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Why Franchises Are Investing In Restaurant Software

Whether you are looking for a low-cost franchise or a more expensive option, like McDonald's (for which you will need at least $500,000 investment), there is a restaurant franchise to accommodate different budgets. There are also various types of franchise restaurants to cater to different customers’ needs. From fast food restaurants to casual dining, running a franchise restaurant requires the best restaurant software to ensure that profits are maximized and the customer experience is enhanced.

There are a number of reasons why franchises are investing in restaurant software. They include increased efficiencies and the reduction of mismanagement. Relevant and adequate restaurant software also allows the franchisor to monitor individual franchise performance and to take corrective action where necessary.

What is Restaurant Software?

Franchises need restaurant software to enable them to create and maintain processes that work together to help the individual franchisees (and the franchise as a collective) work more efficiently and earn more profits.

Here are some restaurant software solutions that can be used by franchises to help make operations run more efficiently:

  • Back Of House

Back of house solutions are responsible for the manufacturing and retail parts of a franchise restaurant. The back of house systems provides data about how the restaurant's labor costs and raw materials are being used. Some examples of back of house restaurant software include inventory management and employee scheduling tools.

  • Front of House

Front of house solutions help to provide a better experience for customers who visit the franchise restaurant. These systems are seen by customers and diners and include tools to make reservations (or point of sales to take orders).

  • Human Resources

Human resources tools and solutions allow franchise restaurants to hire and retain the best staff. They are also responsible for issues, like training, and ensuring that all franchisees stick to both local and federal labor laws.

  • Hiring and recruitment

This can be part of the HR function or it can be a standalone part of operating a franchise. Hiring and recruitment includes sourcing the right candidates and ensuring that they have a positive recruitment experience. This also includes taking steps to reduce the time to hire while maintaining a high level of quality candidates.

  • A Loyalty Program

A loyalty program solution provides customers with different incentives to come back to the restaurant and spend more on food every time they visit. Guest programs and gift cards are different types of loyalty programs.

  • Payroll and Corporate

Corporate and payroll provide financial oversight of franchisees. This function includes accounts payable, which sets and controls financial aspects of the franchise. It also includes how different funds are allocated to the various expenses associated with operating a franchise.

Trying to maintain franchises without suitable restaurant software could result in wasted resources and, ultimately, the failure of individual franchises or the franchise as a whole.

Below are the most common types of restaurant management software and the reasons why franchises are choosing to invest in them.

Hiring and Recruitment

In order for franchisees to get the best out of hiring and recruitment software, they need modern hiring solutions. Due to the fact that franchises are located in many different areas, their hiring needs have to be synced to provide the same quality of candidates. A fit for purpose hiring and recruitment software for franchises will include functions like:

  • Tracking of the applicant's status.
  • Scheduling interviews.
  • Running background checks.

It is also critical for hiring and recruitment software that is used by franchisees to be able to source candidates at scale. Depending on the size of your franchise, you may need to hire hundreds or thousands of candidates at one time. This hiring process needs to be kept as simple as possible so that all candidates have a positive experience when they first come into contact with your franchise.

Due to the specific needs of operating in multiple locations, franchises need hiring software that will have a standard set of criteria for every location, but with the flexibility to make customizations as necessary. The hiring software must also have the capability of moving candidates across different locations as required and also produce up-to-date and relevant analytics for each location.

If you are a franchisor using a staffing or recruitment agency to source your candidates, you should consider introducing them to modern hiring software, like Fountain.

We have developed Fountain Lite specifically with the needs of franchises in mind. With Fountain Lite, you can:

  • Create an application form in less than five minutes.
  • Take advantage of the powerful automation functionality.
  • Fill vacancies quickly, even if your candidate demographics consist of on-the-go millennials.

Want some tips on how to get better results from your applications? Download our free 5 Ways To Improve Your Application Performance ebook today.

Restaurant Point of Sale (POS) Software

POS software provides different types of functionalities for a franchise restaurant. For instance, POS software can track sales and accept different types of payments. Depending on the POS software that franchises use, they can make customizations to suit every franchise location.

Another reason why franchisees will choose to invest in POS software is that it can be integrated with tools and apps to ensure a smoother running restaurant. For example, POS software can be synced with inventory management systems and data collection to get insights into how customers are spending their money and the most popular menu items.

The advantages of investing in POS restaurant software for franchises include:\

  • Business Reporting

Most POS systems have the functionality to provide in-depth business reports, for example, credit card transactions. This reporting ensures that the franchise has the information required to make decisions in terms of forecasting and budgeting for future growth.

  • Reduction In Errors

Each inefficiency can end up costing the franchise money in the long run. Using a POS reduces the incidence of mistakes from kitchen staff because of illegible handwriting. When franchises use POS software, orders are shown on a screen, so the chances of misinterpreting orders is greatly reduced, therefore there is less food wastage.

  • Higher Productivity

Franchise restaurant POS software manages tasks that are time intensive, like price look-ups. While these tasks are taken care of, employees can focus on other jobs that will make a positive difference to the customer experience.

Restaurant Online Ordering Software

A survey has found that on average, customers ordering online spend 23% more than when they order on the phone. When investing in online ordering software, your franchise can ensure that there is no miscommunication when placing orders. This is especially the case when your franchise restaurant is experiencing a busy period and the host is more likely to be distracted.

The following are additional benefits of online ordering software:

  • Customer Demand

It has been shown that phone orders are lagging behind online orders. You need to introduce online ordering in your franchise so you can provide the experience that customers are becoming used to. Franchises will be investing in online ordering software to keep up with the latest trends in food ordering and food service.

  • Fewer Mistakes

If you are providing a delivery service with your franchise restaurant, you need to ensure that every order is perfect all the time. It could be disastrous for your restaurant if you continue to deliver the wrong food. Your restaurant can use food delivery apps, like Deliveroo, to ensure that customers order the right food at the right time. Franchises need to move away from telephone ordering to using online apps to ensure that they give the customers what they're accustomed to, which is an easy and seamless way to order their food.

Restaurant Inventory Management Software

Franchises need to invest in inventory management software because the inefficient management of inventory could mean that they are either over-stocked or under-stocked for important ingredients and supplies. Essentially, having too much stock or having too little stock will result in your franchise losing money. Using restaurant inventory management software helps to stop wastage in terms of food and helps to stretch the franchise's budget further.

Here are some more benefits of using the best inventory management software for your franchise:

  • Create Better Budgets

You will understand how to create more accurate financial forecasts when taking into consideration the inventory that is required for different times, days and seasons in your franchise restaurant. Accurately predicting how much food costs cuts down on waste and will also have a positive and direct impact on your franchise's bottom line.

  • Saves You Time

Using inventory management software for your franchise saves you compared to undertaking this task manually or using Excel spreadsheets. Inventory management software also reduces the time that you would spend taking physical inventory.

  • Better Supply Chain Management

When you use inventory management software in your franchise, ordering is based on what is actually used and not on guesswork. Being accurate in your ordering allows you to automate your supply chain because you can order quickly and conveniently, normally with just a click of a button.

  • Reduce The Amount Of Theft

When your franchise invests in inventory software for its restaurants, you will be able to spot different types of unusual activity and investigate further. You can determine whether one type of stock is being reduced at a drastic rate in comparison to previous periods and make investigations to find out whether your staff (or someone else) is stealing your products.

Restaurant Loyalty Program Software

Research shows that returning customers spend 67% more than new customers. Your franchise should seek to develop relationships with its customers to encourage repeat business. This is a very important aspect of running a successful franchise and encouraging new franchisees to join your franchise.

The following are reasons why franchises are investing in restaurant loyalty program software:

  • Brand Advocacy

Because word of mouth marketing continues to be one of the most effective forms of promotion and has the most credibility, your franchise's loyalty program should be mixed with a referral program. Word of mouth marketing does not only increase your bottom line, it also increases the value of your brand as one that is trusted and loved by different people.

  • Cost savings

It has been found that it can cost up to 25 times more to get new customers than to keep your current customers. A loyalty program for your franchise gives you the opportunity to grow your customer base and also reduce the cost that is associated with normal advertising and marketing to get new customers. Giving your existing customers an incentive to continue to eat at your franchise restaurant makes extremely good business sense for your bottom line.

  • Enhance Customer Relationships

If done well, franchises that invest in customer loyalty program software can cultivate long-term relationships with their customers. For example, you can send personalized offers on your customers’ birthdays to ensure that they feel valued by your franchise.

Conclusion

The different types of software above show that franchisees who invest in restaurant software gain an advantage in terms of:

  • An increased bottom line.
  • Higher customer satisfaction.
  • A greater likelihood that more franchisees will want a franchise.

One of the most important aspects of running a successful franchise is sourcing and onboarding the best staff. In order to get the most suitable staff and reduce the time to hire, you need a modern hiring solution, like Fountain.

Fountain ensures that franchises have all that they need to improve their hiring process. Whether your franchise restaurant has two or 2,000 locations, Fountain will help you to streamline your hiring process while recruiting better candidates.

Sign up today to experience how franchises will benefit from using a modern hiring platform to transform and revolutionize your hiring process.


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