The Drive for Restaurant Digitization in a COVID World

In the wake of the pandemic, it can be argued that no industry has been hit harder than the hospitality industry. Those restaurants who have survived are adjusting to new restrictions of on-premise dining. While the future for the hospitality industry is uncertain, it is clear that businesses best positioned to survive are committed to digitization of their operations.

So, what can this digitization look like? What are the best means for restaurateurs to innovate?

In speaking with our customers, especially those in the food & beverage space, technology has enabled these establishments to compete with much larger competitors and franchises. This push towards digitization will provide these businesses with the competitive advantage needed to succeed.

Marketing and Promotions

As restaurants are now being asked to operate in a limited occupancy capacity, communicating with customers across all channels is critical. Beyond leveraging third-party delivery tools such as Grubhub and Postmates, restaurants need to speak with customers about things they never thought about before. Constant communication with customers about on-premise dining accommodations and health precautions being taken is crucial for this phase of indoor dining. Patrons want to see real-time updates on what restaurant owners are doing to ensure social distancing and they are using technology such as contactless transactions to ensure safe experiences.

To communicate these types of messages effectively, restaurants need to look at their overall online footprint beyond social channels. An example of how restaurants can solve this is through a solution like Yahoo Small Business’ “Business Maker” platform, which offers out of the box web marketing solutions for small businesses. Platforms like these give restaurants a customized domain and website with 24/7 support to optimize consumer traffic. Beyond that, the platform ensures your establishment is accurately listed on all relevant business directories so that you are easy to find. By having a consistent web presence, you’ll be able to effectively drive your business forward. 

Leverage the Cloud

The pandemic forced all businesses to rethink operations with restaurants being no exception. One of the easiest ways to drive operational efficiency and digitally transform is the adoption of cloud-based technology. From the ability to leverage SaaS (software as a service) applications for sales and accounting operations, to data backup, security and mobility, the business drivers for small businesses to invest in cloud are many. Additionally, with limited upkeep and having managed services, restaurateurs can focus on their own expertise while letting best in class platforms manage much of the IT.

Beyond the managed services that these cloud-based applications provide, investing in remote IT is also a way for these businesses to scale themselves. Rather than hiring a team, consider investing in an on-demand tech support that offers restaurants 24/7 access to IT professionals to assist on any system or user support issue.

Security While You Scale

While investing in digitization, security becomes a bigger priority. Think about all the new tools that you are utilizing-- each of them while a competitive advantage becomes a security concern. From new POS systems and contactless transactions to customer and supplier data, security needs to be a part of your digitization strategy. And many small businesses even during the pandemic have made new investments in security. As found in our Small Business Recovery Survey, 33% of small businesses have implemented new systems or technology to ensure security.

And while most of the breaches that gain media attention are large big box retailers, small businesses are becoming increasingly targeted. In fact, according to the 2020 Verizon Data Breach Investigations Report, nearly 28% of cyberattack victims assessed last were small businesses. Understanding your potential systems that can be exposed is the first step for small businesses in managing their risks. To help businesses do this, we recently released our free Security Assessment Tool. Platforms like these enable businesses with under $100 million in annual revenue to receive a score highlighting their cyber risk (similar to a credit score) in a matter of clicks. What is great about small businesses doing this type of scan is that basic things such as levels of spam, exposed credentials, and any questionable desktop software are examined in this process. Having this type of check up allows you as a restauranteur to determine any immediate systems to remedy.

Through digitization, restaurateurs can effectively drive their business forward. As businesses of all sizes and sectors plan for the future, technology should be a priority in driving the business through this new normal. The opportunity to innovate and drive operational excellence and efficiency makes digitization the secret weapon for single location restaurateurs to compete with their larger competitors.