Benefits of Handheld Order
Taking Systems in Full Service Restaurants


By Alex Malison, ASI
January 3, 2003
Copyright © 2002-2003 Action Systems, Inc. (ASI)

INTRODUCTION
Most owners/managers in the restaurant business will agree that a handheld order-taking system that can efficiently expedite a food order more quickly can result in better customer satisfaction, and that alone could justify the investment in such a system. However most people are probably not aware of all the potential benefits that make handheld order entry systems such a compelling alternative to the status-quo POS touchscreen systems in use today.

This White Paper attempts to highlight all these potential benefits by first looking at the deficiencies of the current, de-facto order entry systems (fixed station touchscreen POS), and then showing how a handheld order-taking system can effectively address these deficiencies. This is followed by a description of the added benefits of a handheld, order-taking system (the icing on the cake), and how they affect customer service, costs, and revenues.


THE DOUBLE ENTRY AND OTHER PROBLEMS

Fixed station, touchscreen POS systems have become the system of choice for foodservice establishments, not only of full service restaurants, but also in quick and delivery service, bars, and cafeteria type establishments. However, there is still a sizeable segment of the market, especially in fast paced, high table turnover environments that has resisted touchscreen technology. Why is this? Well, in the words on John Kemper, owner of the Blue Bonnet restaurant in Marble Falls, Texas: “Touchscreen systems are too slow to get the order to the kitchen. It’s a hell of a lot quicker if the server takes a copy of the order directly to the preparation areas.” And you know what, he is right. When you compare how a touchscreen system would work in his high paced environment to his current manual system, there is no doubt that his system is better as regards speed of service. For starters, by using carbon copies of the handwritten order (one for the kitchen, another one for the cashier), he avoids two big time consuming tasks. First, the time wasted going to a terminal and then waiting in line to access it. Typically there is one terminal per 3 to 6 servers, and during busy periods of the day there are invariably server lines at the terminals. Sure, one could eliminate this problem by having one terminal per active server, but this would be, in most cases, cost and space prohibitive. Second, the time it takes to transfer the handwritten order from the pad to the computer system, which can be anywhere from 20 seconds to 4 minutes depending on the size of the order and the experience of the server with the system.

Other, not so obvious problems with the pencil-and-pad-then-touchscreen-systems are:

Errors and omissions while taking the order, due to server not knowing all the forced modifier options (side orders, salad dressings, cocktail mixing options, cooking temperatures, etc.).

Errors and omissions in transferring the order from pad to the touchscreen system. These errors can range from accidentally skipping a line on the pad, to misreading the handwritten information

Wasted time in correcting ordered 86 items…and dealing with the disappointment of customer upon learning he has to choose another dish!

In a nutshell, all the time issues and errors described above stem from the double entry process inherent in touchscreen order-entry systems. The only way to eliminate, or at least reduce, these problems is by eliminating double-entry.


HANDHELD ORDERING TO THE RESCUE

Obviously, the way to eliminate the double entry process is by entering the order directly into the computer system at tableside. If one takes it to the extreme, you could devise a system whereby the customer himself enters the order, eliminating the need of the servers for order taking. However, this would generate its own set of new problems, not the least being on how to change human behavior, an extremely risky proposition. So let’s limit ourselves to replacing the pencil and pad order taking system with a wireless handheld device, and look at how it mitigates the problems described above.

Forced modifier errors/omissions while taking the order at the table are potentially eliminated, (given a well implemented menu.) Note also that servers do not have to memorize all the modifier options, reducing the amount of time spent training servers. For example, when processing a hamburger order, say, follow-up screens on the handheld display cooking temperature and side order options the customer can choose from.

Time wasted going to POS terminals to enter orders is eliminated.

Lines at POS terminals are eliminated, since each server uses her own handheld to process orders.

Errors/omissions due to transferring the order to the POS system are completely eliminated, since the order, once taken on the handheld, is wirelessly communicated to the system.

Ordering of 86’d (not-available) items is eliminated. Server is notified via the handheld if an item is not available.

ICING ON THE CAKE

Now let’s look at the added benefits provided by a handheld order taking system. Some benefits stem from having complete access to menu information, others from the physical differences of the system, and yet others from the change in the workforce flow.

INCREASED REVENUES DUE TO…

Fewer Missed Sales: Since servers spend more time on the floor, it is more likely that a customer needing to order a drink or food item will find her server.

More Up-Selling Opportunities: Prompts/forced modifiers can help the server suggest appropriate options to the customer that result in a higher spend.

Increased Table Turns: Due reduced time it takes to service tables, it follows that on average customers will spend less time at the table, freeing them up for new customers. Further efficiencies can be realized if both printing and settling of checks occurs at the table, although this has to be balanced with the type of service being provided (some environments might consider printing checks and swiping credit cards at the table tacky.)

More Space Available: Space once taken up by fixed POS stations can be used for other revenue producing, or cost saving purposes.

REDUCE COSTS DUE TO…

Fewer Servers Required: More tables can be assigned to servers without compromising service. The efficiency introduced by use of handhelds can shave two to ten minutes in processing an order, depending primarily on the number of customers sitting at the table and the distance from the table to the fixed POS station. This means one can assign one or two more tables to each server, resulting in fewer servers required, typically 10% to 25% less.

Shorter Server Training Time: Since the menu information is available at tableside, servers do not have to memorize all the item/modifier options to be effective.

Improved Server Retention: Allowing servers to handle more tables, more effectively, means more tips. This results in a more stable workforce for the restaurant, and reduced training (of new servers) costs.

Fewer (if any!) pencils and pads: This can add up over the course of a year. It also makes your business “greener”!

More energy efficient POS system: Typically a 5 fixed station POS system would be replaced by 2 fixed POS system + 8 to 10 handhelds. This translates to about 10Kw hour energy savings per day, assuming each fixed station consumes about 200 watts (the power required to charge the handhelds is minimal in comparison, about 5 Watts per handheld.)


OTHER BENEFITS…

Backlit screen easier to read in dimly lit environments. This makes it easier for the server to see what they are entering and to review orders.

Better order management: useful information such as missing drinks, appetizers or entrees can be easily displayed, helping the server identify potential problems.

BELLS AND WHISTLES

The benefits listed above are directly related to the more efficient processing of customer orders. But even more benefits can be squeezed out of handheld use by servers by adding non-POS functionality. Here are some:

Pictures of dishes: With the touch of a button the server can pull up the picture of a dish to show the customer.

Ingredients, nutritional Information: Customers requesting this information can get an instant response by use of handhelds.

Customer Relations Management: Handhelds can be used to access customer information, such as preferences (seating, food, etc.), enhancing customer service.

But the important thing to realize is that any one of these added benefits, attractive as they might be, probably does not justify the investment in a handheld for every server. These added benefits are only possible if the core, order taking functionality is part of the handheld package.

SO WHERE ARE THEY?

The restaurant industry has always recognized the potential benefits of handheld ordering systems. It was over 20 years ago that the first handheld systems came on the market. These early systems used numeric keypads to enter the PLU codes for items, and infrared transmitter/receivers to relay the information between the handhelds and the POS system. Later systems started using radio frequencies to transmit the data, improving the communications reliability. But still, even after 20 years of improvements in handheld systems, the market has yet to embrace the technology. The systems have been relegated to niche markets such as stadiums, and other environments where the distance between the customer and the preparation areas is large. So why is it that in spite of all these potential benefits handhelds are rarely, if at all, seen in our restaurants?

The reasons for the low adoption rate of handheld systems are manifold, and have included problems with size, weight, battery life, security, reliability, order taking efficiency (how many steps does it take to order an item), ease of use, functionality, RF interference, RF licensing, and, of course, price. But the current generation of handheld devices has essentially overcome most of these problems, leaving the “Order Taking Efficiency” and “Ease of Use” issues as the biggest obstacles to the widespread adoption of handheld systems in hospitality. In the end, handheld order taking systems will have to become as efficient and easy to use as their low tech counterpart, the pencil and pad, before they stand a chance of becoming the new paradigm in Hospitality POS Systems. Compelling benefits alone are not enough to overcome objections to usability.