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A Thing

Wireless razzmatazz for restaurateurs

By Steve McRae

Advanced technology and the nature of the restaurant market present you, as ISOs and merchant level salespeople (MLSs), with great opportunities to leverage your expertise into value-added wireless services.

In most restaurants, the payment process is a time-consuming drag on productivity and an irritation to customers. It distracts servers from their main responsibility of sending diners away in good spirits.

Bump the bottleneck

Whether small or large, most restaurants share a common bottleneck at the pay station. It's not uncommon to see servers queued up waiting to execute card payments while incoming customers line up at the door, and diners who are finished eating squirm in their seats wishing for a quicker exit.

Wireless can revolutionize the restaurant industry by simplifying and speeding the payment process with new pay-at-the-table systems. Shaving five to 10 minutes off of the average table-turn pays off in greater revenue for restaurant operators, increased tips for servers and better customer service.

Seize the pay

But how do you convince your existing restaurant customers and new prospects that this is the time, and you have the right solution? There are three key factors to success in this emerging market: knowledge of available solutions, pain-free implementation and immediate returns.

With the increasing use of Wi-Fi and mobile phones, wireless is nowhere near as intimidating as it was two or three years ago. Nevertheless, when it comes to implementing payment processing over wireless, you are asking restaurant operators to step beyond their normal comfort zone. So it's vital that you educate yourself on how you can eliminate implementation worries.

Open the options

VeriFone has been working with ISOs and MLSs, Wi-Fi equipment vendors, Internet service providers and cellular service providers to map out easy-to-buy turnkey options to smooth your foray into this burgeoning new market.

The effort has focused on key options: business-grade networking equipment; pay-as-you-go or free loyalty-based hotspot service; professional site inspection and installation; tailored broadband and networking solutions; general packet radio service (GPRS) multicarrier switching; and equipment rent-to-buy programs.

Networks and hot spots

While residential Wi-Fi networks have become relatively easy to set up and operate for the casual computer user, this type of equipment may not be well-suited for many businesses. First off, in a commercial operation, you're likely to run into conflicting signals from other businesses.

Second, you need to provide assured quality of service to businesses that want to offer hot-spot service to their customers or use multiple de-vices in a pay-at-the-table environment. Network equipment provider Netopia is one company that has invested the time and effort to understand the needs of the merchant market and develop products that offer superior security, reliability and performance.

Site inspection and installation

Professional site inspection and installation can be an important cog in a smooth-running wireless customer relationship. As Tim Cormier pointed out in his June 12, 2006, article "Bringing merchants the wonders of Wi-Fi" (The Green Sheet, issue 06:06:01), a variety of factors can impact optimum performance of your Wi-Fi implementation.

These include conflicts with other devices utilizing the same bandwidth, such as cordless phones, Bluetooth devices and even microwaves.

Walls, doors, floors and walk-in freezers also can impact radio reception and create dead spots if access devices are not properly sited. Professional site inspection consultants have the training and specialized equipment to take the guesswork out of network access setup.

Tailored broadband solutions

Broadband services that are attuned to the needs of retailers may also be more appropriate than calling in the local cable company or local DSL (digital subscriber line) service provider. New Edge Networks, for example, helps retail merchants migrate to a complete broadband networking solution. It can implement solutions all the way up to full-scale managed network services and virtual private networks (VPNs).

Unlike many DSL companies, New Edge Networks can provide DSL service with upstream speeds (the speed at which you send information) equal to downstream speeds (the speed at which you receive information).

GPRS multicarrier switching

For smaller operators who may only need one or two wireless payment systems, cable or DSL may not be the best option. Cellular GPRS data services are available for about $20 a month per device. They may be a lower-cost option than DSL and cable broadband.

Restaurant operators based in areas of overlapping cell phone coverage - or who need mobile solutions for delivery service - can set up service that uses both Cingular and T-Mobile coverage, while maintaining just one account and billing. This provides restaurants with maximum flexibility without any conflicting service-provider hassles.

Rent-to-own program

All well and good, you say, but it's still going to be tough to convince restaurateurs to invest in technologies that support the many benefits of wireless POS solutions. That's a valid issue, but there is a solution. Rent-to-own programs make it easier to overcome even the most resistant restaurant manager: They offer a very-low-cost entry point.

In addition to reduced upfront costs, rent-to-own bundled solutions can provide a choice of code division multiple access (CDMA) or GPRS service options; no-fault protection against spills, drops or failures; provisioning and activation of service; a monthly data plan for transaction processing; and the option at end-of-contract to purchase the equipment for a minimal fee or to swap it in for newer technology.

Call up your troops

These various service components provide you with a virtual army of partners to handle just about any contingency in making a successful wireless payment sale. The goal is not to turn you into a wireless geek but to provide you with a complete toolkit so you can deal with any situation and make it pay off.

Steve McRae is Director of Solutions Delivery with VeriFone. He can be reached at steve_mcrae@verifone.com

Article published in issue number 061001

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