A recent article from Nation's Restaurant News provided some conflicting data about the health of the economy and the fate of upcoming Holiday restaurant sales. 

Here at NetWaiter, we looked into our crystal ball and the answer we got was – “If the upcoming Holiday Season is going to be good for your restaurant, it's because you worked hard and started planning early enough.”

Here are a few tips to help you work smarter:

•    Start Promoting Early - The Holiday Season can be busy for many people and offering them convenience during such a hectic time is really beneficial.  Consider posting signage to remind people your restaurant offers online ordering through their mobile device.  "Pick up dinner on the way home from the mall."  Also, work with your wait staff to spread the word.  These tips help keep business coming in well after the Holidays.

•    Print Advertising - Do you have a regular ad in a local paper or magazine?  Make sure your custom online ordering site is part of the message.
•    A Little Motivation - What about a Free Appetizer or Dessert for online orders during the Holidays?  Try offering something special that you don't offer any other time of the year.
•    Special Promotions - Launch an Email campaign letting customers know they can rely on your convenient takeout system during the Holidays.  Creating an online category for Special Holiday Promotions can also work great. 

Even before the advent of Groupon, many restaurants fell into the coupon trap.

Smart restaurateur s realized that's exactly what Daily Deals are - a trap.  A recent article in the New York Times addressed the pitfalls of Groupon and similar services: "The consumers were being told: You will never pay full price again. The merchants were hearing: You are going to get new customers who will stick around and pay full price.  Disappointment was inevitable."

Do Groupon-type customers come back?  Yes …if they have another coupon.  According to Lingo-Link, a blog discussing how companies can give the best customer service, “...people who are signed up with Groupon get a different half-off coupon offer emailed to them every day.  And as a result Groupon has developed, in a way, their own cult following."  The loyalty is to Groupon, not your business.

There is no replacement for a well-run online ordering system such as NetWaiter, which gives customers the control and convenience of ordering takeout and delivery online.  Daily Deal programs only train shoppers to come back when a discount is available - there is no loyalty.  Unlike NetWaiter, which is, in fact, very likely to draw customers back repeatedly and have them happily paying full price.

An online article from MIT's Technology Review also examined how merchant reputations changed before and after a Daily Deal.  The article reported the average rating scores from reviewers who mention Daily Deals are about 10% lower than scores of their peers.  And, what’s the cost for these poor reviews?  Extraordinary.  If the standard discount is 50%, and the Daily Deal site takes half the money paid by each customer, your restaurant is essentially giving a 75% discount to a customer that might come back.

Bottom Line: Forget flushing marketing money on Daily Deals.  Instead, implement long-term and cost effect marketing programs.  NetWaiter should be one of the key pillars of your marketing strategy to attract good customers who pay full price.  Get people into your restaurant, create brand awareness, and make money! 

This letter was recently sent to the editor of Nation's Restaurant News, but you can read it here: 

A recent online issue of Nation's Restaurant News included a feature - 10 Ways to Build Business Inside Your Restaurant's Four Walls.  The article was good, with information and advice that all restaurateurs can use.  Might we suggest a follow-up article - 10 Ways to Build Business Outside Your Restaurant's Four Walls.

At the top of the list should be Online Ordering.

Allowing customers to order takeout or delivery from the convenience of the internet, including mobile phones and tablets, is a major innovation for the restaurant industry.  Studies indicate that customers like to place orders online due to the degree of control and convenience it provides.  Restaurants love it because they receive larger average tickets, the convenience encourages more frequent use, and they have the ability to sell more meals without overburdening the wait staff.  Of course, these are just a few of the benefits.

According to a study by the Cornell University School of Hospitality, 43% of survey respondents ordered food online in 2010.  Take that same group, and narrow it down to respondents between 18 and 35 years old, and it goes up to 60%!  Both these figures are at least a year old and we know they are higher now.  At NetWaiter, we venture to say that within the decade, and probably much sooner, restaurant customers will expect online ordering.  Within some demographics, this is probably already true.  Restaurants that don't have online ordering will lose out on valuable business from valuable customers.

A recent online issue of Nation's Restaurant News included a feature - 10 Ways to Build Business Inside Your Restaurant's Four Walls.  The article was good, with information and advice that all restaurateurs can use.  Might we suggest a follow-up article - 10 Ways to Build Business Outside Your Restaurant's Four Walls.

At the top of the list should be Online Ordering.

Allowing customers to order takeout or delivery from the convenience of the internet, including mobile phones and tablets, is a major innovation for the restaurant industry.  Studies indicate that customers like to place orders online due to the degree of control and convenience it provides.  Restaurants love it because they receive larger average tickets, the convenience encourages more frequent use, and they have the ability to sell more meals without overburdening the wait staff.  Of course, these are just a few of the benefits.

According to a study by the Cornell University School of Hospitality, 43% of survey respondents ordered food online in 2010.  Take that same group, and narrow it down to respondents between 18 and 35 years old, and it goes up to 60%!  Both these figures are at least a year old and we know they are higher now.  At NetWaiter, we venture to say that within the decade, and probably much sooner, restaurant customers will expect online ordering.  Within some demographics, this is probably already true.  Restaurants that don't have online ordering will lose out on valuable business from valuable customers.