If you’re a business owner or executive within the restaurant industry, you’re probably aware of various restaurant issues. Fortunately, restaurant and food tech can turn common problems into innovative selling points.
Despite the hiccups in operating a restaurant, it’s vital that you stay mindful of the many growth opportunities. So, keep reading to learn about common restaurant issues and achievable solutions.
There are many restaurant issues that can arise. Luckily, there are several restaurant technology solutions that can solve them. Read on to learn about thirteen restaurant issues and ways to fix them, to improve business and succeed.
1. Inventory Shrinkage
Inventory shrinkage occurs when there is less stock than what the business accounted for. As you can imagine, this is a huge problem for keeping consistent menus.
Ensuring that you have the proper amount of stock on hand is key to avoiding shrinkage. These restaurant issues typically stem from human error. So, let innovative restaurant technology keep your inventory levels in check.
2. Food Spoilage
Contrary from inventory shrinkage, one of the restaurant issues that’s just as destructive is food spoilage. Purchasing excessive stock can be a huge waste of money.
Sometimes, restaurant owners are so fearful that they won’t have enough ingredients, they order more than they need. Then, many items reach their expiration date and go to waste.
One of the best perks of an inventory management tool is that you can categorize different item groups. Then, you can schedule auto shipments for each one. This will ensure the restaurant has enough inventory without overdoing it.
Plus, purchasing from an extensive wholesale directory will enable management to price shop. This ability will allow for even greater savings over time.
3. Lack of Technology
Some of the restaurant issues you face can be solved simply by onboarding tech solutions. It’s that simple–many tasks can become a breeze with the right tools and app integrations.
Want to learn more? Book a demo today and take one step toward groundbreaking technology for your restaurant!
4. Food Costs and Inflation
One of the most prominent restaurant issues in our current economy is inflation. Rising food costs are influencing most restaurants and their ability to operate.
Amongst popular food trends, many eateries are beginning to offer daily menus. What this means is the business creates a new menu each day.
This approach to menu creation allows restaurants to make the most of their inventory. In doing so, they can stretch what they have and make the most of their stock.
If you want to use technology to simplify this tactic even further, use QR codes in place of regular menus. QR codes will enable the wait staff to make quick changes every day, rather than keeping an unorganized or inaccurate paper menu.
5. Slow Table Turnover Rates
In upscale restaurants, it’s advisable to nurture a slow turnover rate. It’s all a part of the luxurious atmosphere. After all, it can cost a small fortune to dine in these establishments. However, it’s quite different when you offer a casual dining experience.
If one of your eatery’s goals is to serve as many tables as possible, fast turnover is important. But how can you influence this? Well, certain tech solutions can do the trick.
For example, pay at table restaurants have a quick turnaround. This is because tableside devices speed up various processes. To name a few, customers can browse menu types, pay the bill, and place orders in one platform.
Giving the customer more control over their experience is a great way to speed up the time they spend dining. Plus, it’ll allow the team to be more efficient.
6. Labor Expenses
The labor cost of a restaurant can add up rather quickly. However, technology can help automate standard processes. In doing so, everyone on the team can be more efficient.
For instance, do you want to scale back your restaurant marketing budget? Automate upcoming posts, emails, and ads. Or, perhaps the manager spends too much time calling suppliers. In this case use an inventory tool to schedule orders and shipments.
7. Not Enough Space
So you operate a restaurant, succeeded in restaurant promotion efforts, and grew your customer base. However, you’re finding that you don’t have the space to accommodate all of your customers.
If your restaurant’s capacity is low, don’t fret! Also, keep in mind that you don’t have to open a new location just yet, either. Simply offer your food on online ordering apps.
By partnering with third-party delivery apps, you’ll be able to accept more orders in the same amount of time. Plus, there are many benefits, like upselling and prompts for customer reviews.
8. High Employee Turnover
One of the most popular restaurant issues is high turnover rates amongst employees. For many workers, jobs in eateries are temporary. Plus, the skillset one uses in a restaurant is very transferable to other restaurants.
Technology can help solve this issue in a number of ways. When customers use self-ordering devices, a larger team isn’t necessary. So even if the turnover rate remains the same, there will be fewer staff members to hire and train.
9. Outdated Marketing Tactics
Restaurant marketing strategies can take a business to the next level. However, some plans are much more effective than others. Print advertising and old-school social media ideas are just a couple of tactics to be wary of implementing.
10. Stagnant Menu Specials
One of the less obvious restaurant issues that people don’t discuss too much is stagnant menu specials. Whether it’s entree food or drink specials, these items are usually an attraction upon being seated at an eatery.
We recommend switching up specials every couple of weeks. This approach will allow enough time for many people to try them. However, every two weeks is a fast enough rotation for frequent visitors to not get bored.
Be sure to promote such items online, on social media, and on tableside devices (if you use them). Then, check the data from the POS system at the end of each rotation to see which one was the best-seller.
11. Limited Hours of Operation
The hours that a business operates can be a major selling point. This idea is especially valuable in rural areas. In major cities like New York or LA, it’s popular to find eateries open late into the night. However, restaurants in suburban areas can dominate a local market by extending its hours.
Want to take this initiative one step further? Try offering 24 7 food delivery. It’s pretty standard for a quick service restaurant, but even better for other eatery styles. It’s a way to stand out and maximize profits simultaneously.
12. Mobile Connectivity Issues
Technology can solve many restaurant issues, but it isn’t always perfect. Glitches and system errors are common within tech solutions. Ensuring that you have the right tech support in reach is necessary.
Mobile connectivity issues can pause operations that rely on technology. So, know how to handle these matters or have backup solutions on hand prior to launching them.
13. Lack of Training and Knowledge
Many restaurant issues arise because of poor communication. So, ensure that the staff is fully trained and equipped with the knowledge to use new products.
Current issues in the restaurant industry trace back to the tech-savviness of the team. Ensuring the proper training takes place is vital for efficiency and productivity in the business.
Contact us for a demo now to see how our off-premise solutions can help grow revenue and earnings of restaurants.
Frequently Asked Questions About Restaurant Issues
Staying aware of restaurant issues is essential when running an eatery. Not only will it help you avoid a failing business, but it will also give you a competitive edge. If you’d like to read a quick overview of popular restaurant issues, keep reading these frequently asked questions and answers.
What Are Common Problems In Restaurants?
Common restaurant issues include:
- Competitors in the marketplace
- High overhead expenses
- Losing money on promotions
- Retrieving accurate consumer data
- Food and beverage spoilage
- High labor expenses
What Are the Issues In Food and Beverage?
Several issues in the food and beverage industry pertain to finances, safety, and regulations. Some of the most common issues include:
- Consistently turning a profit
- Sustainability efforts
- Getting ahold of high demand products
- Avoiding contamination
- Packing and shipping protocols
What Are the Biggest Challenges In Restaurant Operations?
Five of the biggest challenges in restaurant operations include:
- Food waste and spoilage
- Slow table turnover rates
- High employee turnover
- Inventory mismanagement
- Local market saturation
What Is the Main Reason Restaurants Fail?
The main reason why restaurants fail is because the leadership lacks vision and motivation. The ability to plan ahead and adapt to new strategies is vital in running a successful restaurant. Thoughtful decision making is a major part of keeping a business profitable. If leadership begins to slack, the risk of losing sales is high.
What Are the Threats of a Restaurant Business?
Many threats to a restaurant business involve rises in competition. Some of the most popular threats include:
- New restaurants in the local market
- Special events at other restaurants
- Unique specials from competitors