By Miguel Alarcon, Product Agent, Ordrslip
Restaurants have faced a number of crises and challenges over the past two years, most stemming from the COVID-19 pandemic.
Labor shortages have had a huge impact on the restaurant industry, and while larger establishments have offset this challenge by offering higher wages, smaller restaurants have struggled to meet wage demands. current. In addition to labor issues, rising food prices and supply shortages have also affected restaurant results. Combined with lower restaurant levels at the peaks of the Delta and Omicron waves in summer 2021 and winter 2022, many restaurants are facing challenges like never before.
Restaurants must not only find a cost-effective way to solve current industry problems, but also ensure the future-proofing of their business in the face of another potential variant of COVID or current economic challenges. Fortunately, many restaurants are already using powerful, adaptive technology with features that can accomplish this: the point-of-sale (POS) system. Since these systems touch many aspects of the business, front to back, a variety of features and integrations can be used to address employee retention issues, supply chain issues and fluctuating restoration levels.
Delivery Goes Nowhere: Maximize Profits and Efficiency with Third-Party Integrations
Customer behavior has changed since 2020. Importantly, the pandemic has accelerated the use of delivery, with nearly 20 million more delivery app users expected by next year compared to 2019. customers have become more and more comfortable at home, and that shouldn’t change. Along with this trend, with the end of the pandemic uncertain, restaurants should prepare for lower catering levels and higher delivery demand in the event of future variants.
To meet delivery demand without adding additional work to staff, restaurants should adopt a point-of-sale system with third-party delivery integrations. Along with major apps like DoorDash and Postmates, restaurants can also use integrations to build and own their own custom mobile delivery app. In fact, two out of three customers prefer to use a restaurant’s own app or website. There are several benefits that everyone can enjoy, including higher profit margins, less staff time taking delivery orders, and the ability to implement loyalty rewards that keep customers coming back. Even though indoor dining is skyrocketing this year, delivery is now a mainstay, and integrating it into a restaurant’s POS system will make it as convenient and profitable as possible.
Affordable benefits and flexible pay can remedy staffing issues
The big resignation has impacted the workforce for nearly a year now, and restaurants are the hardest hit. Hundreds of thousands of food service jobs continue to be unfilled and the improvement since July has been slow. Restaurants have historically tended to have low profit margins – and with two years of declining sales, many restaurants (especially smaller ones) are unable to offer higher wages to attract and retain workers.
Above all, La Grande Resignation workers want increased security – they want to feel safe and respected at work, and they want their work to offer them more financial freedom and stability. POS providers have recognized that small businesses might need a helping hand with this and are offering features that can help restaurants compete in the job market and retain more employees. For example, Square offers benefits and payroll management, which can help restaurants cost-effectively offer employee insurance and retirement benefits. Additionally, many POS systems offer flexible payroll options, which employees can appreciate if they face an emergency and need their paycheck immediately.
Restaurants should use these features to their advantage. In this labor shortage, they simply cannot afford to risk spending thousands of dollars to train someone who leaves two weeks later for another job. Not only will this help create a better work environment, but these financial incentives and benefits will make employees feel valued and protected.
Prevent costly food waste with inventory monitoring and electronic menus
Over the past year, wholesale food prices have reached record highs, especially staples like beef, oils and eggs. Food shortages have affected nearly every restaurant and 75% have had to modify their menu to accommodate supply chain issues, according to the National Restaurant Association. In the face of rising inflation, restaurants must find ways to reduce kitchen costs without sacrificing quality.
POS systems can automatically track ingredient usage and generate reports, helping managers order ingredients in a timely manner, prevent food waste, and ultimately relieve them of manual management of these processes. If data shows that key ingredients are over- or underused in the kitchen, quick recycling can ultimately save thousands of dollars otherwise lost in food waste. Additionally, ordering certain ingredients earlier can help overcome supply chain issues and inflated costs. Finally, if certain menu items begin to be consumed for profit or certain ingredients are unavailable, managers can make data-driven decisions to increase prices or change/remove the dish.
For restaurants changing their menus, e-menus can solve the customer side of those changes. The ability to quickly update menus both in-store and online helps customers make informed choices when ordering, without having to be told prices have changed or the item described is n is not available. Together, these point-of-sale features streamline front-to-back-of-home ordering and preparation processes and keep customers happy.
2022 will continue to bring a lot of change for restaurants, whether labor and supply chain issues persist or unexpected new challenges emerge. Overall, technology has proven to be an important tool for a restaurant’s resilience in some of the most challenging circumstances imaginable. By investing in POS systems, restaurants can feel confident to meet future challenges, create a more efficient workflow for staff, enjoy increased profits, and most importantly, continue to deliver the best possible experience to customers.
About Miguel Alarcon, Product Agent, Ordrslip: As Product Manager at Ordrslip, a Bitwise Industries company, Miguel Alarcon oversees the company’s strategic vision and aligns each team to achieve goals. Prior to joining Ordrslip, Miguel was drafted into the United States Marine Corps for over five years.
About the purchase order: Ordrslip enables restaurants, concession stands, and food trucks to leverage custom smartphone apps, so they can meet growing consumer demand for mobile ordering options. The subscription-based SaaS works on iOS and Android smartphones, allowing consumers to access their favorite restaurant’s menu from anywhere. Ordrslip gives restaurants the ability to reduce costs, increase ticket yield, improve order accuracy, better manage rushes, reach customers anywhere, and increase revenue. Ordrslip supports all popular POS solutions.