restaurant management software | 12 mins read

Restaurant Management Software- Get The Most Out of Your Business

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Debdutta Bhattacharjee

By Debdutta Bhattacharjee

What to Look for in a Good Restaurant Management System

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1. Try to find a restaurant management system (RMS) that lets you monitor as many elements as possible. Consider adopting a point of sale system that lets you take orders, process payments, and also lets you know if you have sufficient ingredients for a specific recipe. If you can link your POS system to your accounting and payroll software, it's even better.

2. Determine whether your preferred software is compatible with your devices. Also, think about whether an app or tool will operate well with the restaurant software you already use. Without this, the business will be squandering its money and jeopardizing customer service.

3. You won't spend much time learning how to utilize the software if it's simple to use. You can also save time and money on staff training if the software can be handled even by employees who are not tech-savvy.

4. You should be able to easily alter menu items and prices. Rather than having to call the service provider every time, you, as a business owner should be able to configure the menu yourself. And you shouldn't have to reboot the system entirely, just to refresh the menu.

5. Customer loyalty is essential for a business to ensure that it stays competitive. A rewards program may simply involve adding a free item to the customer's bill. It should, however, also allow you to perform more complex tasks, like allowing consumers to make payments by taking advantage of loyalty points.

6. If you operate several restaurant branches, the RMS should let you view data from all of them on a single dashboard. Secondly, you must be able to quickly consolidate all information. Finally, your RMS must help you manage data on the go.

7. What you can't measure, you can't fix. In the case of a restaurant, one needs to determine which menu options are profitable and which are not. Therefore, a POS system with integrated restaurant reporting and analytics is essential.

8. Seek a service provider offering chat support or a toll-free hotline 24 hours a day, seven days a week.

Why Restaurant Owners Need a Restaurant Management Software

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1. Increased efficiency- An automated point of sale system can help restaurant employees stay organized. In the past, front and back of the house employees would shout out orders to each other, adding to the chaos and running the risk of misinterpreting orders. Today, a software system lets servers and kitchen staff communicate in real time, quickly, quietly and accurately.

Inventory management is crucial for a restaurateur looking to reduce food expenses and wastage. An inventory management solution that keeps products in stock for different menu items, can help a restaurant prevent food loss and save money on unnecesary supplies.

2. Better customer service- An inventory management system will let a restaurant proactively refill its stock the moment it hits par level, making sure no order is ever turned down. With its ease of use and real time updates, point of sale software can improve the consumer experience. It also improves the processing of payments.

3. Greater employee satisfaction- Whether you are running a fine dining restaurant in a big city or a modest coffee shop in a little town, a restaurant management system helps boost employee engagement and satisfaction.

Employee management and scheduling operations can be aided by restaurant management software. The restaurant staff will feel considerably less stressed if they are able to deliver speedy service and offer a full range of menu items.

Online employee scheduling software that makes shift planning effortless.
Try it free for 14 days.

Types of Restaurant Management Systems

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Restaurant management systems are divided into two categories- front of house (FOH) and back of house (BOH). A restaurant can improve customer service efficiency and client satisfaction by using front of house software. The restaurant will enjoy a regular revenue flow as a result of this.

FOH software makes sure there's no need to field customer queries about how long they'll have to wait for a table. FOH software works with the existing POS system and can be accessed via an iPad.

RMS ensures that table management responsibilities are handled easily by restaurant staff, and table turnover increases. The customers, on the other hand, can check their waitlist status immediately on their mobile gadgets, and can even pre-order food and reduce dropout rates.

Online ordering is simple to integrate with FOH software, and it frees the restaurant staff from taking orders over the phone. Online ordering software provides greater convenience to customers, while also providing an additional cash stream for the company. Food can be ordered through the website or app of the restaurant, or a third-party platform such as UberEats or GrubHub. Table bookings can also be made through the restaurant's website.

A National Restaurant Association research revealed that repeat diners account for as much as 70% of a restaurant's earnings. A restaurant can construct personalized customer loyalty programs with the help of a loyalty/rewards program software module. There is no need for the customers to bring physical cards with them. Through an embedded loyalty program, diners can receive rewards for each product purchase, get discounts, and redeem points at the point of sale. Restaurants may use customer data filtered from POS reports to create more successful loyalty programs and increase customer retention and revenue.

With the FOH software's built-in marketing automation tool, a restaurant can easily segment its client base and offer customized promos based on the customers' preferences and previous spending at the restaurant.

An RMS in the back office will help the restaurant organize its tasks better. A kitchen display system coupled with the restaurant POS system aids in the digitization of kitchen order tickets (KOTs), by displaying client orders on screens for the kitchen staff to view as soon as orders are fed into the POS system. This enables the kitchen workers to swiftly begin preparing the meal, allowing them to roll out orders quickly.

Other BOH operations that can benefit greatly from powerful restaurant management systems include workforce management, restaurant labor cost management, food cost management, inventory management, and restaurant accounting .

Employee scheduling, for example, can be optimized to meet the needs of the company. Employee scheduling that is meticulous will help reduce labor costs by eliminating overstaffing and unnecessary overtime. This way, restaurant accounting software helps a restaurant keep track of its operational costs and allows it to plan better. These functions would not be handled as effectively by a manual process.

How to Choose the Best Restaurant Management System For Your Business

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1. According to studies, consumers today prefer making their own decisions. Therefore, a restaurant management system should support self-service ordering, self-service kiosks, digital ordering through QR codes, and digital payments.

2. The software you chose should allow customers to choose from a variety of options. Giving customers the option to customize their orders could have a huge impact on sales.

3. Find a platform that works well with your point of sale system and offers integrated service alternatives. A crucial point when choosing a restaurant management system is the availability of seamless payment integration. If your restaurant can't accept every kind of payment, including payment through gift cards and other methods, you stand to lose customers. Make sure the system you chose can work with a variety of third-party POS systems.

4. Best restaurant management systems use machine learning and are highly intuitive so that they can adapt rapidly to your workflow, whether you have many managers in charge of various kitchen divisions or a distinct system for handling online orders.

5. When it comes to choosing a restaurant management system, the cost might be a big deciding factor. Make a list of your requirements and rank them in order of significance. If omitting one of the less important functions allows you to reduce your cost, that may be the best option for you.

6. Whether you are talking about cloud services or device compatibility, technology is rapidly advancing, and your restaurant management system must keep up. Customers must be able to choose their orders beforehand and save them so that they can place their orders quickly when they have to.

Plum POS, which is available on the Hubworks restaurant app store, provides a variety of restaurant management features like POS app, self-service kiosk, kitchen display system, mobile POS, online ordering, and loyalty program to streamline restaurant operations.

How to Get the Most Out of Your Business With Restaurant Software

1. RMS enables businesses to alter menus, reduce wait time, and provide customers with several payment methods. This means businesses can offer better service more rapidly, resulting in happier consumers.

2. RMS assists in the recording of all sales data, allowing a business to keep track of products sold, and prioritize top-selling items. It allows business owners to then make smarter business decisions.

3. Report generation can be automated using restaurant management software. These reports provide important information to businesses on the effects, say, of marketing strategies like loyalty programs and discounts on consumer behavior. This in turn allows businesses to devise effective plans to cultivate existing customers and attract new ones.

4. Employees want to feel valued, and an RMS gives them a say in how their shifts are managed. Employee scheduling software allows employees to easily switch shifts with coworkers. RMS also ensures that an employee is more likely to have last-minute shift change requests accommodated. This gives them a sense of agency. RMS ensures that the restaurant is fully staffed at all times without having to go over the labor budget.

5. Noting down orders with pen and paper runs the risk of error. The wait staff may goof up the names or quantity of items ordered, or his/her handwriting may be illegible to the kitchen staff, who may end up preparing a different dish than that ordered. An RMS ensures that the exact order is registered and displayed on a screen to the back office staff so that there's no chance of error.

6. Time-consuming procedures such as tracking inventory, looking up prices, and table distribution are handled effortlessly by the restaurant management system. This allows restaurant employees to focus on interacting with customers. It also implies a more efficient use of human resources.

Online employee scheduling software that makes shift planning effortless.
Try it free for 14 days.

Make Sure You Are Getting the Most Out of Your Restaurant Software

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A sophisticated restaurant management system can be milked for optimum results. This is something a simple system like Excel spreadsheets can never achieve.

Restaurant Management Software can be used to accomplish the following tasks-

1. Keep track of sales- Knowing which items are the best, and worst sellers allows a restaurant owner to make modifications to the menu. Most crucially, they get a glimpse of the sales data, which is used to calculate profit.

2. Inventory control- When a product is sold, the POS system subtracts it from the inventory. This way, an entrepreneur knows the exact quantity of stocks the restaurant possesses and the quantity to be restocked. Inventory management indicates the amount of food consumed, which is necessary to gauge profit margins. Overstocking and the wastage of food and money that results from it, necessitates inventory management.

3. Easy menu modifications- Updating a menu must be a simple exercise. While making menu adjustments, the server or terminal shouldn't reboot.

4. Business reporting- A business owner may not have time to assess how the company is performing in specific areas. The business reporting feature of the RMS should be flexible enough to run automatically and provide alerts depending on user-defined performance metrics. The reports should be accessible in real time, from anywhere, and on any device for the business owner to analyze the information and take proactive steps to address the difficulties obstructing business growth.

5. Fast order and payment processing- A good restaurant management system will receive and pass orders to the kitchen staff quickly, and ensure the speedy processing of those orders. Mobile POS machines and the ability to accept both cash and cashless payments can make the customer experience smooth. Moreover, an efficient RMS significantly cuts customers' wait time.

6. Encourage customer loyalty- A restaurant should look to make customers feel valued when they order food. A detailed picture of their demands, eating habits, and current trends will help reach out to potential customers and convert occasional visitors into committed patrons.

7. Work with third-party platforms- A RMS must support online ordering and must allow integrations with third-party food ordering and delivery apps to enrich customer experience and boost restaurant revenue. Ghost kitchens, for example, depend wholly on their POS systems supporting online ordering and third-party integrations.

Importance of Finding the Right Software Solution

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A restaurant management system helps a business identify and correct issues that cause financial loss. It can also lessen the organization's dependence on manual labor by automating a variety of processes. The restaurant will be able to concentrate on other elements of the business as a result of this.

One of the simplest methods to cut unnecessary costs at a restaurant is to have processes automated.

A restaurant management system allows you to not only review areas of high spend, but also measure the actual inventory utilized versus what's ordered. This ensures you'll be able to save money otherwise wasted from food spoilage. This also prevents spoilt food from being used accidentally.

Another crucial component that ensures a drastic reduction in food expenditure is recipe management. This procedure helps a restaurant standardize its recipes across several locations.

Another important factor is restaurant labor cost . Employees can be retained longer if manual procedures are simplified by automating difficult jobs and leaving basic tasks to workers. Furthermore, tracking and assessing the efficiency of the workforce is necessary in order to find areas they may be more efficient.

Therefore, it's important for restaurant owners to select a restaurant management system best suited to their business. It should be an integral part of opening a restaurant checklist as it will help restaurant owners streamline their operations and bring home healthy profits.

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