innovation

LoyaltyPlant at the L&L Hawaii Barbeque 2024 Partner Convention: Success with a Global Brand in Numbers

Posted on by Anna

Recently, LoyaltyPlant attended the annual convention of our partner, L&L Hawaiian Barbecue, in the vibrant city of San Antonio, Texas. The event gathered hundreds of franchisees, suppliers, and managers from across America. During the conference, Evgenia Mkrtychian, our Head of Customer Success from New York, closely engaged with franchisees, discussed upcoming growth plans, and received feedback about LoyaltyPlant. 

 

LoyaltyPlant has developed a mobile customer engagement platform, comprising a mobile app with in-app marketing and a loyalty program, website, and a CRM system. Currently, more than 137 locations across the USA have been actively using our application for over four years!

LoyaltyPlant at the L&L Hawaii Barbeque 2024 Partner Convention: Success with a Global Brand in Numbers
LoyaltyPlant at the L&L Hawaii Barbeque 2024 Partner Convention: Success with a Global Brand in Numbers
LoyaltyPlant at the L&L Hawaii Barbeque 2024 Partner Convention: Success with a Global Brand in Numbers

How it all begun

Let’s rewind to the beginning to grasp the necessity for the digital change of L&L Hawaii Barbeque. Established in the 1950s, the brand has flourished for over half a century, focusing primarily on in-store operations.

However, with the evolution of technology and significant global shifts, the emergence of the online realm has posed a considerable challenge. This challenge has directly impacted the brand’s extensive network, requiring adaptation to this new reality and ensuring seamless functionality across all its locations.

LoyaltyPlant at the L&L Hawaii Barbeque 2024 Partner Convention: Success with a Global Brand in Numbers
LoyaltyPlant at the L&L Hawaii Barbeque 2024 Partner Convention: Success with a Global Brand in Numbers

Our journey with L&L Hawaii Barbeque commenced four years ago. During this time, we crafted a holistic strategy that seamlessly integrated all critical elements of the mobile customer engagement platform: 

  • a mobile app with in-app ordering    • comprehensive loyalty program with gamification mechanics     • a referral program that brings thousands of dollars in extra profit from new users      • analytics tools that allow to build more efficient campaigns        • CRM system with various marketing modules

LoyaltyPlant at the L&L Hawaii Barbeque 2024 Partner Convention: Success with a Global Brand in Numbers

By the way, don’t miss reading a post about how we generated over $20,000 in profit with a lottery campaign for L&L Hawaii Barbeque!

To provide context for the current situation, we’ve highlighted several showcasing facts that demonstrate how our work has made a difference for businesses in numbers during these 4 years of work with L&L Hawaii Barbeque. 

Here are 4 facts that speak for themselves:

 1. 60% of app users started to order more frequently after installing the L&L Hawaiian Barbecue mobile app.

 2. We’ve launched several brand-wide campaigns aimed at encouraging repeat purchases and stimulating downloads, resulting in revenue growth of over 67% for our targeted menu positions.

 3. Remarkably, 82% of users rated their satisfaction with the L&L app as high, giving it scores between 8 and 10 (the survey was conducted through the mobile app)

 4. Award Recognition: The L&L & LP Case Study garnered acclaim, receiving the prestigious Platinum Award in the Mobile/App Category at the 2023 dotComm Awards, reaffirming our commitment to excellence and innovation. 

Want to Grow Like L&L Hawaiian Barbecue and Even More?

If you’re interested in creating a revenue-increasing mobile application like L&L Hawaii Barbeque’s or want to learn how to grow online ordering volumes in your restaurant chain, leave your contact details here, and our team will assess your business potential and suggest optimal solutions that can drive real revenue growth.

How to start restaurant delivery

Posted on by Victoria Zurmann

Which restaurant doesn’t ask how to start a restaurant delivery service from time to time? Starting food delivery is certainly a great way to reach a broader customer base and increase revenue

And whether you operate a fine dining establishment or fast casual locations, food delivery can open up new opportunities for your business. However, the success of your delivery service hinges on meticulous planning and execution.

In this article, we will guide you through essential steps and considerations every restaurant owner should bear in mind when embarking on the journey of launching and optimizing a food delivery service. Even if you have already launched delivery, you can use this as a checklist to see if it’s optimized to reach its full potential.

Let’s explore how to start restaurant delivery and exceed customer expectations, ensuring your restaurant stands out in the competitive landscape of food delivery!

Always start with Market Research

You never want to go into this blindly: you need to understand the market and, most importantly, your competition. This way, you can tailor your restaurant delivery to meet the specific demands and preferences of your local customer base, setting your restaurant up for success.

So, how do you go about this intricate process?

✅ Identify demand for food delivery.

  • Conduct surveys, both online and offline, to understand the preferences and demands of your local customer base regarding food delivery.
  • Analyze existing data if available, such as customer inquiries about delivery options or any requests for delivery service.
  • Look at trends in your area – if there’s a growing population of busy professionals, students, or families, there may be a higher demand for food delivery.

✅ Check out your competitors.

  • Identify other restaurants in your vicinity that offer delivery services. Consider both direct competitors and those offering different cuisines.
  • Examine online reviews and customer feedback for competing delivery services to understand what customers like and dislike. Their disadvantages certainly can become your advantages! Pay special attention to reviews and feedback not only related to the timeliness of deliveries, but also to the ease of ordering and experience with the offered ordering methods and technology.
  • Evaluate the delivery range of your competitors and their delivery hours.
  • Examine pricing models, delivery fees, and any promotions or loyalty programs competitors may offer.
  • Pay attention to the technology and systems competitors use for order management and delivery tracking.
  • Assess the overall value proposition – what makes their delivery service stand out?
  • Identify opportunities to differentiate your restaurant’s delivery service in terms of quality, speed, or unique offerings.

After the market research, look for opportunities to meet the demand of the key audience in your delivery area, but also to differentiate your delivery service from all the others, such as offering an interesting menu, special promotions, engaging loyalty program with unique rewards or innovative delivery options.

Be compliant!

We will not delve too deep into this, since laws and regulations vary for different regions, but it is indeed a very important factor: you should be compliant.

✅Check local health department regulations for food delivery services.

✅Obtain any required licenses or permits for food delivery.

✅Ensure your restaurant complies with food safety standards.

 

For example, in the United States, specific regulations and compliance requirements vary by state and locality, and there are specific requirements for food safety, licensing, labeling and packaging, insurance, and there are also labor laws that regulate business’ relationship with  delivery personnel. Make sure to thoroughly check what applies in your state or country.

Choose your Restaurant Delivery Model

“Should I use in-house delivery staff, or partner with third-party delivery services like Uber Eats, DoorDash, or Grubhub? Or combine both methods?”

That’s a burning question for everyone who starts delivery service, and in fact the one that can define your restaurant’s fate for the future.

At the first glance, Third-party delivery seems to be the way to go. You don’t need to manage an in-house team, you utilize existing delivery infrastructure, and you gain exposure on popular delivery platforms, reaching new customers.

But do these advantages outweigh the disadvantages and potentially huge losses for your business?

the cost of aggregators

The economics of working with delivery aggregators don’t make sense

But it’s not only about potential losses: it’s also about brand control. It’s not only that your brand will be represented alongside competitors on the delivery platform –  you have no control over the delivery process. But the way the food is delivered will be viewed as your brand by your customer. Can you trust a third-party to control the image of your brand, to make an impression?

At the same time, your access to customer data is limited. You can’t have direct communication with the customers and build direct relationships, you lose marketing and customer engagement opportunities.

From the business perspective, In-House Delivery makes more sense.

 

✅ It gives you control: Having your own delivery team provides greater control over the entire delivery process, from order fulfillment to customer interaction.

✅ It’s good for branding: In-house delivery allows you to extend your restaurant’s brand directly to the customer.

✅ It enhances customer engagement: Direct contact with customers enables better communication and the opportunity to build customer loyalty.

Of course, there are some things to consider in advance when launching in-house delivery:

 

❓Initial Investment: There will be initial costs for hiring and training delivery staff, as well as for obtaining and maintaining delivery vehicles, however, it won’t match the lifetime commissions from the third-party services if you become dependent on them for online sales.

❓Logistics: Managing a fleet of delivery vehicles and staff requires logistical coordination and planning.

❓Variable Costs: Costs may vary based on factors such as fuel prices, vehicle maintenance, and insurance.


When considering costs, it’s important to understand that delivery services can significantly increase revenue by reaching new customers, and a reliable and efficient delivery model contributes to positive customer experiences and increased customer loyalty. If you manage to form that ordering habit, the customer lifetime value will increase and cover all the additional costs associated with delivery!

starting your own restaurant delivery or using aggregators?

To stay flexible and reach a broader audience, many brands use the Hybrid Model – combination of In-House and Third-Party delivery. Being on delivery platforms is good for customer acquisition, and Third-party services can be strategically used during peak times or for specific promotions while maintaining control over regular deliveries.

However, coordination between in-house and third-party delivery systems requires various integrations, otherwise it will put a huge workload on operations, and something might slip through the cracks. It’s better to use a POS system that is integrated with third-party aggregators, and also allows to easily outsource in-house orders to third-party drivers.

restaurants deliveries

Ultimately, the choice between in-house delivery, third-party services, or a hybrid model depends on your restaurant’s specific needs, resources, and long-term strategy. Regularly evaluate the performance of your chosen model and be open to adjustments based on market trends and customer feedback.

Create the “gold standard” ordering channel

Nowadays, it’s not enough to just have an operator on the phone to accept orders, or even launch an ordering website that checks the box of having an online presence. To really stand out and compete in the always evolving, fast-moving market, your ordering user experience should be consistent, comfortable, and even pleasant to use.

A combination of a website and a mobile app is what has proven to do wonders over the years, with a focus on mobile-first approach, as it is the most reliable channel for reaching your customers with marketing offers.

But first, let’s take a look at what’s required to have an online ordering channel (be it a mobile app or a website) that is up to modern standards:

✅ The interface should be simple and intuitive, and allow customers to easily navigate through the menu, make selections, and complete orders. Preferably without them having to confirm their phone numbers, remembering passwords and all that – and it’s even more preferable if they don’t have to create an account at all. Provide value upfront!

✅ The ordering platform you integrate to your channels should be secure and reliable, not to let you down when it matters most. Also, if you provide combos or meal options, native support for such items is preferable, as any workarounds may make it more difficult to use for the customers, hindering the promotion of such items.

✅ Show, don’t tell – the menu must be accessible and visually appealing. Include high-quality images, detailed descriptions, and options for customization (e.g., adding or removing ingredients).

✅ Upsell with relevant suggestions should be implemented at checkout to increase your profits and provide personalized customer experience.

✅ One-click / repeat order functionality is a must for forming the ordering habit.

✅ It’s best to integrate it with the POS system to streamline order processing and inventory management. Also, a “nice to have” is to integrate the online menu with your stop-lists (for each restaurant location if you have several locations – based on the customer’s chosen address and delivery zone) so that the mobile app and website reflect that and don’t let the customer order something that you can’t provide. It helps avoid customer frustration a lot.

✅ The payment option should offer a variety of secure payment methods, including such popular options as Apple Pay and Google Pay, and other popular payment options in your area. Ensure that your website has Secure Sockets Layer (SSL) certification to encrypt customer data, especially during the payment process.

✅ The delivery zones should be clear – and you should let the customer know that you don’t deliver to their address before they go to checkout, not after.

✅ Update your customers about their order status in real time, from confirmation to preparation to delivery.

✅ Clearly display contact information for customer support in case customers have questions or issues with their orders.

It’s important to have detailed control over the delivery status for each location and timelines you provide to the customers. And, of course, your ordering channels should regularly be maintained: check for broken links, update content, and ensure that the online ordering system is functioning smoothly.

Does it seem overwhelming already? It certainly is difficult – and very costly – when you create all of it from scratch. Luckily, there are ready-made e-commerce solutions, like LoyaltyPlant, that provide everything you need to launch a successful ordering channel. In our case, it’s not just ordering – it’s loyalty and marketing as well, all-in-one, which is really important for your direct ordering channel success, and if you want to stand out from the competition.

Make your ordering channel a preferred option

We see that all the time: the restaurant implements everything up to this point, and then the management thinks that it will be enough for the online orders to bloom. In reality, it is only the first piece of the puzzle.

So there’s no wonder if you are not overflowing with orders if you have not put the other pieces in place.

To simplify it, we love to present everything that is required for success as 9 essential pieces to ensure your ordering channel really generates orders:

Checklist of food delivery steps

Want to see more details about each piece? Check out our deck about breaking free from the aggregators – we cover it with real-life examples.

Or, to understand which channels to use to promote your ordering channels, and how to prioritize them, I recommend checking out this article – it has action items you can start applying right away!

how to start restaurant delivery

Prioritizing is key when investing into delivery service promotion

Control the restaurant delivery quality

It’s important to consistently control the quality of food during preparation and transportation. There is general advice that you can apply to make sure the delivered order is up to the standards:

✅ Use insulated packaging to help maintain the temperature of hot or cold items during transportation. Package food securely to prevent spills or leaks during transit. Consider using packaging that separates different components of a meal to maintain freshness and prevent sogginess. This is crucial for ensuring that the food arrives in the best possible condition. Consider eco-friendly packaging options that not only contribute to environmental sustainability but also maintain the quality of the food.

✅ Train the delivery staff and provide clear guidelines on how to handle different types of food items. This includes instructions for keeping food at the right temperature and ensuring proper handling to avoid spills or damage. Train delivery staff to handle customer interactions professionally, addressing any concerns promptly and courteously.

✅ Implement quality assurance checks: Conduct quality checks on all orders before they leave the restaurant to ensure that the correct items are included, and the food meets quality standards. Implement a system of random spot checks on delivered orders to assess the quality of the food upon arrival. Use this information to continuously improve the delivery process.

To continuously improve, it is vital to gather customer feedback for each order. And it is not only about improvement – when you ask for feedback directly after each order, it allows customers to share their opinions privately and not publicly, reducing the risk of negative reviews on public platforms.

Customer feedback provides valuable insight into their experience, identifying areas for improvement and helping to maintain quality standards. Responding to feedback with personalized and efficient resolution of customer complaints or issues only improves customer satisfaction and reduces churn rates.

food delivery service reviews

✅ Implement tools for collecting service ratings within your ordering channels and provide a user-friendly interface for customers to share their feedback.

✅ Use feedback data to identify areas for improvement and implement changes to address customer concerns.

Analyze!

To really keep going with restaurant delivery, you always have to track the results of the service: KPIs related to delivery, revenue, “dead hours”, promotion types that generate best conversion, types of customers and their LTV, etc. Regularly analyzing this data empowers you to make data-driven decisions, optimize operations, and continually enhance the overall delivery experience for your customers. It can also help you invest into things that really work, and cut the costs on something that doesn’t matter after all.

It also applies to the technical aspects of your ordering channels: you need to be able to see where most of the customers who didn’t convert to order stopped their customer journey, identify areas of customer frustration, and fix it as soon as possible for the users to have a smooth and seamless ordering experience. Any conversion-killer could be detrimental to your revenue!

Delivery statistics

With LoyaltyPlant it’s easy to keep track of the data that matters most

So what now?

We have laid out some key factors that answer the question of how to start restaurant delivery. Of course, it doesn’t end there: there are many aspects to consider, depending on your restaurant type, business model, location, and other factors. But this is a reliable foundation that you can base your plans off.

It might seem overwhelming – but we’ve got you covered: from ordering to loyalty with marketing, LoyaltyPlant has all the tools you need to successfully launch your ordering channels. We have already thought through every detail to make the process much easier for you. So if you don’t know where to start when it comes to your digital channels, drop us an email on sales@loyaltyplant.com – we’d be happy to chat!

Our Latest LoyaltyPlant Product Updates?

Posted on by Olga P.

It’s been a little while since our last update, and during this time, we’ve been hard at work behind the scenes. We are absolutely thrilled to present some exciting Q3 product updates for our CRM today, with more exciting news for the app part coming next week!

MARKETING CAMPAIGNS

Gifts tied to Promo-codes

Our Latest LoyaltyPlant Product Updates?

Introducing acquisition campaigns with gifts tied to promo codes! Now, you have the power to launch multiple promo codes, each with different rewards, across various user acquisition channels. Or, you can run a single offer with multiple codes across different channels. For example, use one code on social media, another in cross-promotions, and a third at your physical locations.

In campaign statistics you can view the number of code entries, rewards redeemed with the code, and revenue brought in by the campaign audience. Using audience segmentation filters, you can effortlessly identify specific app users who’ve used a particular promo code. You can also dive deeper into order and revenue analytics within the Analytics section to gain insights into their behavior and assess the performance of each promo code. This empowers you to effectively monitor how each channel is performing, make informed decisions, and identify the best strategies for acquiring new app users! 

Automated Referral Program Campaign

Our Latest LoyaltyPlant Product Updates?

Our new Referral Program Campaign automatically rewards your customers when they are referred by a friend through the ‘Refer a Friend’ feature. Previously, you awarded points to both referrers and those who installed the app (if you had set it up), along with providing a standard welcome gift to those who installed an app, which was the same for everyone. Now, you have the flexibility to replace the standard welcome gift with a unique, channel-specific welcome gift for those who install via referral.Additionally, you can still award points to those who refer, depending on your settings, such as after those referred users make their first purchase. However, we recommend disabling the feature of awarding points to those who installed via a referral if you currently have it enabled.  

Order Item Trigger for Gifts

Our Latest LoyaltyPlant Product Updates?

This new feature enables you to specify particular items in an online order that qualify for gifts. Now, you can create enticing ‘Buy 1 Get 1’ offers, where your customers enjoy a complimentary second item. Alternatively, you can delight them with a special combo: ‘Buy a burger, and savor free french fries.’ This not only enhances customer satisfaction but also offers opportunities for upselling, promoting selected items, encouraging specific purchases, and executing more advanced marketing strategies.

FEEDBACK MANAGEMENT

Feedback Management Campaign

Our Latest LoyaltyPlant Product Updates?

This new campaign allows you to send a gift in response to user feedback submitted through the app. It is managed within the CRM through pre-configured campaigns. For instance, one campaign can be set up for cases where a guest shares very negative feedback, and you want to make amends with a significant gift. Another campaign can offer simple, cost-effective gifts when you want to encourage someone for their “mystery shopper” services – here, the choice is entirely yours!

While handling reviews, you can write a response and add each user to one campaign or another, and the user will receive a gift. The user’s review is automatically marked as processed. Now, you have a powerful tool for retaining your customers and enhancing their loyalty by providing them with complimentary gifts, which are perceived as having higher value compared to points alone.

Other Feedback Page Enhancements

We’ve made several improvements to your feedback management process. Reviews are now sorted by ratings, with low-rated reviews (1-3 stars) displayed first for immediate attention. These reviews are color-coded, and emails with negative reviews are labeled “IMPORTANT” for quick identification. High-rated reviews (4-5 stars) without comments are automatically marked as processed. We’ve also added default response text for review responses and released an “Isolated feedback” feature for granting specific employees access solely to review handling, excluding other CRM sections. 

& MORE

Numerous small enhancements

We’ve made numerous small enhancements, including updated reports on awarded points and issued gifts, along with individual permissions for each report to offer more flexible CRM access settings for staff. In addition, we’ve made minor adjustments to the Reports page, adding descriptions and reorganizing report cards for a more streamlined experience. 

We’re thrilled about these updates and their potential to enhance your user acquisition, engagement, and retention strategies. If you have any questions or need assistance, feel free to request a demo, our dedicated Customer Success Manager can guide you through these campaigns and features. Keep an eye out for the upcoming APP part of the Q3 update next week, bringing you more exciting enhancements. 

Is Cashback truly the king of restaurant loyalty program?

Posted on by Olga P.

Cashback rewards have gained popularity; many assume it is a “king” when it comes to building in-depth loyalty. Customers earn money while shopping, and businesses gain revenue while they shop, a win-win solution that delights both parties.   

However, are cashback-based loyalty programs a good solution for restaurants? Should you rely heavily on this strategy at this tough economic time? In short, No, you should not. Read on to find out why.

Understanding cashback

The concept of cashback is not new. While in the past, cashback had a strong association with a reward program for credit cards, over time, the technology has changed, and now cashback has expanded more as a customer loyalty mechanic.And as its name implies, cashback is a program in which customers can earn Cash Back as a percentage of the money they spend while shopping. 

No wonder it has gained popularity in mobile apps because of its simple, yet fairly addictive formula. Each time customers make a purchase, they earn points that later transform into additional discounts in the store. And usually, the more money is spent, the higher the cashback rate that the customer receives. Consequently, this instant gratification reinforces repeat sales and helps businesses like yours retain customers and enhance their experience. In theory.

The Problems with Cashback Loyalty Programs. Are there any?

At LoyaltyPlant, we can prove that cashback is not a “king” when it comes to r restaurant loyalty. Our conclusion is based on our extensive experience working with over 600 businesses. We have analyzed cashback programs from different angles, including country, business size and type, and discovered that they may not be as effective in motivating customers as it seems. In fact, only a few restaurants have reported positive outcomes from their cashback-based programs.

Is Cashback truly the king of restaurant loyalty program?

Firstly, the cashback reward system does not allow flexibility in the loyalty program. Other than simply increasing the cashback percentage, there is little to do. Quite a risky strategy, as customers perceive the discount as a new norm over time. And to attract their attention, you need to offer an additional increase in the %, which is limited to your break-even point.

And what if you see that the current cashback % is actually harmful for the business, and you need to adjust by lowering it for your loyal customers? Be ready to face the consequences, as this change is very apparent, and not many people are going to love it – the loss of their benefit is clear as day in this case. In particular, when they lose something that they have been earning over time and got used to. 

Another issue with loyalty cashback is the overall distribution of the benefits. Those who are new to the product or service receive the lowest cashback discount, whereas long-term customers receive the highest. This means that new customers receive less benefit, and it may require additional effort and expense to make them really engaged and encourage them to become regular customers. The instant reward that they get with this type of loyalty program is very small, and the perceived value is even smaller. Meanwhile, regular customers who should be contributing the most to revenue are taking the most marketing budget but giving little back due to their constant discount. Thus, you are putting in extra money where you could have avoided and not getting enough where you could. 

Is Cashback truly the king of restaurant loyalty program?

Third, one major drawback of cashback rewards is the lack of emotional connection. Being purely monetary in nature, the perceived value of such rewards is not high compared to what it really costs your business – and it is incapable of creating long-term appreciation. This means customers do not view cashback as a branded loyalty currency with trophy value. Instead, they often see it as just another discount, which they may not even notice over time.

Cashback rewards might not be the most effective method for building customer loyalty in the restaurant industry. While there are some benefits to using cashback rewards in certain situations or industries, for restaurants it has limitations. For example, it lacks variation and can be financially complicated. Additionally, it doesn’t foster solid emotional connections with customers, which all modern loyalty programs should really be about, considering that emotional value replaces rational value in modern consumer behavior.

To explore an alternative approach, consider reading “Why choose a reward-based loyalty program instead of discounts?” which offers a compelling solution for restaurants looking to achieve their long-term goals.

Why Choose a Reward-Based Loyalty Program Over Discounts?

Posted on by Olga P.

When it comes to loyalty programs, restaurants have a crucial decision to make – should they opt for a reward-based program or stick with the more traditional approach, be it a flat discount or paying for orders with cashback? The case of Starbucks in 2016 serves as a stark reminder of the importance of making the right choice from the start. But let’s focus on this topic and explore five compelling reasons why a reward-based loyalty program might be a better option: 

Higher Perceived Value

Offering a loyalty program with a reward catalog creates a higher perceived value for the customers than any kind of discount. Discounts – especially paying for the order with cashback may feel insignificant and are quickly forgotten, whereas receiving a physical gift – an item from the menu or even the restaurant’s merchandise! – can be a solid emotional motivator, making customers feel genuinely valued and appreciated.

Why Choose a Reward-Based Loyalty Program Over Discounts?

Engaging Visuals

Reward catalogs with colorful pictures more effectively engage customers in earning points than an abstract number with a percentage. The visual appeal of mouthwatering rewards creates an emotional connection between customers and the brand, driving them to participate actively in the program and strive for exciting gifts.

Diverse and Exciting Rewards

Unlike discounts or paying with cashback, a gift catalog allows for a more varied range of prizes, making the loyalty program feel fresh and exciting. You can offer desserts and appetizers, unique branded gifts and souvenirs, and even charitable donations to keep up with the modern trends, providing customers with an array of options that spark their interest.

Maintaining Brand Value

When it comes to maintaining brand value, discount-based loyalty programs can actually end up devaluing the brand. Customers become accustomed to discounts and may want to avoid paying the total price, which can lower the brand’s perceived value. On the other hand, offering exclusive menu items in a reward catalog can enhance the brand’s exclusivity and public image, ultimately preserving its value in customers’ eyes.

Flexibility and Cost Optimization

A reward catalog allows for “micro-optimizations” in the loyalty program, enabling businesses to adjust without causing negative customer reactions. By changing the list of available gifts regularly, brands can reduce costs while keeping customers engaged and anticipating new rewards. Compare that with reducing a discount or cashback percentage.

Also, when speaking about reward catalogs, in today’s digital age, loyalty programs can be personalized to meet individual customer preferences, taking restaurant marketing to new heights. To discover more about using customer purchase history to create effective promotions, read our article “Why it’s important to base promotions on customer purchase history.“

A reward-based loyalty program is a winning strategy for restaurants aiming to boost customer engagement, enhance brand value, and ensure overall satisfaction. With a thoughtfully curated gift catalog, restaurants can offer customers exciting and valuable rewards, creating a loyalty program that attracts new guests and fosters loyalty among existing ones. This approach sets the stage for long-term success and growth in the competitive restaurant industry.

Bypassing the aggregators: how to get users to actually order from you directly

Posted on by Victoria Zurmann

Giving up to 30% of your money for customers that are already yours is not fair – I think we all can agree on that.

Recently, we’ve covered the true costs of third-party aggregators – a must-read if you’re only thinking about whether you need a direct ordering channel.

I’ll be brief. Do you need aggregators?

For restaurant promotion and customer acquisition – absolutely.

For all digital sales – no. Being dependent on aggregators for digital sales is the worst that can happen to your business.

Bypassing the aggregators: how to get users to actually order from you directly

Realizing that, you might have built a direct digital ordering channel that doesn’t just fill the gap of having an app/website to order, but has great UX, stability, and amazing perks for your customers to want to use it instead of the aggregator apps. Or maybe you’re only thinking of creating such a channel (in this case we at LoyaltyPlant will be more than happy to build this channel for you in a very short time at a fraction of custom development cost). After all, it’s an absolute must to create a successful restaurant digital strategy. You can’t build your digital presence without a stable solution that has a potential to win customer love.

But then the reality hits – how do you actually promote this channel? What to prioritize with a limited marketing budget? Do you really need to provide a 50% discount on first order, losing money? 

In this blog article, I’ll dive into some strategies for customer acquisition for the direct digital channel for a restaurant that can be used right after you finish reading.

What to prioritize?

Marketing resources are limited – so the right prioritization can help achieve the best return of marketing investments. There are several parameters to keep in mind: audience engagement, expected conversion, and channel investment.

For example, let’s take an aggregator order: the customer who orders from your restaurant via an aggregator is already interested in your brand, and thus can be considered a “warm” audience. If you promote your ordering app or website to this customer, it’s likely that they will be willing to try it out if the perks are good enough. To make this promotion, you’ll need to invest into design and printing of promotional materials – be it special boxes for aggregator orders or leaflets that you slip into such orders.

At the same time, an outdoor ad reaches a cold audience (the customers who don’t have an intention to order right now, and who might’ve never heard about your brand), so the expected conversion is rather low, but the investment into such ad is quite high – you need to pay for the design, renting the ad placement, and other things.

Here are different direct ordering promotion channels, placed into several tiers based on those three factors:

Bypassing the aggregators: how to get users to actually order from you directly

So, to promote your direct ordering channel, it makes sense to prioritize Tier 1 and 2 first, establish processes and activities there, refine the customer journey, and only then allocate resources toward Tier 3.

Now, let’s take a closer look at how to optimize these channels.

Offer different things for different channels – and track their performance in the process

If we take a look at how “warm” the audience of each channel is, it is apparent that you need different kinds of special offers for each channel. Colder audience will most certainly need a more substantial offer, while the hot audience is likely to convert with a smaller offer.

Bypassing the aggregators: how to get users to actually order from you directly

The menu item rewards work perfectly here and the perceived value is much better than discounts of different sizes. Different menu item rewards can actually create a sense of exclusivity for an offer recipient, making the perceived value of the reward higher.

This approach will also make it easier to track each channel’s performance. To make the most of your marketing budgets, it’s crucial to allocate it to those channels that show the best performance, spend money on those cold channels that show the best conversion, and at the same time not splurge on high-cost rewards for the audience that is warm already.

What can be done now?

  1. Implement promo codes for different channels that will unlock different rewards and offers. Use lower cost rewards for hot and warm channels, and high cost rewards for cold channels.
  2. Track each channel’s performance based on the promo code usage.
  3. Analyze the performance and single out channels that work best.

It goes without saying that these offers should only be available when people order directly from you. Let them feel the special perks of interacting with your brand directly right from the start!

 Don’t stop on offering just once

So, somebody saw your ad about the direct ordering channel, but they may not be immediately ready to make a purchase just yet – after all, they might be commuting to work, or maybe just not hungry at the moment. It doesn’t mean that you should lose this potential customer though! Just make it easy to “save” the offer from the ad for later – and don’t forget to remind about it from time to time! (by the way, I’ve covered the importance of timing and reminders in this article – take a look if you’d like to increase conversion).

What can be done now?

  1. Promo codes can be easily forgotten – make sure there is a way to access your direct channel right from the ad and quickly activate the offer for later. For example, include a QR code to download your app or create an account on your website.
  2. Display this offer in your channel’s interface – if it’s lost in SMS or email spam folders, then it’s lost forever! Make sure the customer sees this offer when they access your direct channel next time.
  3. Implement reminders! For example, via push notifications if your direct channel is set up via an app. Reminders about an offer that’s about to expire can only further reinforce its value. 
Bypassing the aggregators: how to get users to actually order from you directly

Don’t forget about your greatest asset

Even when it comes to digital channels, your employees are still your greatest asset. How so? Many businesses underestimate the power of direct face-to-face interaction. In reality, a recommendation from another person – even someone the customer doesn’t really know – can work wonders. So if your staff members recommend using the direct ordering channel, it will drive the in-store traffic to it – your warmest audience. You invest a lot in your physical store locations – make sure it’s used to its fullest potential when promoting your digital channels as well!

By the way, the same works for customers that call to make an order. Even though it’s not a face-to-face communication, it’s still a direct recommendation to the warm audience – customers who are in fact making orders.

Bypassing the aggregators: how to get users to actually order from you directly

What can be done now?

  1. Introduce the way to track installations that came from employees’ recommendations. For example, via special promo codes or PIN-codes.
  2. Implement KPIs and incentives for employees to promote the app more effectively in-store or via calls.

By the way, with our platform this feature is already available and doesn’t require any extra integrations. Boost your direct sales with the power of your employees!

In conclusion…

With this insight, I hope you’ll be able to optimize user acquisition to your direct ordering channel and start converting users to orders! When you work on your channels, it’s generally important that they are seamless, frictionless, and that the time from joining this channel (for example, downloading an app) to making an order is as short as possible. If the user experience is good, then the customer just needs a good incentive to give your direct ordering a chance – and then they will fall in love with it, becoming a reliable marketing contact for your business.

The Beginner’s Guide to App Awareness in Restaurant

Posted on by Olga P.

As the digital revolution continues to shape the world, mobile apps have quickly become key players in the business game, turning into essential tools for customer engagement and service improvement. In the restaurant industry, this transformation has had a particularly delicious impact. Mobile apps are now your digital maître d’, your virtual waiter, and your customer’s best foodie friend, all at once.

But here’s the twist in the plot – even the most well-crafted, feature-packed app can only work its magic if customers know about it and use it. Imagine having a Michelin star dish that no one orders because it’s tucked away at the end of your menu. Your app is similar. It can be a game-changer for your restaurant, but without effective promotion, its superpowers risk going unnoticed

This point was highlighted to me recently during a personal experience. I visited one of our partner restaurants but forgot to use my app and collect loyalty points toward a free dish. Sadly, nobody reminded me until it was too late. I left the restaurant not only without the points but also with a sense of missing out.

However, it was not only a letdown for me, but also a lost opportunity for the restaurant. Without my purchase details, they were unable to enhance their marketing database or initiate a campaign to “win me back”. Moreover, they lost an opportunity to remind me, a loyal customer, why their restaurant should be my top choice.

From this experience, I was reminded – and I hope it serves as a reminder for you – that consistent and creative app promotion is just as important as having a great app. 

So, what’s next? How do you ensure that your restaurant’s app doesn’t just sit idle on your customers’ phones but becomes their go-to tool for all things related to your restaurant? Stay with me as I share valuable tips and strategies to help you make your app a star performer, driving your restaurant’s success story.

A Gift for Download

A Gift Incentives in restaurant

Let’s explore the power of incentives to encourage customers to use your restaurant’s app. In the competitive world of digital technology, offering something extra can be the key ingredient that entices customers to act.

Consider this: who can resist a tempting treat? I’ve personally experienced the irresistible allure of a complimentary dessert that motivated me to take action. By simply downloading your app, customers can indulge in an immediate reward, such as a tasty slice of carrot cake. This small gesture not only captures their attention but also invites them to become part of your digital ecosystem. 

Now, you might be wondering, “Why go through the trouble of offering incentives? Shouldn’t I offer 20% off, and it will do the job?” Well, let me share an insightful idea with you. Offering gifts as incentives can be more cost-effective compared to discounts or special prices. Why? Because gifts don’t serve as replacements for your main menu items. By offering a slice of carrot cake or another treat, you keep the average check intact. It’s a win-win situation that adds value for your customers without sacrificing your bottom line.

Therefore, it’s time to unleash your creativity when it comes to promoting your app. Just as a tempting slice of carrot cake can entice customers like me to download an app, consider what incentives will capture your customers’ attention. Perhaps it’s a complimentary appetizer or an enticing seasonal offer. The goal is to make it irresistible, compelling customers to take action.

Maximize Offline Marketing Channels

Offline Marketing Channels​ in restaurants

Once you’ve established enticing incentives for customers to download your app, the next step is to ensure they are aware of these rewards. After all, what good is a gift if nobody knows it exists?

Here are a few examples of how you can spread the word about your app beyond the digital realm:

  • Hand out leaflets in high-traffic areas like the main walkway, bar counters, Wi-Fi stickers, and even restrooms.
  • Put leaflets in silverware baskets, customer receipts, or delivery bags.
  • Place leaflets in between menu pages or add a special icon next to a menu item that customers can get as a reward if they download the app.

These are just a few ideas to get you started. Offline marketing channels provide an opportunity to engage with customers directly and capture their attention in unexpected ways. By strategically placing leaflets or incorporating app promotions into your physical locations, you can pique curiosity and drive customers to download your app.

Remember, it’s important to be creative and consider your target audience. Think about the places your customers frequent and find ways to insert your app promotion materials there. Whether it’s through eye-catching displays, free stickers, or cleverly positioned leaflets, the goal is to make customers aware of your app and give them a compelling reason to take action.

Turn Your Team Into Brand Ambassadors

Restaurant Ambassadors​

Now that we’ve explored the power of incentives to encourage customers to download your restaurant’s app and discussed ways to maximize app awareness in offline channels, let’s turn our attention to another valuable resource right within your restaurant’s walls – your team.

Let’s think about it. Who knows the ins and outs of your restaurant better than your team? Who interacts with your customers on a daily basis? Who’s more likely to have an authentic and enthusiastic conversation about your app and its perks? The answer is, of course, your team. They possess the unique ability to promote your app verbally, sharing their own positive experiences and recommending its benefits. 

How to Do It

Turning your team into brand ambassadors isn’t just about telling them to promote the app; it’s about getting them genuinely excited and informed about it. Here’s how you can do it:

  • Incentivizing

Give your team a reason to promote the app. Consider setting up a friendly competition where the staff member who gets the most customers to download the app gets a reward. You can create individual employee promo codes in the LoyaltyPlant system to track each “ambassador” promotional effectiveness.

  • Training

Hold a special training session to walk your team through the app. Show them the features, explain the rewards system, and answer any questions they may have. The more familiar they are with the app, the better they can explain it to your customers. 

Encourage your staff to mention the app during their interactions with customers. Whether it’s at the point of order, during serving, or when presenting the bill, there are several touchpoints where they can organically introduce the app.

If you are not sure who can conduct this training or how to do it, don’t worry. Our Customer Support Experts at LoyaltyPlant can step in and help. They can conduct a comprehensive training session within your team, ensuring every member is comfortable with the app’s functionality and benefits. This way, you can be assured that your team is fully prepared to act as effective brand ambassadors for your app.

In conclusion, your team holds the potential to significantly increase the visibility and usage of your restaurant’s app. By training, incentivizing, and empowering them to be your app’s brand ambassadors, you can not only boost your app’s performance but also foster a sense of ownership and pride within your team. After all, a happy and engaged team leads to satisfied and involved customers.

Referral Marketing for Brand Awareness

Now that we have discussed how you can promote in-house, let’s dive into the power of word-of-mouth marketing through your restaurant’s app. We all know that satisfied customers are more likely to share their positive experiences with their friends, family, and colleagues. 

These personal recommendations carry a lot of weight and are often trusted more than traditional advertising methods. Harnessing the power of your customers’ voices can greatly contribute to the success of your app promotion efforts.

One effective way to foster word-of-mouth marketing is by using a referral program within your app, such as the one that LoyaltyPlant already has in place. This program incentivizes your existing customers to share your app with their family, friends, and subscribers. By offering rewards such as exclusive offers or freebies to both the referrer and the referred, you create a win-win situation that motivates your customers to spread the word about your restaurant using the LoyaltyPlant platform.

Remember, your guests are your best advocates. So, don’t underestimate the impact of word-of-mouth. Leverage your existing customer base and their enthusiasm for your restaurant to spread the word about your app. With their help, you can reach a wider audience and attract new customers eager to experience your app’s convenience and benefits. 

In-App Lottery

Now, let’s throw something a bit more fun into the mix. In-app games such as sweepstakes, giveaways, or contests can serve as powerful app awareness tool, it’s an absolute win-win. Your customers get a chance to win something valuable from their favorite brand, and you get to build a buzz and increase user interaction with your app. 

The great news? This fun feature doesn’t just increase app engagement and attract new users, it can also provide a significant boost to your bottom line. It’s a brilliant way to add some flavor to the user experience, while simultaneously cooking up some additional profits for your business. 

Without delving too much into details here, I recommend you check out our case study, “Dream Contest: Generating $20,000+ Profits with the Help of a Lottery.” It provides an in-depth exploration of how an in-app lottery was successfully launched in a restaurant scenario, complete with a real-world case example. 

The thrill of participation, the anticipation of potentially winning, and the appeal of rewards can combine to create an electrifying atmosphere that your customers will undoubtedly love, promoting regular app use and, in turn, supporting the ongoing success of your restaurant.

Here’s the secret sauce, this is not your run-of-the-mill, everyday advice on app promotion. We’re sidestepping the overcooked suggestions like “Just launch a Google campaign!” to deliver you something fresh.

Your app isn’t just a digital utility knife; it’s the online maitre d’ of your restaurant, embodying everything your brand stands for. So don’t let it gather virtual dust on the App Store. Give customers a compelling reason to download and use it, like their favorite spatula. And once they experience the convenience and benefits, your restaurant will become their preferred choice, thanks to the little extra incentive that sweetened the deal.

Restaurant Marketing Today: key steps to drive revenue

Posted on by Olga P.

In today’s digital age, direct online sales have become increasingly important for businesses, especially in the restaurant industry. Now, when customers have convenient access to almost anything on-demand online, literally at their fingertips, there’s no turning back to the old-school ways. Therefore, if your direct online orders make up less than 50% of your total, it’s time to take a step back and reevaluate your strategies. 

No need to worry; we’ve got your back when it comes to boosting your direct online sales. We have helped over 600 restaurants worldwide achieve great results. So, you can trust us to guide you in the right direction. Now, let’s take the next step toward success. We have created a comprehensive checklist to ensure you’re on track.

1) Provide a direct ordering channel

Restaurant Apps with seamless ordering experience

Ensure a seamless ordering experience that meets all customer expectations. There are different platforms to choose from, but when it comes to maximizing your restaurant’s online presence, there’s nothing quite like a mobile app. Here’s why: 

A mobile app puts your restaurant right in the hands of your customers, offering them a convenient and user-friendly way to place orders. And, as we look ahead, the global mobile user count is forecasted to hit a remarkable 7.49 billion. With such vast potential customer reach, launching a mobile app is not just an option but a necessity for staying ahead. So, for simplicity’s sake, let’s assume that you are considering the launch of a mobile app.

But otherwise, the choice is yours, but make sure the platform you pick has features that improve the ordering process. For example, some of the features that all LoyaltyPlant apps have: 

  • User-friendly UX that delivers a smooth and intuitive interface that makes ordering a breeze.
  • Big mouth-watering visuals that can display your delicious menu items using captivating images and make customers crave your food.
  • One-click / repeat order function that allows customers to place orders or easily reorder their favorites with just a tap. 
  • Order status & Courier Tracking that keeps customers informed about their order’s progress and provides real-time courier tracking.
  • Quick payment option that offers fast and secure payment methods to streamline the checkout process. 
  • Auto feedback form after each purchase that collects valuable feedback automatically after each purchase to improve your service.
  • Also, a “recommended products” function, which offers relevant upselling suggestions that complement customers’ orders.

These features are just the tip of the iceberg when it comes to the efficiency our solution offers. To uncover the full spectrum of benefits we have – dive into our captivating product page. 

 

But let’s continue; while it may appear that aggregators like Uber Eats have everything covered, it’s crucial to recognize that they are not direct channels. Relying on them can present flaws and limitations that may impact your business. I have written an article about it: “Unveiling the True Costs: Redefining Success in the Age of Third-Party Aggregators,” which details the untold risks for restaurants using aggregators. Whether you’re a newbie or a seasoned pro in the world of third-party platforms, this is a must-read that I highly recommend diving into!

 

2) Clearly communicate your app’s unique value to all customers

value of app

Once customers opt into your direct online channel, for example, through the app, it provides an opportunity to engage them with compelling brand content and storytelling. Through the app, you can showcase your brand’s personality and unique values that set your business apart. 

Introduce your team members, share your restaurant’s history, and highlight any causes or charities you support. By effectively telling your brand’s story through engaging content such as videos, images, and gamification, customers can connect on a deeper level. This storytelling approach allows customers to see themselves reflected in the beliefs and values of your brand, fostering a stronger emotional connection.

3) Focus on customer segments that are not "cold leads"

After you have launched your preferred platform, it is time to start spreading the word about it. 

When aiming to increase the number of direct orders, it’s crucial to avoid the common mistake of solely promoting to potential customers. Instead, focus on nurturing your existing customer base, including in-store visitors and aggregator users. 

These segments already have a level of familiarity with your brand, and by directing your efforts toward these warm leads, you can maximize your chances of success and boost your direct online sales.

4) Clearly communicate your app’s unique value to all customers

Highlight the benefits of your direct ordering channel. Let your aggregator and in-store customers know that interacting directly with your brand is convenient and unlocks many personalized offers and ongoing benefits. 

By effectively delivering this message, you can attract more customers to use the direct route, ultimately boosting sales and creating a rewarding experience.

5) Make Your Direct channel the Heart of Your Restaurant

Direct channel the Heart of Restaurant​

Promote your direct ordering channel in-store and motivate your employees to lead this effort. Encourage them by offering bonuses for every app download or registration made through their promo codes in your online ordering platform.

To encourage employees and make their life easier, make sure your offer provides instant in-store benefits so that customers are more willing to pay attention to the offer. For example, a customer can get a free dessert in-store just after downloading an app.

6) Create a rewarding loyalty experience

Shift your loyalty program’s focus from transactional “discount-seeking” to fostering emotional loyalty. By prioritizing meaningful connections with your customers, you can differentiate yourself from competitors and aggregators. This approach will not only set you apart but also encourage customers to spend more with your business. 

When your marketing strategy heavily depends on discounts, it can diminish the value of your restaurant and create a constant expectation for lower prices. As a result, customers may perceive your food and service as less valuable.

7) Print money by launching win-back campaigns

Reaching out to “lapsed” customers through win-back campaigns is a great way to re-engage those who have previously ordered but haven’t returned recently.

Your previous customers are valuable as you have information about their past purchases. By creating personalized campaigns based on their past orders and reaching out to them on a monthly basis, you can demonstrate your appreciation and encourage them to give your restaurant another chance.

For more insights on the effectiveness of win-back campaigns and how they can boost repeat orders, I highly recommend reading – “Remember me? How Papa Johns engaged their most inactive customers – and made first steps to rebuild their ordering habit.” This case study dives into Papa Johns’ successful efforts to re-engage inactive customers and provides valuable strategies and tactics you can implement in your win-back campaigns.

In conclusion, our increasingly digitalized world presents not only challenges but also opportunities for the restaurant industry. The rise of on-demand online services has reshaped customer expectations, demanding a shift in traditional business models. Embracing this change requires restaurants to prioritize direct online sales, thereby providing seamless, engaging, and personalized experiences for customers.

Strategically establishing user-friendly direct ordering channels, nurturing existing customers, and incentivizing rewarding loyalty programs are crucial elements of this transition. Furthermore, promoting internal advocacy and revitalizing customer relationships through win-back campaigns can significantly boost direct online sales. 

Success in the digital era extends beyond the adoption of new technologies. It encompasses a holistic and customer-centric approach aimed at fostering enriching and rewarding experiences. Through such a strategic approach, restaurants can effectively navigate the challenges of digitalization and unlock new opportunities for growth.

Unveiling the True Costs in the Age of Third-Party Aggregators

Posted on by Olga P.

Global eating habits are undergoing a remarkable revolution. A little under a decade ago, most people preferred to dine in at restaurants rather than have high-quality meals delivered to their homes. However, the Covid pandemic and the limited availability of dining options have brought about significant changes. 

During lockdowns and physical-distancing requirements, consumers had no other option but to adapt to new ways to enjoy meals. In response to these shifting consumer expectations, the restaurant industry also had no other choice but to find innovative ways to deliver its offerings and drastically change in a very short period of time. This led to a heavy reliance on third-party aggregators like Wolt, Just Eat, Uber Eats, and others, who became the primary means of reaching customers. As a result, the food delivery industry has experienced tremendous growth, now valued at over $150 billion, more than three times its value in 2017.

Unpacking the costs: the third-party aggregator dilemma​

While aggregators may have initially helped some restaurants weather the Covid-19 pandemic, it is unclear whether it is a long-term solution. To understand why, let’s take a closer look at the traditional cost structure of restaurants. 

Restaurants historically measured profits against three main costs: food, labor, and occupancy. Food costs usually range from 20 to 30 percent of expenses, labor costs average to 22-40 percent, and occupancy costs range from 22 to 29 percent. Additionally, equipment and marketing expenses should also be taken into account. Ideally, a well-managed restaurant operates within the 70 to 93 percent range, with a profit margin of 7 to 30 percent.

traditional cost structure of restaurants

However, the reliance on third-party aggregators has introduced additional expenses that eat into restaurants’ bottom lines. These aggregators charge significant fees for their services, including commissions ranging from 15 to 35 percent, delivery costs, and sometimes even advertising expenses. The combined effect of these fees, along with the rising costs of food, labor, and in recent times and electricity, has made it increasingly challenging for restaurants to operate profitably.

We have some questions about the viability of that long term if you’re an independent, paying exorbitant fees for a third party to step into your value chain. So when does that all shake out? Your guess is as good as ours

Ritch Allison, the CEO of Domino’s Pizza

The high volume of orders from aggregators may create an impression that the kitchen is constantly occupied and delivery sales are thriving. However, by the end of the month, the profits generated from deliveries are essentially transferred to the delivery platform companies.

Untold risks of restaurant third-party aggregators

While we acknowledge the benefits of third-party aggregators, such as increasing visibility for restaurants, minimal upfront costs, and ease of setup, it is important to note that relying solely on them as the main digital selling channel may not be the most ideal approach due to various additional factors to consider.

1) Besides the financial cost, another critical yet often ignored problem is that aggregators don’t share customer data with restaurants. Essentially, they hold all the valuable information for themselves. As a result, restaurants have to promote blindly without knowing who their customers are. This hampers their marketing strategy and prevents them from building a closer connection with their audience. It’s like missing a key piece of the puzzle that could make their efforts more effective and engaging.

2) Dealing with aggregators can also expose restaurants to reputational risks from their limited control over the delivery service. When a delivery courier experiences significant delays or behaves rudely, the restaurant’s brand reputation bears the consequences rather than the aggregator’s. Customers directly associate such negative occasions with the restaurant itself, potentially resulting in a loss of trust and customer loyalty.

3) Moreover, aggregators often lure customers with discounts, devaluing brands and creating an expectation for constant price reductions. This practice can negatively impact the perception of a restaurant’s value and quality. Customers may become conditioned to seek out discounted alternatives, reducing their willingness to pay full price and undermining the restaurant’s profitability.

4) Also, despite their rapid growth, it is crucial to recognize that these aggregators are grappling with profitability challenges. As the Wall Street Journal reported, these companies are expected to remain unprofitable for several years. This poses additional risks for restaurants that heavily rely on third-party channels, as these platforms may either cease operations, leaving restaurants without a sales channel or increase commissions and demands that restaurants must comply with.

Indeed, it is undeniable that aggregators provide convenience for both parties. However, this “convenience” of food aggregators comes with unintended (or perhaps intended) consequences that negatively impact the industry itself and, ultimately, the customer.

Direct online ordering: where we are in 2023​​

As we enter the year 2023, the restaurant industry continues to evolve, embracing digital solutions to meet the changing needs of customers. While there is still a degree of reliance on aggregators for online ordering services, a notable shift can be observed within large restaurant chains with the emergence of branded mobile apps as a new channel for direct online ordering.

Direct Online Ordering statistics

These statistics clearly indicate that the future lies in leveraging direct channels, such as mobile apps, while maintaining a balance with third-party aggregators. It’s not a simple choice of one versus the other, but rather a delicate proportion between the two. By adopting this approach, restaurants can not only increase brand awareness but also gain greater control over their operations and valuable customer data. Over time, this strategy enables them to reduce reliance on third-party platforms and establish a stronger, more sustainable business model. 

Case study on unleashing a powerful direct channel

Of course, the level of reliance on aggregators still is present and varies through countries, but even in cases where third-party delivery platforms have a significant influence, it is feasible to decrease dependence on these platforms.

For instance, a UK-based ghost kitchen chain, The Fat Pizza sought the assistance of LoyaltyPlant to develop a branded mobile app as a direct channel to reduce their heavy dependence on third-party delivery providers. This strategic decision aimed to tackle various challenges that many ghost kitchens face, including the limited walk-in traffic for online conversions and a low volume of occasional orders, which result in high customer acquisition costs. 

The Fat Pizza mobile app

After the launch, The Fat Pizza strategically leveraged third-party aggregators as a means to promote its app and enhance brand visibility. This strategic move resulted in a significant expansion of their loyal customer base, surpassing 200,000 app users.

In summary, aggregators have their own benefits but relying solely on them as the primary digital selling channel comes with certain drawbacks. These include high commissions, limited access to customer data, lack of delivery control, discount seeking, and dependence on the unpredictable nature of aggregators, which can pose potential challenges to profitability. 

To mitigate these risks, it is crucial to diversify sales and establish direct channels of your own. This involves implementing an all-in-one solution, like LoyaltyPlant, that includes delivery integration, a loyalty program within the ordering system, robust marketing tools to create personalized campaigns, and many other features that you also may find on our product page. By following this approach, restaurants can safeguard against the potential pitfalls of depending solely on a single platform and ensure greater control over their marketing strategies, audience engagement, and overall profitability.  

78% of all email campaigns aren’t opened in the very first hour after they’re sent. How to send the right offer at the right time

Posted on by Victoria Zurmann

In my previous article, we took a look at how customer purchase history can become your best revenue-generating mechanism. If you use it in a smart way, more customers will start using your offers, and a boost in the repeat orders is guaranteed.

However, even though the content of the offer plays a huge role in its success, another important thing to consider is when this offer is delivered, or rather – when it is seen by the customer.

If we’re speaking about a lifetime of a usual email, 78% of all email campaigns aren’t opened in the very first hour after they’re sent. And as each hour passes, the likelihood of your email getting more opens decreases. Offers are not limitless, so it leaves you with a very small percentage of the audience that gets the offer at the right time. 

email campaigns

Other channels (like in-app push messages) can perform better – but it’s still important to make the most of the time you’re sending the offer. So here’s a step-by-step guide to use it to your advantage. 

 1) Identify the most popular ordering time at your stores

Based on the campaign, the “ideal” time of sending an offer can be different, but for common types of campaigns, it’s basically when people order the most. This is the time when the interest is at its peak, so the chances that the offer will hit the customer’s inbox at the right time to spark this interest are significantly higher as well.

Of course, if it’s about an off-peak hours campaign or breakfast special offer, the target time will be different. It might also depend on your type of business. In any case, to choose a perfect target time, analyze when the thing you offer sells best.

 2) Send a message one hour before

…and make sure the customer sees it if not exactly at that time, then definitely not 3 days after! 

Let’s say that you have a special dinner offer, and the most popular order time in the evening is 8 pm. In this case, the push message should be sent around 7 pm with one goal – to “catch” the customer when they’re hungry. Communication in this case becomes customer-led: the customer is most likely to be hungry and looking to order some food (based on your popular ordering times) > they receive a special offer > they choose your restaurant to order from to make use of this offer.

The channel for such an offer should be able to reach the customer instantly. With modern Gmail-like inbox filters, email becomes completely unusable in this case. You can still try – but remember that most likely only 22% of the audience will see it.

In this case, we’d recommend push notifications from the restaurant’s mobile app. This channel is quick, and if you have a decent mobile app strategy, it’s also the most reliable channel. If you don’t have an app, SMS or messengers could also work – but keep in mind that it will more likely be perceived as spam (as customers are used to receiving all kinds of ads on these channels) and swiped from the screen as soon as it arrives.

 

ordering time

 3) Use “uneven” times

Now, while you’re planning your campaign, your competitors – and all other businesses you can imagine – are doing the same thing. So if you put your offer at an even time, like 7 pm or 7:30 pm, the chances are that the customer will receive it together with everything else they get from other companies. Instead, try selecting times such as 7:13, 7:37, or 7:08. Use every possibility to get the customer’s attention.

 

 4) Don’t forget the reminders!

While the time of the first point of communication is important, don’t shy away from reminding the customer about the offer (if the nature of your campaign allows it). Maybe they were on a call when they received it, or just busy commuting – the reminder can still convert their view to order.

In our experience, 30% and sometimes even 40% of customers who received the offer react to the last reminder. 

78% of all email campaigns aren't opened in the very first hour after they’re sent. How to send the right offer at the right time

 5) Make sure the CTA is clear and the offer can easily be redeemed

This concerns the UX more than the offer time, but a lot of customers, even interested in the offer, might drop off as soon as they experience the first “bump” in the ordering workflow. For example, if they need to copy a promocode from one source and paste it elsewhere.

The message about the order should lead directly to ordering with the offer applied. All other options risk conversion drop, even if the content and the timing were on point.

Here’s how to use time to your benefit when running campaigns. I suggest you try it for your next special offer – and if you need help with digitizing the user base and sending the offer across, LoyaltyPlant is here to help you!