags and colorful stickers! Let me ask you (the restaurant operator) a simple question: Will you allow an employee in YOUR restaurant to wear a T-Shirt with your competitor’s logo on it that says “Go try my competition”? Well the bags and stickers effectively say that!! Orders from portals are costing you money and - more importantly - customers!

Another example: Portals often come to the restaurant and suggest that if the restaurant offers a discount, the Portal will market that discount to all the Portal’s customers. You want these customers, but now you have given them even more reason to go to the Portal to order.(Click here to see another post in interesting detail)

Again, I will emphasize there is nothing wrong with a Portal bringing you a new customer. That is good. The bad is when the customer continues to use this channel for repeat orders. You pay higher rates, your customer may order from somewhere else and you do not get the customer data. THIS IS BAD BUSINESS!

As an owner of a 14 unit chain in Chicago, all my units belong to multiple Portals. However, with aggressive marketing of my website, of the 500 online orders we do daily only 5 come from the Portal. The rest order directly from my restaurant’s website.

Here is why!

• We offer a loyalty program to our customer. For their first order we give them 10% off and for every 10th order we give them a $10 eCoupon
• We advertise on our menu, on our napkins, on our cups, in our store, at our cash registers…Next time you order, order online at myRestaurant.com (NOT some Portal.com)
• We constantly manager our online menu. It is up to date, prices are right and there is no confusion over menu items.
• Most importantly, we create great experiences for our online customers. It is easier for them to go to our website and just place their order.

Needless to say, now that customers order online directly from me, my processing costs are lower, I have a database of over 35,000 online customers that I control. I know everything about them. Their first order, last order, and how often they order. When I market, I market to them first. If I keep them happy, they will build my business for me. They order more often, they tell their friends and my sales go up! They are my customers and my religion is to take care of my customers! With fewer mistakes, better customer service my average ticket has increased and my employees have time to focus on making orders instead of taking order on the phone! Truly a WIN-WIN

Filed under: Authors, David Litchman, Online Ordering, Portals