Although the COVID-19 pandemic has left the restaurant industry reeling from a lack of customers and income, job cuts, and ultimately, permanent closures, the sector has managed to adapt to the new normal as it attempts to weather the pandemic. Measures include social distancing, wearing of masks, and handwashing to prevent the virus from further spreading. But more importantly, restaurants have turned to technology to help fight the health problem, among which are restaurant management software
Juggling customer orders, staff hours and tasks, menus, and inventories is one of the minor technological miracles in the age-old foodservice industry. Without a restaurant management software that can handle these sundry elements, there is no chance today’s food establishments can survive the way they do.
If you’re one of those who are seeking to cushion the impact of COVID-19, then look no more: invest in a more capable system. How? Start with this guide and some of the best examples of this application as we present them below.
Restaurant Management Systems Explained
- Benefits of Restaurant Management System
- Types of Restaurant Management System
- Examples of Restaurant Management System
- Features of Restaurant Management System
- Factors to Consider Before Getting a Restaurant Management System
- Pricing of Restaurant Management System
- Potential Issues in a Restaurant Management System
- Training to Use a Restaurant Management System
How does a restaurant management software differ from a general POS system? Restaurants (including bars, food trucks, and other foodservice businesses) have unique needs that a conventional POS system may not meet. For example, a typical feature is an ingredient-level inventory that lets you track items that make up your menu down to the last clove of garlic. This solves one of the main pain points in running a restaurant: how to do inventory. That’s something you won’t find in a retail POS, which usually count inventory stocks by-product and not what comprises it. A restaurant management system may also run on your tablet, so waiting staff can take orders and alert the kitchen and counter even before leaving the table.
Aside from the normal nitty-gritty of running a restaurant, there is the matter of the COVID-19 pandemic. Establishments have resorted to adopting new technology, in an effort to recoup losses. Restaurants have begun using digital menus and contactless payments, and of course, restaurant management software. Aside from these, businesses also beefed up their delivery services to boost earnings, resulting in $45 billion in revenues.
The above-mentioned developments emanated from the changes in people’s dining habits that were brought about by COVID-19. It took just three weeks after the declaration of the pandemic for two-thirds of American adults to alter their eating habits, opting to eat at home more frequently. Also, an increase in the number of people ordering online or via app has also been observed as can be seen below.
Statista
Benefits of Restaurant Management System
What does a restaurant management system do? We list the main benefits to expect when you use a restaurant management system. These benefits are your main reasons for getting a system. Not the least, 80% of restaurants are turning to technology for online ordering, reservation, inventory, and analytics. You wouldn’t want to be left behind, would you?
1. Track sales down to each item
All transactions are captured by the system, including orders, payments, voids, promo deals, and expenses, so your sales data is accurate and spot on to the last item. Revenues, therefore, are accurately giving you a real picture of the health of your operation.
Most systems have a built-in alert that notifies you of variances. For example, the gap between stock level and order volume at the end of the day, or unauthorized order voids. Alerts are typically sent via email or phone or can be viewed from a dashboard.
Sales data can also be broken down into various categories that make sense to you, such as by bestselling item ranking, customer names, or cash vs. card payment rate.
2. Generate financial statements quickly and accurately
Where transactions are captured digitally, manual errors are avoided. For example, each transaction is time-stamped and recorded with other details, such as sold items and the name of the employee who performed the transaction. Sales data is also synced with inventory and CRM (for customer data) to update their records as well. With data consolidated in one place, the integrity of your financial reports is protected. Likewise, generating these reports is a matter of a few clicks; the system runs analytics on the queried data and displays the KPIs at once using graphs and charts.
3. Better customer service
This is probably the best reason to use a restaurant management system: make customers happy. Most restaurant management systems come with CRM software features. This module records customer information like name, contact details, and transactions. With more knowledge of your customer’s likes, you can deliver a more satisfying service. You can build a mailing list, run campaigns that target their interest based on past orders, or push deals that match their profiles. The CRM typically comes with a loyalty program to help you reward your regular clientele.
Similarly, advanced features like online booking, mobile payments, and kiosk POS make it convenient for customers to place orders and transact business with you. Similarly, the use of an iPad or Android tablet makes tableside ordering faster, to the delight of customers.
Some restaurant management systems also give you the option to work with a shared delivery network service so you can reach eager customers outside the neighborhood. Overall, the restaurant management system helps you run a restaurant business more efficiently to the satisfaction of your customers.
4. Access data wherever
Most restaurant management software today is cloud-hosted, which lets you access the system and your data from a web browser. You get real-time sales transactions and track employee performance even on the go. That means you can be a hands-on manager while out of the restaurant premises. Remote data access is also useful when presenting to a client or investor. You can showcase updated reports on your business.
5. Efficient staff management
A restaurant management system with an employee scheduler will help you allocate more staff during peak hours and less on downtime. By aggregating sales data with staff schedule, you can match demand with supply and ensure your resources are optimized, neither over- or under-utilized.
Moreover, many systems offer the features of employee scheduling software. This way, employees can plot their schedule where everybody sees the available and taken slots. This feature avoids the conflict of schedule or nonappearance. It is also useful if you’re managing shared waiting staff to fill in during peak hours. You can let your staff manage their own schedule, relieving you of a time-consuming, non-earning task.
6. Better communication for the kitchen, wait staff, and cashier
The perennial problem in running restaurants is that somewhere along the way, someone mixes up information. The result: an angry customer whose order is, if not wrong, remains unaddressed or improperly billed. A restaurant management system does away with this scenario. When waiting takes orders via a handheld device, that data is automatically transmitted to the cashier, so the right transaction is captured and billing is accurate. At the same time, the handheld device transmits the order items to the kitchen. Barking orders to the head cook is a thing of the past.
7. Cost savings
There are many areas where you can squeeze out savings. With a better-managed employee schedule and inventory, you cut losses to your daily operations. Likewise, variances are avoided or at least significantly reduced, adding more savings to your budget.
Some vendors also hook you to an online marketplace and delivery service network, so you can scale operations minus the overheads that come with expansion. New restaurants grappling with marginal profits can cut down on losses by simply running their operations more efficiently.
One of the core restaurant management software features, order management, is cumbersome to configure if you are using a general POS system.
Types of Restaurant Management Systems
The very definition of a restaurant management system tends to gloss over the fact that there is no hard and fast rule in classifying restaurant management systems. The practical way is to look at them by feature set and priority function to help you gauge the right-fitting system. Along with this line, we can identify the types of restaurant management system as follows:
1. End-to-end systems
These are the most robust restaurant management software, covering all aspects of your restaurant business. Main features include core POS, inventory control, CRM and loyalty program, staff management, accounting, menu management, order management, payment processing, reporting and analytics, technical support, and hardware setup. Vendors may offer the whole bundle or let you pick and match features and scale for more tools in the future.
2. POS systems
A restaurant management system may only offer the core POS module and let you integrate it with third-party inventory control, accounting software, marketing software, and other key business systems.
3. iPad-only or Android-only systems
How a restaurant management system works also depends on the device type it is designed for, usually either for iPads or Android tablets, but rarely both. The reason is to maintain the integrity of the system within a specific OS environment to make it more reliable. This is one major area to consider when getting a system for your business: what device are you using or want to use?
4. General POS systems
Some general POS systems that cater to retail position their system as viable for restaurants, or they have an add-on module specific to this niche. This type is ideal if you’re running a restaurant and a shop at once, making the cross-over seamless.
A robust restaurant management system like TouchBistro gives you advanced tools like an analytics dashboard to help you get a quick lookup of your KPIs.
Examples of Restaurant Management System
What are good examples of restaurant management systems? Here we list some of the top players in the field.
Toast
Managing your menu in Toast is as simple as dragging and dropping items to add or remove menus on display.
Created specifically for US-based businesses, Toast POS is an Android-based system with robust features, covering all aspects of your restaurant business. These include core POS, inventory, reporting, credit card processing, CRM, online ordering, and HR. It gives you full visibility over all your operations, even from the convenience of a mobile device, and provides real-time alerts. The interface can be customized for specific foodservice types, such as bars, convenience stores, and full-service restaurants. An appealing test drive of all software features is available to you when you sign up for Toast POS free demo.
When I Work
When I Work offers plenty of tools to help restaurant managers with staff scheduling, payroll, and resource management. The software makes staff scheduling easier, and a guided setup ensures that you can get the hang of using the system to create detailed employee rosters and schedules. You can also use the software to generate forecasts of possible overtime hours and payroll so that you can anticipate changes to the budget. If you want to investigate the features closely, you can easily do so when you sign up for When I Work free trial.
Lightspeed Restaurant
Lightspeed Restaurant comes with various features for more efficient restaurant management. The software provides a layout of your restaurant, with color-coded features for indicating tables that are free, ready to pay, and occupied, helping improve table turnover rates. Managers can also keep closer track of stock levels and view reports on food stock and profit, so menus can be changed as needed. And since this is a cloud-based POS, users can access these features on any device, including mobile devices like tablets. You can sign up for a free trial of this software if you want to try out its advanced features.
7Shifts
One of the most popular scheduling software among restaurants, 7Shifts helps restaurateurs and managers ensure even workload distribution and improve employee attendance. The platform streamlines the process of creating and distributing schedules and also makes it easier for employees to submit requests for time-off and shift trading. Instant notifications alert employees of shift changes or updates. Lastly, 7Shifts also eliminates the need for overtime, reducing labor-related expenses. You can try all its premium features at no cost when you sign up for 7Shifts free trial.
TouchBistro
An iPad-only restaurant management system, it boasts of end-to-end functionalities, especially its tableside order management. TouchBistro also accepts mobile payments, so transactions can happen mostly on tableside, relieving you of long queues and cutting short the waiting time. The software also has robust reporting & analytics that you can run wherever you are. It also features ingredient-level inventory control, further boosting your control over your operations. You can use all the features for free for a period of time to see if the software matches your needs.
Sapaad
Sapaad is a robust restaurant management software with wide-ranging capabilities for streamlining restaurant operations. The platform makes your services more efficient through SLA-driven processes and real-time data insights. The system’s inventory module offers features for food costing, recipe management, and purchase order management so that you can control stocks right from the platform. The Delivery Manager feature and built-in CRM capabilities also allow you to provide home delivery to your customers. You can check the solution closely when you sign up for Sapaad free trial.
CAKE
Developed by Sysco, CAKE provides solutions for POS, online ordering, and guest management. The software facilitates faster order processing by making it easier to track orders from table to kitchen and process payments. You can also customize workflows and floor layouts to match your restaurant’s needs. The platform also comes with a built-in Guest Manager system for managing online reservations and waitlists. For added convenience, CAKE can be used by full-service and quick-service restaurants. You can easily sign up for CAKE free trial and get to know the features firsthand at no cost and without commitment.
Revel
Revel Systems POS is a cloud-based POS and business management system solution designed for restaurants. The software comes with a Kitchen management system that allows paperless management of orders, along with a Product Management and Menu Building feature that allows personal menu creation. Moreover, Revel Insights helps sort your business data, so you can get an accurate picture of your restaurant’s performance whenever needed. The vendor offers a comprehensive free trial to get you up to speed with the features.
Upserve
Designed as an all-in-one restaurant management suite, Upserve offers POS, inventory management, and analytics solutions for restaurants of all types. The platform is deployed on the cloud, so managers can access data wherever they are. Aside from powerful inventory management and POS capabilities, what sets Upserve apart is its Workforce Management module. This module allows you to make staff schedules, assign shifts, and implement clock-ins. Should you want to investigate the platform firsthand, you can easily do so when you can sign up for Upserve free trial.
TablesReady
TablesReady enables easier waitlist and reservations management, modernizing the process for restaurateurs and restaurant managers. The app automatically sends SMS to diners with reservations, which can help reduce no-shows. Moreover, the software can send waiting diners a text message once a table is ready. All these features help minimize missed business opportunities and improve customer service levels. If you want to check its comprehensive feature set, you can easily sign up for TablesReady free trial.
PlateIQ
PlateIQ offers restaurant managers innovative solutions for accounting, data entry, and analytics. The platform provides an interface with built-in tools for menu management, food costing, price management, and inventory tracking. With the software’s reporting features, you get deeper insights into your restaurant’s finances and spot problem areas. Moreover, Plate IQ automatically syncs payments to your general ledger for easier reconciliation. The vendor has an appealing free trial where you can tinker with the features at no cost.
BlueCart
Designed for the hospitality industry, BlueCart combines CRM and order management into a single platform. The platform’s BlueCart for Restaurants module offers specialized functions for inventory management, purchasing, and payment processing. Additionally, the software ensures more efficient inventory control by notifying you when stocks run low. Aside from these features, BlueCart also allows you to use only one platform to manage multiple locations. If you want to know more about the features, you can easily sign up for BlueCart free trial.
Menumiz
As an online restaurant management application, Menumiz provides features for menu creation, inventory management, payment processing, floor management, and other advanced POS/EPOS tools. It allows restaurateurs to get a 360-degree view of their operations as well as manage all of their tasks in one platform. Additionally, this platform is completely compatible with Android and iOS devices to increase your mobility. To learn more about this platform, sign up for Menumiz free demo.
Features of Restaurant Management System
Many restaurant management systems actually perform more than just POS functions. They have modules for your front of the house, back of the house, HR, and CRM processes. Here are the main features of a typical restaurant management system:
1. Core POS
The main module consists of accepting payments and tracking sales. The POS may include table and on-site POS via handheld, kiosk, or tablet, which allows you to take orders remotely from the main cashier register. The POS is linked to other main systems like credit card and payment gateways, inventory management, and CRM, to form an end-to-end restaurant management system.
2. POS Hardware
It consists of the physical parts of the POS, such as a terminal, card reader, printer, and cash drawer. Collectively, you call them the cash register. Some vendors offer a bundle of software and hardware, but most restaurant management systems operate using your PC or smartphone/tablet, so you just subscribe to the software features.
3. Employee Scheduler
This feature usually comes with a calendar and an employee portal. The calendar shows available and taken slots, while the portal enables employees to book their own schedule. It avoids conflict in schedule and makes it easy to spot days that are understaffed or overstaffed, giving your room to make quick adjustments. The scheduler may offer time-tracking and payroll system features for seamless attendance-payroll processing.
4. Gift cards and loyalty program
The system generates printed or digital gift cards that guests can purchase online or on-site. Gift cards are swiped or scanned, and the transaction, including balances that apply, is automatically captured and recorded by the POS. Since the gift card is a function of a loyalty program, in most systems, you can run reports based on gift card data to gain marketing insights. It gives you a picture of your repeat or referral sales. The gift card is typically linked to a CRM, which captures customer data when they purchase or use the gift card.
5. Inventory management
Many restaurant management systems offer the features of the best inventory management software. These systems help you gain tight control over your stocks and avoid overstocks and stockouts, both of which put a strain on the cash flow. You can track supplies before they run out, link the system with suppliers for direct orders, and break down items to ingredient level for a fuller view of stocks. This feature also generates reports to help you calculate food costs and pricing and generally provide you with an accurate picture of your profitability. It also helps identify variances like waste, theft, and voids and improve the back of the house workflow.
6. Reservation system
This feature allows customers to book online via web or app. It helps prevent overbooking and manage your staff and resources based on bookings.
7. Payment processing integration
A restaurant management system usually integrates with a payment gateway or credit card processing system that enables customers to pay other than cash. Customers can securely sign in using a handheld device or scanner.
8. Reporting & Analytics
This module allows you to run analytics by consolidating data from other modules to come up with insights into your operations. These insights can be reflected in sales reports, financial statements, employee performance reports, and marketing campaign metrics.
Inventory control, as seen here on a Lavu dashboard, helps you prevent wastage and keep a close eye on your stocks.
Factors to Consider Before Getting a Restaurant Management System
Aside from the key features of a restaurant management system, you need to take a hard look at the following factors to ensure you’re getting the best-fitting system. In a way, these factors define the purpose of a restaurant management system for your business.
1. Type of system
Remember the types we described above? Make sure you’re getting the right-fitting system. For example, if you’re using an Android device, then cancel out systems that run on the iPad. If you only need core POS, then getting an end-to-end system, which is more expensive, isn’t cost-effective.
2. Deployment
You have to choose between installing an on-premise system or subscribing to a monthly subscription cloud plan. Both have their pros and cons. However, the latter is more attractive to small businesses; the initial capital outlay is low, and the monthly cost can easily be cost-in into menu pricing. Plus, you don’t have to worry about updating and maintaining the system as this is taken care of by the vendor. And again, having access to the system via cloud affords you to be away from the restaurant while still in touch with the daily operation in real-time.
3. Scaling the features
If you have plans to expand to a chain or franchise, make sure your system can scale. What you want to avoid is to change the system in between your growth period. This may mess up and even hinder your momentum. What are the major features to consider scaling? These include the number of terminals, bandwidth, and mobile devices. Premium features like advanced analytics, multi-branch add-ons, and integrated HR feature that can handle a growing pool of employees and their various schedules. Additionally, vendors with enterprise plans provide a guarantee that you can grow with their system.
4. Offline mode
Most restaurant management systems now run in the cloud, so you can access them and your data wherever you are. The drawback, of course, is when your internet connection flops, you get disconnected from the system. To address this, many systems–not all, mind you—offer an offline mode that allows you to continue using the system even without an internet connection. When you get your connection back, the system automatically syncs everything, so your cloud-hosted data stays updated. It is important to make sure that you’re getting a solution that has an offline mode.
5. Handheld and remote tools
Having a mobile device, you can bring to take orders at tableside or on-site is practical, efficient, and ensures data accuracy. These devices are linked to the kitchen and cashier, so you avoid miscommunication, wrong punches, or missed orders common to manual processes. When you get a restaurant management system, do your business a favor and make sure it has this feature.
In TouchBistro, table management is easier as the system provides a floor layout of your restaurant.
Pricing of Restaurant Management System
The cost of a restaurant management system is based on the number of features you’re getting. The basic plan typically consists of the core POS, then you pay more for every additional module like inventory management, accounting, and CRM.
Another way pricing is bundled is by deployment. On-premise systems usually have a one-time license fee, while cloud solutions require a monthly payment.
Pricing can also be by terminal or location. Many vendors offer by-quote pricing because restaurants have varied needs, and all of these are difficult to put in an inbox.
Potential Issues in a Restaurant Management System
Despite the benefits, restaurant management systems may pose a risk if you’re not careful or use it for the wrong reason. In many cases, these issues only arise out of negligence.
1. Data protection
As with all data you put out in the cloud, there is always the issue of data protection. You are not just saving customer data in the vendor’s server, but your entire operations, including, perhaps, sensitive financial statements. To help mitigate this issue, you should look for systems with high-grade security that employs bank-level protocols. After all, banks and payment gateways manage to protect their data, so the issue of data protection is valid but quickly addressed.
2. Data silos
This happens when you have a core system and integrate it with other systems. If the integration is poorly done, silos can result, data that is left alone in one system. This has implications. For example, if you’re using separate accounting software, it may have pending tax dues that can’t alert the calendar you’re using, resulting in penalties.
3. Getting an end-to-end system
Startups may be goaded to get a robust system to “prepare for expansion.” The problem is when they fail to expand and get stuck in the startup stage for months or even years. Having an end-to-end system where your restaurant is living by a thin margin, creates unnecessary strain on your cash flow. It is better to get a system that scales to your growing needs.
4. Breakdowns
In the event of a system glitch or downtime, things can get messy in your restaurant. Customers start to complain about missed orders or delays. Queues get longer. Meanwhile, the cashier loses track of transactions, resulting in variances. A worst-case scenario that should not happen if your system has a backup or offline mode.
5. Regional, federal, state compliance
While most restaurant management systems comply with US regulations at every level, you may find yourself in a bind when operating outside the country. Compliance is usually hardware-based; the cash register and official receipt churned out by your system should be registered with the proper agency. Still, research if the system you’re getting is okay with the local authorities in your area.
Training to Use a Restaurant Management System
Effective staff training is crucial to ensure a smooth transition and full utilization of an RMS. Here are some steps to successfully train your staff:
- Start with Basic System Orientation: Introduce the system’s key features and how they impact daily operations. Walk staff through the interface, including order-taking, billing, and table management. Familiarize them with the dashboard and navigation to ensure they understand the system’s flow.
- Offer Hands-On Training: Allow staff to practice using the system in a controlled environment. Simulate real-life scenarios, such as taking orders, modifying menus, or processing payments. This will help them feel more confident when they interact with customers.
- Break Down Training by Role: Train different staff members based on their roles. Front-of-house staff should focus on order input and customer interaction. In contrast, kitchen staff should focus on tracking orders and inventory management. This ensures that each team member is proficient in the tasks relevant to their position.
- Provide Cheat Sheets and User Guides: Give staff easy access to quick-reference materials such as cheat sheets or user manuals. These resources can help them troubleshoot issues on their own during peak hours without interrupting others.
- Use Continuous Learning and Support: Training doesn’t end after the initial session. Offer ongoing support and refresher courses to keep staff updated on new features or changes to the system. Consider setting up a feedback loop to address challenges they may encounter.
- Monitor and Provide Feedback: Observe how staff use the system and offer constructive feedback. Regularly check their proficiency and identify areas where they may need additional training.
Streamline your restaurant’s operations
Despite the setback that the COVID-19 pandemic has brought to the restaurant industry, industry players have managed to move on by adapting to the new normal. Infection control measures, improved food delivery services and the use of new tech like restaurant management software have helped restaurants stay afloat in the meantime.
A restaurant management system is a great way to organize your restaurant’s operations and keep your business running smoothly. Like we’ve previously discussed, the top restaurant management solutions offer the functions of multiple systems-POS, CRM, payroll, employee scheduling, accounting, and analytics-to give you an end-to-end software solution for your restaurant.
Toast POS currently sits at the top of our list of the best restaurant management systems today. The vendor offers a comprehensive free trial to get you up to speed with the features. You can sign up for Toast POS free trial here.
Why is FinancesOnline free?
Leave a comment!