How a restaurant and hospitality industry can increase its profitability

Business systems can have different purposes. Some suppliers focus on quality, others on efficiency, some on innovation, etc. Of course, all improvements sooner or later lead to better profitability. But there are also suppliers who put profitability first.

If profitability is also a priority for you, there are ways to find out if the supplier and you will be a good fit. We can divide the questions you should be asking - to you and to the supplier - into two areas: sales (revenue) and production (costs).

Sales

It's easy to think that ERP systems can at best streamline operations and save time and money, and this is true. But good systems and suppliers can also increase your sales and margins. Look for a vendor that focuses on profitability and ask them exactly how they do it: in what ways can the vendor increase your revenue? Can your systems help you make more sales, improve margins and increase customer awareness and guest satisfaction? 

Production

Saving time, keeping things in order and avoiding frustration are often important parameters when choosing a business system. It should be easy for everyone to understand, and make operations smarter. It will quickly save you both time and money. But really smart systems also have functionality specifically to reduce costs. Some examples might be smart scheduling to make sure you don't overstaff - or a system that tells you which products have the best margins or should be sold soon to avoid wastage. 

The systems that can bring you both increased revenue and reduced costs are rarely the cheapest - but they are the most profitable. For you as entrepreneurs and restaurateurs, all you need to do is start seeing business systems as important tools, not just costs. Ultimately, it's about the value you can create with the system.