TLDR
You're a restaurant owner trying to boost productivity and profits. You know mobile ordering is the future, but is your staff ready? Starbucks conquered this challenge, raking in over 20% of orders via mobile. Their secret - start small and focus on employee buy-in. There's no reason you can't achieve the mobile dominance Starbucks enjoys.
Rising Labor Costs Facing Restaurants
According to industry reports, labor comprises about 33% of restaurant expenses—second only to food costs. Over the past three years, many restaurants have seen labor costs rise $1,000 to $10,000, while 45% say profits have remained flat.
Most national chains have had to raise menu prices to offset these rising costs. However, this strategy risks alienating customers if prices become too high. A better solution is improving operational efficiency through technology like mobile ordering platforms.
Mobile ordering allows customers to place orders directly through your app. This eliminates the need for servers to manually take orders, freeing up time to provide better customer service and deliver food. Studies show mobile ordering can reduce order errors by up to 50% and cut wait times by up to 12 minutes per table.
The benefits of mobile ordering are clear. Customers get a convenient, seamless experience with faster, more accurate service. Staff are freed up to focus on high-value tasks. And restaurateurs gain operational efficiencies to help overcome tight profit margins in a challenging business environment.
With the right mobile ordering partner, restaurants can deploy an intuitive app to streamline operations, reduce labor costs, and improve the customer experience—all while building their brand. The outcome is a win-win: lower costs higher profits for businesses, and greater satisfaction for customers.
The rising labor costs in the restaurant industry require innovative solutions. Mobile ordering platforms that integrate with point-of-sale systems are enabling businesses to do more with less while enhancing the customer journey. By following the lead of brands like Starbucks, restaurateurs can gain a competitive advantage through technology that reduces operational friction and keeps costs in check.
How Mobile App Can Boost Employee Productivity at Your Restaurant
Mobile ordering apps are revolutionizing the way customers place orders and staff fulfill them. For employees, these apps can significantly improve efficiency and productivity.
By enabling customers to place and pay for orders through a mobile app, baristas spend less time manually taking and processing orders. This allows them to focus on making quality beverages and providing good customer service. According to QSR magazine, mobile ordering can reduce order times by up to 50-60% during peak hours.
Reduced Wait Times
With customers entering their own orders through an app, baristas can get started on making the drinks right away. This cuts down on wait times, improving the overall customer experience. Studies show that over 70% of customers expect to wait no longer than 5 minutes for their order. Mobile ordering helps make this possible.
Improved Order Accuracy
When customers place their own orders through an app, it eliminates the possibility of your staff mishearing or entering the wrong information. The customer is in full control of the ordering process, choosing exactly what they want. This results in higher-order accuracy and fewer mistakes.
Increased Sales
The convenience of mobile ordering, combined with reduced wait times, leads to higher customer satisfaction. Happy, loyal customers tend to spend more. In fact, over 27% of Starbucks' revenue in the USA only comes through mobile ordering. Providing a seamless ordering experience through technology is key to boosting sales.
With benefits like improved efficiency, higher accuracy, reduced wait times, and increased revenue, it's easy to see why many leading coffee shops and restaurants are turning to mobile ordering apps.
Key Benefits of Mobile Ordering for Restaurants
Mobile ordering provides numerous benefits for restaurants looking to improve operational efficiency and boost customer satisfaction.
Increased Productivity
By streamlining the ordering process, the Per Diem app frees up staff to concentrate on high-value tasks such as customer service and order delivery. Studies show that servers spend up to 50% of their time manually taking orders, time that could be better spent engaging with guests. With mobile ordering, staff can work smarter, not harder.
Operational Efficiencies
Integrating mobile ordering with Square POS allows for a seamless flow of information. Menu items, modifiers, and inventory levels are automatically updated in real-time across platforms. Staff also gain valuable data to help optimize menu offerings and staffing levels during peak periods.
Improved Customer Satisfaction
Today’s tech-savvy customers appreciate the convenience and control when ordering their food or drink. The ability to order ahead, skip the line, and have their items ready for quick pickup significantly improves the overall experience. For restaurants, mobile ordering is a way to meet customers where they are—on their smartphones—and build loyalty through an innovative brand experience.
Mobile ordering is revolutionizing the restaurant industry, providing benefits for both operators and customers alike. For any food business looking to gain a competitive edge, a customized mobile app is key to success.
To learn how you can compete with Starbucks using a mobile app, check out our blog here.
Implementing a White-Label Mobile Ordering Solution
As a restaurant owner, implementing a white-label mobile ordering system can streamline operations and boost revenue. A customizable mobile app allows you to provide delivery and takeout services under your own brand.
With a white-label solution like Per Diem, you get an app tailored to your business needs without the high cost of building your own app from scratch. Their platform offers features like:
- Direct integration with your Square POS to keep online menus, prices and stock levels up-to-date in real-time.
- The ability to adjust prep times based on your busy hours so you don’t get overwhelmed with mobile orders during peak periods.
- Customers can scan your QR code to view your menu, select items and pay right through the app. This reduces order errors and frees up your staff to focus on delivering amazing customer service.
According to studies, over 60% of people prefer to order takeout or delivery through a restaurant’s official app rather than a third-party service. Providing your own white-label mobile ordering allows you to build customer loyalty, gain valuable data about your guests and boost sales. Many large chains have found success with branded mobile apps. In 2019, over 20% of Starbucks' U.S. revenue came through mobile orders.
Implementing a customized mobile ordering system may require some initial investment, but the long-term benefits to your business can be well worth the cost. With a streamlined operation, improved productivity and higher sales, you'll soon recover your investment and continue reaping the rewards. For any restaurant looking to improve efficiency, increase convenience for customers and gain a competitive edge, white-label mobile ordering is an innovation worth considering.
FAQs About Improving Employee Performance With Mobile Ordering
Mobile ordering is revolutionizing the restaurant experience for both customers and employees. Many frequent customers of chains like Starbucks and McDonald's are already enjoying the benefits of ordering ahead via an app and picking up their drinks without waiting in line. For employees and shop owners, mobile ordering also brings opportunities to improve productivity of your existing employees and boost sales. Here are some frequently asked questions about how mobile ordering can enhance employee performance:
Will mobile ordering reduce the need for employees?
Mobile app allows employees to focus on crafting high-quality menu items rather than just taking orders. Your staff is still essential for making customized orders, providing friendly service, and creating an enjoyable atmosphere.
How does mobile ordering impact tips?
Although employees have less face-to-face interaction with customers who order via an app, mobile ordering can increase average tips. When customers place an order in advance, they are directed to the payment method immediately. Our app prompts customers to leave a customized tip before they check out, and studies show electronic payments tend to yield higher tips. Employees who provide great service for mobile order pickups may also receive cash tips from some customers.
How can I optimize my employees’ time with mobile ordering?
Use your Square point-of-sale system to track popular items and forecast demand for mobile orders. Have additional staff on hand during your busiest hours to handle the higher volume and minimize wait times. You might designate certain employees to focus specifically on mobile order pickups. Consider offering mobile - only discounts or loyalty perks to drive more prepaid sales. The more you can steer customers toward ordering in advance, the less time your employees will spend manually taking orders.
How does mobile ordering impact customer wait times?
When customers order ahead, their drinks are ready for pickup as soon as they arrive. This eliminates the time spent waiting in line to place an order and for the order to be prepared. Faster service means happier, more loyal customers—and more sales. By reducing wait times, you’ll serve more customers overall and avoid losing sales due to lengthy lines. Mobile ordering is a win-win for your customers and your bottom line.
Final Thoughts
The hospitality industry is experiencing a labor shortage, but innovative mobile ordering technology provides a solution. As demonstrated by Starbucks’ success, mobile ordering improves efficiency, accuracy, and the customer experience. By parterning with Per Diem, restaurants can control labor costs while empowering their employees to deliver exceptional service. With the right technology partner, your business can thrive amidst the turbulence of a changing industry landscape. Equip your restaurant for sustainable success with a mobile ordering app.