QLess Breastaurant partner Twin Peaks is growing! Here is one of their secrets
Here is a Fox News report on how Twin Peaks is growing fast in this economy. Want to know how? Here’s part of their secret:
Twin Peaks Webster has only 60 tables, but they do about 5000 customers per month on their wait list. They’ve tried calling people manually in the past, and it just didn’t work well. They were looking for restaurant pagers but discovered QLess and thought mobile wait management would provide a better solution.
We carried out an analysis to determine the estimated Return On Investment that Twin Peaks has seen from QLess so far. The executive summary is that, for every $1 that they’ve spent on QLess, based on our observed data at Twin Peaks, they’ve made $22 in additional revenue. We also further estimate that based on our observed data at other restaurants, and applying that data to Twin Peaks, they’ve made a total of $129 in additional revenue for every $1 that they’ve spent on QLess. The true ROI likely lies somewhere in-between, but we feel that even a 22x ROI on the low end is a huge success story.
Here are the details of the analysis:
QLess Mobile Queuing makes customers more patient, and willing to wait longer for a table, by allowing them to wait wherever they want, however they want. This effectively extends peak hours, and allows them to seat more customers with QLess Mobile Queuing than without. We can measure its effect at Twin Peaks by comparing customers entered into QLess without phone numbers to those entered into QLess with phone numbers. In this case, over the past 9 months, 21% of those customers who did not give the hostess a phone number were no-shows, and 18% of those who did give a phone number were no-shows. This is a decrease in no-shows of 16% due to QLess Mobile Queuing, resulting in 2000 customers seated who otherwise would have got tired of waiting, and left before you were ready to seat them.
QLess Mobile Queuing sends a message to customers that join the wait list that reads:
Save this # & text the words “Twin Peaks Webster” to it to join our wait list any time, anywhere! Happy? Post a review of us on Yelp! http://bit.ly/jeU0aZ
This has resulted in 146 customers who joined the wait list by texting in and were eventually seated over the past 3 months.
Increase in Yelp Reviews
The Yelp link in that same message has also increased the number of reviews posted on Yelp.com about Twin Peaks Webster from 1.7 reviews per month to 2.3 reviews per month.
Reduction in Turn-Aways
QLess Mobile Queuing also results in a reduction in turn-aways, which are customers who are given the forecast wait time for a table by the hostess, and then choose not to join the wait list because it’s too long. This effect is difficult for us to determine from your usage data. However, in multiple in-person case studies, we have done experiments where customers are given the forecast wait time, their reaction is recorded, and then they are told about the QLess Mobile Queuing option, to hold their spot on the wait list using their cell phone. We then record what percentage of customers change their mind and decide they’ll wait. Across all of our studies, we have seen a 75% reduction in turn-aways due to QLess Mobile Queuing, resulting in an average increase in the number of customers ultimately seated by 17.6%. As we have not been able to observe this effect directly at Twin Peaks, this figure is just an estimate, but we estimate that Twin Peaks as seen 10,423 additional customers seated due to the reduction in turn-aways.
Expansion to More Restaurants in the Chain
Twin Peaks has already gone from one QLess restaurant to many restaurants by word of mouth following the success of their initial deployment.
Want a free analysis of what QLess could do for you? Contact QLess today at http://qless.com or 800-4-0-LINES (800-405-4637).