How double-digit profit margins are attainable with modern restaurant technology

The average profit margin for a single location, full-service restaurant was only 6.2% in 2019, and that was before the pandemic, the recent 7.8% increase in cost of goods, dwindling labor supply, and rising labor costs. Since then, margins have only gotten slimmer.

But what if your restaurant could reach double-digit profit margins?

A new white paper from SpotOn shows that by strategically implementing new technology, you can increase revenue and lower costs one step at a time. Add a new tool, add to your bottom line. A half-a-point here, two points there, adding up to the margins you deserve.

Pre-shift

On top of all the other challenges restaurants face, consumer habits have changed drastically. Half the battle in increasing margins needs to happen before guests ever step foot into your restaurant by meeting them where they are: online.

Restaurant queries are in the top 20 of the 64,000+ searches performed every second on Google. To show up in local searches, it's crucial to have a Google My Business profile and keep it regularly updated, a chore that's far easier with a SpotOn integration to claim your profile in minutes (instead of days) and automatically update information about your menu, hours, and photos.
94% of diners decide where to eat by reading reviews. SpotOn helps you manage your online reputation by aggregating reviews and ratings across multiple sites on one dashboard, and sending new review notifications so you can navigate to review sites to respond.
For full-service restaurants, a digital reservation system is crucial to fill tables and help forecast labor scheduling and inventory. Many reservations systems take a big bite out of profits, though, with platform and per-head fees. With SpotOn Reserve, you can increase discoverability by enabling guests to book a table right from Google, while reducing fees and keeping guest data to use for marketing campaigns.

During Service

Once guests step inside, integrated technology can help you turn tables faster with fewer servers, while increasing average tickets and tips, helping you improve margins and retain employees.

People now expect the convenience of ordering takeout and delivery from their mobile phone, but third-party delivery apps charge huge commissions. With SpotOn Order, restaurants let guests order directly from them—sidestepping those 30% commissions—with a 28% increase in transactions, on average.
QR codes are back in a big way, even finding their way into fine-dining establishments. Restaurants using SpotOn QR in 2021 saw a 65% increase in revenue and 7% increase in tips for staff.
For full-service restaurants, handheld POS devices empower waitstaff to serve more tables by minimizing the back-and-forth to place orders. Restaurants using SpotOn Serve handhelds experienced a 16% increase in check size and 5% increase in average tip amount.
Full-service restaurants can also benefit from a digital waitlist and table-management system, to not only boost front-of-house efficiency but also limit crowds and fill no-shows and cancellations. SpotOn Reserve also enables your guests to add themselves to your waitlist online and see real-time wait times and 2-way texting.
For counter-service restaurants, a loyalty rewards program is a proven method for driving repeat business and increasing revenue. With SpotOn Loyalty, restaurants saw an average increase of $650 in revenue on deal day, thanks to frictionless integration at the point-of-sale and built-in marketing capabilities.

Closing

After guests leave, technology can help save time with automations, and give you smarter data to improve operations.

What are your best (and worst) selling items? What are your busiest days and times down to the minute? The answer is in the data. SpotOn Restaurant point-of-sale makes it easy to find the information you need with 75+ interactive, real-time reports that give you actionable insights on nearly every aspect of your operation. And they're cloud-based, meaning you can access them from anywhere.
Scheduling, labor compliance, tip pooling, and payroll preparation are time-consuming and tedious, but with SpotOn's POS integration with Dolce, you're able to streamline these chores and retain employees with faster, more flexible tip-payout options, shift-trading, and more.

When you work so hard, it can be discouraging to see how little of that effort shows up in your bottom line. That's because hard work isn't what's missing. Hard work can't cut third-party delivery fees. It can't get your staff off the clock faster. It can’t get food to your guests more efficiently. But integrated technology can, and by taking a strategic approach to implementing the right pieces of technology—combined with your hard work and passion—you can be well on the path to double-digit profit margins. Learn more at www.spoton.com/pointsofprofit.