For hospitality operators in the UK, Rachel Reeves’ first budget in October 2024 brought little good news.
Rises in the National Living Wage and Employers National Insurance contributions hit all businesses, especially hospitality, with their high number of staff in lower-paid roles. With inflation persisting, a falling pound, a shrinking economy, and uncertainty about tax rises, the outlook may seem bleak.
Yet, investing in technology during tough times can make a significant difference. While counterintuitive, building up technology systems delivers rewards.
Here’s five ways that investing in a Hospitality IT Platform can help your QSR or Fast Casual Dining business to thrive through tough times and come out stronger and whilst some of your competitors fail.
- Increased transaction value and reduced labour costs through kiosks
Kiosks can be a game-changer for hospitality, offering multiple benefits.
- Customers love them – with many actually preferring to place their own order on a screen rather than queuing up to purchase at the counter. So a kiosk can be a real draw card, especially to busy customers, who want fast, efficient service.
- Higher average transaction value (ATV) – customer spend at a kiosk is consistently higher than at a counter. Visual menu presentation, personalisation based on past purchases and offers of new items they are likely to want to try – all increase the ATV. Without the pressure of a queue behind them, or perceived judgement if they upsize their order, kiosks drive higher spend. And upsell is consistent - a kiosk never forgets to ask ‘would you like fries with that’.
- Lower staff costs – operating 24/7, with no overtime or sick days and no need for rostering and scheduling, kiosks help to reduce staff costs or enable redeployment to other revenue generating areas.
Kiosks work best when integrated with your IT platform – for example, accepting loyalty cards and sending orders directly to kitchen systems. Avoid standalone kiosks and choose a fully integrated Hospitality IT platform for optimal results.
- More frequent visits and increased spend through Loyalty
Loyalty systems turn occasional customers into regulars. A good loyalty programme engages customers through an app where they can find locations, check menus, place orders, access special offers, and manage rewards.
This makes customers feel valued and encourages repeat visits with higher spending per transaction. A loyalty programme builds community and brand engagement, creating "raving fans" who choose you over competitors and spend more with every visit.
- Reduced front of house costs with QR Code ordering
Traditional table service is time-intensive, requiring multiple staff interactions for ordering, food delivery, and payment.
QR code ordering transforms this process – enabling customers to place and pay for their own orders via a QR code at the table, with those orders going straight to the kitchen. Your FOH staff focus on delivering the food to the table, and complement customer satisfaction.
Customers get to order faster, each person in a group can order and pay for their own food and you can offer great service with a lower FOH wages bill. An investment in table ordering via QR code is therefore one that delivers a strong ROI.
- Reduce wastage cost with inventory management
UK restaurants waste between 4% and 18% of their food purchases, representing a cost that impacts the bottom line. But effective inventory management can drastically cut this expense. An integrated inventory management system will help you to:
- Order the right quantities of ingredients, avoiding overstocking or shortages.
- Help uncover areas of wastage to eliminate.
- Automate reordering of key items for accuracy and efficiency.
In a Hospitality IT Platform, inventory management is integrated with menu management and sales data for enhanced visibility and effective planning and purchasing, helping reduce costs significantly.
- Optimised labour efficiency through workforce management
Labour is one of the largest expenses in hospitality, so efficient management is crucial. Workforce Management (WFM) systems can deliver this efficiency.
Workforce Management (WFM) systems help you find the sweet spot of the right number of staff to meet your customer service goals, without unnecessary overspend – so you can save money without impacting customer service.
A good WFM system integrates with your IT platform to analyse busy times, transaction patterns, staff costs, and compliance requirements, ensuring maximum efficiency without sacrificing service.
In challenging times, technology is your ally to boost revenue, reduce costs, and optimise operations, helping your business not just survive but thrive.
