The future of restaurant operations: How data analytics are revolutionizing the industry

Nationwide economic shifts following the pandemic have made it necessary for restaurant owners and operators to find new ways to increase profits, add efficiency, lower costs and stay competitive.

The key to unlocking the next echelon of success? Restaurant data analytics.

From information in delivery service provider portals such as DoorDash, Uber Eats and Grubhub to BOH operations and store sales figures tracked via POS systems, the data generated by everyday business operations is highly valuable but complex.

How is data gathered?

Before we can capitalize on data insights, we must collect it. For restaurants, that means harvesting information from internal and external sources.

• Back-of-House (BOH) Systems: BOH platforms offer streamlined inventory management, staff coordination and kitchen operations tracking. These systems help optimize efficiency behind the scenes.
• Point-of-service (POS) systems: POS systems are data powerhouses, tracking information on sales, customer behavior, inventory, labor, vendor invoicing, promotional/coupon usage, loyalty programs, takeout/delivery orders and overall cash flow.
• Payroll Portals: Payroll platforms track employee hours, manage schedules and process payments seamlessly. They help restaurants keep tabs on labor costs while providing accurate and timely compensation.
• Delivery Service Provider (DSP) Portals: DSP platforms manage third-party delivery data and logistics, enabling restaurants to monitor and improve takeout and delivery performance with DoorDash, Uber Eats, Grubhub and others.
• Voice of Customer (VOC) Software: VOC platforms capture and analyze customer feedback from surveys, reviews and other channels. This data helps restaurants understand customer preferences, identify areas for improvement and enhance overall guest satisfaction.
• Internet of things (IOT): The rise of IOT has helped turn everyday appliances into technological assistants. Fridges that self-monitor their contents, phone systems that track call traffic and ovens that report temperatures help streamline maintenance, prevent foodborne illness and allow managers to monitor restaurants from afar.
• Franchisee integration: Over the years, developers have come up with platforms that speak directly to restaurant operators. For instance, restaurant franchise management software can help companies or owners with multiple outlets keep tabs on separate data streams and combine metrics for a big-picture view when appropriate.

How restaurants use data analytics

Once you have the systems data, the next step is learning how to spot trends and apply these learnings to your restaurant operations.

Boost profitability of off-premise channels via DSPs

Restaurants should leverage data analytics to make informed decisions. By analyzing data on delivery times, customer satisfaction and order accuracy, areas can be identified to help streamline operations. For instance, adjusting delivery zones to reduce wait times or working closely with DSPs to refine order-handling processes can lead to more efficient deliveries. Additionally, tracking costs associated with delivery orders versus in-house dining helps optimize pricing strategies or promotional offers, keeping deliveries profitable while maintaining a strong customer experience.

Improve daily restaurant operations

Successful franchise restaurants must exhibit incredible customer service and dish up stellar food. But that’s just the beginning. Even the best meals and hospitality aren’t enough to save an eatery that can’t turn a profit. Tracking spending, pricing trends, staff schedules, ingredient cost by vendor and the flow of dine-in and take-out traffic can tell you:

• How many staff members do you need to run efficiently without overscheduling?
• Which locations are over-performing and how can you replicate this success?
• How are new menu items selling across my stores?
• Was there an equipment failure or interruption that caused issues?
• Was a new manager on duty?

Deliver unbeatable customer experiences

Price, ambience, hours of operation, delivery experiences, what your website looks like, consistency from franchise to franchise — these are just some of the factors that influence how customers will feel about a meal from your restaurant. Collecting and analyzing data facilitates more informed decisions about:

• What you charge: Menu items priced high above the competition or that go up in price without changes in quality or quantity could be shunned. You can compare pricing and order frequency to see how one impacts the other.
• Staffing: How you schedule employees impacts your bottom line. But, it also determines whether customers are served in a timely manner or if they have to wait more than a few minutes. Review traffic and order times to spot patterns and see whether extra staffing could make it easier to turn orders faster.
• How you treat guests: As you track customer behavior and preferences, use that data to personalize loyalty offerings, determine who gets priority, and accommodate preferences noted during a previous visit.

Hospitality has always been about balancing guest needs and the operations of running a business. But by tapping into digital resources like tracking and data analysis software, you can make data-driven decisions that boost profits and thrill guests at the same time.