Operations

Operators are turning to all-digital transactions

Leaving cash payments in the past.

While Microsoft may be at the forefront of technology, Mark Freeman, senior manager of global employee services, admits he himself was the biggest obstacle to turning his foodservice operation cashless.

mobile phone apple pay

The Redmond, Wash., headquarters’ foodservice contractor was pushing the idea, and Freeman was skeptical of how payment apps and paying online or via tablets would affect the customer experience.

“When new concepts are brought to me, I first analyze them in my head for customer acceptance,” Freeman says. “Will they use it? Will it provide a superior experience? I also need to understand that it is a stable product and we won’t have to allow for constant downtime.”

The proof for Freeman has been in the numbers. Microsoft’s mobile foodservice app has upped cafeteria traffic by 24 percent since it first was implemented three years ago, Freeman says, and the check average is up 14 to 18 percent.

The future is here when it comes to mobile and online payment apps for noncommercial foodservice. Operators have some advice for those making the jump to mobile-payment light speed.

Find the right partner

Austin Groff, director of foodservice for West Ottawa Public Schools in Holland, Mich., interviewed several app providers before selecting a provider that could create an app that also let students and parents calculate calories or tap a link to the school’s payment website to purchase meals. In addition, the app needed to allow each school’s foodservice supervisor to track the number of daily servings.

“We made the decision … because [the app] did more than just put your lunch menus with nutrition information online,” he says.

Put in the time

It took University Dining Services at North Carolina State University in Raleigh about six months to integrate the mobile-ordering app Tapingo. NC State needed an app that would allow students to use funds from their existing meal plans as well as credit or debit cards.

Through the app, students can order from any campus retail operations and pick food up or have it delivered. “It’s driving sales,” says Randy Lait, NC State’s senior director for hospitality services. “[On one day in February] we did $8,000 in additional revenue.”

Keep it safe

Make sure the app encrypts credit card information as payment is processed. At Microsoft, employees order their food on tablets at cafeteria kiosks or via a smartphone app, and can pay with credit or debit cards, apps such as Apple Pay or through meal plan accounts set up through Microsoft’s human services.

“With point-to-point encryption, the payment system is a lot more secure,” Freeman said. “It reduces the risk to zero.”

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