Tuesday, December 9, 2014

Beat The Q - The Benefit of Apps for new Ventures

It's a changing world out there. Cashless society is coming, mobile apps are redefining the word 'convenience' and it is important that restaurants stay on top of the trend. More than once, I've walked out of a café because the line was too long, or the EFTPOS minimum too high. Each day, more and more tech start-ups turn their attention to the problem. Recently, I had the fortune of catching up with Toby from Beat The Q to talk about their queue jumping app.

Necessity is the Mother of invention. Co-Founders Adam Theobald and Scott Player came up with the idea queueing for food at a concert. After 45 minutes waiting, they bought 25 burgers, and sold them to those still waiting in the queue. Realising that people were willing to pay for convenience, Beat The Q was born. After almost 4 years of development in the high turnover café market, it has grown to be one of the biggest queue apps in Australia.

How does it work? In the most standard situation: customers download the Beat The Q app, create an account, and then credit the account using Visa, MasterCard or PayPal. They can then search for cafe's in their area, browse the menu, place their order including their own specifics, and pay using their Beat The Q account. The order arrives in the vendor's POS, fully paid for, ahead of all those standing in line. All the customer has to do is collect their order when it's done.

It's incredibly user friendly for the customer. Don't want to install a new app? You can order directly from the cafe's website using your credit card or PayPal. Prefer using the PayPal app directly? The Beat The Q team add the café to PayPal's online market place, removing the need to switch apps. A free text box in the order allows for special requests (like your license plate number, so your coffee can be brought out as you pull up out front). It even allows you to save your favourite orders from your favourite café - your morning coffee is now just one click away.

The Beat The Q branding is clean and easily recognised - Visa, MasterCard and PayPal adding legitimacy.

As far as apps go, Beat The Q understand the needs of the customer. So what's the benefit for vendors? With no installation cost and no contract, it is easier for vendors to become a member of a growing market without paying an arm and a leg. Some POS systems will talk directly to Beat The Q, but for those that don't a vendor app is available. They don't supply any hardware, which could be seen as a positive or a negative, depending on the vendors needs.

The big draw card in my opinion is the social discoverability aspect. Reaching new markets is vital for a business to flourish, and with the ability to find cafe's in my vicinity, it increases the chance for that new walk in customer to come and check you out.

The ongoing costs aren't as low as competitors ($33 monthly service fee, 3.9% of each transaction), which some vendors I spoke to found too steep, though others found it a reasonable cost to increase business. The Beat The Q brand is also working its way in to the minds of customers. The purchase of e-Coffee Card - a QR app that replaced the old loyalty punch card, is a more efficient reward manager, and customers don't need to be a Beat The Q member to use it.

To look over Beat The Q with a closer critical eye will take time. Much of the model is dependent on becoming a part of the customers daily routine. While to the busy executive and the mum with twins the app can be a relief, I feel the uptake might be slower for those who are more interested in the leisurely café experience. Also interesting is the 'spending without spending' psychology. With an account pre-paid for my coffee expeditions, will I be more likely to add the occasional macaron?

There is quite a bit of competition in the market, and Beat The Q know their competitors. Their thorough testing of the market is apparent in the versatility of the product. The pricing model, while steeper than others, has it's benefits, and they clearly believe in the product. With no contract or installation, they are giving their vendors the chance to trial the product, and with a few chains under their belt around Australia, they are becoming more easily recognised by the day. Exploring different technologies, they are currently looking to move into the pubs and bars market - combining their existing product with the advances in Bluetooth technology. There is also a possible future merger with Posse, taking their social discoverability aspect to the next level.

Clearly Beat The Q are ones to watch in the queuing app market, and I'll be checking with vendors to see how they are liking the service whenever I get the chance.
 

 

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