2013 Delivery and Takeaway Report for UK Restaurants and Pubs
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2013 Delivery and Takeaway Report for UK Restaurants and Pubs ORACLE WHITE PAPER | UPDATED JANUARY 2015
Introduction In early 2013, the annual Peach Business Leaders’ Survey questioned 127 senior executives from the UK pub, restaurant, bar, fast food, and cafe industry about which brand extensions were most likely to fuel future growth. “Food to go” was chosen by more than one-half those executives, and it is quite easy to see why. Restaurants and pubs can generate extra revenues from their existing store networks by adding delivery and takeaway options that target customers who do not want to eat in an establishment: lunchtime workers who want something to take back to their workplaces, families who prefer to eat at home, and couples with young children who do not want to cook or pay for a babysitter, to name a few. For full-service restaurants and pubs that are more used to diners coming in, sitting down, ordering, and eating, the concept of offering delivery and takeaway can be daunting. If managed so that the new services enhance the brand and do not impact existing customers, takeaway and delivery can become an important part of a restaurant’s growth strategy. Expanding delivery and takeaway options creates a restaurant without walls. Solutions from Oracle Hospitality enable restaurants and pubs to integrate website and mobile apps with point-of-sale and kitchen display systems so that delivery and takeaway orders can be managed efficiently from start to finish. In 2013, MICROS (acquired by Oracle in 2014) evaluated 102 of the UK’s leading chain and independent restaurants and pubs by visiting their websites, downloading their apps, and putting most of the brands that offered takeaway or delivery to the test with a live order. Based on that original research, this white paper examines how UK restaurants and pubs use web and mobile technologies to enable customers to order delivery and takeaway meals. It identifies many examples of fantastic service, while showing that there are still areas for improvement. 1 | 2013 DELIVERY AND TAKEAWAY REPORT FOR UK RESTAURANTS AND PUBS
Key Findings 44 Percent of Restaurants and Pubs Had a Delivery or Takeaway Option » Nearly one-half the restaurants and pubs evaluated had a “food to go” option, which suggests that the industry is readily embracing delivery and takeaway. 41 percent offered takeaway, while 11 percent had a delivery service. 8 percent could do both. 27 Percent Allowed the Customer to Order Delivery or Takeaway Online » 27 percent of the brands with a delivery or takeaway option allowed the customer to order food online. This means that nearly three-fourths depend on staff answering the phone to take down orders or on customers physically coming into the store to order and wait for their meals to be prepared. 33 Percent Offered Up-Selling and Cross-Selling During the Online Ordering Process » One-third of the brands that accepted food orders through their websites were using cross-selling or up-selling during the ordering process, usually to encourage customers to add dessert items or side dishes to their orders. Two-Thirds Accepted Online Payment » Of the brands that accepted online orders, two-thirds accepted payment online. The rest asked the customer to pay at the point of collection or delivery. 29 Percent of Restaurant iPhone Apps Accepted Orders for Food » 17 percent of the brands had an iPhone app. Of those apps, 29 percent accepted orders for food. Interestingly, of the brands that offered food to go and had an iPhone app, all of them allowed the customer to place orders through it. Study Questions and Results Did the Restaurant or Pub Offer Delivery or Takeaway? The study examined the websites of more than 100 of the biggest restaurant and pub groups in the UK, to identify whether they offered delivery or takeaway food options. As Figure 1 shows, 44 percent of the establishments evaluated had options for takeaway or delivery. Figure 1. 44 percent of the companies evaluated had options for delivery or takeaway. 2 | 2013 DELIVERY AND TAKEAWAY REPORT FOR UK RESTAURANTS AND PUBS
Was It Possible to Order Delivery or Takeaway Online? 27 percent of the restaurant and pub groups that had delivery or takeaway allowed the customer to order through their websites. Many of these accepted orders scheduled for delivery or collection at a certain time, while others could manage both immediate and scheduled orders. Figure 2. 27 percent of restaurants and pubs with delivery or takeaway allowed customers to order through their websites. This means that nearly three-fourths of restaurants and pubs that offer delivery or takeaway do not allow customers to order food online. As a result, customers must either order food in person and wait for it, which means waiting space must be provided, or phone in their orders, which requires staff to answer the phone and take down orders manually. With consumers today depending on web and mobile technologies in so many areas of their lives, and with restaurants and pubs looking for greater operational efficiency to deliver better service, delivery and takeaway options are expected to increase. Two examples of online ordering interfaces are shown in Figure 3. 3 | 2013 DELIVERY AND TAKEAWAY REPORT FOR UK RESTAURANTS AND PUBS
Figure 3. With more customers relying on the internet and mobile apps, online ordering options are important for growth. Did the Restaurant Use Cross-Selling and Up-Selling During the Online Ordering Process? Of the brands that allowed a customer to order food online, one-third of them were using cross-selling or up-selling during the ordering process. In most cases, cross-selling was being used to encourage customers to add side dishes or dessert items to their orders. Figure 4. One-third of restaurants and pubs with online ordering used cross-selling or up-selling during the ordering process. 4 | 2013 DELIVERY AND TAKEAWAY REPORT FOR UK RESTAURANTS AND PUBS
The Pizza Hut online ordering process had multiple cross-selling prompts, including a ”Want More?” button and the “Missed Something?” section, which listed specific products with images. Figure 5. Pizza Hut’s online ordering included the cross-selling prompt “Missed Something?” If the Restaurant Accepted Online Orders, Could the Customer Pay Online? Of the restaurants and pubs that accepted online orders for delivery or takeaway, two-thirds allowed the customer to pay online. The other one-third asked the customer to pay for the order at the point of collection or delivery. Figure 6. Two-thirds of restaurants and pubs allowed the customer to pay online. 5 | 2013 DELIVERY AND TAKEAWAY REPORT FOR UK RESTAURANTS AND PUBS
Was It Possible to Order Food Through an App? 17 percent of the brands evaluated had an iPhone app. Of those apps, 29 percent accepted orders for food. Interestingly, of the brands that offered food to go, four had an iPhone app and all four allowed the customer to place orders through it. Figure 7. 29 percent of brands with an iPhone app accepted orders for food. Figure 8. iPhone apps were used by 17 percent of the brands evaluated. 6 | 2013 DELIVERY AND TAKEAWAY REPORT FOR UK RESTAURANTS AND PUBS
Online Ordering: Five Collection Experiences What follows is a journal of online ordering experiences as documented by the researcher. Brand A: Fantastic Experience “I entered my postcode on the website and chose to pick up from my nearest branch at 1:30 p.m. (while ordering at 12:25 p.m.). I was given a quick order or browse menu option. I browsed the menu and chose my food. I entered payment details, and it asked me to give the order a name to make it recognizable if I want to order again at a later date, which I thought was useful. When I arrived, the staff was helpful and my food was ready exactly on time for collection. I was also given a Time Out magazine in a branded cloth takeaway bag.” Brand B: Ready on Time Despite a Very Busy Restaurant “I entered my postcode and was shown a list of nearest restaurants. I selected the one I wanted and chose my food (£6.00 [US$9.04] minimum order for collection). I chose a time, the earliest being 12 p.m. that day. I entered my details and paid. When I got to the restaurant it was extremely busy, but my order was ready on time and came in nicely branded packaging.” Brand C: No In-Store Internet Despite the Advertisements, Order Not Received “I found my closest store and was asked if I would like to pick up today (earliest time within 20 minutes) or later this week. I chose my sandwich and salad. It gave me the option to save the order as a favorite for future reference. I was not able to pay online but was asked to pay cash in store on collection. I did not receive a confirmation e-mail. When I arrived in store, my order had not been received, as they did not have internet in the shop—this despite advertisements in the shop about online ordering.” Brand D: Excellent Service from Start to Finish “I entered my postcode to find my nearest branch. I viewed the menu and chose what I wanted to order. I was asked if I wanted to choose a meal deal. I decided to collect from the store, as my food was under the minimum delivery price. I chose 1:30 p.m. although ASAP was available. The website had online tracking of my order and a feedback survey. When I got to the store, a screen showed my name and told me that my food was in the oven and would be ready in six minutes—and it was, five minutes earlier than promised.” Brand E: No Online Payment but Fantastic In-Store Service and Branding “I chose to order takeaway online, and it asked me to pick an area of the UK. It then gave me a list of stores in London, but I had no way of knowing which was closest to our address. I chose to collect from my nearest store between 1 p.m. and 1:20 p.m. I was not able to pay online; instead, I could pay by card or cash in store. The staff was friendly and my order was ready at exactly 1 p.m. I was given a lovely branded takeaway bag and a fold-up menu that would fit in my purse.” 7 | 2013 DELIVERY AND TAKEAWAY REPORT FOR UK RESTAURANTS AND PUBS
Online Ordering: Six Delivery Experiences Brand F: Delivered Right on Time, Friendly Service “I entered my postcode and the time and date of delivery. I chose my food and checked out (£8.99 minimum order), paying in full online. I did not receive an order confirmation e-mail, but delivery was right on time (1:30 p.m.) and the delivery man was very polite.” Brand G: Delivered on Time “I entered my postcode and found my nearest store. The site told me they aim to deliver within 30 minutes, although it is possible to schedule for later. I chose my food and checked out (£9.99 minimum order), asking for delivery at 12:30 p.m. It arrived on time.” Brand H: Delivered on Time but Needed Notice “I added my items to the basket. Delivery was only free for orders over £10.00 within a half-kilometer radius. At 10 a.m., my only options for next-day delivery were the windows between 9 a.m. and noon or 3 p.m. and 6 p.m. I ordered on Wednesday and chose delivery for Thursday between 9 a.m. and noon. The food was delivered at 11 a.m. on Thursday. The bag and box were beautifully branded.” Brand I: Delivered Two Hours Too Early “The website made it clear that I had to order by 10:30 a.m. for lunch delivery that day. I selected my town and found the nearest branch. I added my food to basket, gave my delivery address, and paid. I chose delivery between 1 p.m. and 1:30 p.m., giving instructions of ‘Press buzzer and ask for Hannah.’ I received an e-mail saying that my order had been received, but online the status remained unconfirmed. The website still reported unconfirmed even after my food was delivered. The food arrived at 11:15 a.m. (two hours early), and instructions were not followed.” Brand J: Fast Delivery but No Scheduling “I selected online delivery (there was a £10.00 minimum order) and added items to the basket. As the restaurant chain only has three stores, the postcode limitations were very strict. I was located slightly outside the boundary, but I called up and was told delivery to my address was possible. There was no option to choose a time for delivery, so I ordered at 11:15 a.m. The food arrived at 11:42 a.m. The packaging was nicely branded.” Restaurant K: Delivered on Time but a Manual Process “I clicked on the ‘Order Online’ button on the website. The page informed me that the restaurant was closed, but showed me the delivery areas on a map. The delivery page stated that orders could be taken from 11 a.m. Yet, at 11:45 a.m., the page still said “Sorry, we’re closed” and would not allow me to order. At 12:10 p.m., I was able to order, and when filling in my details, the website noted that my order would arrive in 50 minutes and delivery would cost £5. Payment had to be made on delivery and could not be taken online. I was also asked to contact them via phone to confirm my order was received. The order arrived at 12:55 p.m. (within 50 minutes).” 8 | 2013 DELIVERY AND TAKEAWAY REPORT FOR UK RESTAURANTS AND PUBS
Conclusion The fact that 44 percent of the restaurants and pubs in the research offered some sort of food-to-go service suggests that delivery and takeaway are already being embraced to extend the dining room and reach a wider audience. The speed and punctuality of most of the live orders placed were impressive. Even when the online ordering process took a little time, the food itself arrived or was ready to be collected in good time. However, it is clear that there are still some improvements to be made. Only 27 percent of those brands that offered food to go accepted orders online, despite its many advantages: » Online orders reduce the amount of time staff needs to take orders by phone, especially during busy times when they are needed elsewhere. Accuracy can also be improved by removing manual processes. » If customers can order in advance, they avoid having to wait in the restaurant for their order to be prepared, which, in turn, reduces the need for the restaurant to provide space for waiting areas. » Web and mobile technologies are now an intrinsic part of society, and customers expect to be able to order delivery or takeaway online or via a mobile device. » Taking payment online reduces the risk of orders being prepared but not collected. The technology challenges of online ordering—creating user journeys on the website that only allow orders to be placed if they can be fulfilled, integrating the website and the point-of-sale and kitchen display systems, and accepting secure payments—can all be overcome. For this reason, next year’s research is expected to show further developments in this important area. 9 | 2013 DELIVERY AND TAKEAWAY REPORT FOR UK RESTAURANTS AND PUBS
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2013 Delivery and Takeaway Report for UK Restaurants and Pubs
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