Adapting to minimum wage changes through technology
Labor costs have long been a challenge in the restaurant industry, but the recent rise in minimum wage rates across many regions has forced restaurants to rethink their staffing models. Implementing technology can help restaurants better navigate these changes in several key ways:
- Labor efficiency: Digital ordering helps reduce the need for front-of-house staff, allowing operators to do more with fewer employees. By streamlining the ordering process, staff can focus on higher-value tasks, such as enhancing the guest experience and improving overall operations.
- Cost management: Restaurants that embrace self-service ordering models can lower their reliance on traditional service methods, saving on labor costs while still maintaining high service standards.
- Reducing errors: Digital platforms minimize the risk of human error in taking and processing orders. By reducing mistakes, restaurants can decrease the cost associated with correcting orders, saving both time and money.
These strategies are critical as restaurants look to strike a balance between meeting wage requirements and maintaining profitability.
Leveraging digital ordering to drive revenue
Digital ordering isn’t just about reducing labor; it’s also about creating new opportunities for revenue growth. With digital menus, restaurants can easily upsell premium items, suggest complementary sides or drinks, and promote limited-time offers. Here are some ways technology boosts revenue:
- Increased order accuracy: When guests have control over the ordering process, they’re more likely to order accurately. This reduces food waste and increases overall guest satisfaction.
- Data-driven promotions: Digital ordering systems can collect valuable data on customer behavior. Restaurants can use this data to create personalized offers, promote items guests are more likely to enjoy, and ultimately increase average check sizes.
- Convenient payment options: Mobile ordering platforms often integrate with payment systems, offering guests a faster and more convenient checkout process. This not only speeds up service but also encourages guests to spend more by removing friction from the transaction.
One way to navigate labor challenges is through table-side ordering. Many POS systems allow customers to interface directly with the kitchen via their mobile device, letting wait staff focus on delivering dishes when they’re ready.
“This type of hybrid self-service is great for the customers because they can keep a running tab open and order more food or drinks on their phone throughout their experience,” Back of House expert Miroslava Kotsan said. “And it’s also ideal for the server because they’re no longer wasting time entering information into the POS system or running around with checks. All of that can be done with a few taps of a smartphone.”
In a recent example, Grounded Kitchen leveraged App8’s digital ordering solutions to overcome staffing shortages and streamline operations while enhancing customer experience. By adopting App8’s technology, they managed to maintain service efficiency even with reduced staff, allowing them to focus on core tasks. This case demonstrates how digital ordering can be a crucial tool for businesses facing labor challenges. Read more about how Grounded Kitchen succeeded using App8’s solutions here.
Preparing for the future at the Gordon Food Service food shows
We’re excited to be exhibiting at the Gordon Food Service food shows across Canada this fall, where we’ll be discussing how digital ordering can help restaurants navigate industry challenges, including minimum wage increases, labor shortages, and changing guest expectations. Join us at the Back of House booth to see firsthand how our solutions can help you adapt and thrive in a competitive market.
Show Dates:
- Winnipeg: September 26, 2024
- Edmonton: October 3, 2024
- Calgary: October 10, 2024
- Vancouver: October 24, 2024
For more details, visit the official Gordon Food Service food show page.
At the show, we’ll be demonstrating how our technology helps reduce reliance on front-of-house staff, increases order accuracy, and drives higher average check sizes—all while creating a better guest experience. This is a must-attend event for anyone looking to stay ahead of the curve in the restaurant industry.
Technology as a key to long-term success
Looking ahead, the restaurants that embrace technology will be the ones best equipped to handle the challenges posed by rising labor costs and changing consumer expectations. Digital ordering is just one of many tools available, but it’s a crucial one that can help restaurants operate more efficiently while continuing to meet guest needs.
At its core, digital ordering empowers both restaurants and guests, giving operators the flexibility they need to manage their business while offering guests more control over their dining experience. As the industry continues to evolve, those who leverage these tools will be the ones who thrive.
