5 Outcomes of a Leading Restaurant Order Management System

Guests expect a fast and personalized experience from your restaurant. If your online and in-person ordering system fails to meet expectations, you might lose a customer for life. 

Sadly, the third-party tools many restaurants use to facilitate orders are lacking. Why? Because they charge platform fees, which eat into your already slim margins, and hide customer data, which is needed to create exceptional dining experiences. 

Good news: a first-party restaurant order management system will put you in control. In this article, we'll explore what this kind of software is, what it should do, the business outcomes you should expect, how to choose the right tool for your restaurant, and more.

What Is a Restaurant Order Management System? 

A restaurant order management system is a centralized platform that receives, processes, and routes in-person and online orders. As such, the software streamlines operations, boosts profits, and allows all eateries, from fine dining to quick service restaurants, to better serve guests. 

The best restaurant order management tools support first-party ordering via restaurant websites and apps, include a point of sale (POS) system, and integrate with delivery partners. 

Key Components 

While every order management system is different, most include the following features. 

• Order Processing: Receive orders and route them to the right kitchen or prep station 
• Inventory Management: See stock levels in real-time and never run out of ingredients 
• Menu Management: Change and update menus across all digital platforms at once 
• Data Capture: Track key datapoints to make better decisions and improve efficiency 
• Integrations: Connect your order management system to loyalty, CRM, and POS tools 

5 Outcomes You Can Expect from the Right Restaurant Order Management System 

The right restaurant order management system will benefit your establishment in multiple ways. Here are five outcomes you can expect once you invest in this tool. 

1. Higher Profit Margins Through Direct Ordering

The food and beverage industry is notorious for low profit margins. Grow yours by allowing customers to order directly from your restaurant's website or app, eliminating third-party commission fees. 

For reference, Uber Eats charges between 6% and 30% depending on the plan your restaurant subscribes to and the type of order your customer makes. Just as important, an order management system will enable your restaurant to promote exclusive deals through these channels, which will help generate more revenue. 

2. Faster Order Fulfillment and Fewer Errors

Your guests want great food right now. The longer you make them wait for their meal, even if it's high quality, the less likely they'll return in the future. An order management system will route incoming orders to the right kitchen or prep station in real time. And every order will include custom instructions in a clear format. The result? Your restaurant will complete orders faster and more accurately, which will lead to guest loyalty. 

3. Improved Guest Experience Across Channels

Do your guests receive the same level of service online as they do in person? They should! An order management system will help you make this happen. For example, this tool will ensure your menus, prices, and promotions are consistent across your restaurant's website, mobile app, and in-store ordering kiosk. That way, guests don't see different meal options and prices, which will disrupt their experience. An order management system will also streamline the online ordering process. Easier checkouts equal higher conversion rates. 

4. Better Visibility into Menu Performance

One of the best ways to lower inventory costs and food waste is to better understand your menu items. Which dishes sell best? Which are rarely ordered? And is this information the same across channels, locations, and times of year?

An order management system will help you answer these questions with confidence. Then you can adjust your menu to better control food costs. Also, the best order management systems include restaurant inventory management features. This will help you know when to update stock levels, so you can keep selling top items. 

5. Data Ownership That Fuels Loyalty and Retention

Finally, the right order management system will capture key data points, like guest emails, menu preferences, and order histories. You can then use this information to improve your restaurant marketing efforts. For example, you can trigger personalized offers and/or push notifications based on what guests ordered last time. This will not only increase revenue, but also reduce administrative tasks and boost operational efficiency. 

How to Choose the Best Restaurant Order Management System 

Now that you know what an order management system can do for your restaurant, you're probably wondering, "How do I choose the right tool?" These three tips will help. 

Match System Features to Business Objectives 

First, choose a system that will help you achieve specific business goals. For instance, if you want to increase revenue (who doesn't?) use a restaurant order management tool that will enable you to make upsell offers across channels. Here are other examples: 

Ask These Questions Before You Buy 

You've narrowed your list of potential restaurant order management systems by matching features to business objectives. Take things a step further and ask yourself these questions:  

• Can this tool integrate with our existing tech stack? You need multiple tools to run a successful restaurant. Ideally, these tools will connect to each other, which will increase operational efficiency. After all, you won't have to transfer data back and forth. Make sure your order management software integrates with your existing tech stack. 
• How are menu updates managed across platforms? Look for an order management system that will update menu items across all channels at once. This will save time and allow you to react quickly to current inventory levels, supply chain issues, and more. 
• Does this tool support branded apps and mobile ordering? Your mobile app should represent your restaurant's brand. This will give customers a consistent experience across channels. Ensure your order management tool allows for custom branding. 
  
• What analytics and reporting features are included? Access to analytics will help your restaurant manage inventory levels, reduce waste, control costs, and improve the customer experience. Choose an order management system that has detailed reporting.

Prioritize First-Party Capabilities 

Third-party delivery marketplaces are convenient. But they don't give you access to important data points, which means you can't own the guest relationship. That's why first-party capabilities are vital to the long-term success of your restaurant. When you own a guest's email address and order history, you can contact them whenever you want with personalized offers. This will help you increase revenue and outweigh the convenience of third-party apps. So, prioritize order management systems that have first-party capabilities.

Use Cases from Leading Order Management Systems 

So, what does a quality order management system look like in real life? Here are a few examples of companies that use this technology to achieve business goals. 

Paytronix for Restaurants and C-Stores 

Paytronix combines order management, guest loyalty, and restaurant marketing tools into one user-friendly software. The platform is also known for its seamless POS integrations and personalization features, which is why major brands like Dutch Bros and Rutter's use it.  

3 Real-World Examples: 

1. Dutch Bros: Needing a contactless way to connect with customers during the COVID-19 pandemic, Dutch Bros chose Paytronix to implement its digital loyalty program. The result? Dutch Bros signed up 1.4 million members in the first month. More importantly, Dutch Bros could customize their loyalty program to include gamification features that improved the customer experience and led to more app transactions. 
2. ChopShop: If you live in Arizona or Texas, you might have heard of ChopShop. This health-conscious restaurant wanted to build a loyalty program around convenience rather than rewards. ChopShop turned to Paytronix to make it happen and added ordering ahead, paying in the app, and other features to its loyalty program. Consequently, ChopShop increased app downloads, orders, visit frequency, and overall sales. 
3. Rutter's: In 2023, Rutter's used Paytronix to launch its online ordering and customer loyalty program. Doing so made managing orders much easier for Rutter's employees, since the company offers made-to-order food. It also improved the customer experience, as guests no longer had to wait in crowded convenience stores for their food. The result? Since partnering with Paytronix, Rutter's has increased store visits by 25% and spend by 10% among loyalty members. 

Order Management Software Implementation Best Practices 

Choosing the right restaurant order management software and implementing it are two different things. These tips will ensure your implementation process goes smoothly. 

Start with Internal Alignment 

Who will use your order management system? Clarify roles for operators, marketers, IT professionals, and finance team members. That way everyone knows which aspects of the software pertain to them. Then set measurable goals for each role. Potential metrics to track include average order value (AOV), fulfillment time, guest ratings, and email response rates. You can dig deeper too, and monitor order accuracy rate, revenue from merch and other goods sold, and the number of technical issues related to your chosen software. 

Train Staff for Adoption 

Next, train each employee to use your order management system. Offer detailed walkthroughs for each role. This includes front of house (FOH) employees, back of house (BOH) employees, call center employees, and anyone else on your team. If possible, build an incentive program around your order management system that rewards accuracy, speed, and/or other metrics. This will encourage team members to not only adopt your new software butserve faster and complete daily tasks more effectively. In other words, it's a win-win situation. 

Test, Optimize, and Scale 

Once your staff knows how to use your order management system, you can use it "out in the wild." But don't roll it out to every location at once. Instead, run pilot programs at a few locations. Then, you can see what works and what doesn't before all your restaurants take the plunge.  

Only have one location? No problem. You can still test your order management software via limited-time menus. This will give you similar results, which you can then iterate on. Keep a consistent dialogue with your employees. Is the software helping? What can you do to improve time spent with the tool? When you know the answers, scale your usage. 

3 Common Mistakes to Avoid with Restaurant Order Management 

A restaurant order management system will benefit your business if you choose and implement the right app. Avoid these three mistakes to streamline the process. 

Not Owning the Guest Journey 

Invest in a first-party order management tool. Third-party apps won't allow you to customize the guest experience or keep important guest data. Plus, you'll have to pay said apps a percentage of sales, which will cut into your already thin margins. You should keep as much money as possible from online, curbside pickup, and in-person orders. 

Poor Integration Across Systems 

Choosing a quality order management tool isn't enough. You also need to implement it into your restaurant's tech stack. Doing so will boost team efficiency, reduce errors, and increase customer satisfaction. It will also help you make better operational decisions because you'll have a full picture of your establishment. Disconnected platforms can't offer you these benefits. 

Underestimating Menu Management 

Your order management software should support modifiers, combos, and limited-time offers. These are important aspects of your menu. If you can't easily offer them to diners, you won't make as much money. Your guests won't enjoy their time at your restaurant as much either. Both outcomes are less than ideal, which is why you should avoid this mistake. 

Frequently Asked Questions About Restaurant Order Management Systems 

Still have questions about restaurant order management systems? We'll answer them below! 

Which software is best for restaurant management? 

Many software tools will help you with restaurant management. The "best" one will meet your needs at a price you can afford. We suggest Paytronix as it includes online ordering, loyalty, catering, CRM, artificial intelligence, and payment features. Paytronix is also used and loved by Panera Bread, Papa Murphy's, Dutch Bros, and Jimmy Johns. 

What is a POS system for restaurants? 

POS stands for point-of-sale and allows restaurants to accept payments from customers and track sales. A cash register is a POS system, though most restaurants use more advanced technology.  

For example, your restaurant might use a tablet and a POS app to manage orders, collect credit card payments, store customer information, and run a loyalty program. You might pair your POS app with a cash drawer and receipt printer as well. This will give you the best of both worlds when it comes to accepting payments. 

What are the four types of ordering systems? 

There are four types of ordering systems: fixed order point, periodic review, min-max, and multi-bin. Each has its pros and cons when it comes to inventory management. 

What are the most common problems with POS systems? 

POS systems are powerful tools, but they do have downsides. For example, typical POS systems don't excel at inventory management. Most don't offer detailed analytics and reporting features either. Finally, POS systems rely on hardware, which can malfunction at any time. 

Turn Ordering into a Growth Engine for Your Business 

The right restaurant order management system will unlock better margins, happier guests, and scalable growth for your establishment. In most scenarios, the "right" system is a first-party platform, as these tools will give you better integration options and let you own customer data. They won't take a percentage of sales either, so they can help boost restaurant profits. 

Ready to move forward with a first-party restaurant order management system? Paytronix makes order management easier, smarter, and more profitable. Book a demo now to learn all about it!