Restaurants See Bigger Orders & Tips From Mobile Payments

June 29, 2015         By: Michael Foster

It hasn’t been easy getting restaurants to embrace mobile payments, but maybe this will get their attention: mobile payments make restaurant goers tip more and spend more.

The phenomenon was first observed a couple years ago, when Chili’s, Applebee’s, and Uno Chicago saw customers spending more on average when using the devices.

The idea makes sense when you think about it: the tablet makes it easier to add on items, and beautiful images of tantalizing food make people buy more. The tablets also make turnover at restaurants faster, according to Ziosk, who installed the tablets in some restaurants in the United States.

Back then, Jay Johns of Applebees told CNBC how effective the tablets were. “The incidence of guests ordering appetizers improved and the service tips improved,” he said, adding that the devices enhance rather than replace servers.

Now a new report from CNBC is again telling us the same thing. According to London-based La Patagonia, an Argentinian restaurant, mobile payments are causing tips to go up. Additionally, mobile payment app developer Cake told CNBC that they are seeing payment increases at bars, which co-founder Michelle Songy attributes to the fact that the app makes “the payment experience a bit more fun, easier.”

Mobile payment app developer Flypay offers an additional explanation for the bigger ticket sizes from mobile payments: “the great thing about digital payments is it doesn’t feel real,” said Flypay CEO Tom Weaver.

Whatever it is, the message is clear: if you’re in the restaurant business and you want to make more money, get a mobile payment app.