Tuesday, August 10, 2010

The Real Value of Tableside Handheld Ordering

Posted in Hospitality Technology by Brian Vick, Owner of Brian's Cheesesteaks



The on-going goal of improving both profitability and customer return visits is constantly on the minds of restaurant owners and mangers. While numerous articles and opinions have focused on how to use loyalty programs, aggressive (and smartly applied) promotions, and advertising through social media, these are not the only strategies that operators need follow in the pursuit of their goals. Handheld wireless ordering, which has remained under the radar as a way to realize tremendous costs savings and increased profitability for some time, is rapidly coming to the forefront as more proprietors recognize the value of such devices. What's more, new, low-cost technologies like Apple's iPod touch and iPhone, are putting handhelds in an even brighter spotlight.

Six Benefits of Handheld Ordering
The first improvement realized was a decrease in the average amount of time a ticket was open (from order until delivery) at the table by a little over 40%. Servers no longer had to waste time walking to and from the point of sale (POS) station, wait to place the order due to being stopped by customers at a another table, or stand in line if another server was using the POS station to place their own order.

The second and third improvements that resulted were directly related to the decrease in the open ticket time. Speedier service led to increased table turns, and perhaps more importantly, a greater average check amount. Why? Customers now had time for dessert which was additional revenue that went right to the bottom line. Restaurants are able to seat more customers during the day and generate a 10% revenue increase at the same time.

The fourth improvement came in the form of improved customer service levels. Not only did customers' meals arrive more quickly, but they knew that as soon as they told the server what they wanted, the order was off to the kitchen. That helped drive more repeat business. Believe it or not, customers pay attention to how long it takes their server to place their order after leaving the table. Since the order was placed instantly, servers simply moved on to the next table to make sure everything was all right, take the next order or up-sell that dessert.

A fifth improvement was a dramatic reduction in order errors. The kitchen no longer had to decipher hand-written tickets and eliminated the precious time spent recalling the server to clarify an order. That not only improved customer service and speed-of-order-delivery even more, but it directly took out cost and waste from orders read incorrectly and the resulting remakes.

A final benefit is that environmentally conscientious proprietors can "go green." It may seem trivial, but using handhelds significantly reduced power consumption. Even the most efficient POS terminals use a lot of electricity, but handhelds use only a fraction of that.

New Technologies Come Into Play
Today, handheld POS ordering and payment solutions have moved toward low-cost, easy to use and intuitive devices such as an iPod touch. This is dramatically changing the attitude toward tableside ordering and payment. The iPod and iPhone interface is well known to today's generation of servers, and some input methods, such as using abbreviations, is as easy as texting without requiring servers to drill up and down through endless order entry screens. In addition, many servers already have these devices so there is virtually no additional cost as they simply download the POS app.

With PCI Compliance and the ever-present threat of customer's credit card information being "skimmed," pay-at-the-table will soon come to the front and center as customers are more reluctant to let their credit card leave their sight.

The proven benefits of handhelds, along with the changes in technology, have put tableside ordering and payment more into the spotlight than ever before.

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