Create delivery zones that make sense thanks to the POS system!

In today’s post, you will learn how to use the information provided by the POS system, what mistakes to avoid when creating a delivery zone, and where you should NOT deliver.

What should be your focus while creating a delivery zone?

Restaurateur, dozens of orders flow into your restaurant every day. Ever wonder where they come from?

You probably already work on a specific delivery area. You have divided the city map into several parts and decided that the greater the distance from a restaurant to the customer, the more he will have to pay for delivery. It makes some sense.

But what if we tell you it can be done better? How to plan your delivery zones and promotional strategy to reach the largest audience? Are there places on the map where delivery doesn’t pay off? 

You will find it out in today’s article.

The key to answering these questions is one word that has been used more than once in the content we publish.

DATA.

Sounds familiar?

Of course, if you run a restaurant based on sticky notes, information that you could use for analysis probably landed in the trash bin a long time ago. That is why it is so important to have a POS system that will help you collect and effectively use, data regarding customers and dishes they order. 

Using as an example a restaurant from our database, we’ll show you how to use the information that a good POS system provides.

The pictures show the distribution of orders from different sales channels (marketplace, own website and phone orders) of one of our customers. More or less the center of the map corresponds to the approximate location of the restaurant. The information we collect covers data from 2 months.

 

How can a restaurant use the data collected by the POS system?

What may not be visible on the map at first glance is clearly shown by the figures. The restaurant, which we took a closer look at, sells mainly through intermediary websites.

During two months, one of the portals generated over 7,000 orders – almost 3 times more than its own website (about 2,500 orders) and 4,5 times more than a telephone (about 1,600 orders)!

We will now check how the number of orders translates into the sales volume.

Most of the orders are from a marketplace, and they generate the majority of restaurant revenues. Money that could be used for further investments falls into the intermediaries’ pockets. How can you change it?

Try to direct customers to your website. Start with telephone orders. Always inform customers that you have a website and encourage them to place an order through it. Increased website traffic will affect higher positioning in google search. Stay tuned for the next post where You will learn more about the subject!

No orders from your neighborhood?

If you look at the map closely, you’ll notice that there are areas that don’t generate orders despite the short distance from the restaurant. There can be quite a few reasons for this …

  • the promotion did not arrive there – you may have distributed leaflets near your restaurant, but you missed this area. Don’t worry. Now’s your chance to make up for it. Leaflets can be replaced with a tasting action. After the promotion is over, check its effectiveness using the POS tool. If an external company is responsible for distributing the leaflets, you can easily check whether they really arrived at the places you indicated.
  • You’ve set up ads on Facebook incorrectly – by creating sponsored content on Facebook, you have the chance to reach an audience of your choice. You can not only choose people who live nearby the restaurant (you determine what it means “nearby” – within 5, 8 or 48 km from your restaurant) but also you can choose groups with certain age or interests.
  • You have set the delivery zone incorrectly on your website or on intermediaries portal – make sure that the part of the city from which the orders are not arriving is in your delivery zone. If it is – check how much clients have to pay for delivery. Maybe the price is set too high and this is why customers resign from your services.

Where you should not deliver?

Single green islands in the northern part of the city are areas where you probably shouldn’t deliver. The number of orders from these areas is relatively small for the distance that the courier has to cover.

Let’s compare two maps with each other. One of the orders from the agent’s website – the other with orders from the restaurant’s website. You have certainly noticed that apart from the fact that some areas partially overlap, there are red points on the map, present only on orders from the marketplace. These are the places you have to reach with your promotion. Try handing out leaflets. Make sure that every customer who gets a leaflet is informed about your website.


Having in the back of your mind the fact that most of the orders come from the marketplace, delivery simply doesn’t pay off. Remember – delivery time is one of the key factors affecting customer satisfaction. A large distance from the restaurant means extended waiting time for an order. A person who will have to wait too long can put your restaurant’s reputation at risk by leaving a negative comment on Facebook or under a Google business card. 

How to set a price and delivery zone?

Let’s analyze and compare the places where the orders come from, with the previously designated delivery zone. What conclusions can we draw from the information contained on the maps?

  • Some orders come from outside the designated delivery area. Note the circled area near the airport. The restaurant delivery zone does not take this area into consideration, even though a large group of restaurant customers comes from there. The waiter taking the order from those areas decided how much delivery should cost. This is a kind of  situation a good POS system would help you avoid.
  • Knowing that the restaurant generates an average of 3,500 orders per month and that about 60% of them come from zones 1 and 2, we can draw conclusions regarding the delivery price. If we increase the cost of delivery in the first zone, even only by one zloty, restaurant revenues will increase by even 1300 – 1500 zlotys. The information that the POS system collects will help you make decisions that will translate into a real increase in profits on your premises.

You already know where your group of regular customers comes from, which part of the city is the source of many orders, and where no one has heard of your restaurant. Thanks to this information, you can assess whether the delivery zone you created at the beginning really fulfills its role. Remember, regular customers love your food and they will be able to pay a little more for their favorite dishes.

POS collects data and that’s all?

To sum up, thanks to the information provided by POS you can:

  • set a promotional strategy
  • create a delivery zone based on data
  • you know where not to deliver food
  • you know which sales channel is the most effective

POS is not only a system that gives you access to data but above all, it is a tool whose main goal is to increase the efficiency of your employees and reduce the likelihood of them making mistakes. How is this possible?

I can assume with a high degree of certainty that most of the waiters working in your restaurant are students who do not know the city well. Thanks to the POS system, they don’t have to. After entering the customer’s address, the program automatically assigns an address to a specific zone and automatically calculates the cost of delivery.

By investing in the right POS system you not only get a tool that will significantly facilitate your and your crew’s work but also provide information that will help you plan your promotional strategy and avoid mistakes in managing the delivery area, ultimately increasing the numbers of deliveries!