Mobile ordering allows customers to order and pay both inside and outside business establishments, transforming business operations.
In this article, we will talk about both the benefits and disadvantages of introducing mobile ordering, which has seen growth in popularity in recent years.
What’s in this article?
- What is mobile ordering?
- Reasons for introducing mobile ordering
- Benefits and disadvantages of introducing mobile ordering
- Choosing the mobile ordering system that is right for you
What is mobile ordering?
Mobile ordering is a service that allows you to place orders at stores, bars, restaurants, and other establishments using your smartphone or tablet.
Mobile ordering has the potential to greatly improve the customer experience and also employee efficiency, since orders and payments can be completed either inside or outside the business by using an app or scanning a QR code.
Mobile ordering has been around for a while now, but it garnered particular attention during the COVID-19 pandemic, leading to an increase in both customers and businesses adopting it.
Reasons for introducing mobile ordering
There are several reasons why a business may introduce mobile ordering:
To make business operations more efficient
One of the reasons stores, restaurants, and other businesses are introducing mobile ordering is that it reduces employee workload, especially when taking orders and cashiering. In a restaurant, for example, customers don’t need to wait for a server to come over and take their order. This efficiency leads to improved customer service and faster table turnover. It also makes it easier for restaurants to accommodate takeout and delivery orders.
Health considerations
Health and hygiene considerations are another reason why businesses are turning their attention toward mobile ordering. COVID-19 has increased interest in “contactless” service as a way to prevent infection. When you implement mobile ordering in your business, your customers can complete their orders and payments while keeping distance from staff.
Cashless payment solutions
The growing popularity of cashless payment is another reason behind the increased usage of mobile ordering.
Mobile orders are usually paid for via cashless methods such as credit card or QR code payments. According to data released by the Ministry of Economy, Trade and Industry, Japan’s cashless payment ratio was 36% in 2022, and the ministry sees this as increasing to around 40% by 2025. Adopting mobile ordering will enable businesses to respond to this anticipated expansion in the use of cashless payment.
Benefits and disadvantages of introducing mobile ordering
Although more businesses are using mobile ordering, some may be concerned about whether it is right for them. You’ll need to understand the benefits and disadvantages when considering its introduction.
Benefits
As outlined above, some reasons to introduce mobile ordering include greater efficiency in business operations, health considerations, as well as the ability to accommodate cashless payment. These are benefits for businesses, but there are also benefits for the customers.
Customer convenience
With mobile ordering, orders and payments are completed via a smartphone or other device, meaning that customers only need to pick up the product at the place of business. In turn, customer wait times are significantly reduced.
In restaurants, bars, and similar establishments, patrons can order without needing to wait for a server or other customers to leave. Additionally, the time to pay is also more flexible—again, generating greater convenience.
Disadvantages
Mobile ordering offers several benefits for both businesses and customers, but it also has elements that could potentially hinder its implementation and impact business operations.
Initial costs of introducing mobile ordering
While mobile ordering can help reduce staff costs by increasing operational efficiency, other costs may arise with its use. There may be some setup costs when first adopting the technology, and you may also incur operating costs such as usage fees once it’s up and running. Since costs and services offered can vary depending on the system used, it is important to make an informed decision after careful research.
Training for employees
When introducing mobile ordering, some significant changes to existing business operations may be required. Staff training will be needed to ensure that each employee understands these changes and is able to manage the new operational methods smoothly. Staff must also be ready to explain mobile ordering processes in simple terms when answering questions from customers who are not familiar with mobile ordering.
Choosing the mobile ordering system that is right for you
There are two main types of mobile ordering systems: in store and out of store.
In store
One type of mobile ordering is the in-store system, which allows customers to order and pay when inside the business. Customers can pay using a QR code or terminal, without needing to go to the cash register or call out to a member of staff.
Out of store
With the out-of-store system, customers can place orders from just about anywhere. In restaurants, for example, this system is primarily used for takeout orders. Customers place their order and pay in advance, then pick it up once it’s ready.