| Surf’s up for on-line
restaurateurs
By Scott Read CRA(California Restaurant Association) UpFront March/April 1996 Net surfing, Web browsing, home pages. No doubt you have heard some of these terms, and chances are the person using them was touting their wondrous implications for the business world. In fact, the Internet is causing quite a stir everywhere. But what does it have to offer you, the restaurant operator, and is it worth your money to get on? Among the growing number of companies profiting form the Internet are those that cater specifically to the restaurant industry. For a fee (which varies dramatically), these companies provide you with an on-line presence and advertise your restaurant to literally millions of people via the most famous feature of the Internet—the World Wide Web. The Web is simply a navigational tool that allows computer users to find information on the Internet using simple symbols on their computer screens. A "Web site" is made up of "pages" containing text, graphics, sound, pictures, and video. Who is likely to visit your Web site? Business and vacation travelers can use it to plan ahead, choosing restaurants by geographic location, cuisine, menu items, etc. Local residents and businesses can use it as a sort of glorified phone book. "The Yellow Pages will be gone in ten years," says Craig Cohen, president of [Waiter.Com], Los Altos. "Its replacement will be an electronic guide that is much richer and complete." Pick a page How "rich" you want your site to be depends on both your wants and the capabilities of your Web-services provider. Most companies will assist you in designing your site, incorporating such items as your menu, location (including a map), and hours of operation. You may also include pictures of food and décor, information on delivery or catering, the history of your restaurant, recipes, coupons, and so on. In addition, some companies allow customers to place food orders directly with the restaurant through e-mail or fax. However, Web-services providers have different clienteles and, thus, different offerings. For example, Restaurants On-line, Newport Beach, caters mainly to independent restaurants in Orange County and west Los Angeles and offers a wide selection of page items (menus, maps, on-line ordering, etc.). Pacific Palisades-based Eclip, on the other hand, serves national restaurant chains with 50 or more units. And while Eclip will include pictures and menus, the company holds the theory that incentives – specials, coupons, and advertising copy – are the lures that fill restaurant seats. Note that restaurateurs do not need a computer to get their operations on-line, but do need a fax machine to offer on-line ordering. Otherwise, an operator’s only responsibility is supplying the provider with page update information, such as entrée and price changes. You better shop around Prices vary from service to service. The base fee for national provider Eclip is $2,500 a month, which includes page design and setup and one or two updates a month. Frequent updates are important. An unchanged site is about as alluring as tuning into your favorite TV program, 9only to find the same episode week after week. In fact, Eclip owner Lisa Kantor requires her customers to change their ads at least once a month, saying, "Staying static on the Web is the kiss of death." World Wide Waiters, which targets the San Francisco Bay Area, charges single units a $500 one-time setup fee and, instead of a monthly fee, a small commission on each on-line order taken. According to the company’s vice president of marketing, Michael Adelberg, a typical restaurant pays from $20 to $100 a month in commission costs. "This system makes us work harder for the restaurateur," says Adelberg. "Lots of on-line sales works out better for both of us—no on-line sales and we don’t get paid." CRA member Restaurants On-line charges fellow members $750 a year and includes page design and setup, one minor update a month, and two major updates (e.g., complete menu change) a year for a single location. A basic listing of name, address, and phone number runs $120 a year. (Nonmembers pay a $65 one-time set up fee, $900 a year for regular service, and $150 for the basic listing.) Note that many Web-service providers offer more than one plan and are willing to work with restaurateurs to find the most suitable. In addition, computer wizards who know the Web’s coding language—HyperText Markup Language—can often save money by designing and updating their own pages. Where are you? It’s not called the World Wide Web for nothing—it’s huge. According to the January 1996 issue of Nation’s business, there are nearly 25,000 companies listed in Yahoo, a popular commercial Internet directory. That presents the challenge of making people aware that you are on-line and where to find you. Most operators slap their Web address on menus, business cards, and fliers, but that’s the limit. Web-service providers recognize this and are quick to point out their company’s expertise in promotion. Most advertise on the Internet itself through e-mail, discussion groups, and directories, and many pitch various newspapers and trade publications. And although it may cost more, they can have your page linked to other pages of similar content, possibly in an entirely different Web site. Is it worth it? How do you know if your venture into cyberspace is paying off? You won’t, for a while, but most services offer monthly or quarterly reports on the number of "visits" a page receives. On-line for a month and a half at this writing, Karen Caello, marketing director for Hobee’s, Palo Alto, says during her first month on-line she had 147 "visitors" to the Hobee’s page. Although only three on-line orders came through, Cabello is optimistic. "First, that’s three on-line orders—other in-store sales are possible," she notes. Second, she says Hobee’s received several on-line inquiries about their catering services. Third, she received a few other on-line messages requesting that Hobee’s offer on-line ordering through its San Jose location. (All locations are listed on the Hobee’s page, but only the Palo Alto unit offers on-line ordering.) "We’ll stay on-line for at least six months to give it a chance," says Cabello. Also, operators can track some of those in-store sales by offering on-line coupons that can be printed and used by customers. Bear in mind that not all restaurants are considered good candidates for the Internet. Establishments located in popular tourist destinations, such as San Francisco, and high-tech areas with heavy Internet activity, such as the Silicon Valley, have the best prospects. Also, regardless of whether they are an independent or chain operation, on-line restaurants tend to be mid-level, casual establishments. Provider sentiment is that quick-service establishments are relatively easy to find and most people already know what they serve. Look before you leap While the number of Internet users—and thus potential customers—is growing at a staggering rate, its impact on the business world has been challenged. "I think of the Internet as a business tool. I use it to learn more about our industry, not to be sold something," says Michael DeLuca, editor and associate publisher of restaurant Hospitality magazine. DeLuca, whose publication operates a section in America Online, adds, "Web-heads perpetuate the myth that everyone is on the Web, browsing and shopping. It’s not true. I think there’s a huge shakeout coming." Indeed, nobody seems quite sure about the number of Internet users. A widely quoted survey by Nielson Media Research reports 24 million users. However, that figure represents users in all of North America. A subsequent survey by New York market researcher find/SVP, concentrating on the U.S. and using a tighter definition of "user," estimates the number to be about 9.5 million. In addition, the survey found that two thirds of those 9.5 million users log on only about once a week. The Find survey also states its respondents see little future for buying and selling over the Internet. Operators who have done their homework and think the Internet is the way to go can reach Eclip at (310) 459-0052, Restaurants On-line at (714) 222-0809, and [Waiter.Com] at [(408) 938-3705]. |