STUDY: 96% of Multi-Unit Restaurants are Planning Expansion
Multi-unit restaurant operators have their sights set on growth, with 96% of respondents planning unit expansion over the next 12-18 months. However, operators see big opportunities for improvement, centered around core areas that drive operational excellence, according to new quantitative research study by Crunchtime.
Room for Improvement
● Reducing food costs — 74% of operators say they’re aiming to reduce food costs in the next
12-18 months, and shared that food costs are 35% on average—providing a clear benchmark.
● Improving employee scheduling — Nearly 40% of shifts are insufficiently staffed, underscoring the growing complexity of labor scheduling. Four out of ten respondents are looking to improve sales forecast data to optimize staff scheduling.
● Executing tasks and procedures in stores — Operators estimate that improved operations execution could increase sales by an average of 22%.
● Accelerating employee proficiency — Operators want employees trained one week faster. It
currently takes new employees an average of 19 days to become shift-ready, and operators want this reduced to 12 days.
The research study, conducted by EnsembleIQ (the parent company of Hospitality Technology) from May to July 2023, was based on an anonymous survey of restaurant industry professionals operating a minimum of 10 locations. The pool of 202 respondents included owners, c-suite executives, senior managers, and directors with decision-making authority or influence across full-service, fast casual, and quick-service restaurants.
HT'S WORKFORCE TECHNOLOGY SERIES
“To be positioned for future growth, restaurant brands need to focus on two key operational levers–getting a tight handle on profitability and creating a great guest experience–across every location,” said John Raguin, Chief Executive Officer of Crunchtime. “The research findings show there are still tremendous opportunities to improve operations in terms of food cost, staffing, task execution, and training.”
It takes new employees an average of 19 days to become shift-ready, and operators want this reduced to 12 days. Less than half of operators strongly agreed that they have a good handle on training and development currently, and 53% plan to invest in training programs or technology in the next 12-18 months.
Fewer than 1/4 of operators self-identify as “advanced” in their use of tech across key tasks/functions On average, respondents use an average of six different back-of-house operations-related software solutions/tools/apps regularly. Half or more plan to add or upgrade back-of-house restaurant technologies, including business intelligence (63%), inventory management (60%), and labor scheduling (56%).
“It's clear that multi-unit restaurants are poised for growth, but they are still juggling a variety of challenges that need to be addressed," said Beth Brickel, Vice President of Research, EnsembleIQ. "Leveraging technology continues to be a key strategy for overcoming obstacles to growth.”
For greater detail and insight into this research, download the full report. A deeper dive into the findings will also be shared in a live webinar with EnsembleIQ on Wednesday, October 25th-- click here for more information and to register for free.