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The Spoon

Daily news and analysis about the food tech revolution

online ordering

Online Order Platform Zuppler Launches a Contactless Order and Pay Package for Restaurants

Online food ordering platform Zuppler today announced a contactless ordering package restaurants can use as they begin to open the front of house under new social distancing guidelines. Called Menu Anywhere On-Premise, the software specifically addresses the need for more flexible, dynamic menus and contactless ordering for dine-in customers. 

Zuppler currently works with about 15,000 restaurants. The Conshohocken, PA-based company’s platform integrates directly with restaurant websites and POS systems, as well as loyalty programs like LevelUp and Punchh.

The company is among those restaurant tech players now focusing on contactless solutions for restaurant dining rooms, most of which now have to operate with reduced capacity, fewer staff, and new standards for social distancing. Those social distancing measures are quickly phasing out things like reusable menus and self-service kiosks, which means more restaurants are now looking for digital options for customers when it comes to browsing menus, ordering food, and paying for it.

“Today’s launch is a natural extension of our current offerings, and is entirely driven by the needs of our clients,” Zuppler’s founder and CEO Shiva Srinivasan said in today’s press release.

Like other Zuppler products, The Menu Anywhere On-Premise tool integrates directly with a restaurant’s main system, including its website and any loyalty programs. Customers can then use their own mobile devices to browse a menu and select items to order. Those orders are automatically sent to the restaurant kitchen, and customers can track the status of their order on their phones as well as pay for their meal. Since Zuppler’s technology is integrated with loyalty programs, customers can earn points from their orders at participating restaurants. 

Restaurant tech companies across the industry are now pivoting to offer bundles of contactless software to restaurants. Presto, CardFree, ConverseNow, and Sevenrooms, among others, all offer some form of contactless order and pay features restaurants can add to their tech stack. While this shift in focus is partially a way to help restaurants reopen their dining rooms, it’s also a necessary move for these companies when it comes to staying relevant in a world that no longer revolves around the restaurant dining room.

Zuppler’s history as an online order platform as well as its existing integrations with POS systems, loyalty programs, delivery services, and services like Google ordering have given the company credibility when it comes to digital ordering in restaurants. Now we’ll see if that translates to the actual dining room as customers slowly but surely go out to eat once more.

ChowNow Launches a Loyalty Program Designed to Get Struggling Restaurants Paid

Digital restaurant ordering platform ChowNow unveiled its Loyal Local Membership program this week. The restaurant-to-diner service gives customers ongoing discounts on their orders while simultaneously funneling a little extra money to the restaurants themselves, according to a company press release. 

ChowNow quietly launched the service at the end of March before making a more official announcement this week. Like many other restaurant industry initiatives these days, Loyal Local was developed because of COVID-19’s ongoing impact on the restaurant industry and the precarious financial positions many restaurants now find themselves in thanks to dining room closures.

Customers can sign up for the program by pre-paying a one-year membership fee through the ChowNow site that goes directly to the restaurant. Based on the level of membership they select — bronze, silver, or gold — they then receive up to 25 percent off on every order they make at participating restaurants for a year. A bronze status membership is $25/year and gets users a 10 percent discount. Silver is $40/year for 15 percent, while gold is $100/year for 25 percent.

Highly important is that this membership only works for orders made directly through the restaurant, either through its website or mobile app. Doing so not only builds a more direct relationship between restaurants and their customer; it also reduces the commission fee restaurants owe third-party delivery services. Usually, restaurants pay a service like Grubhub a fee per transaction based on marketing, order processing, and the actual delivery of the food. Knocking two of those elements (marketing and order processing) out of the equation cuts down on those fees, which, if you haven’t heard, are currently gutting restaurants. Most restaurants, though, will still need to use some third-party service capabilities for the actual delivering of the food.

It’s also a way for restaurants to boost mobile ordering and contactless payments, both of which will be important to the overall restaurant reopening process.  

The program also provides something of a cash infusion to restaurants. ChowNow doesn’t charge restaurants to participate in Loyal Local, and customers pay upfront for the membership. All proceeds from membership fees go to the restaurant. A post by ChowNow has an extensive breakdown of the purported financial benefits for restaurants.

The company said in its press release it has added over 670 restaurants to the platform over the last couple weeks across California, Illinois, New York, and other states. 

Restaurants need all the help they can get right now, but they’re not the only ones struggling to stay relevant. Restaurant tech companies are now having to prove that their products and services have real value to restaurants and not, as an industry friend of mine likes to say, a solution in search of a problem. The more a company can draw a direct line between its tech and a restaurant being able to keep its lights on, the better.

In-house? Third-party? Why Online Ordering Isn’t One or the Other for Restaurants in 2019

When it comes to online ordering, some restaurants will soon need to offer the functionality through their own apps as well as via third parties like Grubhub.

Restaurant-tech powerhouse Toast indicated that much in its recently released “Restaurant Success in 2019” report, which surveyed 1,253 restaurants and 1,030 guests across the U.S. In the report, online ordering plays a starring role, with both restaurants and guests calling it one of the most important technologies for today’s restaurant experience.

In and of itself, that’s not terribly surprising. Over half of restaurant spending will be off-premises by 2020 and will account for up to 80 percent of the restaurant industry’s growth over the next five years according investment group Cowen and Company. Unless every restaurant in America soon installs a chatbot to answer phones, online ordering via apps and websites will become a must for every eating establishment in the industry.

But according to the Toast report, what that looks like will vary from restaurant to restaurant, and businesses won’t necessarily have to sign their brands away to the DoorDash’s and Grubhub’s of the world to stay competitive. In fact, 51 percent of guests surveyed in the Toast report said they had placed an order via a restaurant website in the past month compared to 38 percent of guests who had ordered from third-party service.

That’s both good news and another challenge for restaurants. Customers ordering directly from a restaurant’s website can save the business some of the fees that stack up when customers order through a third-party service like Uber Eats. The flipside for restaurants is that if you don’t have your own delivery fleet, you still have to pay for drivers and, as the report rightly points out, developing an in-house online order system is expensive and probably not justifiable for independent businesses with only one or two locations. It’s a different story, though, for multi-unit chains, as the Toast report indicates:

Getting an app developed for your restaurant may not be viable for a small restaurant with one location, but if you franchise, it could be a boon to your business. The majority of diners are ordering online a couple times a month and looking for a variety of pickup and delivery options.

Even so, the Toast survey makes it clear that customers still want the option to order via third-party delivery services, with respondents having ordered most from Grubhub, Uber Eats, and DoorDash in the last year. (Postmates is completely absent from the list.) According to the report, it’s “extremely important for restaurants to be represented across multiple third-party delivery platforms.”

Despite the continued popularity of third-party delivery services, though, the litany of criticisms lobbed at them grows: commission fees, tipping policies, antitrust issues, and questionable profitability over the long-term. At the same time, companies like ShiftPixy and Olo are becoming more popular with technologies that actually make it easier for restaurants (chains, in particular) to develop and maintain in-house ordering capabilities.

Both those trends, coupled with the constant consumer demand for speed and convenience, will create a fine balance restaurants large and small must strike in the coming months.

ItsaCheckmate and Allset Team Up to Streamline Pickup Orders for Restaurants

With digital restaurant orders set to triple by 2020, it’s becoming more crucial than ever for restaurants to find ways to manage the flow of different sales channels, from third-party sources to in-house mobile apps. And it’s not just delivery. Takeout also accounts for part of the digital orders placed by 60 percent of consumers each week in the U.S. Even in-house diners can now order via an app rather than a server.

ItsaCheckmate, whose software platform streamlines the task of juggling all these orders, has teamed up with Allset to address the latter two of those sales channels: takeout items and in-house meals ordered ahead of time. The partnership, announced today, is aimed at helping restaurants transition to digital ordering, even if they don’t yet offer straight delivery.

ItsaCheckmate’s technology integrates all incoming orders from third parties into the restaurant’s main POS system. Right now, the system connects major POS vendors like Toast and Clover with outside services like Uber Eats, DoorDash, and Postmates. Other third-party partners include the likes of Bite Squad, Texas ToGo, delivery.com, and ChowNow among them.

The whole point of integrating third-party order services with restaurant POS systems is to make the day-to-day workflow easier for restaurant owners and staff, who would otherwise have to manually input all the orders coming from disparate sources — a process that’s fraught with confusion and very prone to human error.

The Allset app, meanwhile, currently serves a few different channels: you can reserve a table, order food, and pay for it before you ever set foot in the restaurant. More recently, the company started offering customers the ability to order and pay for pickup items, too.

Integrating the app with ItsaCheckmate will allow restaurants wanting to include the Allset app among their sales channels to do so without creating more confusion.

ItsaCheckmate counts Dig Inn, Five Guys, Momofuku’s Milk Bar, and Bareburger among its customers. To date, the company has raised $3 million. Allset has raised a total of $8.4 million and currently serves restaurants in NYC, Los Angeles, San Francisco, Chicago, and Houston, TX.