Mobile Apps for Restaurants: Is it Worth Spending?
In the quest of any business to improve the efficiency of its operations and to reach its target market, a variety of tools are being used. One good example of such would be mobile apps, which are commonly used by restaurants. The management of such establishments contracts the services of developers in order to create mobile apps that will allow the business to tap a greater portion of their market. However, the use of such is not something that comes in the absence of costs. In this case, many people are asking if it is worth the expenses. The succeeding paragraphs will let you know more on how it can provide the best value for the financial resources of the business.
To compute for the ROI of a mobile app for a specific restaurant, the following valuables will be used:
C = the number of customer who are anticipated to download the app
V = the number of additional visits that can be made by the customers in a month
S = the average amount that is spent by the customer when visiting the restaurantIncrease in monthly revenue = C*V*S
The key variable in the computation of the ROI is C, which is the number of customers that are anticipated to download the app. For the purpose of this article, let us say that a total of 50 customers are anticipated to download the mobile app of the restaurant. This is a conservative estimate. Based on the past records of the marketing team of the restaurant, let us say that an average customer makes at least 2 visits to the restaurant within a month and spends at least $15 per visit. Hence:
C = 30
V = 2
S = 10
From the computations that have been provided above, it can be clearly seen that the restaurant can make additional $600 monthly revenue, provided that their estimates will be true. To specifically see the ROI, you need to know the price of creating the app, or how much have been paid to the developer. For the purpose of this article, let us assume that the cost of app development is $100. Again, this is just an estimate, and will vary depending on the developer that will be chosen. When you subtract the amount of additional revenue anticipated from the cost of mobile app development, you will get $500. This is already the amount of sales that can be realized, less the amount used to trigger the additional figures. Assuming all other variables are constant, this equates into a 500% ROI, which is very attractive. With this, there is no wonder why more and more restaurants, among other establishments, are using mobile apps to increase its profitability.