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Restaurants pivot to D2C model, POSist enables online ordering system
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Tuesday, 01 September, 2020, 16 : 00 PM [IST]
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Our Bureau, New Delhi
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POSist introduces online ordering system for restaurants and cloud kitchens to enable direct-to-consumer (D2C) channel through the in-house website and mobile application for ordering food.
Online D2C channels such as websites, social media and messaging platforms allow restaurateurs to set up their own digital storefront, customise the guest experience, manage online orders, and open new revenue streams in addition to third-party networks, ultimately enabling them to adapt to the new normal of dining.
Three-fold jump in food ordering during April - June 2020
During the lockdown phase, approximately 8,000 restaurants and cloud kitchens using the platform, registered an almost 3 times increase in food deliveries between April and June 2020 as compared to the previous year. The average order value also jumped by 2 times from the pre-Covid level. Based on these metrics, it is evident that takeaway and home delivery have become major sources of revenue for the restaurant industry amid the ongoing Corona virus crisis.
Restaurants Pivoting to D2C amid Covid-19
Given the reduced footfall and social distancing norms, profit margins have taken a hit in the restaurant industry. As a result, many restaurants have either completely moved or started their deliveries. To scale the delivery business, it is imperative for restaurants to make their online experiences even more extraordinary as compared to the dine-in restaurants.
Opening new revenue streams
Restaurants can make use of the online ordering software by integrating with the customer relationship management (CRM) tools and third-party applications such as loyalty programmes, mobile wallets, and cloud telephony among other services to drive more revenue. In addition to already existing food aggregator channels, having an in-house website helps in brand building and amplifies the revenue opportunities. It's a win-win situation for both restaurants and customers.
Sumit Gulati, founder, Spice Market Kitchen and Bar, and promoter of Delhi-based cloud kitchens Call Chotu and Nayi Dilli Ke Paranthe, said, “Restaurants must continue to strengthen integrations and build an omnichannel presence. Now is the time when brands must invest in all possible channels to reach customers. Food aggregator platforms continue to be the most popular medium for consumers at large, however, selling directly to the consumer with owned platforms like website and WhatsApp is emerging as a more attractive and cost-effective channel. We have witnessed a 70 per cent jump in orders from WhatsApp since the lockdown started in March. Covid-19 has given us an opportunity to be where the customer is, that’s right inside their smartphone screens.”
Improved guest experience
The restaurant business thrives on the relationship with the guests, and having a website gives a restaurateur the advantage of gathering important customer information, order patterns, and insights to their likes and dislikes which can be used to create better engagement. Additionally, the platform provides a range of customisable layouts for restaurants to give a personalised experience to their guests by showing them designer menus with photos and rich content.
Easy order management
Once the online ordering page is created, any new changes and updates in menus, business hours, or business information will automatically sync with the central system. The admin managing the tool can easily manage online orders and processes from acceptance to delivery.
Pierre Labail, co-owner, Suzette Gourmet, said, “Consumer brands like ours are expected to focus on creating value and building trust. Last month we fully moved all four of our brands to our in-house website to manage direct delivery. Having our own channel gave us a complete view of customers, and took complete ownership of deliveries. POSist’s online ordering works seamlessly with the POS system, maintaining and updating the website is like a breeze.”
Ashish Tulsian, co-founder and CEO, POSist Technologies, said, “The restaurant industry is taking constructive steps to embrace new ways of doing business such as pivoting to cloud kitchens, opting for digital technologies, and investing in high-quality hygiene. Working with over 8,000 restaurants, we realised that brands urgently need to own their online experience to be able to connect with customers the same way they used to do offline in the pre-Covid days. POSist online ordering allows restaurant operators to set up their own digital storefront, customise the guest experience, manage orders, ultimately be able to ready the business for the future.”
The platform can be used by restaurants of all formats and sizes including, Fine-Dine Restaurants, Casual Dining Restaurants, QSRs, Hotel Restaurants, Food Courts, Bar and Breweries, and Cloud or Dark Kitchens.
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