Hoax Orders refer to orders placed through online platforms (either web, app, or call centres) where the customer:
- Does not complete payment at the time of checkout, and
- Fails to collect the order or is absent at the delivery address provided.
Such orders result in unclaimed food and beverages, burdening the restaurant with the cost of unused products. This aspect of restaurant management can be particularly challenging, leading to not only financial loss due to wasted ingredients but also the unnecessary expenditure of staff time and effort.
The Challenge of Preventing Hoax Orders with YUMBI
Preventing hoax orders entirely is a complex issue. YUMBI is unable to outright block customers from placing orders online based on previous uncollected orders or false information. Similarly, preventing phone orders from suspected hoax customers is difficult, as they can simply use a different number or create a new online account.
Why Not Require Online Payment for All Collect Orders?
Our data indicates that only a small fraction of collect orders are prepaid online. This trend reflects broader patterns in South Africa, where card payment utilization remains low compared to more developed countries, due to a combination of trust issues and limited access to banking services. While some international companies initially required online pre-payment, the inclusion of cash payments has been necessary to accommodate customer preferences and accessibility.
Why do I still pay transaction fees on hoax orders?
YUMBI incurs various costs in processing orders sent to restaurants. Similar to bank procedures where initial fees are not refunded for cancelled transactions, YUMBI maintains the transaction fee to cover these operational expenses, ensuring that restaurants receive their orders regardless of collection.
Strategies to Combat Hoax Orders
If you're encountering repeated hoax orders, consider these approaches:
- Verify Suspicious Orders: For repeat offenders, proactively confirm the order directly with the customer before preparation.
- Legal Recourse: Given that all South African phone numbers are registered under the Regulation of Interception of Communications Act, significant abuse cases might have legal remedies.
- Additionally, monitoring and analyzing order patterns can help identify potential hoax orders. Look for unusual signs, like abnormally large orders, orders from new customers that raise suspicions, or orders from locations known for previous hoax activities. This proactive stance can help you reduce the impact of hoax orders on your business.