Restaurant Industry

Recipes for Success for Restaurant Operators in 2017

The US restaurant market is mature and highly competitive in nature. Although, restaurant industry sales were expected to reach $783 billion in 2016, the industry only witnessed a moderate rate of growth in sales.  Despite, Restaurant Performance Index, advanced in September 2016, Restaurant operators will face numerous headwinds in the 2017 business ecosystem.  From legislative and regulatory pressures and moderate economic growth, to labor cost increases and cyber security, both new and old issues will challenge profit margins and muddle operating procedures.

This article seeks to address some of the challenges that will continue to plague the restaurant operators in the year 2017

  1. Rising Labor Costs: Despite the business environment improving in some areas, cost issues continue to concern restaurant operators. Labor represents a significant cost of doing business, as generally, about 25% of sales in a typical restaurant go towards labor costs.
    Rising labor costs will become a bigger concern if commodity prices eventually increase. As a result, in today´s fiercely competitive marketplace, restaurant operators must find new ways to reduce costs and improve business performance without sacrificing quality or customer experience.

  2. Operational Inefficiencies: Given tight operating margins, restaurants constantly seek ways to maximize “total revenue per patron visit”, reduce staff turnover and also manage the variable demand for staff to keep costly overtime under control and prevent staff shortages from impacting service levels. As a result, restaurant operators are looking to partner with industry experts who can help them to operate more efficiently and limit the inevitable losses that occur in such a fast-paced business ecosystem.

  3. High Cost of Technology Infrastructure:  Technology is one of the fastest-moving trends in the restaurant industry today. Quatrro predicts that technology will play an integral role in helping restaurants enhance the customer experience, increase efficiencies and drive their businesses forward. However, for the restaurant operators, escalating technology costs due to a range of sophisticated ERP platforms with high price points continues to remain the primary barrier to integrating more technology in their operations. In addition to high price points, the restaurant operators are not equipped to understanding the nuances of their technology products and business intelligence software which limits their ability to benefit from gaining critical business insights including corporate and store level drill-downs.

As restaurant operators are now eager to leverage the next-gen technological solutions by partnering with industry experts
who can help them focus on delivering operational efficiencies, cost-effective solutions will begin to emerge as a key differentiator


Quatrro has helped hundreds of restaurant operators mitigate the aforementioned challenges and drive business growth. We are the service provider of choice for the restaurant industry since 1993, and specialize in providing cost-effective ERP-based finance and accounting solutions at fractional price points to franchisors and franchisees that helps them reduce accounting spends, enhance efficiencies and improve business profitability. We help our clients achieve this through innovative concepts like multi-tenancy and skill-based routing that not only saves time but ensures that errors are minimized. Whether you're just getting started as a franchise owner, or you already own a group of fast-growing franchises, Quatrro can provide you accurate and timely financial data that enables you to make critical business decisions and improve your performance on almost every metric that matters.


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