QSR Automations | The Global Leader in Restaurant Technology

The Demand for Delivery: How to manage the new Amazon/Grubhub partnership

Ashley Sheppard — Tue, 11 Oct 2022 14:39:34 +0000

Food delivery is more popular than ever, allowing customers a convenient and contactless method of eating from their favorite business in the comfort of their own home. While some restaurants have the capacity to hand-deliver all their off-premise orders, many rely on third-party delivery providers–namely DoorDash, Uber Eats, and Grubhub.

In May of this year, Grubhub only held 13% of food delivery market share compared to DoorDash’s 59% and Uber Eats’ 24%. However, due to a new partnership between Grubhub and Amazon, this is very likely to change. As of July 6, all Amazon Prime members can sign up for a free Grubhub+ membership to receive access to $0 delivery fees from hundreds of thousands of restaurants for one year. Amazon is estimated to have over 153 million Prime members already, meaning this partnership could drastically change the food delivery game.

So, what does this mean for restaurants?

This news may be unnerving for many restaurants. For those who are trying to manage first-party delivery, competing with a mega-business like Amazon may seem like trying to tackle a giant. Further, Amazon products like Alexa are making ordering with this new partnership that much easier. For restaurants relying on third-party providers to make deliveries possible, those third-party fees can make profit margins razor thin.

Although delivery is convenient for customers, restaurants know it can cause a lot of stress on business. Aside from the logistics of how to get orders from Point A to Point B, keeping up with deliveries can wreak havoc on staff.

Don’t Panic

All this information might be a lot to digest, but don’t panic. Statistics show that restaurants and other third-party delivery business don’t need to throw in the towel. Consumers in the United States, across all demographics and locations, have been found to prefer ordering food directly from the restaurant if they have the choice. Additionally, research shows that food delivery app users aren’t loyal to just one provider, but rather use multiple delivery apps to find the best deal for their favorite foods. So, while there may be some shifts in the market share of third-party providers, consumers ultimately care about the restaurant they get their food from, not the business who drops it off at their door.

We Can Help

While there are still unknowns as to what the partnership between Amazon and Grubhub will do to the industry, there are things to lessen the impact on restaurants. Integrating technology that makes your off-premise processes more efficient is crucial to stay on top of delivery orders. ConnectSmart allows for seamless communication between your kitchen, in-store POS, and third-party partners. Two-way communication and configurable order flow allows for an optimized system with no room for confusion about where an order is and when it will be ready.

News like this partnership can be complicated, but ConnectSmart makes off-premise dining simple.

Subscribe to the blog for more interesting restaurant content!

Subscribe!

About the Author

As Vice President of Sales & Marketing, Ashley manages the teams in both North America and EMEA, helping to expand the company’s global presence. He is a passionate advocate of improving guest experience within the hospitality sector and his teams consultative approach to business has enabled QSR to remain at the forefront of technology innovation. When he isn’t working, you can find Ashley training for cycling events in both USA and Europe, spending time with his family, walking his dog Jax, and supporting Manchester United Football Club.

The post The Demand for Delivery: How to manage the new Amazon/Grubhub partnership appeared first on QSR Automations | The Global Leader in Restaurant Technology.

Up Your Off-Premise Game

Devyn Nance — Wed, 16 Mar 2022 14:15:10 +0000

Welcome to level 3 of “we’re taking this day by day”! As warmer weather approaches, and as the stats have shown, off-premise strategies are something restaurants need to add to their business playbook. Not only is it a profitable solution for an unpredictable future, but it’s not a player that would need to benched due to closures, mandates, or capacity restrictions.

Off-Premise in the Present

The National Restaurant Association/Technomic partnership survey results from the study “Harnessing Technology to Drive Off-Premises Sales” found that in “today’s on-demand world, off-premises capabilities are more important than ever to keep restaurants aligned with the wants and needs of its customers.” For a larger-scale illustration, it’s reported that across all forms including drive-thru and delivery, 60 percent of overall restaurant occasions are off-premises. Since 2020, off-premise has become an increasingly important part of a restaurant’s business strategy. It’s helped generate additional sales, increased overall profitability through larger average check sizes and has added new customers. But what does that look like across the restaurant industry?

57% considered delivery more important than it was two years ago
67% operators think curbside pick-up is also more important than two years ago
On the customer side, 86% are using off-premise dining avenues once a month

Due to the ever-changing consumers that have been navigating the pandemic they’ve perpetuated the demand for eating their favorite foods in their own homes. As reported by Melissa Wilson with Technomic, this is due to generational shifts – by 2026 80 percent of millennials are predicted to be parents by then, thus increasing the preference to eat at home. This is a huge opportunity for growth for the operators that can get on board and provide a seamless delivery journey. Wilson states that operators need to know “who they’re going after and how.” They need to identify their users and reach them in the way they prefer to be reached.

What Can Operators Do?

We’ve thrown a lot of information your way! Now, how can you make it actionable? It’s not as overwhelming as it sounds. These easy-to-apply tips can help you get started today: Invest in technology — Specifically, when it comes to off-premise, technology can help you manage orders accurately. The right technology will create a seamless environment from front-of-house to back-of-house – through integrations and communication. Keep orders fresher longer, reduce wait times, send SMS notifications, and track customer data for top tier service each visit. How else have operators embraced technology?

45% have been using geofencing options
50% using virtual assistant voice ordering options

Consider various options – Off-premise can be loosely considered everything that is not dine-in. There are a lot of options to start:

Delivery (third-party or in-house)
Drive-thru
Optimizing/improving curbside pickup options
Meal kits + to-go experiences (cocktail kits and at home recipes)
Ghost or mobile kitchens – less space = less cost!

If you already have off-premise options, market them – Your customers can’t use services that they don’t know about. Tell them how!

Promote your off-premise options through various channels (including social media)
Create an off-premise specific menu. We recommend the foods that will travel well or the most popular dishes in this instance.
Think about your packaging – what is your restaurant doing to be sustainable? You can start with your off-premise packaging as people are taking them away from your restaurant.

If you’re wondering if it’s worth it to invest in off-premise efforts for your restaurant, in 2021, 53% of respondents surveyed and 64% of millennials identify both delivery and takeout as “essential to the way they live.” Add it to your restaurant’s business plan for the foreseeable future, just in case! On the flip side, chances are you’ve ordered delivery or takeout in the past month, so now you know you’re not the only one! The demand is there! Join us for our next webinar, March 22 or March 24. Register below!

About the Author Devyn is the Social & PR Specialist on the Marketing Team. She has a B.S. in Communication and an M.S. in Global Strategic Communication. She liked QR codes (before they were cool) ever since a two-week trip to China. She’s obsessed with true crime and enjoys quality time with her friends and family. Ask her about books she’s read, Criminal Minds, her dog-child, or her favorite cocktails!

The post Up Your Off-Premise Game appeared first on QSR Automations | The Global Leader in Restaurant Technology.

2022 Predictions: Technology to Play A Major Role in Casual Dining

Nick Brown — Wed, 23 Feb 2022 18:00:30 +0000

According to the new research from CGA Strategy, consumer confidence in eating and drinking out remains high, despite the rapid spread of the Omicron variant. Reassuringly, more than two thirds (70%) of those surveyed now feel confident about visiting pubs, bars and restaurants – more than double the number at the start of 2021 at 34% and a sharp increase on the 52% from its report in July. So, what do operators need to do to retain consumer confidence and most-importantly, what key technology trends will they need to adopt in order to drive footfall and increase revenue streams?

Back of house tech will become a necessity

In a recent study from India, 80% of restaurateurs said deploying back-of-house restaurant technology is a necessity for running a successful restaurant. Kitchen Display Systems (KDS) will be intrinsic in 2022 to helping operators manage efficiencies across back-of-house. Directly linked to the POS, the technology streamlines operations, while increasing efficiencies to deliver consistent, quality plates of food quickly. From a business perspective, it is possible to view real-time data and insights to make informed decisions, which will impact the bottom-line.

Accelerated automation and AI

As brands continue to maintain a steady state of dine-in demand, it will be important for operators to utilize restaurant technology solutions to improve efficiencies and customer satisfaction. Adopting machine learning and AI technologies can deliver data to keep costs down and profits up. For example, an AI can help predict inventory based on customer buying patterns and existing supply. Not only does this ensure the restaurant has the right food in place to fulfill orders and keep customers happy, but also helps the bottom line by reducing food waste.

Transaction data will become the star of the show

Today, technology solutions have to be about more than just handling transactions. In 2022, operators will have to focus on putting transaction data to work to better predict demand, control the supply chain, reduce waste and manage costs to remain agile.

QR codes set to move into the norm

Already a given in mobile-first societies such as China, QR codes will start to go global in 2022, popping up at restaurants around the world. In this ‘no-touch’ era, auto-scanning barcodes allows customers to access online menus, order and pay – and all without contact. The technology has also played an essential role in helping restaurants with contact tracing. Offering a number of convenient benefits at relatively low costs for restaurants, QR codes were a must for many in 2021 and will become a must-have in coming years. That great British spirit seems set to continue. According to CGA, there are signs that footfall should increase in the months ahead, with 19% of consumers planning to visit venues more often than they did in the previous year and 33% stating they will increase their frequency of visits from February. Subscribe to the blog for more interesting restaurant content!

Subscribe!

About the Author

Nick Brown heads up Business Development for QSR Automations in the UK. Nick lives around west London (where he’s spent his life) and considers himself a bit of a foodie. When not at the latest restaurant, you can find him occasionally jogging or (more likely) binge-watching the most recent Netflix series.

The post 2022 Predictions: Technology to Play A Major Role in Casual Dining appeared first on QSR Automations | The Global Leader in Restaurant Technology.