QSRs queue up for online ordering tools
Everyone’s getting one, from Muzz Buzz to Foodco Group.
The current craze among Australian QSRs isn’t a marketing mantra or a promotional gimmick – it’s a technology tool for online ordering.
Several major chains confirmed that they were developing online order tools, and that these plans ranked high in their funding priorities. And in the case of café-bakery franchise Croissant Express, it will even become the crown jewel of their new initiatives.
“This will be a major focus of our business,” said Neil Soares, CEO at Croissant Express.
Soares said the brand is about to roll out our new order ahead app in conjunction with PayPal, in an attempt to replicate the success seen in the Eastern states across its stores in Western Australia.
“This app will allow you to order ahead to pick up your Croissant Express order instantly upon entering the store- especially useful during our morning and lunchtime rush,” said Soares.
“Customers will also be able to pay with PayPal in store at any time using PayPal's payment app, which integrates directly to our POS system- when you go to pay, a photo of you will appear on screen and our friendly staff will deduct your order payment from your PayPal account,” he added.
With the upcoming app as well as a planned upgrade of their central ordering portal to cater more effectively to online requests, the Croissant Express is hedging a big bet on online ordering tools.
“Given that many of our stores do a large percentage of their sales in catering, we need to make the online ordering experience as easy as possible for the user,” said Soares.
Online ordering systems can come with significant price tag, but Soares said the cost will be more than worth it. “The business intelligence that can be gained from these investments will flow directly to the bottom line of our franchisees.”
QSRs that want to build an effective marketing database, for example, can use online ordering systems to collect customer details, such as email addresses and phone numbers. This allows them to launch “highly successful and targeted marketing campaigns that transfer the reach of the online store back to the bricks and mortar store,” said John Saadie, Director at Eyedentity Design Group Pty Ltd, which launched the OrderUp! online ordering system in 2010.
Saadie said online ordering systems have gained a lot of attention because of their palpable impact on business operations and customer service quality. He said online ordering systems increase the accuracy of customer orders by preventing order mix-ups, saving businesses time and money in the process and satisfying customers who want orders to arrive according to their specifications.
E-commerce and efficiency boons
QSRs are placing an increasing value to online ordering tools, and are using them to successfully break into the e-commerce space or improve their supply chain processes.
Healthy Habits, a popular sandwich bar and healthy fast food chain, is developing an online ordering tool aimed at capturing a share of the growing online ordering crowd who are increasingly transacting via their desktop computers and mobile phones.
“At the moment we have an online ordering tool in development. When deployed it will be both web based and app based in order to ensure that customers can transact with us as easily as they would wish and in a device agnostic way,” said Mark Buckland, Managing Director at Healthy Habits.
A similar strategy is driving the new e-commerce website for Foodco Group, the operator of Jamaica Blue and Muffin Break.
“We are in the final stages of launching our e-commence coffee website. We are also in discussions with a number of our suppliers to explore additional opportunities for product sales through our online sites,” said Serge Infanti, Managing Director at Foodco Group.
For some QSRs, an online ordering tool provides solid multi-platform presence. “We plan to launch one that will be both app, mobile & desktop based,” said Bao Hoang, Founder at Roll’d, a Vietnamese street food chain.
While online ordering tools can open up a QSR to a new customer base, it may end up generating a relatively small fraction of total revenue. Steve Plarre, Chief Executive Officer at Plarre Foods Pty Ltd reveals that his company’s online ordering tool brings in only 1-2% of total sales.
QSRs are reminded that with any investment, online ordering tools need to create a healthy return on investment.
Still, it can be argued that online ordering tools offer a breadth of benefits beyond enhancing sales. They can also provide great leaps in efficiency, which can also translate to a better bottom line. This specific benefit attracted an unlikely candidate, the drive-through coffee franchise chain, Muzz Buzz, to also jump onto this technology trend.
“Whilst it is not applicable for our drive-thru model because of peak period queuing – it’s understandably an important ordering and media tool. We’re about to launch an online merchandising store for this very reason in taking some of the processing and inefficiencies away from the store front,” said Warren Reynolds, Executive Chairman at Muzz Buzz.
