The explosive increase in tech adoption across the restaurant industry shouldn’t come as a surprise. COVID has forced all businesses in every sector to speed up their adoption of technology, and think about an online presence to grow. Foodservice operators, who at best, thought of new tech as a “nice to have” and at worst, “annoying” have embraced the tools they need to maintain and grow their livelihoods.
However, while the majority of businesses have gone through some sort of digital transformation, the sad truth is that 99% of operators in the restaurant supply chain remain completely offline.
This is surprising. After all, there’s no shortage of software adoption in the front of the house for restaurants, with global restaurant management software market projected to reach $6.94 billion by 2025. However, most restaurants are prioritizing softwares for POS, accounting, loyalty, online ordering, third party delivery apps, training, scheduling and payroll.
Given that technology has touched most, if not all other areas of a restaurant, why is the supply chain still operating in the dark ages? Considering up to 40% of a restaurant’s revenue is spent on ingredients and up to 12% of that food is wasted before it’s even sold to the customer, one would think food procurement would be the first thing to digitize.
The broken and chaotic food procurement process still relies on antiquated methods like pen and paper. While there’s something to be said for “if it ain’t broke, don’t fix it,” many operators don’t realize the reality is that their own supply chain is broken -- or at least, could be much more efficient. In fact, for many, it can mean the difference between just surviving and thriving.