Quick Summary
With the massive growth of food delivery services like UberEats and rise of digital ordering, more and more restaurants are looking to get an online ordering system. Restaurants now have two main options - readymade, off-the-shelf systems or custom built systems tailored to their specific needs. But how do you decide what’s the right approach for your restaurant? Here we’ll compare the key differences between readymade vs custom restaurant delivery systems.
Introduction
"Technology gives us power, but it does not and cannot tell us how to use that power." - Jonathan Sacks
The above quote perfectly sums up the dilemma restaurants face regarding online ordering systems. Technology has made it possible for restaurants to take orders digitally, but how each restaurant uses this power depends on their unique situation and goals. Off-the-shelf readymade systems provide a quick and easy way to get online ordering up and running. But custom systems offer more flexibility to tailor the technology to a restaurant's distinct needs.
In this article, we’ll compare the pros and cons of each approach to help restaurants make the right choice for their business. Readymade systems offer simplicity and low cost. But custom systems allow more customization and integration capabilities. The right solution depends on factors like budget, technical needs, and growth plans. Let's dive in to the key differences.
Features
When it comes to features, readymade systems take a one-size-fits-all approach, while custom systems can be tailored to each restaurant's needs.
Readymade Systems
Readymade online ordering systems come with the benefits of readymade software and offer a preset bundle of standard features. This allows quick and easy implementation since the platform is already developed and restaurants simply have to sign up. Features typically include menu management, taking online orders, processing payments, and analytics. These systems are designed for simplicity and broad applicability.
For example, ChowNow and Toast Tab are readymade systems with drag-and-drop menu builders, order management, and reporting. Everything is pre-built so restaurants can get online orders flowing quickly.
Readymade systems also involve very limited configuration and customization. The platforms are standardized to work for a wide range of restaurants. Other than some branding and menu changes, restaurants have to work within the system's existing features and settings.
UberEats and Grubhub are examples of readymade ordering marketplaces. They offer restaurants easy onboarding but limited control over the ordering experience.
Custom Systems
In contrast, custom online ordering systems are built from scratch for each restaurant. This allows the system to be tailored to the restaurant's specific functional and technical requirements.
For example, custom systems can integrate directly with a restaurant's POS system, accounting software, inventory management, and loyalty programs. Readymade systems have little to no ability for deep integrations.
Since they start as a blank slate, custom systems are more complex to build. But the end result is an online ordering platform aligned with the restaurant's priorities and workflows. Things like dine-in ordering, group ordering, catering and delivery can all be supported based on the restaurant's needs.
The drawback is that custom systems require more time and technical expertise to develop. However, they provide more control and customizability for restaurants with complex requirements.
Ordering Options
Readymade and custom systems also differ in the types of ordering options they offer. Readymade platforms focus on delivery and pickup. But custom systems can support a wider range of order taking.
Readymade Systems
The vast majority of readymade ordering systems cater towards takeout and delivery orders. Their features and workflows are optimized for remote ordering and off-premise dining.
For example, customers can easily browse menus, add items to their cart, enter a delivery address, and pay online. But options for dine-in orders are very limited.
Tableside ordering and complex order types like group orders or catering are generally not supported by readymade systems. Their simplified ordering process caters most towards delivery and takeout.
Custom Systems
For restaurants with significant dine-in business, custom ordering systems can provide more robust support beyond just online ordering.
For example, custom systems allow customers to place dine-in orders remotely to reduce wait times. Guests can order from their phone and have food delivered to their table. The system can even integrate with table or customer management to deliver orders to the right location.
Custom platforms can also accommodate different order types like catering, group orders, and customization options. The flexible system allows restaurants to support diverse order scenarios beyond just standard online ordering.
In addition, features like split inventory for dine-in vs. online orders helps restaurants manage channels appropriately. This level of sophisticated order taking isn't feasible with rigid readymade systems.
Analytics and Reporting
Readymade and custom systems also provide differing levels of data and analytics capabilities.
Readymade Systems
Most readymade ordering platforms include standard reporting on sales, orders, and menu item popularity. Restaurant owners can get an overview of their online orders and basic business insights.
However, customization is limited when it comes to analytics. Readymade systems offer somewhat generic reports to cater to all of their customers.
They lack advanced features like business intelligence integrations, custom data visualizations, predictive analytics, etc. Readymade platforms focus more on ease of use rather than deep analytics power.
Custom Systems
Custom ordering systems allow much more flexibility when it comes to using data. Integrations with business analytics tools are possible, leveraging systems like Microsoft Power BI or Tableau.
Custom solutions can also expose APIs for raw data access to feed into proprietary restaurant analytics systems. All this enables detailed segmentation and modelling for comprehensive business insights.
Custom platforms also allow restaurants to tailor reports and dashboards to answer specific questions. For example, custom attribution models can track marketing performance or guest behavior across channels.
This level of analytics sophistication is only possible with flexible custom systems. Restaurants with large volumes of data can better leverage it to their advantage.
Costs
When it comes to budget, readymade systems typically have lower upfront costs but less flexibility. Custom systems require more significant investment but allow long term control and customization.
Readymade Systems
The most significant advantage of readymade online ordering platforms is their low barrier to entry. Restaurants simply have to sign-up, connect their payment processor, upload a menu, and start taking orders.
Startup costs involve monthly subscription fees ranging from $39 to $200+ depending on features. There may also be per-order processing fees around 5-10%. But overall, readymade systems require very little financial investment.
The drawback is that restaurants are then locked into the platform and dependent on the provider. Switching systems means re-investing time and money into onboarding onto a new platform.
Custom Systems
Building a custom online ordering system has higher startup costs, ranging from tens of thousands to over $100,000 for complex systems. But the restaurant then owns the technology and data.
There are ongoing fees for maintenance, support and hosting. But restaurants avoid recurring licensing costs and vendor lock-in.
While requiring greater investment up front, custom systems provide full ownership and control over the long term technology strategy. And integration capabilities can allow increasing returns on investment over time.
Ownership and Control
When it comes to system ownership and technology control, readymade and custom systems are almost complete opposites.
Readymade Systems
With readymade systems, restaurants are essentially renting the technology. The platform provider owns the software, controls updates, and manages all the data.
Restaurants have very limited ability to customize features or integrate with other systems. They are dependent on the provider's roadmap and support policies.
Limited control and lack of ownership can become frustrating for restaurants as they grow. But initially, it allows fast implementation without the headaches of managing your own technology.
Custom Systems
Custom online ordering platforms are owned, managed, and controlled completely by the restaurant. Since they paid for the system's development, custom systems put restaurants in the driver's seat.
They control all guest order data, user accounts, and system access. Customizations, integrations, and enhancements can be developed to meet evolving needs.
The main trade-off is restaurants take on responsibility for hosting, maintenance, and support of the ordering system. But in return they gain flexibility, integration capabilities, and independence.
Integration
Integration with restaurant tech stacks differs significantly between readymade vs custom ordering systems.
Readymade Systems
Readymade platforms essentially operate as separate silos. They provide online ordering capabilities but have little ability to share data with other systems.
Some readymade systems like Toast Tab or Clover Online Ordering integrate with their respective POS systems. But overall, options for integration are very limited.
Readymade providers don't allow direct access to order and transaction data. And they limit how much their systems can sync with others. This keeps third-party integration complex and costly.
Custom Systems
A primary benefit of custom online ordering systems is integration flexibility. Custom platforms can be built with open APIs and interfaces to facilitate connections with other applications.
For example, directly linking a custom ordering system with a restaurant's POS system enables seamless menu, inventory, and order management across channels. Kitchen display system integration further optimizes order workflows.
Custom platforms can also integrate with customer databases, loyalty programs, analytics tools, and accounting systems. Robust API support enables numerous integration opportunities not feasible with readymade systems.
The result is a centralized technology ecosystem that maximizes business efficiency and customer experience.
Conclusion
To summarize, readymade and custom restaurant online ordering systems cater to different needs:
Readymade Systems
- Simplify quick setup with standard features
- Low monthly costs but limited control and customization
Custom Systems
- Allow deep customization and integration
- Higher startup costs but ownership and flexibility
Ultimately, the decision depends on each restaurant's budget, technical needs, and growth goals. Startups may benefit from choosing readymade systems to test ideas and get to market faster.
But established restaurants with complex operations or requirements will likely find greater long term value in custom systems. The ability to tailor the technology to specific needs and processes outweighs the initial investment.
Regardless of which approach is chosen, developing a thoughtful online ordering strategy is key to boosting customer convenience. Technology empowers restaurants to meet the growing demand for digital ordering.
