Restaurant Glossary

Online Ordering

Definition:

Online Ordering refers to the process by which customers use the internet to place food and beverage orders from a restaurant through a website, mobile app, or third-party platform.

This service allows customers to browse the menu, customize their orders, select a pickup or delivery option.

Additionally, it allows customers the option to pay for their meal, all from their computer or smartphone.

Online ordering has become increasingly popular due to its convenience, efficiency, and ability to cater to the growing demand for off-premise dining options.

Why It Matters:

  1. Convenience for Customers:

    Online ordering offers customers the convenience of placing orders from anywhere, at any time, without having to call the restaurant or wait in line. This ease of use enhances the customer experience and encourages repeat business.

  2. Increased Sales and Reach: 

    Restaurants can tap into a broader customer base, including those who prefer takeout or delivery. This service can significantly increase sales, particularly during peak hours or in areas with high demand for delivery.

  3. Order Accuracy: 

    Online ordering reduces the chances of miscommunication between customers and staff, as customers input their orders directly into the system. This leads to fewer errors and improved customer satisfaction.

  4. Data and Insights: 

    Platforms provide valuable data on customer preferences, ordering habits, and peak times. Restaurants can use this information to optimize their menu, tailor promotions, and improve overall operations.

Key Features of Online Ordering:

  • Menu Customization: 

    Customers can easily customize their orders, such as adding or removing ingredients, selecting portion sizes, or choosing preparation methods, ensuring they receive their meal exactly as they want it.

  • Payment Integration: 

    Platforms typically integrate with secure payment gateways, allowing customers to pay for their orders using credit cards,
    digital wallets, or other online payment methods.

  • Order Tracking: 

    Many systems offer real-time order tracking, so customers can monitor the progress of their order from preparation to delivery or pickup.

  • Promotions and Discounts: 

    Restaurants can offer special promotions, discounts, or loyalty rewards through their online ordering platform, encouraging more frequent use and customer retention.

Example in Action:

A popular fast-casual restaurant launches an online ordering platform integrated with its website and mobile app.

Customers can browse the menu, customize their orders, and choose between pickup and delivery options.

The platform also offers a loyalty program, where customers earn points for every online order, redeemable for discounts on future purchases.

The restaurant sees a significant increase in off-premise sales, especially during lunch hours, as more customers take advantage of the convenience of online ordering.

Additionally, the data collected from the platform allows the restaurant to identify popular menu items and optimize their operations to meet peak demand.

Additional Resources & Related Terms

  • Third-Party Delivery Service:Companies like Uber Eats, DoorDash, Grubhub, and Postmates that partner with restaurants to offer delivery services, often integrated with digital systems.
  • Digital Menu: 

    An online version of a restaurant’s menu that customers can view and interact with when placing an order through an online ordering platform.

  • Off-Premise:Off-Premise Dining refers to any dining experience where food is prepared by a restaurant but consumed outside of its physical location.stem.

Conclusion:

Online Ordering is an essential component of modern restaurant operations, offering convenience to customers and opening new revenue streams for businesses.

By implementing a robust system, restaurants can increase sales, improve order accuracy, and gain valuable insights into customer behavior.

As the demand for off-premise dining continues to grow, online ordering will remain a key factor in a restaurant’s success and ability to meet customer expectations.