Sponsored by Rakuten Ready
With Order for Pickup or Delivery essentially the only restaurant options for consumers today, COVID-19 will clearly have a significant impact on the industry, both now and in the long run. While Order for Pickup is becoming the dominant revenue channel for many operators today, we believe they will find that the shift to this channel could become permanent and have a very positive impact on their business long-term if they are able to provide a positive experience.
The good news is mobile Order for Pickup dramatically improves the customer experience by having food paid for and ready when customer arrive. It not only slashes wait times and improves order accuracy, Order for Pickup also reduces risk while increasing customer satisfaction and creating revenue opportunities for operators. The long-term effects of a good experience will be more frequent repeat visits and increased profits.
According to the 2020 ROI study conducted by Rakuten Ready, Order for Pickup is up to 2.4 times faster compared to traditional channels.
Perception vs. Reality
Whether walking to the counter or using the drive-thru, customers typically believe they’re choosing the fastest means of getting their food. But the Rakuten Ready study proved those long-held assumptions wrong.
Nearly 50% of customers surveyed prefer using Drive-Thru, and about a third of all customers believe it is the fastest way to get their food during peak hours. But in its ROI study of four major quick-service chains, Rakuten Ready found none of the traditional ordering options were particularly speedy. Total time spent by customers in the drive-thru queue ranged between 3.9 to 4.7 minutes.
But when orders were placed at these same chains using mobile Order for Pickup, order completion times were slashed by an average of 73%.
The study also found that mobile-ordering app use came with a surprise advantage: When customers see long lines in the drive-thru lane, they often go elsewhere to eat. But since customers using mobile apps order remotely for pickup, they don’t see potentially discouraging lines of cars or customers picking up their food.
Currently, consumer awareness of the Order for Pickup benefits is low. Only 10% of respondents of the Rakuten Ready survey rate the channel as their preferred way to order at a quick-service restaurant, and it ranked behind delivery and ordering at the counter as the perceived fastest method for getting food during peak times. The reality now, of course, is the opposite.
The increasing needs of consumers for pickup services during this unprecedented time drives awareness that Order for Pickup is much faster and allows them to understand the benefits. Not only does Order for Pickup streamline and improve the overall customer experience, but by increasing throughput and repeat visits, the value of long-term customers also rises significantly by creating more opportunities to increase revenue.
The study also highlights a real return on investment is generated by shifting to mobile Order for Pickup. By focusing now on creating a great experience and investing in Order for Pickup this will allow operators to capture the benefits of this unexpected shift in order mix and ideally thrive as they find a new normal.
Download the Rakuten Ready 2020 ROI Study here