You constantly field calls from both new and established restaurant technology vendors as a restaurant owner or operator. Those calls are an unavoidable part of running a restaurant, whether it be an independent one or one that is part of a hotel.
So it should come as no surprise that navigating the restaurant industry’s complex vendor ecosystem—which includes everything from turnkey loyalty programmes to preventive maintenance and project management—is challenging. That is especially true when there are so many that have features and functionality that overlap. How do you tell them apart from one another? And how can a software stack be created that empowers employees, boosts productivity, and improves the guest experience? In addition to everything else, there is a lot to manage.
We want to give this chaos some order in this situation. Therefore, this resource is for you whether you select a master vendor who bundles various tools into a single suite or decide to customise your tech stack with a number of vendors. Along with categorization and suggestions for what to look for, we’ve organised it.
Reliability should be your top consideration as you assess the best solutions for your operation. Although cloud-based software is practical and reasonably priced, you should have a backup plan in place in case your internet connection goes down for anything that is mission-critical. And if something does go wrong, you want a vendor whose customer service is always available and helpful.
Next, consider contactless. The pandemic has accelerated the widespread trend towards reducing direct contact between visitors and employees. Your technology should enhance the contactless experience, not interfere with it.
Avoid feature creep, too. Bells and whistles that you won’t use can easily cause you to become distracted. This is particularly true if you choose a vendor that offers solutions to different industries, rather than just restaurants; there might be a lot of extra features. Be attentive! Make an honest assessment of your business, then implement technologies that will meet your current needs while allowing for future expansion. This reduces training time for complex software and controls software costs.
The main event is now about to begin: this is the restaurant technology ecosystem in 2023!
1. Point of Sale (Restaurant POS System)
Because the POS is the restaurant’s beating heart, every eatery needs one. But not all POS software is created equal. As the cost of developing cloud-based software dropped, the market became overrun with choices. They’re generally decent people. They are effective. But an excellent POS can change everything.
Your restaurant can run smoothly and more profitably by centralising key operational features along with labour management, payment processing, and kitchen management. Integrated inventory management is the best illustration of this, as each order automatically lowers stock levels and updates orders. This saves a tonne of labour and eases the burden of managing the kitchen.
However, if your chosen POS isn’t particularly strong in any one feature, a “do it all” POS (also marketed as a “restaurant management system”) may not be the best option for your restaurant. You’ll end up with a point of sale that functions decently but lacks the in-depth industry knowledge and operational impact of a specialised vendor.
The secret is to match your business with a POS provider that excels in your industry. A small independent restaurant, for instance, is unlikely to want to partner with a multinational conglomerate that focuses on big restaurant chains or hotels. You won’t just be a small fish in a big ocean; it’s also prohibitively expensive. The best option is to choose a vendor who can offer the level of care and service that your business requires.
What to look for:
Integrity is crucial. When the POS is down, the majority of restaurants can’t operate. A cloud-based POS must have an offline mode if you are aware that your internet connection is unreliable in order to maintain operations at all times.
Gift cards may be used by POS vendors to lock you into an unfavourable ecosystem or charge you more than necessary. Make sure to inquire about all aspects of gift card management, from physical card security to redemption fees. Avoid surprises because gift cards are a great way to generate additional income!
Any POS system’s integrations are also a crucial component. In order to have seamless sync and avoid the hassle of manually exporting data from one system to another, look for a vendor that integrates with the other technologies in your business. The use of hardware, such as iPads or self-service kiosks, is a crucial factor. Make sure your vendor has the right functionality to work with your current or upcoming workflows by considering the customer journey.
Vendors to consider:
The restaurant technology market is the most crowded one right now! With the introduction of its contactless service ServeSafely, Crave Interactive recently entered the restaurant industry. For larger operators with multiple revenue centres, InforPOS is ideal. Both TouchBistro and Lightspeed POS are integrated solutions. Because it is tablet-based, POSLavu has lower initial installation costs and provides a loyalty app with in-store payment and pre-ordering.
In hotel food and beverage operations, OraclePOS is an expert. SimphonyPOS, a MICROS-based point-of-sale system for restaurants also made by Oracle, is less clumsy and more extensible than previous legacy systems. As all-inclusive restaurant management systems, QSR Automations specialises in quick-service restaurants, Toast has a contemporary appearance, and HungerRush has a delivery module.
2. Multi-Channel Ordering And Payments
The restaurant industry now includes sales off-site as well. There are self-service, delivery, takeaway, gift cards, packaged goods and even DIY ‘cook at home’ kits available. Before the COVID-19 pandemic elevated revenue diversification to the top of the list of priorities, that is.
You’ll need software to support multi-channel ordering since selling across multiple channels protects your operation from unanticipated drops in demand from a single channel. Additionally, you need to be able to accept payments easily through all of your chosen channels. As essential elements of any contemporary customer experience strategy, these channels could include your website, text messages, or messaging applications like Facebook Messenger.
Safety is equally important; by providing a digital ordering system, you minimise contact points between staff and customers and keep everyone even safer. Customers can place orders and make payments using any device, which frees up your staff to concentrate more on filling orders rather than taking calls, processing payments, and passing receipts back and forth.
What to look for:
cross-platform adaptability. It should be simple to access menus and place orders on any device, be it an Apple tablet or an Android phone. Depending on the size of your business, a mobile app might be the best option to provide customers with a centralised way to interact with each of your locations.
Payments should be simple for both customers and employees. In a perfect world, you wouldn’t want to accept any physical payments for online orders. Some systems provide e-wallets, which let users load funds into a specific wallet to avoid having to enter payment information each time a transaction is made. Starbucks helped popularise e-wallets by offering frictionless payments and auto-reloads when account balances fall below a certain level, which made it incredibly simple to place mobile orders.
Additionally, consider how customers will place their orders. Do you want to allow text message orders? telephone calls? on social media? or just via your website? Or perhaps you want to streamline everything with an app for your restaurant. Do you require tableside ordering using a QR code and contactless digital menus? Make a list of the essentials, and move forward from there.
Vendors to consider:
For larger businesses looking for a platform that can include branded apps, e-wallets, digital ordering, and loyalty marketing, there are Olo and Tapmango. While other quick serves use Restolabs and restaurants in the Middle East use EatApp, pizza restaurants may find the ideal solution with ThrivePOS.
While popular online ordering platforms for restaurants like ChowNow and Checkmate, Chatfood’s commission-free platform supports ordering on Instagram, WhatsApp, and Facebook. Visitors can order and pay using their phones with Bbot Smart Ordering’s on-premise contactless ordering options. Check out the category above for all-in-one POS and restaurant management systems, which typically include multichannel ordering and payments.
3. Guest WiFi
The use of Wi-Fi by visitors while they are on the premises has become commonplace. This is especially true for types of eateries like coffee shops and some fast-casual restaurants that frequently serve customers who work from home. “Fast and free” WiFi can boost online reviews, increase customer loyalty, and even get free press coverage.
Due to the high bandwidth usage, Wi-Fi can also become expensive. It’s a balance between meeting guests’ expectations and actually being able to offer quick internet access. Going with an ad-supported model that requires visitors to engage with advertising prior to access is one way to reduce some of this cost.
Another strategy is to use WiFi as a marketing asset that creates value by offering constant chances for interaction with visitors. You could demand that users sign up using their social media or email accounts, which can be used for upcoming marketing campaigns. Or you might even request a little bit more demographic data to create a more thorough guest profile. When this data is added to your POS and loyalty programmes, there is real value and longer-term ROI.
What to look for:
When you give visitors access to Wi-Fi, there are some grave security ramifications. Your back-office systems ought to be kept separate from all other systems. To prevent costly and embarrassing breaches of payment information and sensitive guest information stored in your POS, there should be a solid firewall between both systems.
Your guest internet portal should be simple to use, compatible with all devices, completely customizable, and compliant with all local data privacy laws.
Also, the operations of a restaurant are already difficult enough. Your staff members aren’t experts in IT support. Keep it straightforward and practical, and use a vendor that offers quick support for resolving problems. Negative reviews can result when customers expect the internet but it isn’t available, leading to conflict with the staff. At all costs, avoid!
Vendors to consider:
Customers can access free Wi-Fi when they check into your business on Facebook, giving them a perk and giving you an organic boost on the platform. A responsive and adaptable internet portal is provided by Social WiFi that combines promotional deals, social logins, GDPR compliance, customer communication, and marketing segmentation. Multiple social logins, analytics, marketing, and reviews are just a few of the features SpotOn focuses on, along with “controlled access” plans that let you limit user-level data usage, connection speed, and time spent. Many international brands use CLOUD4WI’s Splash, another well-liked option, to offer Wi-Fi and strengthen customer relationships.
4. Reservations And Waitlists
A chokepoint has always been the management of reservations and waitlists. Many customers are accustomed to the convenience of online reservations as a result of OpenTable. Reservations are made but not cancelled, so this convenience costs restaurants money in addition to the fees they pay to these platforms. No shows result in bare tables, disgruntled staff, and decreased revenue. Infuriated customers who are wondering why it’s taking so long to get a table when there are empty ones available result from the combination of a long waitlist and no shows.
These features may be present in some POS systems, but they frequently feel like afterthoughts. When it comes to a frequent point of interaction between your staff and visitors, choose a specialised solution that is simple for everyone to use. In order to keep servers content and prevent arguments over who should be the next in the rotation, most software also controls table assignments.
What to look for:
Using cloud-based software, managing tables is simpler than ever. Much better than using pen and paper, hosts can move around the restaurant and manage table statuses in real-time. Even better: table statuses will update automatically with POS integration, doing away with the need for hosts to constantly change tables.
You could also do away with the pricey pagers. The majority of cloud-based solutions will text guests, which minimises pager loss and gives them more freedom to move around while they wait. “Range anxiety” is a real thing, and having guests tethered to the area prolongs the wait time.
Instead of relying solely on OpenTable, find a vendor who can integrate your reservations portal with Google search, Facebook, Instagram, and TripAdvisor (in addition to accepting reservations on your website).
Vendors to consider:
By automatically deducting deposits and cancellation fees when a guest cancels or shows up late, HostMe has a clever way of reducing no-shows. With SEVENROOMS, you can store guest preferences and even share those preferences across different locations. For example, you could offer customizable reservation upgrades (cold champagne upon arrival, of course).
Although you will still have to pay fees per cover, Yelp for Restaurants and OpenTable for Restaurants are appealing because they connect you directly with these two of the most well-known restaurant search engines in the world. With Waitwhile, your visitors can text to join your waitlist. There are also ResyOS and Wisely, which have been modified to comply with COVID-19 by adding curbside pickup management, capacity controls, and remote waitlists.
5. Back Office And Inventory Management
Software for accounting, bookkeeping, and inventory management may be the least glamorous but most useful for your restaurant. It helps you manage your cash flows, keep an eye on your profitability, and cut down on theft and overordering.
In terms of inventory management, going with your gut is never a good idea. Orders should be based on past performance and anticipated demand. The proper software can handle all of this for you so that supply and demand are balanced.
What to look for:
engineering the menu! The only real way to determine whether your menu is profitable is to manually cost it using a spreadsheet or to use software that takes the cost of the ingredients into account while calculating the profit for each item. Spreadsheets are the cheapest but require a lot of management time. The software streamlines and standardises this process, increasing your profitability without endangering your chef’s sanity.
Vendors to consider:
Your recipes, menus, kitchen training, food costs, and inventory orders are all centrally managed by apicbase, allowing you to quickly assess performance across all outlets. Similar functionality is available in xtraCHEF, but it also emphasises automating invoice management and improving bookkeeping accuracy. FoodNotify and Avero are additional options that provide business intelligence features.
You can’t go wrong with Xero or Quickbooks for managing ongoing bookkeeping and year-end accounting in terms of accounting and bookkeeping. The full suite of tools offered by larger vendors like Birchstreet, Long Range Systems, and Adaco includes crucial financial integrations like “procure to pay,” which automates kitchen ordering and related bookkeeping.
6. Employee Management And Payroll
Due to high labour costs, a standalone staff scheduling tool is useful in the foodservice sector and wider hospitality industry even though it can be found within your POS. Because not everyone has a computer at home, your staff will want mobile access. They will also require an easy method of exchanging shifts. The worst thing a manager can do is trade shifts, as you probably already know. The best option is for staff to handle this independently; a POS-integrated solution isn’t the most dependable or user-friendly.
What to look for:
Look for a staff scheduler that prioritises shift management over shift trading and smartphone support. To identify potential labour overages, managers should be able to pull reports without difficulty. Small details like color-coding shifts can have a big impact on managers who spend their entire day looking at schedules.
Vendors to consider:
Restaurant-specific employee scheduling software includes HotSchedules, 7shifts, and Schedulefly. These features are also present in many POS systems, including POSLavu and TouchBistro.
Examine Proliant and Kitchensync for payroll (including tip management, which frequently frustrates traditional payroll software). There are a lot of restaurants among ADP and Paychex’s customers.
7. Business Intelligence And Analytics
Your accounting software has a partner in the form of business intelligence and analytics software. Your BI and analytics tool analyses your demand data to provide you with critical insights about future forecasts and menu profitability, whereas accounting software tracks your financial data.
What to look for:
The reporting tools found in most point-of-sale systems are beneficial for the majority of smaller operations. It makes sense to have a standalone tool for larger multi-unit operations that automatically gathers data from various sources into a centralised dashboard.
The business intelligence tool’s integration with your entire tech stack and the clarity of its dashboards are its two most crucial features. Poorly presented incomplete information serves no useful purpose. If insights are not automated and usable, investing in them is not worthwhile.
Vendors to consider:
Womply is really intriguing because it transforms your revenue analytics and POS data into a potent marketing tool for email, digital ads, and online reviews. Avero provides detailed operational data, such as which servers sell the most and the most well-liked menu items, in addition to sales forecasting. Adaco combines business intelligence with accounting and accounts payable features for larger operations.
8. Food Delivery
For many years, the restaurant industry has seen a rise in the popularity of food delivery. Due to consumers’ decreased frequency of restaurant visits and increased perception of contactless delivery as a secure method of ordering takeaway, this trend has accelerated during the pandemic.
In light of the coronavirus pandemic, Statista discovered that nearly 42% of respondents are likely to buy food online. More restaurants than ever before have signed up for third-party platforms like GrubHub, Postmates, and UberEats as consumer demand has changed. Although having an immediate source of demand is great, the associated fees are significant expenses that reduce already slim margins.
For many restaurants, the price is a fair exchange for avoiding the burden of in-house delivery. However, fees can be a significant problem for businesses with high volume, like pizza parlours. By using food delivery technology to bring delivery in-house, high-volume restaurants can significantly increase their profit margin. This is not practical for all types of restaurants because it requires not only a technology investment but also a strong marketing plan that drives customers to your platform directly rather than through intermediaries. But in-house food delivery can be very profitable when it works.
What to look for:
It really comes down to integration if you choose a vendor who doesn’t already integrate food delivery management into your POS or multichannel ordering system. As you implement new technology, you want to cause the least amount of disruption. Your food delivery technology should make it simple to assign drivers for each order and keep your kitchen organised with reliable order tracking. To keep tabs on driver tips and performance throughout each shift, you’ll also need accurate reporting.
One of the main benefits offered by third-party services is efficiency. The algorithms used to assign drivers the most effective route are updated frequently. However, third parties have a lot of other things to think about, like the wait time for other orders. With delivery technology that streamlines routes so your drivers can reach your customers quickly and safely, you’ll have an advantage.
Vendors to consider:
The previously mentioned HungerRush provides delivery management support, including order taking, kitchen production, and driver routing for both internal and external deliveries. Breweries have a pickup and delivery solution with 2nd Kitchen 2Go, whereas the pizza category has a dedicated solution for delivery management and point-of-sale with Thrive POS. The price per delivery for GetSwift’s delivery management software is $0.29.
9. Restaurant Websites
Your online menu is your business card. You want it to accurately reflect your brand and present you in the best possible way. To make it simple for people to locate pertinent information, your website should be current and user-friendly across platforms.
What to look for:
Your restaurant’s website should support online ordering, simple menu updates, and loyalty marketing. It should also be secure and SEO-optimized. For the purchase of gift cards, you might also need reservations and an e-commerce module.
Vendors to consider:
For restaurant websites, avoid Wix and Squarespace in favour of providers like BentoBox, Upmenu, Let’s Eat, FlavorPlate, or GloriaFood that focus on the particular requirements of eateries. If you’re more tech-savvy, you could select your own WordPress template or a unique website from a creative agency, but most restaurateurs might find this to be too expensive and time-consuming.
10. Loyalty Marketing
Additionally, you require tools for managing your customer relationships so that you can market to your most devoted customers without continually paying third parties like OpenTable to place butts in seats. These tools can be specialised ones, like text message platforms for engaging previous guests on their phones, or they can be loyalty marketing platforms based on creating rich guest profiles.
Loyalty is incorporated into many ordering platforms’ products. This makes a lot of sense because your point-of-sale system or the multichannel ordering platform already process all transaction data. In order to segment and target campaigns to particular profiles, you then get a comprehensive understanding of your customers. Look at the category above for more suggestions. Many reservation and waitlist management platforms also include loyalty marketing.
Vendors to consider:
Boostly is an automated text marketing platform that generates incremental traffic with little involvement from you. To simplify earning and redeeming loyalty rewards, Thanx uses credit card numbers. Smaller businesses that don’t want the hassle of a standalone app or loyalty programme can use Fivestars as their loyalty solution. Mobivity combines strong analytics with SMS and mobile loyalty marketing.
In order to market to specific guests, SEVENROOMS’ guest experience platform integrates loyalty marketing into its reservations/table management system. Stuzo and Astute use Big Data and AI in 1:1 marketing and automated campaigns for larger chains and larger budgets. PosIQ personalises marketing at scale using your POS data and its “guest tracking” technology.
