Restaurant Industry

The US restaurant market is highly competitive in nature. There are more than 620,000 eating and drinking establishments across the country, and the number of restaurants are growing at about twice the rate of the population. Further, Americans are spending a major portion of their food budget on eating out (44 cents per dollar). As a result, The National Restaurant Association’s Restaurant Performance Index (RPI) remained above the 100 level in 2018 indicating continued expansion in the market.


In spite of the positive industry wide growth of the last several years, restaurant operators face mounting challenges:

Challenge # 1: Staff Training and Recruitment:

A restaurant is primarily known for its food and services. It is extremely important to have a well-trained staff whose efficiency and hospitality attracts the customers. In addition to this, restaurant operators also need well-trained professionals who can efficiently manage the back office tasks such as accounting, payroll and IT. Nevertheless recruiting and retaining the talent is one of the biggest challenges restaurant operators face.

In such a scenario, it is always advisable for the restaurant operators to focus on recruiting and training customer facing staff, and leave the back office tasks in the hands of trained professionals/experts.

Challenge # 2: Maintaining Performance Consistency:

Many restaurants find it difficult to sustain uniformity in their service. When the restaurant starts, the food is great, and so is the service. However, with the increase in the number of customers, especially during peak hours, restaurant owners find it difficult to sustain the delivery of the expected quality product and services. Furthermore, the focus of the operations manager is not only to provide great customer service but also to cater to billing challenges, vendor management, payroll, etc. With so many responsibilities to juggle, something inevitably suffers, resulting in the standard of the restaurant going down which eventually drives customers away.

Restaurant operators should focus on delivering consistent services and maintaining the customer experience across restaurant locations. The back office tasks like accounts receivable, accounts payable, payroll, bank reconciliation, financial statements can be delegated to professional service providers who specialize in this area.

Challenge # 3: Increased Competition:

The restaurant industry is extremely competitive. There are a considerable number of restaurants that compete for the same customer traffic. On one hand, different restaurant operators’ fight for the same smallest piece of a customer’s spending. On the other hand, consumers are highly focused on getting a value deal and any sort of deviations will negatively affect revenues. Therefore, it is important for restaurant operators to have access to timely - weekly, if not daily - reports that will help them make estimates of their meal prices basis the cost of ingredients and thereby forecast the revenues and profits concurrently offering a valuable insight for offering great deals to their customers while not sacrificing business growth.

To mitigate this challenge, restaurant operators must partner with trusted service providers who can help them gain access to best in breed technology and business intelligence tools that offer granular insights into their operations.

Restaurant operators usually remain preoccupied with tasks like restaurant accounting, inventory management, keeping up with the market trends, loss prevention, employee time tracking and management, maintaining cash flows and staffing. As a result, they are not able to focus on the strategic growth of their business. Outsourcing tasks like accounts receivable, accounts payable, managed payroll services, helpdesk services, desktop management services and technical support services, helps save time and money while letting the restaurant owners’ focus on higher priorities.

Quatrro provides high quality finance and accounting services to restaurant owners like financial reporting, accounts payable, accounts receivable, reconciliations and managed payroll services, empowering the restaurant operators to focus on their strategic business objectives and mitigate these challenges.

If you are a restaurant operator, facing any of these challenges tweet to us @Quatrro_QBSS.