Create delivery zones that make sense with the POS system!

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

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

What should be your focus when creating a delivery zone?

Restaurateur – dozens of orders come into your restaurant every day. Ever wondered where they come from?

You probably already work with a specific delivery area. You might have divided the city map into several sections and decided that the greater the distance from a restaurant to the customer, the higher the delivery fee. This makes some sense.

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

Today’s article will answer all these questions for you.

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

DATA.

Sound familiar?

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

Using a restaurant from our database as an example, we will show you how to use the information that any good POS system supplies.

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

How can a restaurant use the data collected by a 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.

In 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 phone orders (about 1,600 orders)!

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

Most of the orders are from the marketplace, and they generate the majority of the restaurant’s revenues. Money that could be used for further investments falls into intermediaries’ pockets. Can you do anything about 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 this topic!

Are you getting 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 their short distance from the restaurant. There can be quite a few reasons for this:

  • No promotional material has arrived – you might have distributed leaflets near your restaurant but missed this area. Don’t worry. Now’s your chance to make up for it. Leaflets can be replaced with a tasting day. 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 genuinely arrived at the places you indicated.
  • You’ve set up ads on Facebook incorrectly – by creating sponsored content on Facebook, you have the opportunity to reach the audience of your choice. You can choose people who live near the restaurant (you determine what “near” means – within 5, 8 or 48 km of your restaurant) and choose groups within a certain age bracket or with specific interests.
  • You have set the delivery zone incorrectly on your website or on your intermediaries’ portals – make sure that the part of the city from which the orders are not arriving is within 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 aren’t ordering.

Where should you 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 driver has to cover.

Let’s compare two maps with each other. One with the orders from the agent’s website and 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 areas on the map present only on orders from the marketplace. These are the places where you should carry out some promotional activities. Try handing out leaflets. Make sure that every customer who gets a leaflet is informed about your website.

Keep in the back of your mind the fact that most of the orders come from the marketplace, and 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 customer who has 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 the price and delivery zone?

Let’s analyze and compare the areas where orders come from with the previously designated delivery zone. What conclusions can we draw from the information shown 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 come from there. The waiter taking orders from those areas decides how much delivery should cost. This is the kind of situation a good POS system can 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 euro, restaurant revenues will increase by as much as 1300 – 1500 euros. The information that the POS system collects will help you make decisions that will translate into a real increase in profits.

 

You already know where your group of regular customers comes from, which part of the city is the source of most 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 effectively fulfils its role. Remember, regular customers love your food, and they will be willing 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
  • you can 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 the address to a specific zone and automatically calculates the cost of delivery.

By investing in a suitable POS system, you not only get a tool that will significantly facilitate your and your team’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 number of deliveries!

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