Lucille’s Smokehouse Bar-B-Que
Overview
Lucille’s Smokehouse Bar-B-Que offers award-winning barbecue and savory Southern-style food at its 21 full-service restaurants throughout California, Arizona, and Nevada. Prior to adopting Olo Pay, online credit card fraud was the brand’s biggest pain point. Since implementing our restaurant payment stack, Lucille’s has seen its authorization rate soar and dispute rate plummet. Olo Pay has blocked nearly 6K high-risk orders and the brand is paying $15 less per chargeback.
LINKS
increase in authorization rate
reduction in chargeback costs
in potentially fraudulent orders prevented
BACKGROUND
Lucille’s and Olo teamed up in the fourth quarter of 2020 to implement a convenient, high-quality online ordering and delivery service, just in time for the busy holiday season. Since then, the brand has added Olo Pay, Ordering, Host, Marketing, Sentiment, Dispatch, and Rails to its restaurant tech stack to make guest-focused, data-based decisions to maximize revenue and growth.
Before adopting Olo Pay in June 2022, Lucille’s didn’t have an effective way to mitigate fraud risk other than requiring restaurant team members to manually verify credit cards and guest IDs. So when scammers started targeting the brand, 3.5% of every Lucille’s online order was going to chargebacks.
In order to safeguard its digital business and maximize revenue, the brand knew it needed a comprehensive payment platform with advanced fraud protection specifically built for restaurants. With Olo Pay, Lucille’s can now effectively prevent fraudulent orders and handle chargebacks—without the burden of managing it all in-house.
Results with Olo
Fewer Fraudulent Orders and Chargebacks
Olo Pay has blocked nearly 6K high-risk orders, saving Lucille’s an estimated $1.1 million, and simultaneously allowed more valid transactions to go through. In conjunction with a 12.39% increase in authorization rate, the brand has seen a significant reduction in total chargebacks.
More Restaurant Revenue
Between the 1.16% decrease in dispute rate and the 36% reduction in chargeback costs, Lucille’s is able to maintain more of its revenue. The brand spends $15 less per chargeback with Olo Pay.
Streamlined Management and Labor Savings
Olo Pay enables Lucille’s to manage chargebacks and reporting all through a single dashboard. With less time and energy spent submitting paperwork to fight fraudulent transactions, the corporate team has seen an increase in productivity.
Prior to Olo Pay, online credit card fraud was by and large the biggest pain point we had that we didn’t have an answer to. Three and a half percent of every online order was going to chargebacks—that’s insane. With Olo Pay, we no longer have to manage our fraud prevention in-house. It’s mostly hands-off, which saves us labor hours and we can take more revenue to the bank.
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