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Restaurant Mobile Apps: Are They Worth It?

“The way that people use their cell phone now, it’s going to replace your wallet and computer. It would be foolish to believe that technology won’t make it easier to make reservations, to pay for your meal,” claims R.J. Melman, managing partner of Lettuce Entertain You Enterprises restaurants.

Are mobile phones so ubiquitous, so all-consuming, that there will be no need for other technology in restaurants? Tableside ordering has proven popular among diners in recent years, so perhaps the mobile device is the next logical step in restaurant technology innovation.

Technology for the Restaurant

In The 2015 NCR Restaurant Technology Pulse, 67% of restaurant management and owners polled believe that technology adoption leads to increased revenue. When asked which technology their restaurants depended on for increased efficiency, they ranked them as follows:

Cash registers

Wi-Fi

Mobile payment solutions

Accounting software

Inventory management

Time tracking software

Voice and broadband solutions

Mobile apps

It’s interesting to see that mobile payment solutions ranked highly while mobile apps ranked at the bottom of the technologies surveyed. So what does that say about mobile devices in the restaurant setting?

Considering the Mobile App

When it comes to making a decision on where to dine, there is no doubt that mobile devices are leading the way. Mobile devices give diners the power to make that choice whenever and wherever they want. That being said, how are restaurant owners and managers to decide if a mobile app is the right type of technology for their restaurant? Mobile websites and third party software can also offer them a presence on mobile devices, so what is the best option?

There are some big business benefits that are often associated with the implementation of a mobile app:

Increase your brand’s recognition with another outlet for diners to find and connect with you.

Gain a further glimpse into the minds of your customers by utilizing built-in marketing analytics and provide a more tailored experience to them based on the data.

Stand apart from the competition with your own fully-branded mobile application.

Give customers a more enhanced and efficient dining experience by including access to your menu, reservation system, loyalty program signup, payment options, etc.

Create a new means for your customers to communicate with you and provide feedback on their experience.

Large chain restaurants are banking on the idea that by removing diners’ perceived hassle of waiting to begin or end the dining experience, the mobile app will be a worthwhile investment. Does decreasing the amount of time customers spend waiting equate to higher table turnover and, consequently, more revenue? Or is it possible that the decreased time interacting with restaurant staff will lead to less loyalty to the restaurant? Only time will tell.

At first glance, it would appear that the mobile app can be an effective marketing and communication tool for restaurants looking to further tap into their mobile-friendly customers. Major chain restaurants like Outback are attempting to prove this point. They know their customers’ pain points and they believe the mobile app is a solution to that. Outback’s app, for instance, provides customers with the ability to book a spot on their wait list ahead of time as well as to pay for meals with their phone.

The Payment Question

There is no denying that mobile apps offer a number of benefits—both to the business and the consumer. Many restaurants have gone the way of the table-side kiosk (with many of the same attractions of an app) that allows dining patrons to pay at their leisure, so is a mobile app necessary in that case?

Some would say that the upcoming EMV technology shift is an argument for apps equipped with mobile payment functionality. Set to take effect this October, major credit card companies are now equipping their cards with computer chips meant to protect consumers’ identities from fraud. For businesses that choose not to purchase EMV-capable systems to process payment, they may find themselves liable for any fraud and security losses to their consumers.

While mobile app payment technology would be an easy way around this, not every one of your diners is going to want to (or be able to) pay with their smartphone for services. So restaurants are going to have to consider the additional investment in upgrading or replacing their POS systems anyway.

The question of adding new technology to your restaurant is always a difficult one to tackle, though there is never a better time than now to start addressing it. Mobile technology seems to be the way businesses are moving, but no one is 100% sure if the investment will be worth it in the long-run (even if that is the current perception)… At least for now. As always, it’s important to evaluate your current situation, the behavior of your clientele, and the industry changes set to come your way. The numbers can paint an accurate picture of which technologies would be worthy investments for your dining establishment.

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