EXCLUSIVE RESEARCH: Integration & Visibility: Keys to Future-Ready Restaurant Accounting
The number one issue respondents using this particular solution admit to having is the lack of or inadequate integration with other systems (50%). Other points of frustration, according to respondents, is that there are too many points of entry and therefore failure (40%) as well as inadequate reporting and the inability to customize (30%). About one out of five (20%) restaurants using this specific system say that they feel challenged by the fact that the data is not quantified.
All-In-One Restaurant Management Software for Accounting, Operations and Reporting
DownloadInnovation Council members noted in a November 2018 meeting that cloud-based models help in terms of lessening cost. In this survey, 54% of respondents describe their current accounting as cloud-based and 36% say they still use an on-premise system. Of those respondents that claim their current system is on-property – 44% are considering a move to the cloud.
On average, respondents use applications from three different vendors to run the back-office. One out of three have more than that however, with four or more systems. More than a quarter (26%) have five or more to power accounting functions.
- CONCLUSION & KEY TAKEAWAYS
Restaurant accounting systems could be the key to unlocking efficiencies and cost-savings for operators, if the proper features and functionalities are deployed and leveraged. Restaurants that are ready to move away from legacy accounting methods are seeing benefits in cloud-based architecture, making integration, visibility and reporting chief priorities.
There remains a great divide between the goals that restaurants have outlined and the capabilities of the systems currently deployed. To close this gap, restaurants must take steps to streamline systems where possible, work with partners to ensure integrations are what they seem, and that access to data is absolute and undisputed.
The complexity of restaurant inventory and labor, necessitates accounting systems that can remove barriers to operators being able to make truly insight-driven decisions.
- ABOUT THE STUDY
Findings from this study are based on a survey of Hospitality Technology restaurant subscribers. The sample is representative of 6584 units, with 2527 (38%) being fast casual, 2180 (33%) QSR, 1763 (27%) being a casual / family (full service) restaurant and 58 (<1%) being fine dining and 56 (<1%) being 'other'. It was distributed via email during the fourth quarter of 2018 and was evaluated with support from EIQ Research Solutions. The sample represents a diversity of segment types and ownership models as outlined below.
- COMPANY TYPES
Independent 24%
Restaurant Management Group 26%
Corporate Restaurant Group 50%
- BREAKDOWN BY SEGMENT
Fast Casual 38%
Casual Family/Full Service 27%
Quick Service 33%
Fine Dining <1%
- COMPANY OWNERSHIP MODELS
Non-Franchised Restaurant Operator 54%
Franchisor of Single Brand 30%
Franchisee Restaurant Operator 8%
Franchisor of Multiple Brands 6%
- BREADTH OF ENTERPRISE
Regional 34%
National 32%
Global 18%
Local 16%
Finance/Accounting 22%
- GROSS PROFIT MARGIN
0-5% (2.5) 6%
6-10% (8) 14%
11-15% (13) 20%
16-25% (20) 30%
26%+ (26) 4%
Uncertain 26%
- RESPONSIBILITY LEVEL OF RESPONDENTS
IT/Technology 84%
Company Strategy 26%
Restaurant Operations 24%