How automated are your back-office functions? For all the promise POS systems have when it comes to making such processes more efficient, a recent survey of nationwide restaurant operators across multiple segments found that 60 percent of operators polled still rely on Excel as their primary financial management tool. The survey, completed by Hospitality Tech in partnership with Restaurant 365, found that POS accounting systems could generate significant efficiencies and cost savings for operators if they used the features available to them. Unfortunately, there is still a substantial gap between operators’ goals and the capabilities of the systems they have in place. If you’re looking for a technology accounting partner who can help you buy the right system and get the most from it, Restaurant 365 advises you to assess how clearly the vendor spells out integration options, as well as how those options are maintained and supported. Then find other operators (beyond the ones the vendor provides) who are using the system and can share their experiences.
As a new year approaches, it’s prime time to take stock of what went well and set the stage for the tests you’re likely to face in 2020. For most operators, labor spending and management continues to be a perennial challenge, along with such obstacles as managing the complexities of your inventory and finding a profitable path to offering delivery. Restaurant365 shared a list of operational challenges operators can expect in the coming year, along with some suggestions on how to manage them. While it’s not the most uplifting of countdowns, it does cover some important territory and may help you prioritize the steps you want to take to build your business in the months ahead. We summarized some of the key challenges here – along with some tech tools that can help you manage them. First, to manage labor costs, particularly if your state is in the roughly half of the country that is increasing its minimum wage in 2020, make the most of tech tools that can save you time and money. By integrating your POS with an accounting and scheduling platform, for example, you can analyze your labor and sales data to optimize scheduling and improve your forecasting capabilities. If you struggle with keeping your inventory accurate and your ingredient costs in line, consider inventory management software that can guide the process from start to finish – and offer tools such as smart ordering and receiving, which can help you maintain profit margins on menu items and pinpoint when vendor costs are higher than normal. Finally, if you want to offer delivery in an effort to meet consumer demand, make sure you’re making data-driven decisions when selecting a service model. Restaurant365 advises you use operations software to automatically calculate and track your delivery profits based on sales, cost of goods sold, and delivery expenses.
Imagine being in the midst of a dinner rush and having all of your best staff on hand to provide superior service to guests. Artificial intelligence (AI) is making it possible for more of those experiences to happen for operators. There is a lot of buzz about the potential of AI to tap into guest insights, but it can also help operators make more informed decisions about staff schedules and improve staff management. As Restaurant Technology News reports, AI can help operators adjust scheduling plans based on local weather or events that may impact restaurant traffic – and automatically match up that information with data on which servers have successfully upsold the most checks recently.
Gift cards: they’re among the few gifts that are never returned. And they’re a win for restaurants. According to data from Givex.com, 65 percent of those who receive gift cards tend to spend about 38 percent more than the face value of their gift card. If your guests are interested in both purchasing gift cards and making payments via mobile, consider raising the bar for next year by providing digital stored-value cards that can be loaded onto a mobile app. Your guests won’t have extra cards cluttering their wallets and as Restaurant Technology News reports, digital cards hold a lot of appeal for guests who want the option of making fast, seamless payments.
Do you automate your staff scheduling? It’s not only a streamlined means of making sure you have staff when you need them. Granted, it can free up a lot of time you can devote to other tasks and also make it easier for employees to trade shifts and for you to foresee future staffing gaps. But more importantly, it can bring together both quantitative and qualitative data about your restaurant that, when assessed at once, paint a clearer picture of the financial health of your restaurant. As the tech blog KnowTechie explains, scheduling software tabulates your labor costs and sales, while also giving your team opportunities to leave feedback about how a shift went. When you see the full picture of sales, productivity and morale, you may more easily spot problem areas that you can address before they grow.
The market for automated accounts payable is expanding. One forecast predicts the global market to balloon from $1.9 billion to $3.1 billion in the next five years. In the meantime, a growing number of vendors are seeking business from restaurant operators still relying on manual or paper-based processes to pay invoices and manage accounts. If you’re in the market for an automated system, Restaurant365 shared some benefits to the systems that are worth considering when determining how well vendors can deliver: If you’re opening new locations, automated systems can streamline your accounts and ensure vendors continue to be paid on time. They can save time by eliminating painstaking data entry and streamlining the approvals process. This, in turn, enables you to project your spending requirements more clearly and without guesswork. Further, the accounting process is visible and transparent, so errors, reporting irregularities and security issues are easier to spot. Finally, by giving you real-time insights into your food costs, these systems helps you make faster decisions to improve the quality of your menu and protect your bottom line.