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What Does Pre-Order Mean & How Can Your Business Use It?

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Purchase Order Template

Use this template to create standardized purchase orders for requesting goods or services from vendors.

Pre-ordering lets people reserve items ahead of time—whether it’s lunch for pickup or a limited-edition video game. It’s all about convenience: customers place their orders online, and businesses get the time they need to prepare.

In this guide, we’ll break down how pre-ordering works, why people use it, and how restaurants, retailers, and brands can make the most of it.

Key takeaways

  • Pre-ordering lets customers place and pay for orders in advance, choosing a convenient pickup or delivery time.

  • It helps customers save time, avoid stress, and secure limited-time or in-demand items.

  • Pre-ordering is especially useful for busy schedules, group orders, product launches, or holiday shopping.

How does pre-ordering work?

Pre-ordering lets customers place an order ahead of time—whether that means hours or even days in advance. Instead of waiting in line or making a purchase on the spot, customers can select items, pay in advance, and choose a pickup or delivery window. For customers, the steps are simple:

  1. Browse the menu or product catalog online.

  2. Select items and customize as needed.

  3. Choose a pickup time or date.

  4. Pay in advance.

  5. Pick up the order or receive delivery.

Behind the scenes, businesses receive the order through their POS system or eCommerce platform. From there, staff can prepare the order or allocate inventory based on the scheduled fulfillment time.

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Why do people use pre-order?

Pre-ordering helps people plan ahead, save time, and make sure they get what they want. It’s a convenience that benefits everyone from busy parents grabbing dinner to collectors reserving a limited-edition sneaker drop. Here are a few common reasons people choose to pre-order:

  • Skip the line: Orders are ready for pickup when customers arrive—no waiting required.

  • Plan around a busy schedule: Whether it’s lunch, groceries, or a birthday gift, pre-ordering helps automate purchases.

  • Guarantee availability: Pre-ordering ensures high-demand or limited-quantity items don’t sell out before you can buy them.

  • Customize with ease: It's easier to review, modify, and confirm orders when there’s no pressure.

  • Coordinate group orders: Useful for families, offices, or events—everyone can place their choices ahead of time.

Why should businesses offer pre-ordering?

Whether you're running a coffee shop, a bakery, a clothing boutique, or an electronics store, giving customers the option to order ahead can improve operations and boost satisfaction. Here’s how pre-ordering benefits a wide range of businesses:

  • Streamlined operations: Advance notice lets staff prep food, pull products, or assemble orders before the rush.

  • Smarter scheduling: With insight into future demand, managers can better plan labor and inventory.

  • Less waste, fewer stockouts: Restaurants can reduce spoilage, while retailers can avoid overstocking or running out of in-demand items.

  • Faster fulfillment: Orders are ready when customers arrive, reducing wait times and improving flow during peak hours.

  • More upsell opportunities: Pre-order systems often enable custom add-ons—like extra sides, gift wrapping, or accessories—at checkout.

  • Improved customer experience: A smooth, predictable process builds trust, encourages repeat visits, and sets your business apart.

Best times to offer pre-ordering

Pre-ordering is most effective when demand is high, timing matters, or customers are planning ahead. Here are a few key occasions when offering pre-orders can make a big difference.

1. New product drops

Pre-orders are a smart way for retailers to build hype and manage inventory around highly anticipated launches. A great example is the release of Tony Hawk’s Pro Skater 3 + 4. Fans can choose from multiple editions—including a $130 Collector’s Edition—and get early access and exclusive in-game bonuses by pre-ordering.

2. Pre-order crowdfunding

Some retailers and brands use pre-orders as a form of crowdfunding—allowing them to gauge demand and secure funding before production. This approach not only builds excitement, but also reduces financial risk by confirming interest before manufacturing begins.

When Hasbro announced the relaunch of HeroQuest, a cult-favorite tabletop game, they kicked things off with a $1 million crowdfunding goal tied directly to pre-order sales. Fans could reserve a copy for as little as $99.99, unlocking a newly updated version of the game with enhanced miniatures and scenery—if the campaign met its target.

3. Holidays and special events

From Valentine’s Day prix fixe dinners to Super Bowl Sunday spreads, offering pre-orders around seasonal events can help restaurants prep more efficiently and avoid last-minute chaos. These moments tend to bring huge spikes in demand—an estimated one in seven Americans orders takeout on Super Bowl Sunday, which adds up to nearly 48 million people.

Derek Anderson, a district manager for Sizzling Platter, which operates 30 Wingstop locations, shared how crucial pre-orders are for managing the Super Bowl rush:

“Our digital orders exceed 70 percent of our sales, and about 30 percent of those are pre-orders that come in either the day before or earlier… Item count reports help us with ordering. And hourly sales, looking at missing and incorrect items to see where we might have struggled before.”

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Restaurant Event Planning Checklist

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4. Large group and catering orders

Pre-ordering is essential for catering businesses providing food for offices, parties, school functions, and family gatherings. When customers can place large orders in advance, it gives kitchens the time to prep everything properly—without putting extra strain on day-of operations.

Olive Garden is a great example. Their catering platform allows guests to pre-order meal bundles for everything from holiday parties to bridal showers and office lunches. Options like the Create Your Own Pasta Station or large-format entrée trays are designed to feed groups, and all pre-orders come with delivery, setup, and even complimentary chafing kits.

5. Every day

Pre-ordering can also help manage regular surges in traffic—especially during morning and lunch rushes. Chains like Starbucks rely heavily on mobile pre-orders to handle high-volume demand during peak hours. In fact, mobile orders became so popular that Starbucks reduced the maximum number of items per mobile pre-order from 15 to 12 to reduce service bottlenecks.

Use pre-order now and thank yourself later

Pre-ordering is a win-win. It helps people skip the line, plan their day, and get exactly what they want—while giving shops, restaurants, and brands a smoother, more predictable way to manage demand and serve their communities.  Whether you’re a shopper reserving the latest fashion drop or a small business owner looking for ways to improve operations, pre-ordering is a simple idea that can make a big impact.

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DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.

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