Food, beverage, and labor costs can represent up to 50-75% of total restaurant expenses. Restaurant owners must also bear the brunt of decreased profits caused by food waste, overstaffing, and misinformed business decisions.
In order to improve ROI, it’s crucial for restaurants to eliminate unnecessary spending. That’s where Point of Sale system insights come in.
With access to POS system insights, many restaurants are able to reduce shrinkage and increase customer retention. A POS system can improve communication between front-of-house and kitchen staff, while it simultaneously collects data about restaurant sales, payroll reports, labor costs, peak business hours, and customer loyalty.
How do these features relate to a restaurant’s success? Let’s take a look:
Improving the Customer’s Experience
According to data from the National Restaurant Association, 79% of consumers say restaurant technology increases convenience, and 70% say technology speeds up service. Both amount to a better experience for the customer.
Guest are most satisfied when they can focus on dining, instead of worrying about the wait time, or whether you have the right ingredients at hand. To that end, restaurants can use technology to optimize their menus, create and market promotions, reduce shrinkage, and note busy times with an up-to-date restaurant software system.
Menu optimization is simple. Restaurateurs should know which dishes are most popular and which ones aren’t selling, so they can refine the menu to customers’ tastes.
To maintain a restaurant’s reputation, it’s essential to have enough food to make customer favorites, even on a busy night. On the flip side, refining or cutting the dishes that don’t do as well will reduce spoilage and waste in the kitchen.
Offering promotions to customers through a mobile app can be an effective way to engage and motivate your diners. Of the adults who use smartphones or tablets, 80% say they would dine in a restaurant during off-peak times if they received a discount.
Tech-savvy customers will appreciate receiving updates and discounts from their favorite restaurants, catered to their tastes.
Gino’s East, a Chicago-based restaurant, needed a system to optimize their operations. Their previous system of manual data collection and reporting was inefficient, and caused confusion among employees.
Once they implemented new software, they saw an improvement in daily workflows and cost reduction. They also found that reports were easier to access, employee management was more efficient, and there were fewer ordering errors. With a POS system, they could accept credit and debit card transactions, and were able to accommodate a larger diner market.
The Branding Iron Cafe also benefitted from implementing a POS system. Owners and managers easily review the day’s sales to see if revenue is increasing or decreasing over time, something they couldn’t do when they only used a cash register.
If business isn’t booming, access to data points helps them minimize losses. Knowing the exact amount of food ordered for busy or slow times of the year cuts food costs and could even increase profitability.
Speeding Up Operations
Many restaurants looked to make the change in 2015 – in fact, 47% of businesses reported wanting to add a mobile POS that year. Mobile Point of Sale systems allow servers to send orders directly to the kitchen and accept payment right at the table.
Managers at Honest Burger, a restaurant in Wales, found that a mobile POS system made their business run faster and more efficiently. They maximized the speed of service at each of their six locations, which improved customer satisfaction and the flexibility of sales channels. An order-ahead feature minimized wait times and reduced stress on their staff.
Implementing restaurant technology like a POS system can make day-to-day restaurant operations more efficient. With data insights, owners and managers can lower the cost of supplies and shrinkage.
Streamlining communications between staff members gives servers and managers more time to focus on customers, creating a great dining experience that guests will return to again and again.