Payment methods in hospitality have rapidly changed and continue to do so. Now, customers can pay via app, a tap of their card, or indeed, scrap all of that if they are shopping in an Amazon Go Fresh store, so it is no surprise that we are seeing cash take a back seat in comparison to card payments.
In the hospitality sector, the pandemic proved a catalyst for this shift as proved by our GO Technology report with CGA by NielsenIQ, which found that over three quarters of people (79%) say they have been satisfied or very satisfied with the ease and speed of digital payment. With this in mind, it is important that operators keep up with trending payment methods in order to offer customers the elevated in-venue experiences that they expect.
This new report highlights not just how significant the shift to cashless payments has become but also a surprising willingness for customers to embrace what some might see as unorthodox forms of digital payment methods. From ‘pay-with-your-face’ to ‘just-walk-out’ technology, here are some of the digital payment methods you may want to consider in order to future proof your business.
In-venue apps
18% of consumers frequently use in-venue payment apps when spending time in the trade. In-venue apps were quickly adopted during the pandemic and were a lifeline to many businesses. Now they are commonplace and providing customers with the option to pay via in-venue app has many benefits. Not only does it alleviate customer frustration of having to wait to pay the bill, but research has shown that, customers tend to spend more when eating and drinking out when using apps. Total monthly spend on apps averages at £99.35, against an all-consumer average of £76.47. If customers are pleased with the speed of service on an app, they will be more likely to use it again and again.
- Wearables
Whilst 13% of customers paying with wearables may seem low, this number increases significantly amongst younger adults. For example, a quarter of 18 – 34-year-olds frequently use wearables like smart watches to pay in hospitality venues. As wearable technology gets better and better, we can expect this to further rival mobile as well as cash payments in the future. Having a system in place that can enable customers to pay this way will be important moving forwards as the technology increases in popularity. The key to providing a great experience at the purchasing point of the customer journey is to offer customers a variety of options, allowing them to shape their experience and pay however they wish. Not having certain payment options in place could make a business seem ‘out-of-date’ or ‘out of touch’.
- Just walk-out technology
Consumer interest in new technologies does not stop at ‘wearables’. In fact, our research showed much more willingness than we might have perhaps expected to use new forms of technology that will ease the payment experience. For example, one of the most popular new technology options were digital IDs, with 33% interested, and ‘invisible’ payments or just walk-out technology with 31% of respondents expressing an interest. Unsurprisingly perhaps, out of these the numbers, the amount of 18- to 34-year-olds who found such innovation appealing is at least twice as high as those in the 55+ bracket, indicating the need for operators to cater to a younger crowd and adapting to trends sooner rather than later.
While cash and card are still viable payment methods – and are options we don’t see disappearing completely just yet – there is clearly an interest amongst consumers to have forms of payment that make their customer journey more efficient, seamless and (crucially) tailored to their needs. We know consumers want a more personalised experience from hospitality venues and offering customers a breadth of choice when it comes to paying the bill is sure to be a large part of that as the technology becomes even more mainstream.
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From cash, to card, to ‘just walk out’ technology, consumers have more payment methods available to them than ever before when it comes to settling the bill.
With the desire for a quick, convenient journey high on the list of priorities for many customers visiting hospitality venues, cash has increasingly taken a back seat compared to card payments; and with newer technologies such as digital wallets and wearables gaining popularity amongst younger consumers, hospitality operators must ensure they’re keeping up with the times to ensure they don’t miss out on business from these new-tech adopters.
In the latest report in our GO Technology consumer research series, conducted together with CGA by NielsenIQ and in partnership with payments provider PayPal, we explore how consumers prefer to pay for food and drink when visiting hospitality venues, the differing trends between sectors and demographics, and the technology innovations driving change within the payment space.
Why should I download this report?
- Discover key insights into how consumers prefer to pay when visiting hospitality venues, including they use.
- Uncover five key cash, card and mobile spending trends.
- Learn how payment behaviours differ between sectors.
- Discover the new payment technologies gaining popularity amongst consumers.
Download the full report to discover these insights and more!
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The Pityme Inn saves time and money with an integrated tech toolkit
Introducing The Pityme Inn
St Austell Brewery licensees
One of four managed sites, based in Cornwall
Winners of the BII’s Licensee of the Year Award 2021
Pub and restaurant with 4 B&B rooms and apartments
3 large outside areas, including covered dining pods
“As we’ve grown, we wanted a more centralised view of the business. We’re now able to access the most up-to-date reports quickly – while other tech solutions don’t offer this, with Zonal we can look at reports live if we want to.”Jason Black, Landlord, The Pityme Inn
The business challenge
Combining a traditional pub offering, restaurant and accommodation, the Pityme Inn team were looking for a connected suite of technology to join up their operation – both in the Pityme Inn and its three sister-sites.
As the business grew, the team knew they needed an EPoS and integrated suite of tech that would grow with them and provide a centralised overview of the business as a whole, as well as at an individual site level. With aims to better monitor and manage cash and stocks – something which they had not previously been tracking, to implement a more effective way of managing their overnight rooms, as well as to use marketing tools successfully to old, new and prospective customers, access to a comprehensive dataset would be vital.
“If you are looking to expand and grow your business, Zonal will be there, along with you for the ride.”Jason Black, Landlord, The Pityme Inn
The solution
After weighing up their options, and having prior experience with the technology, Chris and Jason decided to implement Zonal’s suite of connected technology in their pubs. A range of solutions were implemented across all four venues to enable the team to easily manage all sites centrally, review cash and stock levels in real-time as well as automate tasks to help boost profits and save time. Zonal worked with Chris, Jason and St Austell to implement their tech in all four sites:
- A powerful EPoS system with robust reporting functionality
- Handheld ordering devices connected to the main POS, removing the need for staff to rekey orders taken at the table
- A fully integrated stock and order solution with real-time visibility over the whole supply chain
- Centralised reservations diary, allowing customers to book at any venue easily
- Order and Pay apps (integrated with Uber Eats)
- Loyalty
- Kitchen IQ (Kitchen Management System)
- HLS Property Management System connected to the EPoS
Having all tech solutions integrated and connected has allowed the team to have an easy-to-understand, yet detailed view of every aspect of the business as well as their customers, to make key strategic business decisions based on the customer data they acquire from the systems.
“Zonal has been great in getting us set up as well as sending people to our sites to help. The support they offer is really good – you can phone them all the hours that the business is open and they can also log in virtually to fix your system quickly. Our Account Manager helps me with anything we need and points us in the right direction if we have any questions.”Jason Black, Landlord, The Pityme Inn
Results
The business was having issues with cash loss and had no way of tracking it. Now, thanks to Zonal’s connected tech, they are able to see cash flow updates every day. Using the in-built stock system has also given them a better GP than having to do line checks and stock checks every week. Zonal’s online ordering also helped to streamline a process which staff at The Pityme Inn often found to be laborious.
Having a fully connected set of tech solutions also means that they can get an overview of the business quickly, while its integration with partners has enabled the business to have an overview of everything – the pub’s management team looks at the data a lot!
“Since implementing Zonal tech, we’ve managed to save valuable time and money, thanks to their in-built stock and cash functions. We no longer need to pay for stock takers and have a better GP as we’re able to do line and stock checks every week.”Jason Black, Landlord, The Pityme Inn
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Fill your ears with advice, tips and ideas from some of the best pub operators in the business with this new podcast series for publicans from Zonal and the British Institute of Innkeeping.
Listen to the full podcast series to learn from award-winning licensees talking about every aspect of running a pub to help you grow your business and, ultimately, boost the bottom line.
Episode 1 - Chris and Jason Black, The Pityme Inn
In the first episode of our new podcast series in partnership with the BII, we sit down with Chris Black of The Pityme Inn, winners of the 2021 Licensee of the Year award, to talk about getting started in the sector and how their business has developed since opening in 2018, the key to success for The Pityme Inn, and how they’re approaching some of the key challenges facing hospitality in the current economic climate.
Episode 2 - Tanya and Alex Williams, The Polgooth Inn
In the second episode of the Pioneering Pub People Podcast series in partnership with the BII, Molly is joined by Tanya Williams of the Polgooth Inn, winner of the Licensee of the Year award in 2018 with her husband Alex, to talk about what’s new at the Polgooth Inn, how they’ve made their mark with both the local community and tourists and what the secret to success has been for the business.
Episode 3 - David Hage & Mark Osborne, The Railway
In the third episode of our podcast series in partnership with the BII, Molly is joined by David Hage and Mark Osborne, winners of the Licensee of the Year award in 2019 with their pub The Railway. Topics covered include how both David and Mark got started in the industry and in their first pub, how they’re facing the current staffing crisis and the importance of having the right staff, and how technology helps them manage their three pub estate.
Episode 4 - Cassie Davison, The Gate Hangs Well
In the fourth episode of our Pioneering Pub People Podcast in partnership with the BII, Molly is joined by Cassie Davison, Licensee of The Gate Hangs Well to talk about taking on a pub in Covid times, building the right offering for the pub, the value of customer care and technology, and the importance of maintaining a healthy work-life balance for The Gate Hangs Well’s team.
Episode 5 - Amanda & Nick Hemming, The Heron Inn
In the fifth and final episode of the Pioneering Pub People podcast, Molly is joined by Amanda and Nick Hemming, Licensee of the Year Award 2022 winners, as they discuss how they both got started in the business, how their offering at The Heron Inn has led to success for the pub, why focussing on staff development is important, and what the future has in store!
Zonal has a wide range of technology solutions designed to make life easier and businesses more profitable. Find out more about our range designed specifically with pub tenants and licensees in mind, here!
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It seems everything is going up.
News cycles are dominated by hikes in fuel and food prices, utilities, import charges and the general cost of living. Add in a staffing crisis and the pressures of running a hospitality business, and things are arguably more challenging than ever before. The natural temptation is to cut costs and raise prices. And while both of these options have their place, so too does investing in technology that can reduce your costs overall.
Here are eight ways technology can really help your numbers.
- Keeping a closer eye on stock control
With many ingredients and items facing double-digit price increases, it is vital to know precisely what you are spending. An effective stock management tool will allow you to monitor exactly what is going out of the business and help you adjust accordingly by either changing recipes or searching for new suppliers.
- What about waste?
Another major issue is losing cash through wastage. Of course, waste of some kind is inevitable, but by using a stocktaking solution that allows you to look at what is either not being ordered, what’s being wasted in the kitchen and what is coming back on the plate, you can monitor portion sizes and reduce over-ordering of ingredients. Keeping on top of waste not only helps the bottom line but also to achieve sustainability ambitions.
- Mistakes will be made…
You may have the best staff around, but human error will always be a factor in any busy hospitality business. This can be tracked using reporting functionality within your EPoS. Not only can you see what is and isn’t selling, it can also pinpoint where errors are being made on the till or with payment devices and highlight them to reduce the problem.
- Cash free payments
More and more businesses are going cash-free, and it’s easy to see why. Contactless payment devices are not only more efficient, but they also remove any risks associated with cash. The less cash you have in the business, the less there is that can go missing.
- Make them an offer they can’t refuse
Tech allows you to create, schedule and tweak promotions linked to what is working in the business and what stock you have available. This saves time and also potentially money in terms of hours worked. You can consider producing bounce-back offers on receipts and by collating data you can also create offers for customers on key occasions such as birthdays.
- Order and pay
It was on its way before, but the pandemic certainly changed the way customers feel about ordering and paying with technology. For many it became a preferred option, meaning they can order drinks or food without running the risk of losing their chosen spot or facing a queue at the bar. With recruitment and the cost of staffing an ongoing issue, this reduces the strain on your staff, and allows the staff you do have to achieve more, by getting customers to perform some of that role themselves.
- Money up front
Not only are customers happy to order themselves they are also becoming increasingly more comfortable with the concept of deposits. In research last year, 51% told us they would be happy to pay a deposit when booking a table in a restaurant or pub. . Taking deposits will reduce the dreaded no –shows, which have so many negative consequences including lost revenue and wasted stock, but also means more cash flowing into the business.
- Turning tables into profits
A digital table management tool, such as the one in Zonal’s suite of solutions, is more than just a way of knowing how many customers are coming to dine with you. You can also set the system so it knows the volumes you can cope with during given trading periods, taking the strain off your team. Having the ability to control those numbers and access to the data at your fingertips means you can reduce money spent on staff and give available tables to walk-ins. Again, having such an effective system could reduce labour hours and help your profits.
Zonal has a wide range of technology solutions designed to make life easier and businesses more profitable. Find out more about our range designed specifically with pub tenants and licensees in mind, here!
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Introducing the TBC Pub Company
Three sites: The Bridge Inn, Ratho, The Crusoe, Largo and The Ship Inn, Elie – Scotland
10 beautiful, boutique guest bedrooms
Winners of Scotland’s AA Pub of the Year
Each with a unique venue, vibe and flavour
“We were facing inefficiencies with checks being missed and walkouts – the whole solution was complicated for staff.”Graham Bucknall, Director, The TBC Pub Company
The business challenge
As champions of quality local and seasonal produce, the TBC Pub Company were looking to invest in a high-quality, integrated technology suite to match – to improve efficiencies and maximise revenues across their three sites and deliver an even better customer experience.
- Searching for a user-friendly solution to replace their existing basic POS
- Needed an effective booking solution to manage capacity, and reduce wait times
- Were looking for a system to effectively manage room bookings and view customer accounts in one place.
“Zonal’s back-office system is simple and intuitive for our front-of-house staff to use and has brought in tighter cash control – exactly what you’re looking for as owners of the business.”Graham Bucknall, Director, The TBC Pub Company
The solution
TBC Pubs invested in Zonal’s core EPoS solution to begin with. Having heard good things from previous users, they trialled a few systems and settled on Zonal. Since then, they have also adopted Zonal’s integrated payment solution, Order & Pay, Click & Collect, online bookings and table management, and our property management system, High Level Software.
- A powerful EPoS with a good back-office system and a simple front of house user experience
- Insightful reporting and business analytics
- A centralised, cloud-based reservations diary, giving customers the ability to book quickly
- Food and drink bills seamlessly integrated with room bookings
- Quick and convenient ordering from tables
- An intuitive property management system that seamlessly integrates food and drink bills with room bookings.
- Greater visibility over customer transactions and reduced mistakes
- A safe and superior customer experience across both their sites
“When compared to other apps, we found Zonal’s to be much cleaner and easier to navigate; we found the cheaper apps didn’t look as professional, with only basic branding and customisation options. Our customers often say it looks like we built it ourselves, it looks and feels expensive!”Graham Bucknall, Director, The TBC Pub Company
Results
Implementing Zonal’s integrated solutions has given TBC Pubs a huge range of benefits across every level of the business.
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Strada enjoys a slice of success with Zonal
National casual dining restaurant operator, Strada, has teamed up with Zonal, to meet the demands of modern day diners, increase speed of service and ease payment methods.
Strada has four sites with big ambitions of growth for the coming three years, and wants to ensure that its’ technical infrastructure is up to the challenge.
Strada’s CFO said: “We had an outdated till system that wasn’t giving us the live data that we needed to operate efficiently and meet the demands of modern day diners in terms of booking, speed of service and ease of payment. Zonal’s integrated Aztec EPoS system gives us the foundations on which we can build a fully integrated hospitality IT package that supports our teams and enhances our customer experience.”
For Strada, having the confidence to work with a business that continuously invests in innovation, offers a partnership approach, comprehensive training and hands on support together with the capacity to scale was key. Zonal ticked all the boxes and the Strada team has been impressed with the service it’s received to date.
Each Strada venue, stretching from Edinburgh to Portsmouth, has installed an Aztec EPoS solution, with iServe and Zonal’s Card Payment System (ZCPS).
iServe is Zonal’s handheld EPoS Solution, which offers access to Aztec functionality on an iPod or iPad. iServe allows orders to be processed faster and tables turned around quicker with staff visits to the till reduced.
“iServe has been a hit with our front of house teams, especially those sites with large outdoor areas, it gives them greater control and they spend less time running backwards and forwards to the till, freeing them up to serve customers and better manage tables.”
With consumers demanding a faster finish, payment has also become a crucial part of the customer service journey. Research shows customers’ time is the most precious commodity of all and they expect a speedy reliable seamless payment solution.
Fully integrated with Aztec, ZCPS offers improved speed of service eliminating the need to re-key amounts, providing an overall quicker processing time.
“We have definitely seen the benefits of providing our customers with a speedy and flexible payment process. It simplifies settling bills, especially if groups of customers wish to split the total cost and only pay for what they have individually ordered,”
As for the future, Strada values the input of Zonal’s new product development team who have the knowledge and skills to bring genuine added value to the group’s expansion plans. “We are a tight team at Strada and to employ dedicated technical development specialists isn’t an option, so to be able to tap into this responsive resource is invaluable,” they explained.
Having embedded the new technology, Strada is now considering its next move with Zonal. The management team is considering introducing Tables and Kitchen iQ to further improve the customer experience.
Zonal’s Tables system, manages and optimises seating and reservations, which is tightly integrated with Aztec and the customer database, providing key information such as visit history and loyalty as part of the booking and check-in process. It helps operators, such as Strada, plan staffing rotas, maximise table turnarounds and ultimately enhance the customer journey.
And Kitchen iQ is designed to help improve speed, quality and accuracy of service and transform the overall dining out experience. It provides a comprehensive kitchen and service management solution that delivers visible real-time information to both kitchen and service staff. The versatile system can be tailored to the needs of any operation and, as it’s also fully integrated with Aztec software, it completes Zonal’s unique service tool chain.
“We are taking one step at a time and making sure we have embedded the first stage of our Zonal solutions. We plan to build on this as our business grows and functionality becomes available or becomes right for us to implement”
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Zonal is the first class choice at the University of Hertfordshire
Operating four popular entertainment venues on the busy campus of The University of Hertfordshire, the Students’ Union decided it was time to seek an intelligent technology partner.
After a competitive pitch, Zonal was enrolled at the university that is home to over 25,000 students. The four venues located on the College Lane Campus include two nightclubs, a bar and pub and attract at least 8,000 students every week.
A Licensed Trade Manager at the University said: “Our existing till system was not delivering the data we required, so we needed to explore alternatives. We initially approached Zonal because of its reputation in the hospitality sector and the pedigree of its clients.
“We were impressed by Zonal’s EPoS solutions that included integrated chip & pin functionality as well as having a comprehensive support structure in place, giving us the confidence to move forward”
To date, Zonal has installed 22 Aztec controlled terminals with chip & pin card readers. The Students’ Union is now benefiting from accurate, real time business reporting that is proving invaluable in terms of making the business more efficient and profitable through the Aztec head office and site software installed by Zonal.
They added: “The Aztec EPoS system has provided us with central control and access to data rich sales analytics which is key to identifying our customers’ spending habits. It is early days, and we are still getting to grips with the stock taking system, but can already see that this will deliver dramatic efficiencies and therefore profitability for our businesses.”
The University of Hertfordshire Student Union has plans to extend the system to include loyalty, which is so important to an offers focused student population. Research by Zonal and CGA Peach supports this approach with almost 40% of 18 to 24 year olds visiting a bar or restaurant’s website before visiting to check out the latest deals. And 73% want loyalty schemes that reward them with offers tailored to their preferences.
“Loyalty was a key part of our brief and we were impressed by Zonal’s cost effective but impressive loyalty package. We will be adopting this across our estate when the new academic year starts this September”
Fully integrated with EPoS, Zonal’s Loyalty module gives hospitality outlets a powerful insight into customer data enabling them to operate tailored customer programmes around preferences, frequency of visits and products purchased.
Loyalty programmes can be created to incorporate schemes such as collecting points, accumulate cash back or receive bonus items or discounts.
“Overall we have been delighted with the service we have received from Zonal who have taken the trouble to get to know our business and specific needs. The support helpline is excellent and the training has been very thorough”
And with mobile savvy customers, the University of Hertfordshire will also be exploring Zonal’s mobile ordering app solution.
iOrder is a ‘virtual waiter’ that allows customers to browse, order and securely pay for food and drink from the comfort of their table. It is fully integrated with the Aztec EPoS system, which means there is no additional work for operators, and displays real time promotions, menu pricing and product availability whilst linking with other app functionality, including loyalty schemes.
However, what makes iOrder unique to other solutions is that it can be completely personalised to a company’s brand, a vital element to build customer loyalty and confidence in mobile ordering.
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Haulfryn Group realises efficiencies with Zonal technology
When premium holiday park company Haulfryn appointed Zonal to design an EPoS solution for its bars, restaurants and shops, it soon realised the technology could do far more to improve efficiency across the whole business and generate new revenue streams.
Haulfryn operates 34 exclusive holiday and residential parks throughout Wales and the South of England, many of which have won awards for the quality of their accommodation and service.
The company was looking for a front-of-house EPoS system to manage retail sales on its parks and share sales data easily with the company’s Microsoft NAV accounting package. But as well as making transactions and stock-taking easier, eliminating the need to double or triple-key sales information into head-office systems and improving the quality and timeliness of reporting information received by the parks’ food and beverage managers, the company is now using Zonal’s technology to underpin its long-term growth.
Steve Lattimore, Haulfryn’s IT Implementation Project Manager, explains: “We quickly saw that there was much more capability in Zonal’s system that we weren’t yet using; tools that would improve the way we worked and help us to understand our business in ways that could make a real difference to our bottom line.”
Merchandising and marketing
The company began using the system to analyse retail sales, in order to gauge which areas of its stocking and marketing strategy were working
“Zonal’s technology allows us to see exactly where our cash is coming from, so we can understand without any ambiguity which events, guest ales or new premium products work and which need to be removed, revised, or marketed more heavily,” says Steve.
“This level of control is great for our business because it allows us to make quick decisions that improve our business based on clear, accurate, up to the minute information.”
Leisure
Zonal’s system is also helping Haulfryn to manage its thriving leisure business, which offers customers a range of activities including white water rafting, canoeing and cycling as part of the Hoseasons Go Active scheme.
Haulfryn Group
“Our leisure business is set to benefit significantly from the technology,” explains Steve.
“Not only will it allow customers to book sessions and plan their trip from our website before they arrive, but it will also enable us to create staff rotas that reflect demand, so we’re never over or under-staffed, and that is great for cost-efficiency.”
“Zonal works for our business because of its ongoing investment in evolving its solutions and continual commitment to embrace modern technology to help companies like Haulfryn operate more efficiently and harness new revenue streams,” he adds.