If you’re new to the restaurant business, there’s a chance you’re just beginning to realize how big a role technology plays in our industry these days. Long gone are the days when you could run a restaurant with a pen, a pad, and a Quickbooks software package. Or at least, long gone are the days when you could do this and keep up with the competition.
After all, roughly 68 percent of all restaurants are at the very least using a cloud-based POS system. On top of that, your competitors are already using software-based inventory management systems, digital media marketing platforms, payroll services, and much more. Together, the solutions you choose will make up what’s called your restaurant tech stack.
But if you’re opening a restaurant, what exactly should be in your tech stack? What restaurant technology is absolutely essential? Which solutions are not required but nice to have? Is there any restaurant technology that’s simply a waste of money?
To find out, we consulted our panel of in-house experts. Together, their recommendations provide us with a practical “opening a restaurant checklist.”
Our Panel of Experts
- Nick Florek, Head of Back of House
- Rachel Morgan, Industry Consultant and Operations Expert
- Spencer Michiel, Industry Consultant and Restaurant Tech Expert
Restaurant Tech Stack Must-Haves
These are the key pieces of tech that you’ll absolutely need to have in place when opening a restaurant.
Point-of-Sale (POS) System
Our experts agree that the POS system is the very first and most essential piece of tech for opening a restaurant. Nick explains, your POS “facilitates transactions and will be the center of any tech ecosystem you develop.”
Spencer adds, “Everything revolves around the POS. Every new piece of tech you buy is going to have to interact with the point-of-sale system in some way. It provides the basic functions for your business — taking your orders and accepting payment for them.”
In fact, because the POS system is so essential, a growing number of POS vendors provide a variety of add-ons and functions, such as payroll management, inventory management, and more. Rachel suggests that if you are opening a restaurant and you want to simplify your tech stack, “Look for all-in-one platforms that reduce vendor count and improve integrations.”
Website
Our experts are also in total agreement about the next essential item in your starting restaurant tech stack. Rachel says, “You need to have a fully functional website, one that looks good and works well.”
Nick noted that, for most restaurants, that website is both “an online ordering platform and a tool for digital discoverability. Customers find and order from restaurants online more than ever, and you need to show up on Google and Google Maps, have good reviews, and have an easy order experience.”
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Spencer agrees, but adds that your online presence is vital even if you aren’t taking online orders. Spencer points out, “Nobody reads newspaper ads anymore. They need to find you online. So you need to be visible online, and need to have some sort of functioning website that people can interact with.”
“Naturally,” says Spencer, “a social media presence goes along with that. But first, you need a good website.”
Costing Software
“The third essential,” says Spencer, “would be some sort of costing tool, whether it be food costs, recipe costs, or inventory management — something where you're actually staying on top of money going out the door for the cost of goods sold.”
There are a lot of different options on the market, including food and recipe costing tools like Piecemeal or Meez. And as we’ll explore in the following section, you can also choose from a growing number of advanced inventory management tools.
Restaurant Tech Stack Nice-To-Haves
The following tools and solutions can really help improve certain aspects of your operation when you are ready to invest in and implement them.
Inventory Management
“Inventory management tools don’t have to be the first thing you get right out of the gate,” says Rachel, “but the right tools can really improve efficiency by providing a real-time look at your inventory levels and using historical data to automatically reorder when these levels get low.”
Nick agrees, and suggests, “Inventory management systems like MarginEdge or MarketMan can really help you manage food costs with a lot more clarity.”
Staffing Tools
Rachel notes, “It can really help to have tools that automate and simplify your payroll system. As an added bonus, vendors like Proliant and HR Butler also make it a lot easier to do HR-related stuff like benefits and attendance.”
Nick also recommends “staff scheduling tools like 7Shifts or Push Operations, which can help streamline your approach to staffing, lower unnecessary labor costs, and improve communication within your team.”
Loyalty Program
Rachel highlights the value of email outreach and loyalty tools, saying, “When you are ready to add these features to your restaurant tech stack, they can truly help to boost your guest engagement strategy.”
Spencer agrees, noting, “A loyalty program is not a necessity right off the bat, but it's a real ‘nice to have,’ because you're going to get a lot of customer data, and you can give rewards to your best customers,” which encourages them to keep coming back.
Restaurant Tech That's a Waste of Money
We asked our panel of experts if there were any restaurant tech solutions that you should steer clear of entirely when first opening a restaurant. Here’s what they had to say:
Look Out for Hidden Costs
Spencer explains, “It’s not about any specific kind of tech that’s bad. It's just about looking for reputable providers. And you should always be on the lookout for hidden costs or hidden fees.”
“Ultimately,” says Spencer, “it's just about doing your due diligence.”
Avoid Costly Clutter
Rachel says, “Any tech you aren’t fully using is probably a waste of money. The same is true with technology that doesn’t integrate smoothly with your systems or that your team isn’t trained to use.”
“If you aren’t making the most of the tech,” she says, “it’s just expensive clutter.”
Watch Your Bottom Line
“What would be a waste of money? Really, any technology that doesn't increase sales or improve profitability by reducing costs,” Nick says.
Of course, those outcomes can vary significantly from one new restaurant to the next. Factors like the size of your operation, the type of restaurant, and even your location can play a big role in determining which tools you’ll want to have in your restaurant tech stack on opening day.
As Nick concludes, “The right technology really depends on your individual situation.”
Choosing the Right Tools for Your Situation
As you’re preparing to open your new restaurant, make sure you have all of these tech essentials ready to go. Our team of experts has also assembled this handy Tech Starter Kit to help you get your new operation off the ground.
