Behind the success of a restaurant — regardless of size — is delicious food, great service and seamless experiences across every touchpoint. The right restaurant technology is essential to make it all happen.
Think about it: nine out of 10 restaurants have fewer than 50 employees, making efficient operations critical for success. When restaurants find their perfect blend of tools, they can transform challenges into opportunities for growth and innovation. Though restaurant technology isn’t one-size-fits-all, especially for small and medium business (SMB) operations looking to scale efficiently, finding the right solutions can make all the difference between a bustling business with customers lined around the block and a chaotic, disconnected dining experience.
Navigating the sea of technical options can feel like deciphering a menu in a foreign language. By focusing on key technologies like point-of-sale (POS) systems, local dining businesses can maximize their investments and position themselves for success in a digital-driven industry.Â
Understanding Technology Needs for Emerging Restaurants
Before diving into the solutions to maximize your restaurant tech stack, let’s paint a picture of the current landscape: dynamic, challenging and full of opportunity.
Restaurants now spend an average of seven-to-ten percent of gross revenue on IT, a significant investment that reflects the growing importance of technology in the industry.Â
The independent restaurant market consists of dining establishments that operate with 50 employees or fewer per location. This range represents a balance where businesses can maintain agility and ambition while preserving their local charm as they grow. Example scenarios include a neighborhood pizzeria opening its third location and a regional burger chain aiming to expand across an entire state. These businesses play a crucial role in the restaurant industry’s foundation and growth.
However, growth brings growing pains. Small chains often face a delicate balancing act: keeping up with larger chains and evolving customers while managing limited resources and tight profit margins. Common challenges include managing inventory across multiple locations, maintaining consistent brand identity, quality and service, and effectively analyzing data to make strategic decisions.
Despite these challenges, the restaurant sector is ripe with technological opportunities. Restaurants now spend an average of seven-to-ten percent of gross revenue on IT, a significant investment that reflects the growing importance of technology in the industry.Â
Technology opens the doors for efficiency and innovation while meeting guest demands for seamless, convenient experiences. According to the National Restaurant Association’s new Restaurant Technology Trends Report 2024, the addition of convenience-enhancing options, like accessibility to the restaurant via smartphone, web- or app-based ordering systems and digital or contactless payment options, were most important to customers. SMB restaurants have a golden opportunity to gain a competitive edge using the right solutions.
Essential Technologies for Restaurant Success
Emerging restaurant brands should prioritize technologies offering order speed and accuracy, customization capabilities, integration with other systems and scalability for future growth. These features are crucial for addressing current challenges and positioning your business for long-term success. The following solutions embody these qualities and can drive your restaurant’s performance to new heights:
Back Office Management Systems
Efficient back office management is critical for smaller restaurant operations. These systems help streamline scheduling, payroll and inventory management, reducing labor costs and improving overall operational quality and efficiency.
Online Ordering and Delivery Platforms
Integrating online ordering and delivery can open new revenue streams and cater to the growing demand for convenience.
Customer Relationship Management (CRM) and Loyalty Programs
Robust CRM and loyalty systems help personalize guest experiences and build lasting relationships, which is especially critical for SMBs. Loyalty programs incentivize customers to return, increasing visit frequency and average spend. This can indirectly ease pressure on front-line staff by creating a more stable customer base and potentially improving tips.Â
Automating personalized marketing and rewards through these systems enhances customer satisfaction without adding to staff workload, addressing employee retention and labor cost concerns simultaneously. It can also help maintain personalized relationships with customers at scale.
POS Systems
A modern POS at the heart of a well-oiled dining machine, offering cloud-based technology for real-time data access, mobile capabilities for improved order accuracy and reliable menu management tools. Comprehensive reporting and analytics capabilities help address sales volume concerns. An ideal POS system should offer seamless integration with other essential tools, employee management features to assist with staffing challenges and scalability to support your restaurant’s growth.Â
To maximize ROI on POS investments, focus on operational efficiency by leveraging the system’s data for informed decision-making, such as menu optimization, improved labor scheduling and enhanced customer experiences. Additionally, look for POS systems offering robust security features to protect sensitive customer and business data. This approach allows you to balance upfront costs with long-term benefits, ensuring that your POS becomes a strategic asset rather than just an operational tool.Â
Investing in a POS system with these capabilities and consistently training staff to utilize its full potential will equip independent restaurants to tackle many of 2024’s top challenges head-on.
Strategies for Efficient Technology Implementation
Implementing new technology in your SMB restaurant doesn’t have to be overwhelming. Start by identifying the core functionalities that will have the most significant impact on your operations. Focus on features that directly address your primary pain points, which ensures you’re getting the most value from your investment without unnecessary extras.
The goal is not to have the most technology but to have the right technology that supports your business objectives and enhances your guests’ experiences.
When you’re ready for adoption, implement one system at a time, allowing your staff to become proficient before adding more complexity. This gradual method minimizes disruption and gives your team time to adapt. For instance, start with your POS system, then integrate online ordering, followed by a loyalty program, back office, and more. This strategy also allows you to assess the impact of each technology before moving forward.
As you embark on this journey, remember that your choice of technology partner is crucial. Choose vendors who have experience working with businesses your size and understand the unique challenges of the restaurant industry. Look for those who offer ongoing support and training and are willing and able to grow alongside your business. A good technology partner should provide case studies of similar-sized restaurants they’ve helped succeed and offer flexible, scalable solutions.
The goal is not to have the most technology but to have the right technology that supports your business objectives and enhances your guests’ experiences. By following these strategies, you can ensure that your technology implementation drives real, tangible benefits for your restaurant brand.
