How to digitalize restaurant operations and increase productivity, profit margin and client satisfaction
Productivity in restaurants has been low for decades compare to other industries such as the logistic, manufacturing or service industry. For the most part, people keep working the same way. Entering the industry is also fairly simple and there is a lot of competition! The combination of low productivity and high offering results in low margin (the money the restaurant owner brings back home). No other industry has a high bankruptcy rate as the hospitality industry. A “bad month” can be enough to wipe one year of work! You can increase margins by offering a very special offering (i.e here in Europe Peruvian or Hawaiian food is quite the hype). Something the competition does not have yet. This will allow you to charge a premium. However, soon or later competition will catch up and reduce your margin. Eventually, key people working in the restaurant such as the cooks allowing you to do the special offering would get more expensive for you because they are in higher demand. Which will also put further pressure on profit margin.
Another way to increase revenues is to bring more people (increase the average table occupancy rate) by running advertisement campaign which now days are digital. Also, this requires a bit of know how and a lot of work from the restaurant owner to increase on line presence and make a decent Instagram, Facebook or other social media account. Doing a proper on-line page is extremely important and it is your responsibility to monitor that and be in control. Once done, Doyo can help you to create more traffic on your page, which increases your popularity, which will result in a higher number of people coming. Also this feature is offered for free by us. Forever.
Another way to increase revenues is to increase the number of returning customers. This will also help you stabilize your revenue stream. Great client experience can be brought back to the following components
The quality and taste of the food that you are preparing
The waiting time: the less the better
The menu: the better it sets client expectations of a certain dish the better
We can help in reducing client waiting time and setting their expectations so that they actually are happy to return.
Looking at ways to increase the revenues stream is important and difficult at the same time. There is an easier and faster way to make more money to bring home: saving cost. Thereby boosting your margins and passing part of the savings to your clients by offering a completive prices product or to your own bank account (in case you are in a niche market).
By streamlining your production process and inventory management
Improve work process and automate work flows
Improve work process and automate work flows is mostly done via the front to back digitalization of your ordering process. Having the client post an order, would eliminate manual work from the waiter for instance. On the other hand, giving the possibility to the kitchen to coordinate food delivery across department reduces expensive staff overhead (department managers) and reduces the number of errors.
Use your own TV (Google TV) as a KDS (cheaper and bigger)
For suitable Bars or kitchens not too hot or humid you can use you own smart TV as a KDS. As better alternative you can use Google /Android TV. In the first case, you need to go on the browser of your smart TV. Go on doyourorder.com, click on sign-in and log in with an account belonging to your kitchen/ bar or any other production department. Unless your tv has a “magic remote”, you need to install a mouse to your tv (ideally wireless). This will allow you to interact more effectively with other departments and servers/waiters when it comes down to coordinate a delivery or flag the food when ready. Few bars use a small TV screen as a POS!
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Why should a restaurant use digital menus instead of paper Menu?The digital menu accessible to clients via their own smartphone are updatable in real time from any phone or laptop. This allows restaurant for real time price changes or to temporarily hide product which are out of stock. It also allows to add in few seconds new selling product. Having a menu on the table at all time, saves time! The client does not need to wait the server/waiter to bring him the menu to start reading it. As a result, the table turnover increases as well, bringing in more sales revenues to the restaurant.
Clients, can filter the food by allergens and exclude the items to which they are allergic to. Also, they are able to see the items in 8 languages and with pictures. This reduces the number of misunderstandings and increases their experience and satisfaction.
Having our digital menu increase on line and social media presence on platforms such as Facebook, Instagram and TripAdvisor. They have the option to add those links at the bottom of the menu. The client can be redirect there, so that he has the possibility to rate, follow or like your restaurant. The more people interact on line, the higher the number of people coming (assuming your offering is also good).
Last but not least, owners are able to run promotion in certain time ranges. For instance, if you have raw materials close to expiration day, you can reduce their stocks by offering a product discount before having to dispose them at a full loss. Or in case you have a bar and would like to schedule regular happy hours/discounts between certain working hours. Discounts lead to an increase the number of guests and sales volume.
There are always people who will continue preferring the old-fashioned paper menu. Especially elderly ones. It is good practice to have a couple of paper courtesy menus available for them to read. They could be edited and printed daily.
2 minutuesWhat is a KDS and why is it better than paper tickets?KDS stands as Kitchen Display System. Essentially, all orders are displayed digitally on a screen instead of been printed on a paper ticket. One screen fits up to 10 tables in one single view. Having a KDS solves practical issues such as changing the paper roll during the busy kitchen period times. Most importantly it allows for the kitchen staff to coordinate delivery to a table across different department by using the “Synchronization” functionality so that all people at the table eat at the same time. Currently in most of the restaurant such coordination across department is done physically by a manager (running between departments) or radio channels. Another big advantage of a KDS is to flag when the food is ready. The waiters who called the items will receive a notification on their phone/work device and will know it is time to pick up the food and “Deliver” it to the client. Once food is delivered by the waiter, the table will move at the back of the queue to that the next table can be start to be prepared. The last advantage of KDS are their environmental footprint. A heat laser printer consumes more energy than the average LED screen. On top also many Kilometers of high-quality printing paper per year! Such a waste ☹. For a well aired kitchen, you can use also a google smart tv as a KDS! What are you waiting for doing the switch?
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