8 Simple Tips to Increase Revenue with Restaurant Analytics

Restaurant Analytics January 11, 2023

Priyanka Bhadani

Writer

8 Ways to Increase Revenue with Restaurant Analytics

A saturated market, an increase in health regulations, and high startup costs make it a challenge to run a profitable restaurant. As a result, owners need to do whatever possible to increase sales and minimize labor costs.

While there are many solutions to help the restaurant industry succeed, the answer may be found in big data. Many in the restaurant business know how critical it is to use data to optimize decision-making and increase the bottom line. As software providers continue to improve restaurant technology and make it more affordable, it's now critical for every owner to invest in these technologies.

Software solutions and data-driven insights from business intelligence can help increase revenue and optimize inventory management. They can also help make better long-term decisions as it pertains to menu items, onboarding policies, sales tactics, and food waste. As a result, restaurants can provide a better customer experience and optimize cash flow management.

Interested in what restaurant analytics has to offer? Read ahead to learn how a restaurant chain can increase revenue with these 8 simple tips.

1. Optimize Table Turnover with Restaurant Analytics

A POS system is a computerized device that enables customers to pay for their meals. Over the years, restaurant POS systems are more advanced. They can optimize the ordering process and even allow customers to pay right from their tabletop.

This can help improve the guest experience and encourage patrons to return. Moreover, faster order and payment options enable servers to assist more patrons, which decreases wait times and streamlines table turnover. A POS system also collects valuable analytics data that restaurant management uses to learn more about customer preferences and daily sales.

2. Minimize Food Waste with Restaurant Analytics

Food costs are expensive enough as they are, but food waste makes everything much worse. Poor inventory management and over ordering lead to food loss and a waste of money. With profit margins at razor thing levels, any food waste is too much.

Effective POS systems allow restaurants to manage the food that moves in and out of the kitchen. It also ensures that staff is accountable for how they prepare and deliver each menu item. Good inventory management also eliminates under ordering critical items. Guests can order exactly what they want when they want it, which improves their overall experience.

3. Restaurant Analytics Streamlines Staffing

Many supervisors have a gut feeling that a worker is slacking off, but they are unable to prove it. With data analytics and restaurant reporting, owners can monitor employee performance. They can present insufficient sales data or records of chronic absenteeism to low-performing workers and hold them accountable.

An effective software solution also enables owners to harness human capital when it is needed most. Analytics shows which hours big losses occurred, and when to put more employees on a shift. This streamlines scheduling and improves employee morale, which decreases the turnover rate.

4. Restaurant Analytics Reduces Discounts and Compensations

While owners sometimes have to compensate for a customer's meal, it shouldn't happen too often. A few percentage points of compensation add up over time and cut into profits.

Moreover, servers who frequently reduce checks for friends or compensate for entire meals are wasting labor, time, and money. With a good software solution, restaurant owners can drill down into POS data to see what's happening.

5. Restaurant Analytics Decreases Turnover

Every business owner knows how much high turnover impacts the bottom line. Onboarding is an expensive process that requires time, effort, and resources. When a new hire quits after a few months, it hurts morale and wastes money.

Owners can use a POS system and predictive analytics to enact simple tricks that make workers happier and decrease turnover. For example, functionality can manage floor layouts, match the correct servers to the correct tables, and streamline scheduling. This will also increase productivity, which improves the customer experience and increases sales.

6. Restaurant Analytics Tracks Performance

Owners should utilize POS analytics to optimize onboarding processes, pinpoint top-performing employees, and streamline scheduling. Other benefits include -

Pinpoint Strengths and Inefficiencies - If one worker sells more than everyone else combined, there is a problem. Owners should utilize analytics to identify weaker employees and pair them with stronger ones. This will help improve sales and increase morale.
Minimize Turnover - While it's impossible to eliminate turnover, there are ways to minimize it. Owners should use analytics to see which workers are struggling and then work with those individuals.
Match High-Performing Servers to Important Guests - Owners can use restaurant software to pair high-performing servers to VIPs to provide better customer service and improve customer loyalty.

7. Restaurant Analytics Improves Marketing

Owners can use restaurant software to extract actionable insights that help improve future marketing campaigns. They can identify which campaigns were successful and which need more work, customize promotions for customers, and increase sales. POS analytics enables owners to compare sales data to campaigns to see whether each marketing effort is fruitful or not.

Marketing doesn't stop at promotions or social media campaigns. Owners can use POS analytics to offer a preferred drink to a VIP or give away a free dessert on someone's birthday. These small gestures will improve customer loyalty and increase the bottom line over time.

8 restaurant analytics optimizes menu engineering 1618426020 6175

POS systems enable owners to utilize data-driven insights to optimize menu engineering and increase profits. Many owners falsely assume the highest selling item is the most profitable, but this isn't always the case.

POS systems allow users to drill down into data to see which options entice customers to come back and add to the bottom line. On the other hand, some lower-selling items may be profitable if the owner adjusts sales tactics or the menu design. These small changes can enact long-term increases in profit, minimize waste, and improve the customer experience.

Key Takeaways of Restaurant Analytics

In conclusion, here is how to help business revenue with restaurant analytics -

Restaurant analytics can improve table turnover and enhance the guest experience. It can also help to optimize inventory management, reduce food costs, and save money.
Restaurant analytics can improve employee performance and hold workers accountable. It can also minimize discounts and compensations so the restaurant saves money.
Restaurant analytics can optimize staff turnover and save money. It can also help to track server performance, discover strengths/weaknesses, and pair top servers with important guests.
Restaurant analytics improves future marketing campaigns and optimizes menu engineering and design. Owners can upsell profitable items and increase sales of lower-performing items, which saves money and adds to the bottom line.