DATE: May 14, 2014

TO: Shannon Marie, Subway Manager of Monrovia

FROM: Thomas Barnhart, Employee

SUBJECT: Advantages of Delivery and Online Ordering


It has been brought to my attention that our Subway needs to increase its service to
customers. This report will identify the problems of our current service ordering
method (by telephone), as well as provide solutions that will maximize efficiency
and overall success for our business.

This report will examine the benefits of online ordering and local delivery services,
and how they will bring in more customers. To collect data for this report, I have
researched several professional publications as well as looked into other Subways
that currently offer online ordering.

Problem:

An ongoing problem we face is the inconvenience of large orders by telephone. We
know that orders on the phone can be easily misunderstood due to bad reception or
background noises. This has caused orders to be wrong, which leads to disappointed
customers.
Also when ordering by phone, customers are not able to see the menu and are
forced to ask us what we have. Having to deal with orders by phone and in store
orders at the same time has caused inefficiencies with service.
Not having a local delivery system has affected our business. I have answered
countless phone calls with people asking if we deliver. Every time that I had to tell
them that we do not, has hurt our customer growth. Many customers have also
suggested that we should start delivering. This shows that our customers value
delivery.









Solutions


Why Online Ordering Will Benefit Our Business:

Many quick-service chain restaurants are moving toward mobile ordering and
payment. Online service technology is becoming more convenient than traditional
orders by telephone (Parpal, 2014).

A National Restaurant Survey from 2006 indicated that 34% of adults reported that
take-out food was essential to their way of life. A third of adults favor to-go meals, as
well as take-out and delivery options among all fast service restaurants (Parpal,
2014).


Consider the following facts:

Restaurant websites are typically visited by 48% of adults.

13% of consumers have placed orders online for take-out or delivery.

Online orders provide convenience to people placing large orders.

Modern POS systems can manage online orders effortlessly.

Faster take-out service brings in more customer walk-ins for to-go orders
(Parpal, 2014).


How Online Ordering Will Benefit Us:


Easy Access with Viewing Menu Online: Customers will be able to see and
browse the Menu. This allows them to decide exactly what they want.

POS System Maximizes Efficiency: Todays modern POS systems are easy to
set up and manage online ordering. This is valuable for families deciding on
large orders and gives us more time to focus on servicing customers in the
store (Vollmer, 2014).

Customers Place Orders Faster & More Conveniently: Customers can
place orders on their own time as opposed to waiting until they get home or
having to place an order by phone. If customers are in traffic or on a break,
they can place an order quickly and easily. This also eliminates being put on
hold when ordering by phone.

More Customers Order Food Online: As more people are using mobile
devices to surf the web than laptops and computers, restaurants that acquire
online service orders easily attract more customers as this trend continues to
grow. (Parpal, 2014).

Benefits of POS Systems:

Acquiring Point of Sale Systems can be a significant expense, but in return it can
make a business much more profitable. POS systems allow individual customers to
be tracked and managed. This will greatly improve our customer service, customer
loyalty, and retention.

POS systems offer insight to customer sales by storing data about what customers
have ordered in the past. These systems also provide details on customer patterns
and trends, allowing a business to better control their costs and expenses. It also
gives mangers the power to make informed decisions in all aspects of the business,
and not just relying on experience (Vollmer, 2014).

Subway Phone App:

Subway restaurants in California are now offering online ordering that allows
customers in roughly 2,000 units to skip the line. The app is called Subway
Ordering, by ZippyYum, and has been available to locations throughout California
since March 2013 (Jennings, 2014).

Since active Subway Ordering has gotten over 400,000 customers downloads.
ZippyYums software company is owned by the Subway franchisee, Daniel Riscalla,
and is available for iPhone and Android devices (Jennings, 2014).

This app is free and offers a highly customizable menu, allowing customers to order
in a timely manor. Customers can choose to have their meals scheduled for pickup,
or, if available, ready and delivered within 15 minutes. The Subway ordering app
also allows guests to link their account to a credit card and pay ahead of time
(Jennings, 2014).

According Jennings, customers are much more accepting of the technology, and they
are adopting it faster. About 15 percent of his sales come from mobile orders, and
sales overall have improved because of faster throughput and improved order
accuracy (1).




In addition, the Subway corporate is also working on developing a payment system
that may be rolled out systemwide. Once the company moves forward with a
mobile pay solution systemwide, ZippyYum's app will seamlessly integrate users
(Jennings, 2014).

How Setting up a Local Delivery System will Attract More Customers
Food delivery systems are also very convenient for both the customer and us.
Customer satisfaction is achieved when food is brought to their door. Elders and the
disabled who cannot get out of the house will benefit from our delivery system, as
well as kids who are too young to drive but are in need of food. (Priddy, 2014).
Delivering also serves busy consumers who do not have time to run and get food.

When planning to start up a delivery service, think about contracting an outside
delivery service. Outsourcing delivery can be a good choice for your operation for
the following reasons:
The delivery service will manage a delivery phone line for you, saving you on
phone payments and again on labor.

Services are cost-effective since there is no additional payroll, and the staff that
you do have can be used for in-house labor rather than delivery work.

Delivery services often cover a greater area and distance, making the option
more convenient for customers.

You do not need to purchase any delivery vehicles and any needed equipment,
since your contracted delivery service will do that for you (Parpal, 2014).
Plan to set up Personal Delivery Service System
Setting up a personal deliver system to service our local customers is no easy task,
but it can be successfully implemented if we consider taking the following
measures:
1. Determine if we will instill a minimum order charge for deliveries.
Some restaurants require a minimum order of $10 or more for delivery.
Establishing a minimal order charge will would make our delivery more cost
effective



2. Deciding on offering free delivery. Offering free delivery would help
promote our services and attracted customers more easily. Before offering
free delivery, we need to decide if it is affordable. If it is not then we will
charge a slight delivery fee.

3. Training our employees for delivery drives. Proper training needs to take
place for our employees to be successful delivery drivers. If we need to hire a
couple more employees for this task then they must be people who are
honest, personable and representative of the new service we are providing to
our local guests.

4. Successfully market our delivery services to the surrounding areas.
Promoting our services for banquet events or business luncheons can help
spread the word through Monrovia. Passing out adds and posting up flyers
through out the town will gain peoples attention (Parpal, 2014).


Most of our local competitors such as Chipotle, Quizznos, and Firehouse Subs, also
do not offer delivery. Adding a delivery service system could help us gain the edge
on our local competitors as well as satisfy and retain more customers.

Conclusion and Recommendations
To increase our customer service and make our business more profitable, I suggest
we do the following:
1. Look into setting up our own Online Service System with Point Of Service
(POS) technology.

2. Acquiring the Subway Online Ordering app by ZippyYum once it becomes
system wide.

3. Setting up our own personal delivery system for customers in the local area
by following the suggested planned steps listed above.




Works Cited

Vollmer, Diana. (2014). The Magic in Your POS System. Database: Business Source
Complete. Vol. 80, Issue 11. Retrieved from
http://eds.b.ebscohost.com.proxytu.researchport.umd.edu/eds/detail?sid=a7a62922-
b13d-45c1-9231-
345252e2aadb%40sessionmgr115&vid=4&hid=101&bdata=JnNpdGU9ZWRzLWxpdm
Umc2NvcGU9c2l0ZQ%3d%3d#db=bth&AN=95017942&anchor=toc
Priddy, Brenda. (2014). Advantages & Disadvantages of the Food Delivery System. Pg
(4). Retrieved from
http://www.ehow.com/list_6332193_advantages-disadvantages-food-delivery-
system.html

Parpal, Monica. (2014). Utilizing Restaurant Technology Pg. 1-3. Retrieved from
http://www.foodservicewarehouse.com/education/restaurant-management-and-
operations/utilizing-restaurant-technology/c28005.aspx
Jennings, Lisa. (2014). Subway Goes Mobile. Database: Business Source Complete.
Vol. 48, Issue 8. Retrieved from
http://eds.b.ebscohost.com.proxy-
tu.researchport.umd.edu/eds/detail?sid=f6704707-85f2-4280-bf48-
c5d2924cd876%40sessionmgr115&vid=36&hid=109&bdata=JnNpdGU9ZWRzLWx
pdmUmc2NvcGU9c2l0ZQ%3d%3d#db=bth&AN=95785254