Payments Platform SpotOn Identifies Opportunities to Boost Revenue for Restaurants Battling Inflation Challenges

SpotOn, the software and payments partner for restaurants, is providing restaurants with actionable next steps based on the National Restaurant Association’s annual State of the Restaurant Industry Report.

As noted in the update, SpotOn has “outlined opportunities for restaurant operators to cut costs, carve out new revenue streams, and increase guest loyalty.”

Kevin Bryla, Chief Marketing Officer of SpotOn, said:

“At SpotOn, we make it our business to deeply understand the challenges facing restaurants and small businesses. We’ve partnered with the National Restaurant Association to provide this essential annual report, so we can help the industry move from insight into action. We’re committed to helping owners and operators understand and adapt to the current climate and position their business for success.”

Despite rising inflation, the State of the Restaurant Industry report “shows that consumers still view restaurants as essential to their lives.”

However, cost pressures “on both the industry and the consumer mean that restaurant operators must find ways to boost revenue while keeping prices manageable for guests and trimming the fat where they can.”

Tools that drive revenue “will be crucial to restaurant profitability in a year where 90% of operators say inflation poses a big challenge for their restaurants.”

There are opportunities “to boost profit margin incrementally, point-by-point, in nearly every aspect of operations; pricing strategies and customer engagement tools are a great start.”

  • Explore different pricing strategies to appeal to a broader audience, including the 79% of adults who have a more favorable reaction to variable pricing.
  • Add new revenue streams with experiences that go beyond everyday dining to draw customers in at slower times or offer exclusive experiences at a premium.
  • Invest in a digital rewards program to build repeat business with the majority of consumers who say they’d be inclined to participate in loyalty and rewards programs in restaurants they frequent.

Most operators are “looking to menu prices and offerings to cut costs resulting in smaller menus.”

Restaurants should “keep a close eye on daily sales and product mix reports and regularly audit their menus to reduce waste and keep food costs in check.”

Inventory management integrations for SpotOn’s point-of-sale, “like MarginEdge and Craftable, can help operators offset sustained inflationary pressures by providing access to real-time data and the ability to manage costs, eliminate waste, zero in on COGS, and keep up with fluctuating prices.”

Similarly, with 89% of operators citing labor costs “as a concern, a comprehensive labor management tool like SpotOn Teamwork can help optimize schedules.”

As labor challenges persist, operators “recognize that the old ways of managing staff won’t work with this new workforce.”

By improving how they manage teams, operators can “maximize their workforce, optimize operational efficiency, decrease labor costs, and improve employee retention.”

SpotOn Teamwork “gives restaurants the tools to create data-driven scheduling to avoid overtime, stay compliant with labor regulations, and make the most of the team they have.”

It also “empowers employees with transparency and the ability to manage their schedules, trade shifts, submit availability, and request PTO straight from their phones.”

Technology that “drives efficiency can also make work more enjoyable for employees and save on labor for operators.”

According to the State of the Restaurant Industry report, 62% percent of restaurant operators report “that they don’t have enough employees to support customer demands.”

SpotOn predicts operators “who incorporate labor-saving technology like handheld point-of-sale devices, QR dine-in ordering, and KDS to serve more customers with fewer resources while maintaining order accuracy, quality, and speed.”

As operators look for solutions, “finding a true technology partner is essential.”

From a lightning-fast, cloud-based point-of-sale to labor management tools, SpotOn’s robust hardware and software solutions are “built for restaurateurs by restaurateurs with input from industry leaders like Michael Mina and Matthew Kenney.”

All data cited comes from The National Restaurant Association’s 2023 State of the Restaurant Industry report.

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