Percentage (%) of Australian diners that are likely to walk-in vs. book online, by age group.

25% of Australian diners between the ages of 65 and 79 say they prefer not to book in advance, whereas just 13% of diners below 34 would consider walking in without a booking. This means bars and restaurants frequented by young people are more likely to be booked in advance, compared to a local RSL club, for example. It follows that merchants with younger clientele could comfortably open more seats for bookings.

Reduce no-shows

No-shows have always been a pervasive pest in the hospitality industry. A 2017 study found no-shows were costing the Australian restaurant industry $75 million per year. Add capacity restrictions, and the impact of a no-show stings all the more.

Yet 82% of diners say booking requirements don’t deter them. Merchants could consider enforcing requirements — from a soft approach (such as sending a reminder text 24 hours prior), through to charging a booking deposit or cancellation fee — to discourage no-shows.

Our research shows that, for the majority of diners, the limit for a non-refundable deposit is $15 per person — so take that into consideration when setting your price. Interestingly to note, our research shows that young people (diners between the ages of 16 and 35) are the happiest to pay a deposit. Bars and lounges might find their clientele are less opposed to the idea of a non-refundable booking.

The simplest way to accept a deposit is over the phone, by processing a manually-entered card transaction through Zeller Terminal.

2. Accept payments tableside

COVID-safety is a key concern for diners, and that extends to the payment experience. Offering contactless transactions is critical. Relying on a portable EFTPOS machine significantly reduces the possibility of transmitting the virus from one person to another, and allows staff to accept contactless payment tableside — meaning less customer movement on the floor.

“Taking payment at the diner’s table helps avoid having people standing around and moving through the restaurant. It’s definitely important [for COVID-safety],” says Dylan McMahon, Winemaker at Seville Estate.

Two thirds of diners say they always prefer to use a digital form of payment over cash, regardless of whether they’re buying a bite from a food truck, a bakery pie, or a pint from the bar.

Even more interesting is the correlation between the average transaction value and diners’ preference to pay digitally. By crunching the numbers on hundreds of thousands of transactions processed by Zeller, we can see that the more expensive the meal, the more like a diner is to reach for their card or digital wallet.

For example, 65% of food truck customers will typically reach for their card or digital wallet. On the other hand, 88% of high-end, sit-down restaurant diners prefer to pay digitally — meaning an EFTPOS terminal should always be on hand, ready for when a diner gives the nod.

Diner Preference for Cashless Payments by Business Type

If that’s not enough of a reason, there’s the nine minutes your staff will save with every transaction and the improved customer experience to consider. All the extra steps involved with cash transactions add almost ten minutes of service per table. Extrapolated over a full day of service, and that’s hours saved.

Discover more about the benefits of portal EFTPOS technology on the Zeller Business Blog.

3. Reduce excess inventory

Excess inventory means food waste and spoilage, as well as wasted dollars.

There are a number of ways merchants can reduce their level of excess inventory, depending on the style of venue. A bar, for example, is unlikely to implement a cost-savvy set menu — such things require a great deal of attention and planning to get the balance just right. However, there is at least one way for every type of hospitality merchant to reduce their venue’s food wastage.

Offer food and drink specials

Australians love a deal; Zeller research shows it’s the best way to get more diners eating at, or ordering from, your venue. 77% of diners would dine out more if offered perks or benefits — the most popular of which is weekly food and drink specials, appealing to diners more than takeaway specials, group deals, and loyalty programs.

Weekly specials are a good way to broaden your venue’s appeal, and entice diners on a budget who might otherwise not have dined with you. Remember, the pandemic has negatively affected almost half of Australians’ back pockets. Another obvious benefit is that, in choosing your specials, you can focus on seasonal produce to keep your food costs low year-round. Ordering in bulk also spells savings.

Specials can take a number of forms — which you choose depends on your growth goals. You might choose to offer midweek specials on evenings where foot traffic is low. Or, you offer daily discounts outside the lunch or dinner rush.

Limit your menu

A limited menu means more straightforward ordering, and fewer infrequently used ingredients — which tend to create food wastage. If very few customers order the fruit salad, for example, consider scratching it from the menu. Fresh fruit can go off quickly, and it is an unlikely ingredient in any other dish.

In considering which items to scratch from the menu, think about how long the ingredient lasts as well as any storage requirements. A piece of aged meat requires a considerable amount of space in a cold room or fridge, whereas a tub of gold leaf can perch on a shelf, for example. The meat is also likely to reach its use-by date quicker.

Offer a "Feed Me" menu

Set menus, once the remit of high end dining, have become commonplace in family-style restaurants. For diners, it’s a convenient way to dine with a large group. For merchants, it’s an opportunity to increase margins and better prepare the kitchen so less food is wasted.

Set menus make everything easier, from ordering ingredients, to preparing the kitchen, to ordering, and then transacting. By tactically selecting those dishes with a higher profit margin, a “Feed Menu” menu can reduce food wastage while upping customers’ spend.

4. Go digital

To reduce contact with the customer even further, merchants can explore the possibility of digital receipts. 57% of diners say they would be happy without a paper receipt — meaning the majority of receipt paper is likely being wasted on customers who promptly put their receipt in the bin. Opting for a digital version is also an easy way to make your venue more sustainable.

Of course, the demographics of a venue’s customer base influences this figure. Zeller research shows a distinct correlation between a diners’ age, and their preference for paper vs digital receipt.

Preference for digital receipts

Percentage (%) of Australian diners that prefer digital receipts, by age group. 

As younger generations appear, the trend will continue until paper receipts are a thing of the past. Most merchants could halve the recurring expense of receipt paper by offering diners a choice: a print receipt, email receipt or SMS receipt?

Of course, staff must have the ability to quickly change the receipt format via the EFTPOS terminal. With Zeller Terminal, it’s as simple as tapping Email, SMS or Print receipt.

5. Modernise your marketing

Australians have a love affair with food. Zeller research shows that, prior to the pandemic, 77% of the population regularly dined out or had food delivered. In the recovery phase, it will be critical for merchants to win back regulars and attract new customers through strategic marketing. 

The marketing strategy with the best return on investment will be the one tailored to the customer. Merchants must consider their average customer, and where that customer gets their information — including where to eat. A customer’s location and age both have a significant impact. 

By Age

Overall, it is clear from the above that word of mouth is the most powerful form of marketing; 75% of Australian diners say they rely on it, regardless of age. Yet in 2021, word of mouth doesn’t strictly refer to a verbal recommendation. To your youngest diners, it extends to user-generated content, social media shares, public reviews, and the like.

Many diners are getting their recommendations on the web. In fact, 97% of people go online to find and research local businesses. As the hospitality industry enters the post-pandemic recovery phase, it will be critical for merchants to put their venues in the right (virtual) places. Read our blog for more ideas to help attract more diners through smart, localised marketing.

Metro vs. Regional

57% of diners in metropolitan areas say they discover restaurants, bars, cafes and more through social media and food bloggers’ or influencers’ advice. For merchants, this demonstrates the importance of having an “Instagrammable” offering and engaging in the local online community. Some Zeller merchants have also found TikTok highly beneficial in growing a customer base during lockdown, despite foot traffic slowing.

On the flipside, the majority of regional diners (59%) only discover a new venue when they see it in person — meaning the success of any marketing strategy hinges on foot traffic at the venue’s location.

6. Grow your tips

For staff, tips are a perk of the job; a show of appreciation from a customer. For merchants, the benefit of happy, motivated staff is obvious. More and more is being required of them these days — asking customers to check in, enforcing social distancing practices, and reminding customers to wear a mask, for starters. 

Tipping is not typically considered part of Australian culture. A 2017 report found only one in 5 (21%) of diners regularly left a tip. However, Zeller research from 2021 indicates that 70% of Australians consider leaving a tip. More promising is that the younger generations of diners are more likely to tip (81% of 16 to 24 year olds, and 76% of 25 to 35 year olds). This indicates a generation shift in favour of tipping. The trick, then, is knowing what pleases diners most. 

Service and overall dining experience are the key factors influencing a diner’s decision to tip. From greeting the customer, to seating, ordering and taking payment, the customer service must be exceptional.  

Importantly, Zeller research shows EFTPOS terminals with automated tipping drive an increase in tipping amongst diners; 57% of diners are open to leave a tip if automatically prompted to do so. Merchants can increase tips by including a discrete option to tip in their payment flow. 

The fewer the hurdles, the more likely a customer is to tip. For this reason, tipping is as simple as possible with Zeller Terminal. You have the choice of inviting diners to enter a custom amount, or provide them with up to three percentage-based options — or easily remove it from the payment flow altogether.

7. Evolve in the new reality

These days, COVID-safety is an important consideration for diners — moreso than the price, and proximity to home. Merchants must consider how the evolving nature of the virus and the societal effects it causes impacts their business — and what they can do to minimise those impacts. 

At a minimum, that means:

• ensuring staff feel supported to take sick days when necessary
• minimising movement through the venue
• placing the appropriate check-in QR code at all entrances
• providing hand sanitiser
• encouraging everyone to wear masks 

Yet merchants may wish to take precautions a step or two further. 60% of people wouldn’t mind if those requirements were more strict, Zeller research shows. In fact, venues with an older customer base may attract new customers by requiring proof of vaccination; 54% of those aged between 65 and 79 would be more likely to visit a venue that imposes such requirements.