3 Uncommon Ways to Boost Your Restaurant's Bottom Line

Today’s restaurant industry revolves around efficiency. Guests are looking for gourmet food and a five-star experience — but they also crave convenience. They want the easiest way to order, receive, and pay for their meals whether they’re dining in or taking out. Some savvier restaurants are leveraging the latest hospitality technology to drive repeat business, and boost profits at the same time. 

Restaurants, like every other industry, are still in the midst of pandemic-driven market fluctuations. But if there’s one thing people really miss, it’s dining out. As COVID-19 regulations begin to lift, restaurants will be inundated with a surge of excited guests who have been sheltering in place for the better part of a year. 

Prior to COVID-19, the restaurant industry had already begun to adopt new technology to build customer loyalty and drive sales. As consumers start eating out again, restaurants need to double down on digital transformation to meet their needs. 

The right communications technology can help restaurants: 

• Increase speed of service
• Enable more upselling
• Service a higher volume of guests
• Reduce food waste
• Allow customers to reserve, order, and pay through their mobile devices
• Streamline internal communication for better service 

While most restaurants have moved far beyond handwritten orders on tickets, there is a disparity of digital adoption rates across the industry. Some companies have every bell and whistle to keep pace with restaurant tech trends, while others might just have their trusty POS system from seven years ago. From mobile apps to smart kitchens to tabletop touchpads, now is the perfect time for restaurants to adopt a digital workplace. 

Here are three ways restaurants can leverage a digital workplace to increase profits and build customer loyalty.

1. Connect with Customers Over Mobile Tech to Build Loyalty 

In an industry known for its razor-thin margins, repeat business is essential to any restaurant’s survival. On average, it costs companies about five times more to attract new customers than it does to keep their regulars. 

Some savvy food service businesses have opted for a branded mobile app. With a single-touch, customers are at your virtual doorstep. Habit Burger, a growing QSR based in California with over 250 locations, has an app for customers to view the menu, order, and pay. They can also request an exact pick-up time, allowing the kitchen staff to prioritize orders and reduce wait times. During COVID-19, customers can also request that orders be brought out to their vehicle upon arrival. Now, 25% of all Habit Burger orders happen online. 

Some restaurants are even leveraging their social media channels to receive orders. QSRs like Chipotle and Domino’s take orders through Facebook Messenger. Others take orders and reservations through Google Assistant. Using customer sign-in apps lets restaurant track order histories to make online ordering easier every time. 

Every customer-facing technology offers a unique opportunity to collect and store information and encourage repeat business. 

2. Leverage an Employee App to Engage Frontline Workers 

Restaurants have traditionally been a punch-in, punch-out workplace. But that has led to an industry with a 70% turnover rate (closer to 100% in fast food enterprises.) Some restaurants have adopted their own employee apps to connect with, motivate, and engage their workforce. For many, this has led to a decrease in turnover and more satisfied employees. 

There are two main reasons that restaurants need to prioritize digital engagement for their workforce:

• Engaged employees save the business money. According to the National Restaurant Association, restaurants spend an average of $2,000 to replace an hourly worker and an average of $15,000 to replace a manager.
• Building an engaged staff will keep customers coming back. Especially in FSRs, customers love a familiar face. Your employees establish a rapport with guests, many of whom prefer human interaction in their consumer activity. 

Your employees will have access to real-time information to problem-solve quickly (and on their own) and work with customers to remedy issues. This is especially important right now, as COVID-19 has brought about constant updates to restaurant protocols that employees must follow. 

Managers can use these mobile communication tools to promote employee retention and create opportunities for professional growth. Teach employees different aspects of the business through videos hosted on your digital platform. 90% of restaurant managers started out in entry-level jobs—groom your waitstaff to grow within your company, too. 

3. Collect Data to Reduce Waste and Give Customers What They Want

With all of this emerging technology, it’s easier than ever to collect data at every touch point in the customer journey. From consumer loyalty programs to food orders and inventory, the information you collect can help guide your business decisions. 

Data analytics can help you:

• Calculate inventory to eliminate waste and order only what you need
• Predict consumer behavior for future locations
• Customize marketing to specific guests
• Pinpoint opportunities for upselling and promotions
• Know profit margins per dish
• Predict guest turnover per seating
• Track dining trends to help schedule accurate employees per shift 

Collect your data in a secure, cloud-based platform so all of your actionable information is one place. Leverage that data along with these strategies to gain more repeat customers and increase your profits. 

About the Author

As Head of Hospitality, Andrada leads Beekeeper’s effort to help hospitality organizations improve communication and ultimately drive employee engagement and performance. Previously, Andrada served as Executive Director, Luxury Internal Communications and Engagement at AccorHotels and Executive Director, Communications & Strategy at Fairmont Raffles Hotels International.