Does this sound familiar? Third-party delivery services can be like a drug that addicts restaurant owners: You sign up at a significant expense to get quick hits in the form of incremental sales, then pay even more to sustain business as more companies join the platform. That’s the view of Noah Glass, the CEO and founder of Olo, a mobile and online ordering platform. Glass advises restaurant operators to control their own online ordering site and he built his company to help them do that. While it can be more work to get customers to visit your site or download your app, he says, you will reap the benefit of more money earned on each sale. Others agree. Keeping your ordering in-house could increase your profitability by 35 percent, according to Software Advice, which advises operators to use a simple equation to determine how much they could be spending on third-party platforms. (Take the value of your monthly revenue and multiply that by 25 percent, which is the average percentage of commission fees charged by the platforms, and your answer will be the amount of money you will lose each month.) Instead, you could keep your ordering in-house for a lower monthly fee and supplement your system with Google’s My Business to benefit from the marketing exposure in your area. Then, when you capture the contact information and order history of customers, you can send targeted push promotions to them to entice them to return. Finally, keeping your ordering platform in-house keeps you in the driver’s seat when making menu changes or updates, or when managing issues with orders. Even if your third-party vendor seeks to provide a good customer experience, the may not be able to update your information as quickly as you would and they don’t necessarily value your business over the growing numbers of other restaurants on their platform.
Speak your guests’ language
Do you have an item on your menu that should be popular with guests but somehow doesn’t get many takers? Before you exchange it for something new, consider adjusting how you describe it on your menu. Even if you use colorful language to paint a mental picture of a dish, it may not strike an emotional chord with a guest. Cake suggests guiding guests to make a decision using nostalgic language rather than logic. It worked well for Dolester Miles, who earlier this year was named the best pastry chef in the nation by the James Beard Foundation. The Washington Post reports that she created a layer cake containing zabaglione — a foamy custard sauce flavored with marsala wine — but no one ordered it when the menu description mentioned the ingredient. When she changed the name of the dessert to Frank’s Favorite Cake, however, “it started flying off the shelf.”
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