Starting and scaling a franchise business can be a challenging task, and it is important to have the following 10 items under control in order to ensure success:
01. Stock & Inventory Wastage
Maintaining proper inventory management is essential for restaurant success, as it helps prevent waste and financial loss. Inaccurate tracking of inventory levels, location, expiration dates, and receiving dates can lead to costly mistakes.
- Real-time Reporting & Analytics
These systems help ensure the success and integrity of businesses, especially for owners of multiple outlets who may not be physically present at each location.
- Live Outlet Count
POS software for restaurants helps owners keep track of all functions and operations at each location, especially when they are not able to be physically present at all locations. This includes the ability to see which outlets are currently open and serving customers.
- Total Bill Count
An intelligent restaurant management system can track billing details, providing valuable insights for owners to understand financial performance and make informed decisions about operations and management.
- Items Sold Count
Tracking items sold across outlets can help identify popular dishes and potential inventory or menu issues, reducing counter thefts and improving business performance.
- Track Discounts
Restaurant management systems can help track and manage discounts, including the total amount of discounts offered. This helps ensure discounts are applied correctly and reduces the risk of internal theft by restaurant staff.
- Expenses and Cash Withdraw Details
Restaurant management systems can provide valuable insights into financial performance through live tracking apps that show net and gross sales, expenses, and cash withdrawals for each location. This helps restaurant owners understand expenses and cash withdrawal patterns at each outlet.
02. Stock & Inventory Management in Multiple Branches
Franchise restaurants with multiple locations or warehouses may find it challenging to keep all their outlets in sync with one another. It can be easy for owners to overlook issues that arise at warehouses or locations that are not their primary focus or are farther away.
(i) Stock Theft
Internal employee theft is a major issue for restaurants, leading to billions of dollars in losses each year. To protect their businesses, it is crucial for restaurant owners to prioritize the identification and prevention of internal theft.
(ii) Real-time Inventory Visibility and Control
An on-cloud integrated restaurant management suite can improve efficiency and reduce the risk of shortages or overstocking. It provides real-time inventory visibility and control, giving owners access to complete opening and closing reports for informed decision-making.
(iii) Automated Stock Requirement Notification
Centralizing inventory data and automating processes can help restaurant owners manage stock across multiple outlets more effectively, reducing raw material wastage and lowering inventory carrying costs. Automating inventory management through POS systems and online payment can streamline operations and improve business management.
(iv)Efficient Demand Forecasting
An integrated restaurant management system can help owners forecast demand and prepare for seasonal and market trends, especially during festivals when restaurants may experience a surge in demand.
03. Supplier/Vendor Management
Maintaining a stable supply chain is essential for restaurant success. Supplier management involves ensuring maximum value for money paid to product and ingredient suppliers, benefiting both parties through effective and efficient communication and engagement.
04. Calculating and Analyzing the Profitability of a Dish or Outlets on Weekly Basic
Pre-costing the menu involves calculating the cost of producing each item under ideal conditions to price menu items accurately and ensure profitability. This considers the cost of ingredients and demand for the dish.
05. Employee Management
Hiring employees with the right skills and soft skills is crucial for a successful restaurant. Employee management can be complex, so tracking staff time and generating payroll reports can improve efficiency.
06. Central Menu Management
A cloud-based restaurant management system simplifies menu updates for restaurants at multiple locations by instantly reflecting changes made in the central POS menu across all or specific outlets.
07. Auto Royalty Calculation
Effective management of royalties is important for businesses with multiple outlets. Automating calculations and invoicing can save time and reduce costs, while quick payment collection can improve cash flow. Implementing an effective system is essential for success.
08. Lack of Automation
Automation can present challenges for small restaurants when taking online orders. It is important to ensure systems are connected to third party delivery platforms for better analytics and reporting to improve efficiency and ease business management.
09. Online Reach
How can restaurants increase online visibility without spending a lot of money or relying on commission-based food delivery portals? One solution is to use their own tools to take orders directly, which distinguishes them from other restaurants.
10. Administrative Work Overload
Managing a restaurant involves keeping track of daily administrative tasks such as sales projections, delivery orders, popular menu items, profitable dishes, waste, inventory, and profit margins.
If you’d like to learn more about these challenges and interested in an all-in-one solution, we can have a learning session where we can discuss these issues further.
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