If you’re the owner of a small to medium sized eatery that’s either a
Quick Serve Restaurant or a casual dining establishment, you may have
thought about implementing a pay-at-the-table (PATT) solution, but the
chances are very, very good that you have not implemented it. Why? Well,
for starters, there’s cost. And for good reason, at least until very
recently. Traditionally it cost $1,500 to $5,000 per license per
register – and that’s just the license.
Then there was the equipment that had to be bought. And, typically, a
monthly support cost of $200-$500 per register. Plus training. So even
if you liked the idea and were flirting with it – it went the way of
many good ideas that are just too expensive to implement. And that’s why
95 plus percent of small business owners don’t have a POS system like
Macy’s or JC Penny’s or even a grocery store. It was just too expensive.
And so, chances are, you’re still using clickety clack viny electronic
POS terminals that are a relic, a thing of the past.
But suppose the cost turned out to be a small fraction of what you’re thinking it costs? What would you do then?
First, let’s talk about how it works, from the point of view of your
customer. One option is putting one or more self-service Kiosks in
strategic locations to augment the traditional ordering and payment
system, creating in-effect a self-service fast lane for those inclined
to use it. A more comprehensive alternative – and the one that should be
the goal of every progressive Quick Serve Restaurant or fast casual
eatery, is a dedicated station at each table. Imagine something as
intuitive and convenient as an iPad, right on the table, with easy to
use touch-screen controls, a beautiful and enticing graphics interface
for ordering, a simple and easy to use payment processor, and in between
ordering and paying – an option for games, entertainment, and
information.
Consider the following benefits:
Secure Transactions at the Table
Consumers today are increasingly conscious of the fact that the
traditional restaurant experience is one of the few situations in which
their credit card leaves their possession and is out of their control –
and they correctly recognize this as an invitation to fraud. Retail
figured this out a long time ago – hence the prevalence of
customer-facing stations which allow the transaction to be processed
without the card leaving the possession of the customer. Retailers know
that if the card never leaves the customer’s possession, their liability
for fraud is all but eliminated.
The Upsell – And “Item-Based Recommendations”
Self-serve terminals never forget to upsell, and research shows that
customers are more receptive to an upsell pitch from a kiosk than from a
human. This is backed up by various surveys which have shown that
deployment of self-serve touch-screens invariably results in increased
check averages – producing quick ROI for the deployer. How much of an
increase? “On average, we’ve found a 15 percent-per-ticket increase when
customers use kiosks,” said Madeline Pantalone, vice president of
innovation and market strategies at EMN8, an established kiosk vendor.
Other vendors reported similar increases. “We’ve learned customers don’t
mind being asked whether they want to upgrade to a combo or if they’d
like dessert. We’re not upselling by saying, “Do you want this. Do you
want that?” We’re providing options. A variant on the upsell is
“Item-Based Recommendations” – just like what you experience when
ordering
books from Amazon. Customers who ordered this, also ordered this.”
Turn Your Tables More Quickly
The average checkout and payment procedure of 90 seconds is far
faster than the amount of time it takes in most restaurants – even
fast-casual – to hail the wait staff, get the bill, hand over your card,
get it processed, and get it back. (Estimates in different restaurants
range from a low of 2 minutes to a high of 11 minutes for traditional
payment processing, with an average of around 4 to 5 minutes being
typical). Multiply the time savings by the number of tables served , and
this translates into more customers served – again, ROI for the
deployer.
Savings in Labor Costs
The move to automated ordering and payment allows the restaurant to
focus more on fulfillment of orders, and less on receiving them. There
is no question that fewer wait staff are needed – and if there is a need
to hire more fulfillment staff, this means there are more orders being
taken and more money coming in than under the manual system. Again – ROI
for the deployer.
New Revenue Streams
The same terminal used for ordering and payment can also deliver
entertainment, advertising, and information. Revenue streams include
advertising dollars, and pay-for-games. More ROI for the deployer.
So with all these benefits what’s keeping restaurant owners from adopting the new systems?
The biggest reason: Lack of understanding and fear of price point.
Chances are, the average owner of a QSR or fast casual restaurant or
small chain is operating on the mistaken assumption that deploying a
system is cost prohibitive. What these entrepreneurs don’t understand is
that the development of tablet technology has created an entirely
different model based on a simple concept – “software as a service.”
The
iPad alone has created an opportunity for cash-strapped restaurant
entrepreneurs that is as profound as the emergence of desk-top
publishing as a technology two decades ago. What had previously cost
$20,000-$50,000 can now be acquired at a tiny fraction of that cost.
Gone are the days of a huge upfront investment. The smart entrepreneur
today can get the same features that the “big boys” have, all at a
small, affordable monthly fee.
There’s no doubt about it – mobile technology, iPhones, and iPads are
revolutionizing the POS industry. Buy the software – and off you go.
Rick Berry is the President of ABC Mobile Pay, Inc,
a Valencia, California based company specializing in providing
‘software as a service’ affordable POS solutions. Rick can be reached at
rick@abcmobilepay.com.
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