The true cost of missed calls for restaurants
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Nothing is more frustrating than missed revenue. During a busy dinner rush when your team is focused on creating an exceptional guest experience, every missed call represents more than just an unanswered phone ring. It’s a missed opportunity that directly impacts your bottom line.
What may seem like an outdated form of communication remains a critical, yet often overlooked, component of restaurant operations. Let’s explore the real cost behind missed phone calls and how to avoid them.
Why are missed calls a problem for restaurants?
Answering calls during peak hours is difficult, and callers might grow impatient when waiting for someone to answer, causing them to hang up the phone. These missed calls come with a cost.
Beyond the obvious lost revenue from missed phone orders, restaurants face several hidden costs as well. Let’s uncover the direct and less obvious impacts associated with unanswered phone calls.
Missed revenue opportunities
Unanswered calls lead to missed sales opportunities. If someone is calling to place a takeout order, book a reservation for a large party, or inquire about catering, they may move on to a different restaurant when no one answers the phone. Even missed calls from people asking common questions about your hours or menu can lead them to choose a competitor.
Deteriorated customer experience
When callers face extended wait times, it leads to frustration. They might be waiting for someone to answer, to get through on a busy line, to be taken off hold, or to receive a callback after leaving a voicemail. This can quickly wear away at their experience and customer satisfaction.
Plus, during peak hours, when front-of-house staff have to perform the juggling act of serving guests and answering phones, it can result in reduced service quality for in-person customers as well.
Burdened staff
Staff carry the burden when a ringing phone disrupts their workflow and divides their attention. The additional stress can contribute to staff turnover, and poor staff utilization increases labor costs.
Damaged reputation
When customers encounter consistent issues with phone service, not only will their opinion of your restaurant take a hit, but they may also share their frustration with others. Posts on social media or review sites about a negative experience can have a far-reaching impact, including convincing potential customers to avoid a restaurant.
Reduced repeat customers
Not only do missed calls cost you in the loss of immediate sales, they can negatively impact the potential of building long-term customer relationships. Restaurants already experience a lower customer retention rate than other industries. A single missed connection can be the difference between a one-time visitor and a loyal patron.
How much revenue do restaurants lose from missed calls?
The amount of revenue your restaurant loses from missed calls will depend on how many calls you miss and your average ticket price.
Starting with missed calls, if your restaurant typically misses 20-30 calls per week, assume at least half of those would’ve led to a sale, either for carryout or dine-in. That means 10-15 missed calls would’ve been direct revenue drivers.
If your average ticket price is $30, you could be missing out on $300-$450 per week, or $15,600-$23,400 per year.
That’s just a rough estimate, and those numbers will change based on your restaurant’s metrics. Also, if you consider both the direct and hidden costs of missed calls for restaurants and the calls that could’ve turned into customers through the door, that annual lost revenue number multiplies.
How can restaurants reduce missed calls?
In an industry already operating on thin margins and dealing with increased food and labor costs, you don’t need the cost of missed phone calls bringing down your bottom line. The best way to reduce missed calls is through an AI phone assistant.
AI-powered phone assistants can answer restaurant phone calls 24/7. Even during the busy dinner rush, callers won’t be met with busy signals or long waits for someone to pick up.
An AI phone assistant brings more automation to your operations. It can:
- Book reservations
- Answer frequently asked questions, like hours, location, and current wait times
- Filter out spam calls, allowing staff to focus on actual customers
- Be customized with a voice that fits your brand and doesn’t sound like a bot
Yelp Host is an AI answering service that can be set up in 10 minutes. It pulls information, like hours, location, and menu, straight from your Yelp Page, so there’s no steep learning curve or hours of onboarding.
Plus, it can work on its own or alongside your current reservation system. Yelp Host integrates with your existing reservation system, whether you’re a Yelp Guest Manager customer or not, syncing your table availability, reservation preferences, and party size.
How to audit the cost of missed calls for your restaurant
If you want to see what kind of impact an AI answering service could have on your restaurant, perform an audit on your current phone system.
- Track missed calls: Monitor how many missed calls happen throughout the day. This can serve as a benchmark.
- Monitor peak call times: Pay close attention to when call volume is high, and the phone tends to ring more consistently. This can provide evidence for why a solution is necessary.
- Analyze customer feedback: Take note of online reviews, social media comments, and conversational feedback from customers about their guest experience.
- Calculate potential revenue loss: Combine these metrics to gain a rough idea of potential lost revenue.
How to Choose and Implement an AI Answering Service
Considering the significant cost of missed calls, restaurants cannot afford to wait to implement a solution to the issue of unanswered calls. Here are a few best practices for getting started on solving this issue.
Find what works best for your business
- Consider scalability: Be sure to consider which AI answering service will work best for your restaurant now and in the future. Your chosen phone system should be able to accommodate future business growth and expansion.
- Ensure technology integration: Make sure any option you choose integrates seamlessly with your existing tech stack in order to ensure positive guest experiences.
- Evaluate pricing options: Any option you choose should work to increase revenue and grow your bottom line. The best option for your restaurant will be affordable and offer significant ROI.
- Check customer support quality: Any adjustments in business operations require training and support, so make sure the technology you choose can offer ample customer support.
Train staff effectively
- Updated phone system training: Creating a system that staff are comfortable with and can use effectively will require training and practice, even when using AI-powered solutions. It’s important for staff to understand how to work with the technology and customer service teams.
- Customer service standards: Set standards for how to best handle phone calls to the restaurant, whether for takeout ordering, making reservations, or answering customer questions. There should be a standard level of quality that all guests can expect.
- Regular performance review: Review and adjust any new phone system practices to ensure you are capturing phone calls and maximizing your bottom line.
Don’t pay for the cost of missed calls in your restaurant
With significant potential revenue losses and long-term effects on customer loyalty and reputation, investing in solutions to handle incoming calls effectively is crucial for sustainable success in the restaurant industry.
Yelp can assist with products like Yelp Host and Yelp Guest Manager to ensure your restaurant doesn’t miss out on opportunities. Yelp Host is simple to set up, customizable, and is available for a free 30-day trial. When used in combination with Yelp Guest Manager, restaurants can better service guests online, over the phone, and in the restaurant, creating a more positive and satisfying guest experience.