“The politest way I can put this is that it’s a back-door way to steal from restaurants.” — Houston Restaurateur Trent Patterson

Reports have surfaced, revealing Toast Inc.’s surprising decision to charge customers directly, bypassing the restaurants they love to visit. This unexpected move has left restaurant owners scratching their heads and feeling frustrated. Typically, POS providers like Toast Inc. work closely with restaurants, charging them based on an agreed-upon model. But Toast Inc.’s direct billing approach has turned the tables, causing restaurateurs to question their partnership with the company.

Surprise Fees From Toast

Instead of following the traditional model where restaurants pay fees to the POS provider, Toast Inc. has started charging customers an additional fee without the knowledge or consent of the restaurants themselves. When customers make purchases at a restaurant using Toast Inc.’s POS system, they are unknowingly being billed an extra fee by Toast Inc. directly, bypassing the restaurant entirely. “The cloud-based third-party point-of-sale vendor used by more than 85,000 restaurants, is unilaterally adding a 99-cent “processing fee” to online orders of $10 or more” (Fox Business). This direct billing method not only catches customers off guard but also leaves restaurant owners frustrated and questioning the transparency and fairness of their partnership with Toast Inc.

“People are freaking out. Business owners are freaking out,” Tony Naser-owner of four pizza shops in Massachusetts and New Hampshire.

Imagine running a restaurant and putting in countless hours to create a great dining experience, only to discover that your POS provider is charging your customers directly WITHOUT your knowledge. It’s like a magician revealing all their tricks! Restaurateurs who trusted Toast Inc. are feeling left out and frustrated. They wonder why they weren’t informed about this new fee structure and how it will impact their relationship with customers.

The Importance Of Transparency

“My contention is that it’s absolutely unethical and illegal. And if it’s not illegal, it should be.” — Missouri bakery owner Matt Wilhelmson

The current situation, though frustrating, offers restaurateurs a chance to reevaluate their partnerships and advocate for fair practices. Collaboration and mutual success are the lifeblood of the restaurant industry. It is crucial for POS providers and restaurants to join forces, prioritizing transparency and fairness in fee structures. By championing these principles, restaurateurs can navigate the challenges presented by Toast Inc.’s direct billing and foster stronger, more trustworthy relationships with their technology partners.

SpotOn Vs. Toast On Transparency

If we compare SpotOn and Toast in this situation, SpotOn has several advantages that make it a better choice for restaurateurs. First and foremost, SpotOn offers transparent pricing, ensuring that restaurateurs have a clear understanding of costs without any hidden fees. We also prioritize support and work with clients locally at POS Philly. With a user-friendly interface and a reputation for reliability, SpotOn has gained positive reviews from restaurant owners. The dedicated customer support between POS Philly & Spot-on ensures prompt assistance whenever needed.

If you have Toast and want a better point-of-sale system, contact POS Philly today!

What is SpotOn POS?

SpotOn is a cloud-based point-of-sale system for bars and restaurants. The POS software houses front-of-house, back-of-house, online ordering, and handheld ordering as some of its prominent features. Originally developed as EmaginePOS, it was purchased and transitioned into SpotOn in 2018. SpotOn is now the top-rated point-of-sale for bars and restaurants according to real user reviews from Capterra.

What is a cloud-based POS system?

A cloud-based POS system is one that operates on a cloud internet network. Cloud POS systems differ from legacy options because they do not require a back office server. Cloud systems like SpotOn process orders and payments through the internet rather than through a dedicated local server. Performing operations this way eliminates a failure point, is more secure for processing data, and reduces hardware and maintenance costs for cloud POS users.

If the internet goes out, how do I continue to operate?

Great question. Cloud-based POS systems need to have a backup in case the internet goes out. SpotOn’s goal is to keep you always connected, regardless of wifi connectivity. Every SpotOn system is equipped with a backup LTE Meraki Router. In the event that the internet goes out, SpotOn will automatically kick on to the same service your phone is connected to. The same goes for the SpotOn handheld devices, too. Keeping you ‘always on’ is one of our top priorities.

How much does it cost?

SpotOn is a month-to-month software with no long-term locked in contract. This ensures the elimination of junk fees passed on by other POS providers to their customers. The first software license and terminal kit starts at $195.00. Each additional license is $50.00 per month. Handhelds are $25.00 per month (half as much as Toast’s $50.00 per month unit). The cost for processing is different for every customer. With dual pricing processing, customers can save up to 80% – 85% on processing.

Does it cost extra for online ordering?

There is no additional cost for online ordering. Plus, SpotOn has no additional costs for a ton of other features. Restaurants do not have to pay extra for gift card or loyalty program software. Plus, multi-units have a ton of great included features, such as enterprise management and bulk menu editing.

Can I take mobile wallet phone payments?

Yes! SpotOn is able to accept mobile wallet phone payments, including Apple Pay and Google Pay. NFC mobile wallet payments are a growing trend, especially for urban and city customers. SpotOn can accept payments easily on our handhelds and credit card readers. Plus, customers can also complete checkout by scanning a QR code at the bottom of their receipt.

How does support work?

It has become more common for point-of-sale companies to kick their support overseas. With SpotOn powered by POS Philly, customers receive the top rated SpotOn support with local service from us. Our technical team has worked with every restaurant concept and has over 30 years of experience. POS Philly customers receive a dedicated project manager, on-site installation, live day support, and can have a tech on-site by request.

When can I get started with SpotOn?

Restaurant owners that want to get started with SpotOn for their business should contact POS Philly. We’ll schedule a no-obligation consultation with you to review your needs. From there, our team will help you determine your configuration and begin writing your quote. New users must submit two consecutive months of credit card processing statements in order to get a meet-or-beat rate.

There are a bunch of ways to improve your work environment. Today, let’s focus on how a better point-of-sale solution like SpotOn POS can make your employees happier. The tools a restaurant provides their employees with can mean make-or-break for staff. Imagine providing your staff with the worst tools possible and demanding the best from them. This type of mentality can be a recipe for disaster. A ton of restaurant employees have considered going full Office Space on old or non-working POS equipment.

Equipping staff with the best, cutting edge technology can make their jobs easier. Utilizing an up-to-date POS system with tools your employees are asking for can make staff happier. Happier employees can equate to less people walking off the job and a better work place. How exactly can SpotOn improve your employee’s work place and foster a better employment situation at your restaurant? Here are 6 ways SpotOn POS makes employee’s lives better in their work environment.

SpotOn Stays Connected with LTE Backup

Say goodbye to staff being mad at the POS system failing due to wifi connectivity issues. Cloud-based point-of-sale systems are reliant on the internet. All transactions, orders, and other vital commands are performed through the cloud. Cloud-based systems without a fail-safe in case the internet goes out put users in a vulnerable position. Every SpotOn POS system comes included with an LTE backup in case the internet goes out. A backup router will automatically kick on to the same service your phone uses in the situation that your internet goes out. SpotOn will reconnect to the internet once it is available again.

Utilize SpotOn Teamwork

Every employees’ schedule constantly shifts around. Empower your staff and make scheduling easier with SpotOn Teamwork. Teamwork allows staff to trade shifts, request new ones, and see the upcoming schedule. Managements’ lives become easier when using Teamwork, too. Now, managers can easily coordinate with staff members anytime, anywhere through the Teamwork app. Make taking a day off easier for everyone involved.

Take Orders with SpotOn Handhelds

More restaurant servers have become acquainted with handheld order and pay devices. These devices are popular with restaurant staff because it expedites the order taking process. Handhelds eliminate the trip from a customer’s table to a terminal and back. Plus, handhelds create a higher order accuracy. Higher order accuracy can mean less dishes being sent back to the kitchen and improved customer service. Better customer service can result in higher tips and return customers for wait staff.

Let Customers Use QR Code Ordering & Payments

Expedite your servers’ service with QR code order and payments. Now, your staff no longer have to wait for a customer to place their order. Let servers attend to more of their tables without the need to receive their orders. Plus, customers that place their own orders are more likely to up-charge their dishes on their own. A higher bill can mean a higher tip total for servers and staff.

Make Fast Programming Changes On the Front or Back Of House

Legacy POS systems can require a refresh in order to implement programming changes. This can cause a massive headache for management, staff, and customers during a busy service. Plus, management can become unhappy with having to go to a dedicated server in the office in order to implement a change. Cloud POS systems like SpotOn can perform menu changes instantly without having to perform a refresh. Plus, managers and permitted staff can make live-time changes from the front-of-house screen by simply pressing down on a menu item.

Reduce Order Call-In’s with SpotOn’s Online Ordering

Receiving a hundred to-go orders by phone can make anyone’s job difficult. Bad connections and fussy customers can put a restaurant employee’s life difficult. Simplify and automate to-go orders by implementing online ordering. Prompt customers to place their orders online and reduce the workload being forced on an employee. Employees can now focus on streamlining orders and working with pickup customers to receive their orders.

Overall, a cloud-based POS system like SpotOn is a great way to improve your staffs’ lives. Looking for a way to improve your restaurant? Contact POS Philly today and receive your free no-obligation consultation.

Review #1

“SpotOn is easy to teach, easy to use and easy to customize on the fly for our daily changing business. After using another Restaurant POS system this one is what we should have started with. This one integrates with my Payroll company seamlessly. The online ordering platform used was ridiculously easy and provides a more polished seamless look for my company.” – Brandy R. Restaurant Owner

Unlike other POS software, SpotOn makes it easy to make changes efficiently. Need to change the prices of your dinner specials on a Friday night? No need to go to the back of house, make changes, and then refresh the system. Make instantaneous changes to your menu from the front of house terminal. Or, on any device with browser connection. Along with price changes, SpotOn POS makes it easy to *86 an item, enter stock counts, and access nutritional information all from the front of house.

Overall, SpotOn POS offers an easy-to-use, efficient solution for a fast-paced environment. Let’s check out reviews from Hillary and Lianna now.

Review #2:

“When looking for a new POS, we were looking for a unicorn product that could do things we only dreamed of, and found it in SpotOn. We can integrate Loyalty, Reserve, POS, Handhelds, Credit Card Processing, Reporting and soon Online Ordering through one program! We wanted handheld devices for speed, order accuracy, and payment table side that did not take away from the guest experience and have loved the clean interface we get with SpotOn too. Our customer service experiences are second to none with extremely fast response times and a service minded team backing what we do every day.” – Hillary H. General Manager

Integration of multiple features is a major plus for businesses to access data quickly. No need to invest in several software systems to cover functions of the business. Like Hillary mentions, handheld devices can be a great solution to speeding up service. Utilizing handhelds as well as table side payments can increase table turnover, resulting in more profit for your business. In addition, SpotOn training upon installation prepares staff and management to navigate the user-friendly system, while customer service offers full-fledged support to ensure success.

There are tons of reviews out there about SpotOn. Finally, let’s see what Lianna has to say about her experience.

Review #3

“Top on our list of what we like most about the SpotOn software is the ability to customize the screens and the reports to fit our needs. The ability to log in from anywhere and make changes on the go is also one of the most helpful and impactful features. The reports are easy to interpret and share. Staff timekeeping and payroll is a breeze. Our staff love the ease of the screens and how easy it is to modify items add new items or create events.” Lianna L. Restaurant Manager

SpotOn’s extensive reporting allows management to see data in real time, not the next day. More than this, restaurants can customize what is important to them, as Lianna mentions. Managers can “favorite” reports they want to be informed about daily. Whether it’s labor reports, product mix, daily sales, SpotOn has you covered. 

Like we mentioned earlier, making changes on the go is a must for the restaurant business. Furthermore, restaurants can customize the front of house interface to best fit your staff. 

Between integrations, handhelds, contactless payments, reporting, customer service, and more, SpotOn POS covers all angles of the business. The reviews speak for themselves. What type of review will you have for SpotOn when it transforms your business? Contact us today to get started on SpotOn pricing, features, and more!

Automated Email Reports

An important part of running a business: keeping up with daily reports. It’s more common than not that restaurant owners may not have time to check their reports. Worse, some may not do it at all! Keeping track of daily sales, product mixes, and labor information is incredibly vital when running a restaurant. SpotOn’s back-office has an automated report feature that will make any restaurateur happy.

The automated report feature, better known as a ‘subscription’, allows restaurant owners to schedule reports to be sent to their email inbox. Now SpotOn users can simply check their important numbers in their inbox rather than having to access their back-office. Plus, reports can be sent to any email. Automate sales data to bookkeepers and accountants to make number crunching easier.

Real-Time Manager Alerts

SpotOn has a ton of actionable data features. Still, having real-time information is just as important. Scouring weekly reports to keep track of comps, voids, and discounts can be daunting. Additionally, employees that hand these out on a whim can cost a restaurant money. Even more, employees that perform this act too often could be stealing from the business. SpotOn users can instead program real-time manager alerts. Now, restaurateurs can take action if suspicious of voids and comps. Simply program which actions to receive alerts on and get peace of mine whenever that act is executed by staff.

Front-Of-House Programming

Legacy point-of-sale users will love this. How often have you had to change a menu item during a busy dinner rush? Nothing is worse than going to your office, logging into the POS, editing an item and then hard refreshing the system. Refreshing a POS system can seriously affect an ongoing service. Furthermore, it can be time consuming for management.

SpotOn’s front-of-house programming features drastically simplify menu editing. Management can still control their menu from the back office suite. An improvement for legacy POS users, though, comes from SpotOn’s front-of-house. Now, restaurant managers can hold down an item and access its features. These include the item name, price, description, and more. Simply make your edits on the front-of-house, press save, and the item will receive a live-time update without a service disrupting refresh.

Cloud Menu Management

Speaking of menu changes, legacy point-of-sale users know the daunting task of updating all their menus. Legacy POS products can have different databases for front-of-house and online ordering. Reconciling the two can be a daunting task. Even more cumbersome is working with a non-integrated online ordering system. Making changes in the point-of-sale database separate from the online ordering one can create havoc for managers and restaurant owners.

SpotOn’s cloud database quells that chaos – fast. Its cloud database manages all menus, including front-of-house, online ordering, mobile ordering, and handhelds. Why is this a big deal? For starters, all of your menu items will be in sync. Management no longer has to reconcile several different databases. This can be a major time saver and reallocate management to better use their time elsewhere. Imagine if management could save one hour per week thanks to a cloud database like SpotOn’s? What is saving 52 hours per year to you and your staff? Add it up and it’s a huge return on investment.

Dual Pricing

A major return on investment for restaurants, too is dual pricing. Dual pricing is one of SpotOn’s most important features in 2023. What exactly is it and how does it help restaurant owners?

Dual pricing allows restaurants to save big on credit card processing. It is similar to surcharging but varies in its approach. Surcharging applies an additional service fee to a customer’s check. This service fee is intended to pay for your monthly credit card processing statement (or close to it). The additional fee has to be listed at the bottom of the receipt. Some restaurants have applied 4% surcharges to their customers’ receipts. This can upset customers and lead to bad publicity.

SpotOn users that implement dual pricing take a different approach. Instead of adding in an additional surcharge, SpotOn programs it into the menu prices. A customer will receive their bill with the dual pricing charge built into the total price. Underneath the total price line is a second line that reads ‘Pay with Cash’. This line provides a discount equivalent to the dual pricing fee. This incentivizes the customer to pay with cash in order to receive their discount. More customers are positively receptive to this rather than surcharging.

SpotOn Is a Feature Rich POS

Automated email reports. Real-time manager alerts. Front-of-house programming. Cloud database management. Dual pricing. These are only five of a ton of features SpotOn users can benefit from. Even better, they can receive on-site live day training from POS Philly. Want to see how these features can help your restaurant? Contact us today and get your free consultation.

However, it doesn’t stop there. Integrating online ordering features to your in-house functions can greatly improve productivity and flow of service. Customers now have the option for contactless QR code ordering and checkout when dining in. We’ll also take a look at how SpotOn can eliminate tablets for third party delivery apps. Needless to say, SpotOn POS is equipped for the future of hospitality. 

Online Ordering Interface 

SpotOn Online Ordering allows restaurants to offer the same attention to detail as the POS, including add-ons, modifiers, included ingredients, and special notes. Customize your online ordering page by adding photos of the item, along with descriptions. 

Customers can order ahead, choose a specific time that they would like to pick up their order, and customize their order just as if they were there in person. SpotOn also offers a texting feature that allows customers and restaurants to communicate directly. Coupled with an easy-to-use interface, restaurants can collect customer data for marketing campaigns. 

QR Code Ordering: Contactless Order and Pay

It’s Friday night. Staff are busy, customers are rolling in, and servers can’t quite get to the table quick or frequently enough. Prevent walk outs when staff is low. QR code ordering is the perfect solution to ensure that your restaurant doesn’t lose on sales (and most likely can boost them). 

Allow customers to order food and drinks at the table by simply scanning a QR code. Then, customers can pay at the table seamlessly at their convenience. Group orders also have the option to split a check accordingly. Orders from the QR code will print directly to the kitchen to the correct station, and specify which app it came from. Not to mention, customers may be more likely to order more via QR code, as opposed to getting the servers attention every time they would like another beer. 

Third Party Delivery Apps

Wouldn’t it be easier to have one central place to manage online and third-party delivery app orders, instead of having 3-5 different tablets that you are frequently checking? Let’s be honest, more hardware is more headaches. Not to mention, more money.

Manage third party apps such as UberEats, DoorDash, and GrubHub on the POS. SpotOn POS works with a software called ItsaCheckmate to integrate your third-party apps. Staff will be able to locate third party app orders in its respective category in the front of house. 

This feature is a total game changer, as it eliminates having to re-enter those orders into the POS once it is received on a tablet. Automatically having third party orders come through to the POS improves order accuracy and ensures customers are happy.

Bringing It All together

By and large, SpotOn Online Ordering can bring a new traffic to your business that you don’t want to overlook. Bringing the ultimate convenience to your customers may be the key to restaurant success in 2023. Contactless ordering and payments at the table, order ahead features, customizable online orders are features that just scratch the surface of what SpotOn POS offers.

Get in contact with a representative today to get started. 

Reduced Failure Points

Legacy point-of-sale systems traditionally require a back-office server. These servers are often Windows-based platforms that connect all of your terminals to the internet. The server is, ultimately, the brain of this kind of point-of-sale system. Servers can provide reliable features like ‘redundancy’ or ‘resiliency’ which are great, but these features can now be replaced with LTE wireless Meraki Router backups.

Plus, a server going down can result in a meltdown for your restaurant. Losing a server or connectivity can stranglehold staff and immensely affect floor service. Eliminating a back-office server can reduce what point-of-sale professionals refer to as ‘failure points’. Ridding a restaurant of the server reduces the likelihood of a hardware failure, resulting in a more streamlined POS solution.

Lower Hardware Costs

Speaking of servers, their cost continues to go up. Servers need to be updated periodically. Included in that upgrade are likely upgrades for the most-up-to-date version of Windows, too. Restaurants put off these upgrades due to the price. This results in restaurant owners leaving their POS systems running on old servers filled with dust and waiting to break. Owners that set themselves up for failure by not upgrading their servers will have to pay the price at the worst time possible.

Cloud POS systems like SpotOn do not require a back office server. Everything is managed in the cloud thanks to an easy to use online dashboard. Restaurant owners can have peace of mind that they will no longer require a server upgrade. Eliminating the server not only reduces failure possibility, but also pricey legacy purchase.

PCI & EMV Compliance

Restaurants should also consider upgrading from a legacy to cloud POS system due to compliance. Specifically, PCI & EMV compliance.

PCI compliance comprises of 12 steps to protect payments users for credit cards and online transactions. These rules are important to ensure a cardholders payment method will not be compromised. Failing to follow these steps can put your customers at risk to fraud, and potentially place your business into legal problems.

Legacy point-of-sale systems that are on version Windows 8 or older are PCI compliant. Swiping a credit card through a terminal that is on Windows 7 or, yikes, worse, Windows XP, is bound to violate PCI compliance. That’s a big no-no for credit card companies as these earlier software versions no longer receive security updates.

Speaking of swiping, restaurants should be swiping their cards less and less. Why? EMV compliance is what pushed chip cards into the mainstream. Dipping a credit card ensures a safe tokenized payments process that provides further safety for cards users. Continuing to swipe your customers cards means that you are like not using chip card dipping technology. Not using EMV payment methods can leave you 99.999% liable for charge backs if a card user disputes a payment.

SpotOn offers modern payment methods that gives users PCI & EMV compliance. Software upgrades that follow consumer protection guidelines are constantly issue and always included in our monthly subscription plan. Tap, dip, and scan to accept payments without a hitch. Furthermore, SpotOn can take the most secure payment methods such as Apple Pay and Google Pay, too!

New Technology = Happier Users

Finally, one of the most important reasons to transition from a legacy POS system: new technology. Legacy point-of-sale developers are no longer developing their products. Prominent companies (won’t name any names, but you know who they are) have stopped funding vital research and development into their software. This leaves legacy POS users technology, quite literally, in the past.

Restaurant owners need to look ahead at modern technology that helps improve their business and guests’ experience. Handhelds are a great way to speed up service, improve table turnover, improve order accuracy, and decrease food costs. Integrated, easy to manage online ordering can open new revenue channels and decrease reliance on 3rd party delivery services. QR code payments can make checkout times faster and easier for customers. Legacy point-of-sale users are lagging behind cloud ones when it comes to new tech to serve more guests.

SpotOn POS gives users the chance to utilize new technology that is constantly being developed. Our software and hardware features are constantly being improved and work on. Need to switch out of your legacy point-of-sale system? Contact us to get your free SpotOn consultation. Switching has never been so easy.

Relying On a Physical Location Has Restrictions

As inflation continues its stagnating presence on the economy, restaurateurs must harness all avenues to execute a sale. A restaurant’s physical location may be the primary sales channel. Still, restaurants’ that focus on only a physical location are seriously losing out on real cash.

A brick and mortar business is restricted by several factors. Bad weather can dissuade potential customers from eating at your location. A restaurant only has so many seats along with an occupancy limit. When there are too many occupants, a restaurant can then lose business. Zoning and regulatory restrictions may prevent a restaurant owner from physically expanding their location to add more seats.

Restaurant owners have to look past their four walls in order to grow their revenue streams. SpotOn’s software package allows them to do just that. SpotOn’s software package has 3 major digital sales channel opportunities to increase a restaurant’s revenue. Let’s break down the product, how it works, and a quick estimated revenue analysis for each one.

Online Ordering

SpotOn’s online ordering is included with no additional service fees. The programming runs on the same cloud software as your front-of-house. It’s easy to maintain and accessible anywhere, any time on any device. Plus. SpotOn’s online ordering takes modern payment methods, including Apple Pay.

Our online ordering software is important to utilize. Why? Restaurants continue to rely on Doordash and GrubHub for online ordering due to their delivery capabilities. Third party delivery companies can take a huge chunk out of online sales performed through their apps. Restaurants reliant on these need to steer their customers to in-house online ordering like SpotOn’s. Doing so can either supplement or negate losses incurred by utilizing third party delivery services.

Time for some math to prove it.

Example: Restaurant implements online ordering through SpotOn. Average takeout order is $50.00. Restaurant accepts 10 online orders per day. Open 7 days per week, 365 days per year.

$50.00 X 10 New Online Orders = $500.00 per Day X 7 = $3,500.00 per Week = $182,000.00 per Year in Revenue

Imagine shifting ten online orders per day from third party delivery services to SpotOn online ordering. $182,000.00 in projected revenue can mean renovations, paying for new staff, or being able to afford products you may currently be price conscious of. It’s a huge game changer.

Now, take the next step and implement your own reservation system.

Reserve

Why is it important and financially advantageous to have your own reservation system? First, this digital revenue channel is important to let customers know how busy your restaurant is. Their first interaction with your business is online before they’re even heading to your physical location. Therefore, reservations are key to your off-premise sales.

Having an integrated reservation system that sync with your point-of-sale can reduce headaches. Opting for pricey third parties, like Open Table, can leave a pricey per-reservation fee on your business credit card each month. Even worse, if you’re not taking reservations then your business is open to walk out’s and lost revenue from lost customers.

SpotOn Reserve can be added on to a SpotOn monthly subscription for a flat rate. This flat rate can reduce the cost of any per-reservation fee if a restaurant has a high reservation count. Furthermore, SpotOn Reserve is fully integrated with the point-of-sale. That means less support headaches. Reserve also works with Google to help reduce steps in placing reservations. Less steps, more secured reservations.

Back to the math.

Example: Restaurant does not take reservations. Loses 1 table per hour during peak hours per week due to bad wait time system. Peak hours are Thursday – Sunday 6PM – 10PM (total of 16 hours). Table average is $100.00. Implementing SpotOn Reserve now recoups those two reservation walk out’s.

$100.00 X 16 Recovered Walk Out’s = $1,600.00 per Week = $83,200.00 per Year in Revenue

Recovering only one walk out worth $100.00 during 16 peak hours means nearly $85,000.00 in recouped revenue. Add that to the online ordering total and now you’ve generated $265,200 in revenue. Now, what about digital gift card sales?

Digital Gift Cards

Those people that don’t like gift cards for holidays or birthdays? Forget them. The gift card loving folks are important to focus on here. The key to getting more gift card sales is to allow customers to purchase them in more places. For a restaurant, a major point of sale is the front counter or hostess stand. Consumers, though, want to be able to visit a website and purchase their gift card there. Digital gift cards have increased in sales, predominantly since 2020. Since 2020, digital gift card sales have grown from $258.34 billion to a projected $1,101.03 billion by 2030 according to Allied Marketing Research.

Opting to not sell digital gift cards allows your customers to spend their cash elsewhere. SpotOn’s digital gift card program can recapture that lost revenue and grow gift card sales. Customers can visit your online ordering page, choose from a catalogue of gift card designs, select an amount, and then send that gift card right to their recipient’s inbox. It’s as easy as 1-2-3…4. That extra step may exist but it’s might easier than driving to a restaurant, sitting in traffic, waiting for the hostess, and then driving back home.

The math checks out, too.

Example: Restaurant implements digital gift cards. Average gift card sale is $50.00. Restaurant sells 4 more digital gift cards per week over a year.

$50.00 X 4 More Digital Gift Cards Sold = $200.00 per Week = $10,400.00 per Year.

Take it the next step. Restaurant guests that use a gift card either do not redeem the entire balance or end up spending more than the gift card is worth. That’s either pure liquidity back in your pocket or added revenue from additional sales. According to Market Watch, 74% of gift card users spend on average $54.00 more after they use the balance on their gift card.

Apply this to our gift card sale example. Say 3/4 of those new digital gift card sales now spend an additional $54.00 during each transaction. That’s an additional $8,424.00 per year on top of the $10,400.00, equaling $18,824.00 per year.

What if these are high projections?

Great point. Take the total of the new digital revenue streams:

Online Ordering: $182,000.00

Reserve: $83,200.00

Digital Gift Cards: $18,824.00

Total: $284,024.00

Now, be cautiously optimistic. Taking all of these examples and only meeting half the estimate is still a whopping $142,012.00 in new annual digital revenue. Be even more conservative. Half off that, now a quarter of our original estimate, is still $71,006.00. Not too bad – that pays for two new staff members! Take our original estimate now with a massive grain of salt and accept only an eighth of it is reasonably possible at $35,503.00. That’s a new waiter, piece of kitchen equipment, or rainy day savings.

By utilizing SpotOn’s digital revenue channels, users can increase their total revenue without the restrictions of their brick and mortar location. Need more information? Contact us for your free consultation today!