5 Benefits of Improving Restaurant Efficiency

Jul 31, 2024 4:19:07 PM

The art of reaching desired results without wasting materials, time, or energy.

That’s efficiency.

In the restaurant industry, efficiency would mean that your kitchen runs smoothly with just the right amount of staff, no wasted ingredients, and every order delivered just in time.

Is this the reality of your restaurant?

Are you efficient in what you do?

If you’re unsure, take a look at these five benefits of making your restaurant more efficient to learn why you should strive to make it happen in your restaurant.

Makes Your Customers Happier

Customers are the heart of your restaurant.

Without them, no matter how good the food or how beautiful your restaurant’s design is, you don’t have anyone to cook for.

So, it’s only natural to keep your patrons as satisfied as possible.

And a big part of their satisfaction comes from:

Customers expect all this when it comes to takeouts and deliveries, too.

When that’s not the case, especially when orders are inaccurate, 42% of diners experience frustration (US study).

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Illustration: Tablein / Data: TouchBistro

However, higher restaurant efficiency leads to quicker service, fewer mistakes in orders, and consistent food quality.

Both onsite and in delivery.

How?

With the right restaurant automation tools that streamline your operations.

Think about a modern mobile point-of-sale (POS) system that streamlines order-taking and payment processes, reduces errors and speeds up service.

This, combined with the right kitchen display systems (KDS) that immediately show cooks what meals to prepare and in which order, further reduces order mistakes, speeds up service, and ensures that the food is served warm and customers are satisfied.

image3-min-1Source: Medium

When your customers get their food quickly, and it’s exactly what they ordered, they’ll leave happier—and more likely to return.

Plus, a smooth and efficient service experience can lead to positive online reviews like the one below and to word-of-mouth recommendations, attracting even more customers to your restaurant.

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Source: Tripadvisor

The point is to ensure your restaurant operations are fast and accurate because that’s all you need to make your patrons eager for more.

The key to achieving this is making your restaurant operations more efficient with the right technology and automation.

Helps You Serve More Guests

Imagine turning tables faster during peak hours, seating more customers, and increasing revenue.

Sounds good, right?

That’s not just desirable but essential, as today’s diners demand quick service.

Did you know that, according to a recent report by TouchBistro, US diners are very time-sensitive when it comes to waiting for a table?

The average time they’ll wait is just 22 minutes, with a wait time of more than 25 minutes becoming a huge deterrent.

Even 22 minutes is too much for many, as 36% of customers report they’ll only wait 15 minutes for a table.

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Illustration: Tablein / Data: TouchBistro

So, if you want to cater to today’s diners, you simply must ensure they don’t wait long.

And for that, you have to increase table turnover.

But what about when previous customers linger after finishing their meal?

While it’s great if they order dessert or another round of drinks, sometimes they stay without ordering more.

A good table booking system can help you manage this.

And our very own Tablein has just the right features to increase table turnover.

For starters, in Tablein, you can set the default length of a reservation.

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Source: Tablein

That can be anywhere from 45 minutes to 6 hours.

Your staff will have each reservation’s duration in a dashboard and see when the end is nearing so they can make sure guests don’t overstay their welcome.

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Source: Tablein

It goes without saying they should do it politely.

However, it is much easier to stay polite and respectful when diners already know how long they can stay.

Our software makes this very transparent to customers, displaying reservation durations on the table booking page.

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Source: Tablein

This way, guests can see the restaurant’s booking policy and table limits before making a reservation, encouraging them to respect the rules.

Bottom line, table turnover is increased only when your whole process is efficient, which includes:

  • Letting people book tables online
  • Greeting patrons immediately as they sit down.
  • Offering digital menus that customers can explore as soon as they sit down.
  • Taking orders within 2-3 minutes of seating.
  • Being attentive and quick to bill the customers
  • Clearing tables within 1-2 minutes after guests leave.

All this combined will ensure faster table turnovers, so do this and boost your revenue, while also catering to time-sensitive customers!

Reduces Your Labor Costs

In the past five years, labor costs in the restaurant industry have surged by 33%.

Today, restaurant workers in the US earn an average of $18.50 per hour, and a typical restaurant employs 17 people.

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Illustration: Tablein / Data: Aaron Allen

Since labor makes up about 30% of a restaurant’s sales, this is a significant monthly expense.

In fact, according to the National Restaurant Association, high labor costs are a serious concern for 98% of restaurants.

However, becoming more efficient and streamlining your workflows can help you manage these costs better.

For starters, automating certain processes directly reduces your labor costs. But operational efficiency reduces them as well.

When your team knows exactly what to do and when to do it, you’ll see a reduction in overtime and more efficient scheduling.

Even something as simple as a table reservation system can help.

When you take reservations in the first place, you get a clearer picture of how many guests you will have in a day, so you can adjust staff levels and avoid extra labor costs.

But when you use software for it, you have a centralized database where you can analyze historical reservations, notice patterns, and identify peak hours or days.

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Source: Tablein

All of which can help you predict how many workers you need in a shift.

For Tom Hut, a small restaurant with European cuisine from Australia, this made all the difference when scheduling their staff:

“We can predict in advance how many guests will visit our restaurant and then determine our food and staffing requirements.”

Introducing different technologies can further reduce labor costs.

Kiosks and other self-ordering technologies are beginning to replace hourly employees.

For example, McDonald’s and Wendy’s have implemented self-order tech in some of their stores to mitigate the effects of wage inflation.

These kiosks improve efficiency by:

  • Putting customers in control of their orders.
  • Freeing up staff members to focus on other key roles.
  • Improving order accuracy as customers select their own orders.
  • Offering multiple payment options.
  • Automating upselling by suggesting add-ons, promotions, and limited-time offers.

Beyond self-ordering kiosks, automating kitchens with robotic technology is another effective strategy.

And if you think that’s something your patrons wouldn’t want, take a look at this statistic.

A recent study by Deloitte found that 60% of surveyed consumers are likely to order from a kitchen that prepares food using robots, up from 54% in 2021.

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Illustration: Tablein / Data: Deloitte

The point is: don’t shy away from new technologies. This is the inevitable future if you want to reduce labor costs.

Luckily, the majority of diners are getting comfortable with this shift.

So embrace technologies that reduce your labor costs and improve your restaurant’s overall performance.

Prevents Wasted Food From Cutting Into Your Profits

Inefficient inventory management often leads to wasted food, which translates into wasted money.

For 97% of restaurants, high food costs are a significant issue affecting profitability.

With inflation pushing food prices higher, reducing food waste has become even more crucial.

But it’s more than just money. There’s a social and environmental aspect to it.

A survey by Capgemini from 2022 showed that more and more consumers are food-conscious and expect restaurants and other food service providers to help reduce food waste.

Below, you can see what they expect you to do:

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Illustration: Tablein / Data: Capgemini

To address these expectations, you need more efficient inventory management.

Inventory management software can help you here, with accurate demand forecasting and real-time monitoring of stock levels.

This way, you can keep your kitchen well-stocked without overordering, cutting down on waste and saving money.

On top of that, using the right tools for ordering from suppliers can further enhance efficiency.

For example, Choco is an app that simplifies how restaurants order from suppliers.

Daniel Khachab, the co-founder and CEO of Chocoexplains what it does:

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Illustration: Tablein / Quote: Restaurant Technology News

Timely and precise ordering from suppliers reduces excess inventory and prevents both over- and under-stocking.

And with a tool like this, you can make sure your orders are error-free and avoid duplication.

Finally, better inventory management helps maintain the freshness and quality of ingredients.

Meaning?

Your customers can receive the best possible dining experience every time.

All in all, making your inventory management more efficient will help you reduce food waste, which is key not only for saving money but also for making a positive impact on the planet.

Prevents Your Staff from Leaving

Restaurant staff frequently leave their jobs, making it a major challenge for owners to maintain a stable workforce. The industry average turnover sits at 79.6% over the past decade.

Many reasons contribute to this, including low pay, lack of career growth, and poor management.

Sometimes, inefficiency in systems and lack of proper training can also drive staff away.

For example, a server asking a Reddit community for help instead of their manager indicates they might lack proper guidance.

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Source: Reddit

A good talk with the manager and other colleagues, as well as a clear procedure on how to serve tables properly, would probably help this server a great deal.

But if employees don’t understand their roles, don’t have efficient systems and standard operating procedures (SOPs) in place, and, most importantly, don’t have proper guidance, they’re more likely to get frustrated and leave.

However, streamlining processes from order taking, to sending orders to the kitchen, handling payments, ordering inventory, and more, can significantly improve staff efficiency and satisfaction.

When employees know their roles and have the right tools, they are less stressed and more capable of performing their jobs well.

Both in front and back of the house.

And you know what that means?

Happy employees stick around longer, reducing the constant cycle of hiring and training new staff.

Additionally, this puts your business in a virtuous circle; improving restaurant efficiency allows you to save money, which you can then reinvest in your staff.

This could mean offering better training, higher wages, or other benefits.

This is precisely what they do at Chipotle, as former VP of People Experience and Chief Diversity, Equity, and Inclusion Officer, Tawanda Starms, explained:

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Illustration: 
Tablein / Quote: BU

With this strategy, Chipotle has become known as one of the best places to work in the restaurant industry.

Bottom line?

Efficient processes and the right tools will create a positive work environment where you keep your staff and reduce the high turnover that many other restaurants around you face.

Conclusion

Making your restaurant more efficient is so much more than just cutting costs.

It’s about creating a better experience for both your patrons and your staff.

By increasing efficiency, you can improve customer satisfaction, increase table turnover, reduce labor costs, improve inventory management, and boost staff retention.

A good reservation system, mobile POS, kitchen display system, and other technologies make all this possible.

So, start working on improving your restaurant’s efficiency today.

You’ll see positive changes in both your bottom line and overall restaurant performance in no time.

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