Online Ordering Software for Restaurants w/ Noah Glass of Olo
Exploring Olo's Impact on the Restaurant Industry with Noah Glass
Who is Noah Glass and What is Olo?
Noah Glass is the founder and CEO of Olo, a leading on-demand commerce platform for enterprise restaurants. Olo, which went public on the New York Stock Exchange on St. Patrick's Day, powers the mobile apps and websites that allow customers to order and pay ahead at their favorite restaurants, streamlining the process of picking up food. Unlike delivery apps, Olo focuses on enhancing the in-restaurant experience by avoiding lines and wait times.
What Sets Olo Apart in the Restaurant Industry?
Overview of Olo’s Services
Olo provides a comprehensive software platform that enables restaurants to build direct-to-consumer channels. This allows customers to order and pay ahead, ensuring their food is ready upon arrival or delivered to them. Olo serves over 400 restaurant brands, encompassing 69,000 individual locations across the United States and Canada.
Which Popular Restaurants Use Olo?
High-Profile Clients
Olo’s extensive client list includes well-known brands such as Five Guys, Shake Shack, Sweetgreen, Wingstop, Applebee's, Chili's, and The Cheesecake Factory. These partnerships highlight Olo’s versatility and its ability to cater to various segments of the restaurant industry, from fast-casual to family dining and quick-service restaurants.
How Does Olo Improve the Restaurant Experience?
Customer-Centric Technology
The core problem Olo addresses is the growing trend of off-premise dining. With 63% of all restaurant transactions occurring outside the restaurant, Olo’s platform enhances the takeout and delivery experience. By allowing consumers to order and pay ahead, Olo minimizes wait times and increases operational efficiency for restaurants, ultimately improving customer satisfaction.
How Big is Olo Today?
Company Growth and Financials
In 2020, Olo processed $14.6 billion in food sales and generated $98.4 million in revenue. The company projected a revenue of $140 million for 2021. Olo’s growth is driven by its hybrid revenue model, combining subscription fees with transaction-based revenue.
What is Olo’s Revenue Model?
Transactional SaaS
Olo’s revenue model, described as transactional SaaS, includes both subscription fees (per store, per month) and usage-based fees. This model aligns Olo’s growth with the success of its restaurant clients, encouraging increased order and delivery volumes.
What Are Olo’s Key Growth Drivers?
KPIs and Expansion Strategies
Olo’s primary growth drivers are the number of restaurant locations using the platform and the average revenue per unit (ARPU). By signing large enterprise brands and increasing platform utilization through additional features like delivery enablement, Olo continues to expand its market presence and drive revenue growth.
What Lessons Has Olo Learned About Customer Success?
Customer Centricity and Penetration
Customer success and deep penetration within client organizations are crucial for Olo. The company’s approach includes creating reference accounts, maintaining high net promoter scores, and establishing a product advisory council. This council, composed of innovative restaurant operators, helps Olo stay ahead of industry trends and continuously improve its offerings.
What Role Does the Product Advisory Council Play?
Innovation Flywheel
The product advisory council at Olo consists of key clients who provide insights into industry trends and operational challenges. This collaborative approach ensures that Olo’s product development is aligned with customer needs, driving innovation and adoption across the restaurant industry.
When Should Companies Form a Product Advisory Council?
Timing and Engagement
Companies should consider forming a product advisory council when their solutions become mission-critical to their customers. This typically occurs when customers view the company as a strategic partner capable of addressing industry challenges and contributing to their success.
How Does Olo Tackle Resistance to Adoption?
Overcoming Resistance
Olo’s strategy for overcoming resistance involves leveraging success stories from similar clients and highlighting the operational benefits of its platform. By demonstrating how Olo’s solutions address common pain points, the company can gain buy-in from hesitant franchisees and restaurant managers.
Why Did Noah Glass Start Olo?
Personal and Technological Inspiration
Noah Glass was inspired to start Olo based on his experiences as a pizza delivery driver and his early adoption of smartphone technology. He recognized the potential for smartphones to transform the restaurant industry by enabling better ordering and payment processes.
What is Olo’s Relationship with Delivery Apps Like DoorDash?
Partnerships and Ecosystem Role
Olo partners with delivery apps like DoorDash and Uber Eats, integrating their services into its platform to offer delivery solutions for restaurants without in-house drivers. Olo also provides these apps with menu data and facilitates order processing through its system, playing a crucial role in the restaurant ecosystem.
Will Delivery Surpass Pickup in the Future?
Industry Trends and Projections
While delivery has grown, it still represents a smaller portion of the restaurant industry compared to pickup. As of 2019, pickup accounted for 39% of transactions, while delivery was only 9%. Olo expects delivery to continue growing, but pickup is likely to remain a significant segment due to its convenience and cost-effectiveness.
FAQs
What is Olo’s Core Business Model?
Olo’s business model combines subscription fees with transaction-based revenue, aligning its growth with the success of its restaurant clients.
How Does Olo Improve Restaurant Operations?
Olo enhances restaurant operations by enabling order-ahead and pay-ahead functionalities, reducing wait times and increasing throughput capacity.
Who Are Some of Olo’s Major Clients?
Olo’s major clients include Five Guys, Shake Shack, Sweetgreen, Wingstop, Applebee's, Chili's, and The Cheesecake Factory.
What is the Role of the Product Advisory Council at Olo?
The product advisory council provides insights into industry trends and operational challenges, helping Olo innovate and stay ahead of market demands.
How Does Olo Partner with Delivery Apps?
Olo partners with delivery apps like DoorDash and Uber Eats to provide delivery services and integrate menu data and order processing into its platform.
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