The restaurant industry has notoriously been a late adopter when it comes to technology. When your back office is still running a 1990s era computer with Windows XP, it’s OK to admit that technology may not be your strong suit.
That said, there are so many ways that technology can help the way you run your business. With real-time reporting and easy data collection, technology can help you uncover insights about your P&L and even help you run a more efficient business.
Let’s go over 3 ways you should be utilizing technology in your restaurant:
1. Manage Your Inventory
Inventory management feels lot like a balancing act; you’re juggling fast-selling items, slow moving items, and walk-in space all at the same time. But where it really costs you is when you find product sitting on the shelves for far too long. Sitting product represents invested money with no return.
Efficient inventory management is all about keeping a low inventory while still having enough to meet your needs. Low inventory levels makes for less waste, spoilage and theft—plus you’ll reduce your food costs because you’re buying less! Finding that sweet spot is easier said than done, however new software solutions can help you get closer to achieving it. Real-time inventory tracking lets you know what you already have and what you need. Plus, new mobile apps also help with vendor invoice reconciliation to increase accuracy and handle discrepancies.
2. Sharpen Your Purchasing
Once you’ve got your inventory management dialed in, it’s time to use that data for smarter purchasing decisions. Hopefully you’ve opted for accurate real-time inventory tracking, because you’ll be able to track trends over time and have better control over your food quality. Analyze your data to review popular menu items—what sells and what doesn’t? Make sure you regularly swap out old menu items that aren’t performing so you aren’t holding onto inventory for long periods of time. Additionally, do you notice any seasonality when it comes to products? For example, are you selling more ceviche during those hot summer days than in the chilly winter? Find out what you’re selling too much/little of, and adjust your purchasing behavior accordingly.
When you take a deep dive into your inventory and purchasing behavior you can really start to get creative with your menu. Test new concepts as menu specials to gauge customer reception. It’s also a good idea to build a close relationship with your purveyors because they might have off cuts of meat or other additional products that they’re willing to give you a great deal on.
3. Examine Customer Behavior
Data collection is where technology really shines, and now you can leverage data more than ever when it comes to understanding your customer base. Between online ordering systems, loyalty programs and reservation systems, you can acquire important customer data like average check size, visit frequency and much more. Actively maintain customer profiles to offer them targeted messaging (maybe it’s been too long since their last visit?) or keep track of special VIPs and other guest relationships so you can deliver personalized and over-the-top experiences when they come in. Reservation systems are also a great way to find out your average turn times and analyze trends over time. For example, restaurants who participate in promotional events like “Restaurant Week” on average experience faster turn times, which in turn allows them to set more tables in a night
There’s no such thing as gathering too much data on your customer base. Train staff to ask questions like “Is this your first time dining with us?” and “How did you hear about us?” and then make sure those answers are logged somewhere. Equip yourself with as much knowledge as possible for more effective marketing campaigns.