Restaurant Text Pager Systems And Cell Phone Pager Systems - A Cost Benefit Analysis

By Author: Eric Schmidt
Total Articles: 8
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The purpose of this article is to explore the practical applications of Cell Phone Pagers or Restaurant Text Pager systems, to evaluate their return on investment and speculate as to the future of the guest pager system.

Guest Pager system technology has evolved beyond the Coaster Pager to what is now known as the "Cell Phone Pager" or "Restaurant Text Pager". Savvy Restaurant managers, hotels operators, health care administrators as well as retailers are now realizing the efficiency and communication power of the mobile phone in terms of a guest services tool, that can enhance operations while keeping costs down. What makes this possible is the proliferation in mobile phone users and the advances in hand set technology i.e. smart phones, SMS, MMS, email, the mobile web and of course mobile applications (thanks to Apple). That fact that so many people have mobile phones means just about everyone has their own cell phone pager, another words the business owner no longer has to invest in costly pager equipment ($2000 - $6,000) in order to communicate with his customers.

According to the Mobile Marketing Association, ...
... there are over 4 billion people with cell phones, 5 times more mobile phones than laptops and computers, 272 million mobile subscribers in the U.S. 91% of them keep their phones within three of themselves 24/7. 76% of the cell phone users actively text messages, with an open rate of 95%. What are the benefits associated with cell phone guest pager system?

• Start up costs can be reduced by about 75% (from $4000 to $200)

• Pagers loss will be decreased by greater than 100% ($70 to 0)

• 8 out 10 guest have a guest pager system with them i.e. a cell phone

• The ROI is less than 12 months

• The best cell phone pager system bundle the wait list cue, call a head seating and voice / text guest notification

• No server or software to load or maintain on your PC or network

• Guests have the ability to respond to the page when using a cell phone (i.e. click to call)

• Guest appreciate the freedom

• Sanitary compared to coaster pagers and reduces the spread of influenza, H1N1 and staff bacteria

• Mobile marketing module (text coupons, mobile trivia, etc) to drive traffic

COST BENEFIT ANALYSIS OF RESTAURANT PAGER SYSTEMS

Although expensive, the restaurant pager systems developed in the 90s are simple to set up and simple to use. According to a leading manufacturer of coaster pagers, the standard restaurant pager system will come with 20, 30, 40 or 50 pagers depending on your wait time. The average costs for a restaurant pager system can range from $2,500 for 20 pagers to well over $5,000 for a 50 pager system. Determining the number of pagers you need can be tricky and you always want to have enough but each additional pager can cost up to $70. A common frustration is having to replace missing pagers, not because they break, the guest usually walks off with them.

The return on investment from using cell phone paging starts with system startup costs are reduced by up to 30% because fewer pagers are required. By using fewer pagers, restaurants will lose fewer pagers, thus saving them money over the life of the system which is typically 4-5 years. In many restaurants with waiting times that average 45 minutes, the loss rate is about 1-2 pagers per month. With an estimated cost per pager of $45, this will break down to $90 dollars a month or more that could be saved if the restaurant could use cell phone paging and a smaller number of pagers per system. In order to utilize cell phone paging, a broadband internet connection is required at your hostess station.

For most, this expense is already built in to the overall networking cost of your restaurant so no additional costs are required. Here is an example of the standard ROI in a restaurant with a 60 minute wait. Turning tables - if you could turn on average another 2 parties per night through the restaurant that goes on a wait 2 nights per week then in one month you would turn 8 parties. If your average 2 party ticket is $30.00 then you would see a sales increase of $240.00 per month or $2880.00 per year. Losing Pagers if you could reduce the amount of pagers being lost by 2 pagers per month than you would benefit from a savings of about $120 per month or $1,440.00 per year.

Capital Costs of Guest Pager Systems

When you purchase a system for a restaurant that is on an hour wait then the standard is to order 40 pagers. With the average cost of $60.00 per pager the restaurant if using cell phone paging you can avoid the entire costs of 40 pagers x $60 = 16 which equals $2,400.00 plus the cost of the transmitter, which is another $2000 for a total savings of $4,400. The ROI can be seen both in the upfront savings as well as monthly and yearly. If you are on a wait managed my a cell phone or text messaging paging system that system will give you the flexibility and functionality that will be the most effective in running your wait. This does not factor in the added benefit of automated your wait list that is typically part and parcel to today's cell phone pager systems, according to Social Mobile Trends.com

Consumer Acceptance of Cell Phone Pagers

There is a correlation between the length of the wait time and consumer satisfaction. The longer the wait the less satisfied the guest is. My observation has revealed the mobile phone, particularly feature phones and smart phones, keep guests distracted while they wait. Many guests, while waiting, tend to talk, text or play on their cell phone making the transition away from traditional guest pagers to restaurant cell phone pagers a natural evolution. According to restaurant owner Phil Conti of Paitti Restaurant Bar and Grill. "Everyone has a cell phone and everyone is either looking at it or talking on it, especially with all the iPhones and Backberrys."

ROI: SMS TEXT MESSAGE MARKETING

The value added benefit of cell phone text pagers is the opportunity to harvest guest cell phone numbers for a permission based mobile marketing campaigns. Houlihans, Brinker International and many other restaurant industry leaders have been cashing on the mobile marketing phenomenon. A word of caution, choose a mobile technology firm not just a mobile marketing firm that specialize in developing mobile marketing solutions, applications, mobile websites and mobile marketing campaigns. Unlike the traditional pager industry these small dynamic firms bring a lot more to the table, according to John Barker, President of iT-Worxs, LLc, an IT development company specializing in interactive technology development. "They can keep up with the fast pace of innovation and make sure your aren't left with yesterday's technology.

Brandon Munson, MBA, is the founder of Fulcrum Design, LLc, a restaurant enthusiast, foodie and blogger. Fulcrum Design developed the best of breed restaurant text / voice restaurant pager solution Mobile Matradee. Mobile Matradee is a 3 in 1 restaurant guest pager / wait list management and mobile marketing solution. To learn more about Mobile Matradee visit http://www.mobilematradee.com, or to learn more about our company visit