The concept of restaurant online ordering might be popular right now, but it’s not new.
DoorDash made its first delivery in 2012.
Papa John’s first launched its online ordering in 2001.
And Pizza Hut’s “PizzaNet” has been kicking around since 1994.
So, while the idea of restaurant online ordering isn’t new… do you know what is?
How online ordering has gone from zero to hero in the restaurant industry.
And it’s all “thanks” to the pandemic.
The History of Online Ordering in Restaurants
In 2020, restaurants across the US were subject to an influx of public health safety measures.
From restricted seating capacities and prohibited dine-in services to “takeout-only” models and temporary closures, new restrictions were popping up almost daily.
Unsurprisingly, these restrictions and closures had a dire impact on restaurant owners.
The entire industry saw record-low sales, forcing owners to take drastic measures like furloughing employees and applying for relief programs.
The severity of the pandemic’s impact, however, wasn’t fully illustrated until the National Restaurant Association's May 2021 report of the damage:
~90K restaurants “remain completely closed either permanently or long-term” with those who remain open reporting an 84% drop in staffing levels and a 65% drop in sales volume.
Now, there might not be many positives about the pandemic’s impact on restaurants — saying “food service sales dropped by $290B in 2021” sucks no matter how you spin it.
But there is one silver lining:
The rise of restaurant online ordering.
Ready to level up? Dive into our Restaurant Online Ordering Guide.
The Rising Popularity of Online Ordering in Restaurants
Restaurant online ordering skyrocketed in popularity during the pandemic because it had to.
When restaurants were forced to reduce their dine-in capacities or switch to the previously mentioned “takeout only” models, operators had a choice to make:
Keep serving customers (and making money) by migrating online or risk joining the 90K restaurants that closed their doors for good.
With the clear winner being “stay in business,” restaurant owners started digitalizing their operations, making what Restaurant Business called “years’ worth of technological progress in a matter of months — and in some cases, days.”
By September 2020 — only nine months after the US declared the public health emergency — operators had made unbelievable online progress.
- 27% of operators had added third-party delivery
- 17% of operators had added in-house delivery
- ~41% of operators had added online ordering
…and it was paying off more than anyone could have expected.
- 71% of operators said off-premise sales in 2021 represented more of their total business than it did pre-pandemic
- 65% of adults were ordering takeout or delivery every week, up 5%+ from pre-pandemic frequencies
- 64% of adults now prefer to order delivery directly through the restaurant (versus third-party apps)
A few years have passed since the restaurant industry speed-ran the adoption of online ordering capabilities…
Yet customer demand for digital-first dining options has gone nowhere but up.
- The online meal delivery market has grown by ~150% since 2021, with projections for next year reaching a value of $102B.
- Popular QSR apps have surpassed billions of users, with consumers leaning on mobile apps to place orders, pay digitally, and participate in loyalty programs.
- And 84% of customers rated online ordering through a restaurant’s website as the tech option they were most comfortable with, followed by mobile apps at 80%.
So, restaurant online ordering went from the only option during the pandemic to the most preferred option now…
But what’s really in it for you and your customers?
We’re so glad you asked.
Benefits of Online Ordering for Restaurant Owners
As a restaurant owner, every decision you make — including tech — needs to support you, your restaurant’s success, and your customers.
Luckily, online ordering offers benefits and solutions that check all of those boxes.
(And a few extra ones, too).
1. Increases Revenue
Because up-sell recommendations are automatically generated at check-out, suggesting add-ons and extras that increase your average order value is easier than ever. It’s simple to add personalized recommendations, too.
2. Streamlines Operations
From automatically updating your inventory in real-time to relieving employees of their order-taking duties, online ordering platforms can streamline multiple high-friction areas of your restaurant operations.
3. Builds Customer Loyalty
Loyalty programs are a huge draw for customers, both in terms of savings and rewards/benefits. Developing a loyalty program becomes a lot easier when you’ve got your online ordering infrastructure in place.
4. Saves You Commissions
When you use third-party apps for online ordering, you can count on paying up to 30% in commissions. Using your own online ordering system saves you money and gives you more control over the orders.
5. Encourages Repeat Orders
Online ordering platforms often have personalizable features like push notifications and single-tap re-ordering. This makes it easier and faster for one-time customers to turn into repeat customers.
6. Offers Real-time Analytics
When your customers place online orders directly through your app or website, you get access to a whole range of invaluable data that you can use to improve your customer experience and offerings.
7. Offers Menu Flexibility
With your own online ordering platform, making menu changes is a super low lift. Forget the physical menu reprints — adding special offers or removing sold-out items is as easy (and immediate!) as a few quick clicks online.
8. Reaches More (Potential) Customers
Online ordering can get your restaurant in front of a bigger audience, whether you’re using a third-party app to increase your reach or working the local angle with pick-ups and deliveries.
Give your customers the frictionless online ordering experience they deserve—start with our guide.
Benefits of Online Ordering for Restaurant Customers
A restaurant wouldn’t be a restaurant without customers, right?
That’s why the restaurant tech you’re exploring has to offer customer benefits that speak to features they want, need, and will be excited about… just like online ordering does.
1. Convenient and Easy
Whether they want to pick up dinner on the way home or treat their friends to coffee before a road trip, online ordering gives your customers the power to order from anywhere, any time (and with a single tap, too).
2. Enables Easy Order Customizations
Online ordering reduces the time your customers spend waiting in line, so they can get their “triple shot iced sugar-free vanilla oat milk latte, no foam” faster, easier, and without having to say their tongue-twisting order out loud.
3. Offers Personalization
Personalized customer experiences are more important than ever. With an online ordering platform, you can easily offer tailored recommendations in-app or customized deals based on order history.
4. Reduces Order Errors
Nothing’s worse than placing a complicated order and it shows up wrong. With online ordering, customers can manually enter their orders, making sure it's 100% what they want, every single time.
5. Generates Rewards
Your customers want to feel seen, valued, and part of a community. What better way to accomplish all three than rewarding your most frequent customers with an online ordering platform and loyalty or membership program?
6. Streamlines Payments
Considering the 120M Americans using digital wallets in 2024, cash-free order payments are a must. Online ordering platforms are great for this, accepting all kinds of digital payments from Apple Pay to Mastercard.
Offer Online Ordering with Craver
Online ordering isn’t a “right now” restaurant solution or a trend that’ll fizzle out in five seconds.
It’s a long-term solution for restaurant owners who want to keep their customers happy, their bottom lines strong, and their doors open.
So, how do you make online ordering happen?
That’s where we come in.
Craver offers intuitive, customized, and easy-to-implement online ordering solutions, from our custom-branded apps to our personalized web platforms.
And, the extra nice thing about our solutions is that they work — just look at Rook Coffee.
Before switching to Craver, Rook Coffee was battling bottlenecked front-of-house operations that muddled their order-to-payment workflow.
After implementing a custom-branded Craver app, Rook Coffee introduced an “order and pay ahead” option that streamlined transactions and integrated with their existing POS system.
Now, Craver enables 60% of Rook Coffee’s orders, with repeat customers spending 3x more through the app. See what Craver can do for your business.
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