IRVINE, Calif., Sept. 8, 2022 – Restaurant365, the leading all-in-one restaurant enterprise management software, reported that demand remained strong for restaurants in the second quarter of 2022, citing a 12% increase in its customers’ sales from Q1 to Q2, despite the challenges of inflation and rising food costs.
“As economists discuss a potential economic slowdown, restaurants may not yet feel impacted because their sales continue to grow,” stated Tony Smith, CEO and co-founder of Restaurant365. “A decline is still a very real possibility, so now is the best time for restaurants to take action and be prepared. There are some key ways they can best prepare, and one of the most influential we saw during the pandemic is data analytics. Operators that are using sales, food cost and labor data to clearly understand their business are best positioned to stay profitable during uncertain times.”
While remaining profitable during uncertain times is certainly difficult, prepared operators prove that it can be done. Restaurant365 customer Eli’s Restaurant Group was able to recoup a $1.1 million prime cost gap during the pandemic by investing in technology tools to help control costs and boost margins.
“We estimated that between food, labor and supply costs, Eli’s was leaving approximately $1.5 million worth of profit on the table, just by not having the data in our hands to know whether we were really doing well or not,” said Eric Steinbach, chief operating officer at Eli’s Restaurant Group. “We were able to recover nearly 75% of that gap during the significantly tough business environment caused by the pandemic. Over the past year, the inflationary and workforce challenges have proven to be arguably more difficult to navigate than the first year of the pandemic, further highlighting the need for accurate and timely data to make sound business decisions.”
Inflation has not diminished customer demand. A Q1 2022 study of 1,000 U.S. consumers found that 29% of consumers said that it’s cheaper to order from restaurants than buy all the items needed to cook a meal; 27% said it costs roughly the same without all the work. Restaurants who implement the technologies and strategies to drive topline sales, better manage revenue and drive more efficient labor costs and Cost of Goods Sold can remain poised for growth in uncertain market
Restaurant365 is the industry’s leading all-in-one, cloud-based accounting, inventory, scheduling, payroll, and HR solution developed specifically for restaurants. The R365 platform simplifies day-to-day management for restaurant operators, allowing them to control food costs and optimize labor costs. Integrations and open APIs enable Restaurant365 to connect with other systems including POS providers, vendors, and banks. The result is accurate, timely reporting that provides a clear and complete view of their businesses. Restaurant365 allows operators to focus on what matters — their guests. Restaurant365 is based in Irvine, California with offices in Austin, Texas and Petaluma, California. The company is backed by Bessemer Venture Partners, ICONIQ, Tiger Global Management, and Serent Capital.