Here are some illustrative facts about competition levels in the restaurant business:
In spring 2016, there were 624,301 restaurants in the US.
Between 2006 and the industry’s peak in 2014, the number of restaurants in the U.S. grew 7.3% to more than 638,000—outpacing the population 6.9% growth rate.
“New York, New Jersey, and Connecticut — have more restaurants than anywhere else in the United States; 16.9 restaurants per 10k people. In 2013 there were 232,611 establishments in the U.S. fast food industry.
The primary reason why restaurants fail so often and have low profitability is that there are too many of them. This is true in any business. Supply is the killer of value. Adding to that oversupply problem are people who stray out of their circle of competence, since risk comes from not knowing what you are doing. Even worse, some people are in the restaurant business for non-economic reasons and that makes the economics worse for people who desire to make an actual profit. A famous Ohio State study revealed that 26.16% of independent restaurants failed during the first year of operation. That is consistent with other studies that show: “Over three years, that number [of failures] rises to three in five. While a 60% failure rate may still sound high, that’s on par with the cross-industry average for new businesses, according to statistics from the Small Business Administration and the Bureau of Labor Statistics.”
Owning and operating a restaurant is a tough business, xtraCHEF can help.
The Future Food-Tech Summit is returning to New York City on June 7 and 8, 2017. Investors, start-ups, technology companies, and food and ingredients manufacturers will convene to develop solutions to meet the global food challenge during the two-day event.
The event will include panel discussions, fireside chats, networking breaks, technology showcases, and other presentations encouraging discussion around solutions to meet the global food challenge.
Will you be attending?
Back in 2015, nearly three out of four restaurateurs reported their intention to upgrade their restaurant technology in 2016. If you weren’t one of those restaurants, you’re officially behind the curve.
The truth is, there’s so much restaurant technology out there, provided by a multitude of companies who assure that they “have the solution” to all of your problems. This can be a lot for some restaurant owners to take in, especially since not every platform is right for every restaurant.
Step 1: Recognizing the Problem
Step 2: Choosing the Solution
Business owners have been long asking the same question, whether they’d be a good match for a cloud accounting firm or service. This article intends to delve deeper into a few pointers which might help business owners discern if their business can properly integrate and operate with cloud accounting solutions and services.
In reality, it’s true that not every business out there is capable of truly and properly integrating with cloud accounting solutions and services. But if the following points make sense to you, or are associable with your business operations and ethics, then there is a very good chance that cloud accounting solutions and services can work wonders for you and your business.
1. Quicker and more accountable communication
2. Transparent and comprehensible data
3. Better data security
This is the future of dining: endless and exciting possibilities when all elements of the future dining experience are interconnected.
Open APIs make all this possible today for interconnectivity of communication between the customer, restaurant and other third-party services. The ability to build new seamless experiences for the future is virtually limitless. Activating multiple access points through a universal API like Omnivore provides streamlined real-time analytics that help systems anticipate and prevent a bad experience before it happens and the opportunity to quickly solve them when they do.
Sage, a market leader in cloud accounting software, today announced a new global survey of 700 accountants which shows that attitudes towards automation within the profession are changing as the benefits become clear — signaling a new era for the accounting practice.
38% reveal one of their biggest business frustrations is time spent number-crunching
32% of those surveyed use manual methods as part of their record keeping for clients; 25% Excel and 7% handwritten notes
86% say they would be happy for technology to make the admin elements of their job invisible, so they can focus more on their clients and building their practice
23% would take time off with the extra time they save with automation
Learn how xtraCHEF is helping accounting groups automate their invoice process here.
The nation’s hotel industry is set for another solid year in 2017, with the industry seeing higher room revenues and a greater number of newly delivered hotel rooms, according to the latest hospitality report from Marcus & Millichap.
In more good news, both average daily rates and revenue per avaialble room should increase this year. Marcus & Millichap predicts that the U.S. hospitality industry’s average daily rate will increase 2.8 percent. This increase is a bit slower than last year’s 3.1 percent gain. Marcus & Millichap attributes this to increased competition from new hotels and home-sharing services.
Revenue per available room will also see a small increase, rising by 2.4 percent this year when compared to 2016.
Innovation in cloud-based software and mobile technology today has dramatically increased the ability for businesses to easily capture data to better manage their restaurants. Restaurants can analyze aspects of their business with data that wasn’t previously available or easy to collect. With timely insights, restaurants can optimize processes, make better decisions, and save time and money.
Here are some of the best ways a restaurant chain can take action with technology to save on food costs:
1. Analyze menu mix in real time
2. Optimize your supply chain to always order the right quantities at the right time
3. Cut waste and manage margins
The mobile, cloud and social media tools available must be leveraged for greater customization of services. But, what does this mean, how does it look on the ground, and what do businesses in the hospitality industry need to know to survive and thrive?
1. Build a brand that customers like and trust.
2. Leverage your “brand champions.”
3. Treat feedback like gold.
4. Make it easy for customers to shop for and buy add-ons.
5. Embrace digital tools to become the best version of yourself.
Innovating in the digital age for the hospitality industry is about embracing a mindset that weaves together cutting-edge technology, guest-centric systems, and consistent branding. It’s less about isolated upgrades and more about integration and connectivity
There’s one thing that’s saving the restaurant industry from becoming a disaster, low food prices.
Labor costs, one of the biggest expenses for the industry, are on a steady rise. Sales are declining, and companies are resorting to discounts and incentives to get customers in the door.