fbpx

Payment Processing

3 Restaurant Customer Trends to Prepare for 2019

3 Restaurant Customer Trends to Prepare for Banner
Restaurant Image

The National Restaurant Association will be hosting its annual show in Chicago this weekend, spanning three days from May 18 through May 21. In advance of the event, the Association released its “2019 State of the Restaurant Industry Report,” which identifies several key trends restaurant operators should be wise to, whether you’re attending the annual show or not. The report identifies employee recruitment and retention as the number one challenge facing restaurants, but the key takeaway of the report is the focus on three evolving customer demands: 1) easier opportunities for take-out and delivery, 2) technology that improves the dining experience, and 3) improved environmental sustainability.

With at least two of these trends, modern technological solutions exist that you can implement in your restaurant if you haven’t already. The report shows that restaurant operators have already been and will continue to make significant investments into their businesses.

  • In the last three months, 55% of operators made a capital expenditure on equipment, expansion, or remodeling
  • 57% of operators say they plan to make an expenditure within the next 6 months

The question you need to ask yourself is whether the capital investments you’re making are taking into consideration the customer trends the report identified. The report focused largely on millennials (adults aged 21 – 38), who now comprise the largest living adult generation in the United States.

 

What Millennials Want

  • 50% of millennials and 38% of all adults in the US say the are more likely to have restaurant food delivered than they were two years ago
  • 56% of millennials placed takeout or delivery orders using a restaurant mobile app or online ordering from a restaurant website
  • 60% of millennials want more convenient ordering and payment options, including with takeout and delivery
  • 51% of millennials want the ability to choose their own tables on a seating chart from a restaurant website
  • 42% of millennials would pay to participate in a loyalty program that offers guaranteed reservations on busy days and skip-the-line privileges
  • Millennials are the demographic most likely to use self-service kiosks at quick-serve restaurants and coffee shops
  • 60% of millennials want technology to provide more detailed information on food, such as nutrition, allergens, and sourcing

The statistics are a lot to digest, so let’s break it down into the solutions you can incorporate right now to meet these customer needs and gain a competitive advantage.

Take-Out & Delivery

Does your business offer online ordering? Do you have a custom mobile app for customers? If you deliver, do you have a delivery management system that’s integrated with your POS, website, and mobile app?

Improving the Dining Experience and Streamlining Operations

Does your restaurant have a modern, cloud-based POS that can easily be configured to your business’s needs, while reducing operation time and cutting costs? Here is a list of just a few features a modern POS has to offer:

  • Intuitive POS interface for quicker employee onboarding and faster operation
  • POS integrations for employee management, such as scheduling, clock-in and clock-out integrations with payroll, etc.
  • Mobile pay capabilities
  • Remote/mobile reporting and operations capabilities, such as manager approvals
  • Reservation management
  • Self-service kiosks for quick-serve and coffee shop sectors

Did you know that it doesn’t cost tens of thousands of dollars for a sophisticated restaurant POS anymore? Learn how SpotOn Restaurant can help you unlock the potential of your business.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email
Share on print
Print

Delivery Services Trends 2019

Delivery Service Trends 2019 Banner

I remember when I was a young kid when mom got done cooking she would call for us to come eat. I’ve got 2 brothers and a twin sister so she was always cooking for a full table. When mom didn’t cook she would load all of us up in the car and we would go get something either at the small town Steak House or we would go to Jack’s Hamburgers or The Cardinal Drive thru.

The Cardinal Drive Thru was similar to a Sonic Drive Inn because the worker actually brings the food to your car. Until recently, Sonic Drive Inn was the only type of fast food that was delivered and even then it was only 20 yards max. Besides Pizza, Chinese Restaurants in larger cities were the only companies that had delivery to your home besides maybe a few others but speaking in overall picture.

Jimmy Johns Subs was really the first to start delivering sandwiches. Its so important to there business model because most of their store fronts are usually in downtown areas so the space is limited because of parking and locations are generally very small in nature.

Fast Forward 12 years to 2019….

Now more and more restaurants are lacking traffic but the sales are up? You may think how can that be. Several startups like GrubHub, GrubSouth, Shoals TakeOut, Door Dash and Uber Eats have made it possible to order at any restaurant that they service and for a small fee the food will be brought to your front door. Yes these companies charges a fee just like Pizza has been done for years.

What are the options when taking payments through a Merchant Service Provider?

What are the options when taking payments through a Merchant Service Provider Banner

There are several options a business can choose to accept electronic payments through a Credit Card Processor sometimes referred to as a Merchant Service Provider.  A large percentage of businesses chose to just use a table top credit card terminal which we have all seen and is pictured above.  While this option will work for most as technology increases more businesses have adopted other ways to take payments.  We will discuss all the options below and explain the advantages that each procedure. 

First things First - How Payments work

This info-graphic helps show the cycle of how credit card payments work.  The example in the graphic is just a example the fee to the issuing bank will be different for each type of card that is ran. Basically, the bank is actually giving your business the money before it actually receives the money from the Merchant Service Provider because this is done electronically.   

How much does each Card Cost?

There are several different cost involved with credit card payments.  The wholesale cost of the card is set by the issuing bank in what is called Interchange Cost that is associated with Card Associations such as Visa, MasterCard, Discover and American Express.  Honestly there is no way to know exactly what a card will cost you when a customer gives you a card for payment. A good rule of thumb I use when explaining it to merchants is when you see a Double Sky Miles Card from Delta Airlines the consumer thinks that is awesome that Delta would offer double miles on purchases with their card.  Actually the person that is paying for the Double Miles is the merchant in the form of a higher cost for the card.  In summary Bank Issued Debit Cards will be cheapest to run and Reward cards will cost more. Click below to download the Visa and MasterCard Interchange Rates to learn more about the cost of running credit cards at your business.

4 ways to take payments

1. Tabletop Credit Card Reader

Taking payments through a credit card reader is the easiest way to take payments. These machines are usually offered for free from most processors.  Stay away from those Merchant Service providers that offer to lease the machine to you. 

2. Mobile Swiper or Terminal

Taking payments through mobile processing devices is an easy way to accept payments and the equipment most of the time is given to merchants for free. Some may charge but you should never pay over $100.00 for a mobile swiper and maybe more for Smart Terminal.  Mobile payments uses mobile data or 3G-4G cell phone towers to process payments over a mobile app or smart table top terminal like the PaxS920, Veriphone 680, PayAnywhere Terminals, Poynt Smart Terminals or SwipeSimple which 360 Merchant Group can provide for our customers. 

3. Virtual Terminal

Taking payments through Virtual Terminals like SpotOn Virtual Terminal, 360 Merchant Virtual Terminal or Authorize.net can be done with any access to the internet.  To easily explain this is a web form that you type information in like Name, Address, Card Information and process it through an online gateway. These are great for Mail Order Companies, Online Storefronts and businesses that have memberships that need a way to run the card monthly like Gyms, Clubs, Dance Class and many more. Most virtual terminals can store information securely and process cheaper than manually typing in the card info each month. 

4. Point of Sale System

Most Point of Sale Systems offer a way to integrate payment processing through 3rd party processing via a online gateway. Companies like Toast, Square, Clover and several others have built custom software that will only process through their gateways.  Be weary of these because generally without competition you can pay high rates to use the point of sale that the processor provides.  There are lots of benefits to using point of sale as your way to take payments including reporting, analytics and security.  Read our Choosing the Right Point of Sale for you Business Post for more information on Point of Sale Systems and their benefits.

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Scroll to Top