How important is scaling restaurant operations to your business?
Restaurant brands typically want to upgrade their restaurant management software to:
1) better manage food costs
2) better manage their labor costs
3) better manage their ability to scale
What does it mean to better manage the “ability to scale?”
Scalability, whether it be in a financial context or within a context of business operations, describes a restaurant chains ability to grow without being handicapped by its structure or available resources. The idea of restaurant scalability has become more prevalent in recent years with the industry boom of fast casual concepts. Restaurant management technologies have made it easier to manage food and labor costs to scale the business for growth.
When a company scales, it’s adding to its workload. It’s increasing restaurant locations, employees, vendors, equipment — everything! A system that scales well will be able to maintain or even increase its level of performance or efficiency when tested by larger operational demands. So, the company’s ability to scale smoothly is often dependent on the power of its infrastructure technology systems. It’s these technology systems that take the complex functions of restaurant operations and make them less complex.
Restaurant management software or an “integrated back office solution” provides a centralized approach to controlling these complex (and critical) parts of the business:
- Products and Recipes
- Vendor Suppliers, Pricing and Supply Chain
- User Configuration
- Business Rules
- Employee Security & Access
- Reporting Hierarchies
- Accounting & Payroll Integration
Efficient local operations lightens the load
At its core, a scalable restaurant chain (particularly one that is heavily franchised) focuses on the implementation of business processes that lead to an efficient operation. At the restaurant-level, all locations are provided with the same back office technology tools and information systems to ensure everyone is operating by the same rules and standards! Back office software creates more efficient managers across all locations by providing the insights and instructions for:
- Sales Forecasting
- Ordering & Receiving Product
- Inventory Management
- Daily Prep
- Waste Tracking
- Store-to-Store Transfers
- Labor Scheduling and Workforce Optimization
- Informational Dashboards and Task Lists
- Enterprise Reporting and Performance KPIs
- Warehouse Commissary Functions
Restaurant management technologies are imperative for long-term successful growth. Without the right technology infrastructure to manage the incremental workload that occurs when adding locations, regionally or internationally, scaling the business becomes impossibly difficult to maintain.