Secrets to Unlocking Your Restaurant’s Most Valuable Data
3 Min Read By Paul Hadfield
There is no shortage of technology options for restaurateurs these days. And, I’m sure that comes as no surprise to you.
Recently you’ve probably been inundated with calls about the hot new reservation system, your inbox is overflowing with emails about tablet-based POS systems, and someone just called again about their revolutionizing software that can increase your sales by 200 percent.
If almost all restaurants agree that new technology will help their operation thrive, why are so few taking advantage of it?
Sound about right?
In a recent study of more than 500 restaurants by American Express, four in five restaurant operators agree that technology can help make restaurants more productive, increase sales and provide a competitive advantage. However, 32 percent of restaurant operators consider their operations to be lagging when it comes to technology use, while only 12 percent of operators feel their operations are leading-edge.
If almost all restaurants agree that new technology will help their operation thrive, why are so few taking advantage of it?
At Revzi, our team consult with hundreds of restaurants each month, and most operators say that costs in various forms, and the potential for complicating the customer experience remain the primary barrier to implementing more technology in their operations.
That being said, we’ve found that the best place for restaurants to find revenue-driving technology is within the systems they are already using and are necessary to operate their establishment. There are companies that have disrupted virtually every aspect of hardware and software in a way that can help your business grow sales. And, the best place to start is by assessing your current technology. For example;
Your POS system should be capable of doing more than taking orders.
Your table management software shouldn’t just hold tables.
Your inventory management system should give you more than just a way to order food.
And, your credit card processor should be doing more than charging your fees for moving money around. Yes, there is actually valuable data you may be missing out on with every swipe of a card.
The best place for restaurants to find revenue-driving technology is within the systems they are already using.
Credit card processors are a dime-a-dozen, so it’s vital to work with one that provides growth producing results for restaurants. There is so much data stored on your customer’s credit cards and it’s a shame to only use that information to see if a transaction is approved or declined.
For example, at Revzi, we show our clients how to capture card data and marry it with POS reports. The combination of the two can tally things like the names of all of their customers, how often they dine, and even what that they order to better serve them when they return. Analytics based processors can also tell you how your sales break down between first time visitors and repeat customers, the menu items most likely to bring customers back in the door, or which items are selling well but customers do not appear to be returning to reorder them. With this level of data, restaurants can also track the ROI of events and campaigns by understanding if their marketing efforts drove new customers in the door or returned afterwards.
When auditing your current technology, make sure you choose products that work behind the scenes and doesn’t cause extra headaches for your employees or customers. The systems you select should make it easy for customers to dine with you and want to return in the future. Look for companies with a proven track record that have plenty of customer success stories. Technology is ever changing in hospitality, and tools are now in place to help a mom-and-pop shop compete with national brands.
You might even want to bite the bullet and go sift through a couple of those sales emails.