7 Benefits of an Online Restaurant Reservation System

Online restaurant reservation systems can help you provide a better experience for your restaurant customers, giving them access to a fast, effective booking portal to speed up their interactions with your brand. But, the benefits don’t stop there. These platforms can also provide a wealth of financial benefits for your restaurant business. We’re going to take an in-depth look at online restaurant reservation systems to show you how.

What is an online reservation system?

An online restaurant reservation system is a digital platform that allows customers to book a table at a restaurant through the Internet. It provides a centralized platform for viewing available time slots, selecting preferred dining times, and reserving tables without having to directly call the restaurant; simplifying the process for both customers and restaurant staff. Booking management features allow restaurants to manage and organize reservations effectively. On the user end, customers can see real-time availability based on an individual restaurant’s capacity and existing reservations. The top online reservation systems even allow restaurants to customize table layouts, assign specific tables, or accommodate special requests.

Benefits of an online restaurant reservation system

Restaurants that choose to use an online restaurant reservation system can look forward to a wide variety of benefits.

Enables cost savings from reduced labor expenses

Centralized reservation management helps you to streamline your operations and reduce the number of administrative tasks that need to be carried out by restaurant staff. This reduces the need to employ staff solely for administration. It also allows all staff to focus on higher-value tasks around the restaurant rather than spending their time answering phones and managing table reservations. This all adds up to cost savings when it comes to labor expenses. Not to mention the fact that most customers prefer to be able to book online, whether that’s with their hairdresser, their mechanic, or at their favorite restaurant!

Optimizes revenue through a managed table turnover

Every restaurant owner knows that the more clients you can get to dine in at your restaurant, the bigger your profits. That’s just simple math! An online restaurant reservation system can help increase your table turnover by allowing customers to order ahead online.  This means that their stay in your restaurant is shorter but still satisfactory. And since the time a customer spends getting a waiter's attention, ordering, and waiting for their food is eliminated, you can take more reservations and clients in one day.  An online reservation system is mutually beneficial for you and your customers; after all, nobody enjoys long waiting times! This means that you provide your customers with an even better experience, which boosts positive word of mouth and gives your restaurant a great reputation, further increasing your bookings.

Protects revenue by reducing the number of no-shows

No-shows represent a big loss for restaurants. If a customer books a table and doesn’t show up, you lose any potential revenue that might’ve come from that customer. Even worse, valuable time that could’ve been spent serving other customers is lost. Research showed that, in the UK, cancellations were costing restaurants an average of £89 per customer. Other sources also described how if 18-20% of reservations end up being a no-show, this can easily account for $150,000 in lost revenue a year. Ultimately, showing how anything to reduce the number of no-shows is likely to have a big impact on your profits. 

When a guest makes a reservation in advance, they’re more likely to show up because they don’t want to lose their spot. This reduces the number of no-shows and helps you better utilize your restaurant’s capacity. Many restaurant reservation systems send reminders to the customers who make bookings. This reduces the likelihood of no-shows caused by customers simply forgetting their reservations. The best online restaurant reservation systems will even allow customers to modify their reservations. This means that if something unexpected comes up, the customer can simply switch their reservation to a better time rather than canceling it completely. Even if a customer does need to cancel their reservation, an online reservation system gives them the chance to do so with plenty of notice. This allows you to offer their place to another guest and reduce the financial impact of a no-show.

Enhances data-driven financial planning

An online restaurant reservation system can capture data on reservation timings, peak hours, and seasonal trends. Analyzing this information helps you to predict future demand, and plan staffing, inventory, and other resources accordingly. By tracking reservations and historical data, you can also forecast revenue more accurately. This information aids in budgeting, setting sales targets, and making informed decisions about pricing strategies or promotional offers during specific periods. In conjunction with your expense and time management software, you’ll be able to take complete control over your expenses and significantly boost your profitability. The access to real-time financial reporting that these platforms provide allows you to make data-driven decisions based on accurate, accessible data.

Maximizes marketing resources and efforts

Reservation data captured by an online restaurant reservation system often includes customer demographics and preferences. You can analyze this information to create targeted marketing efforts, allowing you to tailor promotions, loyalty programs, or special events to specific customer segments. This lets you create more personalized and effective marketing to boost your marketing ROI (return on investment) as well as your overall profits. Research shows that personalization in marketing leads to more purchases, increased repeat custom, and more positive recommendations to others.

Allows dynamic pricing during high-demand periods

Many restaurants implement dynamic pricing strategies during peak times. This involves adjusting menu prices based on demand, time of day, or specific events to optimize revenue. It can help you to balance supply and demand while maximizing profits. An online reservation system allows greater visibility into how busy your restaurant has been, or is going to be, at any given time. This aids in the careful planning required to implement dynamic pricing. Using an online reservation system to carry out dynamic pricing often involves integrating pricing algorithms that adjust in real time based on demand data, reservations, and historical patterns.

Integrates with POS systems and inventory management

Online restaurant reservation systems can integrate with your POS (Point of Sale) and inventory management systems to create a seamless operational environment. When a customer makes a reservation through your online system, the details are seamlessly transmitted to your POS system. This allows your staff to view and manage reservations from the POS terminal and increases operational efficiency. The reservation system will also communicate with the POS to update table availability in real time, which helps to prevent overbooking. When it comes to inventory management, integration between your reservation and inventory management systems allows for better tracking of ingredient usage based on reservations.  For instance, when a preorder is made for a specific menu item, automatic deduction from the inventory count can be triggered. This helps to make sure that stock levels are kept accurate and reduces the likelihood of stock-outs or overstock. This is especially effective when combined with tools such as order management system software. These highly scalable platforms allow restaurants of all sizes to track their inventory in real-time, and make accurate orders to their suppliers efficiently.

Best practices in implementing an online reservation system

There are several best practices you should implement in your restaurant to guarantee your online reservation system is as effective as possible.

Ensure a seamless, user-friendly reservation platform

Choosing the right reservation platform is essential. You should thoroughly research the options available to you and select a reservation system that aligns with your restaurant's specific needs, size, and operational requirements.  Factors like ease of use, customization options, integration capabilities, customer support, and price should all be considered. As shown above, with 60% of restaurant bookings being made online these days, it’s essential that customers and restaurant staff alike have access to a platform that’s easy to navigate and simple to use.

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Maintain accurate and up-to-date information on table availability

A reservation system only works when it has access to accurate, up-to-date information. If your platform can only access out-of-date or inaccurate information, then it’s only a matter of time before you’re taking double bookings and disappointing your customers. Choosing a platform that integrates with your other systems, such as POS and inventory management platforms, is the best way to make sure that the information you’re showing your customers is as accurate as possible.

Implement a prompt confirmation and communication system

Customers want clarity and security when they make reservations online. Promptly confirming reservations leaves your customers with no doubt that their booking has been successful, giving them peace of mind. The more you communicate with your customers, the better. For instance, sending a follow-up email asking if they have any special requirements shows that you care about your customers' needs and allows you to better personalize their experience in your restaurant, boosting customer loyalty.  In addition, sending out reservation reminders helps to reduce the number of no-shows you’re subjected to. Nearly 20% of restaurant no-shows are caused by customers forgetting they made a reservation.

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Prioritize the security and privacy of customer data

It’s important that your customers’ data remain secure and confidential, especially when it comes to personal and financial details. 

Look for online reservation systems that boast comprehensive security features. Data encryption will help to safeguard your customers’ sensitive data during transmission, while multi-factor authentication will make sure that only authorized staff members have access to your systems.

Integrate reservations seamlessly with Point-of-Sale systems

Integrating your online reservation system with your POS systems will help you to manage bookings effectively and efficiently. It’ll also give your customer access to up-to-date information on availability and allow them to pay online for greater convenience.

Final thoughts

Online restaurant reservation systems empower you to provide an excellent customer experience while also boosting your profitability. 

Customers can interact securely with your restaurant online, booking their perfect table without any fuss. With the information they provide, you can tailor their experience to make sure they leave satisfied (and pass on their glowing reviews to their friends and family!).

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Financially, you’ll be able to reduce costs by managing your table turnover and limiting the number of no-shows your restaurant experiences. These platforms even give you access to a wealth of data that allows you to carry out effective planning and make data-driven decisions to protect your bottom line.