From conflicting schedules to mistakes in payroll, mismanagement can lead to out-of-control labor costs and turnover. And when a restaurant loses a valuable employee, that loss is felt everywhere. Managing and retaining a skilled workforce has always been a moving target for restaurants, but that’s especially true in today’s market.

It’s no secret that restaurant employee turnover rates are high; it was [14%-24% higher](https://www.qsrmagazine.com/growth/consumer-trends/restaurant-workforce-has-changed-forever/) in 2022 than in 2019. And, with the [average cost of employee turnover](https://www.restaurantbusinessonline.com/technology/increase-employee-satisfaction-reduce-turnover-save-labor-one-easy-strategy) being around $5,864 per person, you can’t afford to lose employees — especially to poor management. 

Your restaurant must put effort into managing employees properly and keeping them satisfied. That’s where restaurant labor management software comes in. With the right software, your restaurant can appropriately compensate employees while keeping labor costs low and maintaining a fully staffed business.

Let’s look at how restaurant employee management software can take your business to the next level.

## What is Restaurant Employee Management Software?
Restaurant [employee management software](https://www.skytab.com/features/labor-management) helps restaurant owners efficiently manage their team’s shifts and payroll while complying with labor laws. With labor management software, managers can:

- Create staff schedules
- Manage timecards
- Monitor shifts and overtime
- Review and approve time off requests
- Comply with labor regulations
- Connect with staff in real-time

And that’s just the tip of the iceberg! Labor management software is vital for restaurant owners and managers to monitor staff, keep them happy, and maintain efficient operations. 

Let’s dive into the specific features you can expect to find in any modern restaurant labor management system.

### Schedule Builder
Do you usually spend hours every week manually arranging schedules on paper or in a spreadsheet? Restaurant scheduling software makes building schedules and managing your team’s availability easy.

You can schedule shifts in just a few clicks, with details like date and start and end times. The software makes it easy to assign individual shifts or post a shift opportunity for anyone to pick up. You can even copy shifts to multiple days of the week and create templates to streamline scheduling even more.

![A screenshot of SkyTab Workforce showing how shifts can be edited.](https://res.cloudinary.com/peter-white/image/upload/v1701973649/Edit_a_shift_in_Sky_Tab_Workforce_662cfe088c.png)

Availability affects your scheduling significantly — your employee management software can help you manage that, too. Set recurring availability, approve or decline availability requests, and request availability if you need extra coverage on a specific day or time.

### Payroll Management
Payroll doesn’t have to be a headache for your restaurant’s managers. With employee management software, payroll is a breeze. 

Labor management software can help you keep track of shifts, making it easy to approve, create, edit, print, and export timecards. You can also stay on top of overtime costs, gaining complete visibility into every minute worked. This software even makes exporting payroll as a CSV file simple to streamline accounting further.

![A screenshot of SkyTab Workforce showing employee timecards.](https://res.cloudinary.com/peter-white/image/upload/v1701973724/Timecards_in_Sky_Tab_Workforce_0198bd3d68.png)

### Cloud-Based Mobile App
You shouldn’t need to be tied to a computer to manage your restaurant’s employees. Luckily, modern employee scheduling software offers user-friendly, cloud-based mobile apps for managers and employees. 

With an employee management app, managers can quickly build work schedules, manage availability, and keep track of time clocks. The app can also notify managers when an employee submits a time off request, swap and drop request, etc. 

Employees can use the app to access their schedules and request time off conveniently. They can be notified when a shift opportunity is available or if there’s an important notice regarding their upcoming shift.

![SkyTab Workforce mobile app](https://res.cloudinary.com/peter-white/image/upload/v1701973787/workforce_gif_092d33a666.gif)

A mobile app like SkyTab Workforce makes it easier for managers and teams to communicate in real time so the whole team can stay in sync. In-app group message functionality allows managers and employees to separate work and personal conversations easily.

### Labor Law Compliance
As a manager or restaurant owner, you want to do right by your employees. That means staying compliant with all labor laws that apply to your business. However, ensuring that every shift is compliant can be challenging — which is where employee management software comes in handy.

When scheduling shifts with your labor management software, it will automatically detect any compliance issues and will issue a warning for each one. This way, you can clearly and instantly see what the issue is so that you can quickly rectify it. 

![A screenshot of SkyTab Workforce showing compliance warnings.](https://res.cloudinary.com/peter-white/image/upload/v1701973844/Compliance_warning_in_Sky_Tab_Workforce_b6cd63d209.png)

Labor management software like SkyTab Workforce can help you set, warn, and restrict things like:

- [**Breaks**](https://shift4.zendesk.com/hc/en-us/articles/16167208247955-Set-Breaks-in-SkyTab-Workforce): You can automatically allocate paid and unpaid breaks based on an employee’s scheduled shift duration. You can also compensate for missed meal breaks and restrict employees from clocking back in early from breaks.
- [**Penalty Rates**](https://shift4.zendesk.com/hc/en-us/articles/16168450394259-Set-Penalty-Hours-in-SkyTab-Workforce): These rates compensate employees for hours worked during a specific time of the week. For example, Saturday employees may get a 150% base rate.
- [**Holiday Rates**](https://shift4.zendesk.com/hc/en-us/articles/16168247323283-Set-Holiday-Rates-on-SkyTab-Workforce): These rates are applied to shifts on public holidays. You can specify which holidays your business recognizes.
- [**Overtime Rules**](https://shift4.zendesk.com/hc/en-us/articles/16167853279635-Set-Overtime-Rules-in-SkyTab-Workforce): You can use these rules to determine how overtime is calculated daily and weekly. You can also set a maximum number of consecutive days staff members can work overtime in a week.

## 4 Benefits of Using Restaurant Employee Management Software
Obviously, labor management software can do a lot for your restaurant. We’ve covered several core features, but how can those features directly benefit your business?
Let’s dive into four concrete ways employee management software can improve your restaurant operations.

### 1. Better Scheduling
On average, restaurant managers spend 3.14 hours weekly on [employee scheduling](https://timeforge.com/blog/restaurant-scheduling-statistics-1/) when they use a spreadsheet. Considering how complicated manual scheduling can be, that’s not surprising.

With employee management software, all of the tedious tasks in the scheduling process can be automated. Since the software automatically factors in availability, you can quickly get an overview of how many hands you can have on deck at any given time. 

From shift drops and shift swaps to split shifts and time off, labor management software can help you stay on top of it all. 

### 2. Satisfied Employees
Like any relationship, communication is key — that goes for managers and employees, too. [HubSpot](https://6899838.fs1.hubspotusercontent-na1.net/hubfs/6899838/1%20Pagers/EX%201-Sheeter%20(4.6).pdf) found that 70% of employees saw improved communication when using digital tools at work. So, the easier it is for employees and managers to communicate, the more satisfied your employees will be.

Employee management software with built-in communication tools, like SkyTab Workforce’s mobile app, makes it easier for employees to stay in touch with their managers and see their schedules. 

Knowing when they’ll be working ahead of time allows employees to better plan their lives outside of work, which is vital for keeping them satisfied. And, with the power to set their availability and submit time off requests right from their phone, they can manage their schedule on the go.

### 3. Lower Costs
Without an easy way to monitor employees, labor costs can get out of control — and hurt your restaurant’s bottom line. Eighty-nine percent of [restaurant operators](https://restaurant.org/education-and-resources/resource-library/restaurants-arm-themselves-with-technology-while-grappling-with-inflation/) find labor costs a significant challenge, so finding a solution is critical.

Restaurant labor management software gives you insight into your payroll at the click of a button, giving you a clear picture of every employee’s timecard. 

Keeping track of hours and identifying team members working overtime can help you reduce costs and improve efficiency. If you find employees frequently working overtime, you can investigate and streamline the process causing the issue. You’ll spend less on overtime and improve processes along the way.

### 4. Efficient Operations
The main benefit of any automated software is its ability to streamline tedious tasks that may have taken hours of manual work in the past. That’s no different for labor management software. 

The less time you spend mulling over the week’s schedule, the more time you have to run your business. Whether you’re building a schedule in seconds with a template or being instantly notified of compliance warnings, you’re saving precious time that can manifest into profit elsewhere. 

## Boost Your Business Efficiency with Restaurant Labor Management Software
Management matters when running a successful restaurant. Your staff is the lifeblood of your business — so you need the right tools to keep things moving like clockwork. 

Thanks to restaurant labor management software, you can take the headache out of managing your restaurant’s employees so you can put that energy into running your business. With this software in place, you can:

- Build schedules that keep your business running and your employees happy
- Adequately compensate employees and comply with legislation
- Take charge of your staff’s schedule at a moment’s notice
- Keep labor costs down by monitoring overtime and inefficiencies

Automated tech is all about simplifying tedious tasks and ensuring that operations run smoothly, so take advantage of it! Your employees — and your profit margin — will thank you in the end.

A photo of 6 employees in a restaurant standing and smiling, representing the benefit of using labor management software - SkyTab - Shift4

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4 Ways Restaurant Labor Management Software Can Benefit Your Business

Are you looking for a new way to boost sales and build your restaurant’s brand? The answer may be as simple as a rectangular piece of plastic with your logo on it. That’s right; we’re talking about a gift card program.

In 2022, the gift card market in the US generated [$499.4 million in revenue](https://capitaloneshopping.com/research/gift-card-statistics/) — growing by 8.2% each year. Gift cards aren’t just for the biggest national brands, and they don’t need to be sold in grocery store checkout lines. You can sell gift cards in your own restaurant — or on your own website — and start reaping the rewards.

Are you ready to start selling gift cards for your restaurant? Let’s look at how gift cards work, how they can benefit your business, and the steps it takes to start your own gift card program.

## What is a Gift Card Program?
A gift card program allows customers to buy cards with a balance that can be redeemed at your business. Generally, customers can make gift card purchases both in-store and online. The customer selects an amount to add to the card, and the merchant collects payment upfront. Their receipt will include the gift card's activation information and the balance.

When it comes time for the customer to redeem their gift card, the process is quick and easy. In an in-store setting, the card is swiped similar to a credit card. For eGift cards, the card number can be manually entered or a QR code can be used. 

When a gift card is used, the transaction amount is deducted from the card’s balance. If there is a remaining balance on the card, the customer will be notified. If the balance doesn't cover the entire transaction, they will need to provide another payment method. Once a gift card is used up, it can be discarded or reloaded for future use. 

## Why Should You Implement a Gift Card Program?
New shoes, laptops, air fryers, video games — out of all the major holiday gifts, gift cards reign supreme as the most popular. According to [Givex](https://web.givex.com/news-insights/66-of-u-s-consumers-say-inflation-will-impact-holiday-spending-givex-survey-highlights/), 44% of surveyed Americans who want gift cards for the holidays prefer restaurant gift cards. 

However, gift cards aren’t just a boon for your holiday sales — they’re money-makers all year round. Let’s dive into the tangible benefits your restaurant can expect when starting a gift card program.

### Improve Your Cash Flow
Gift cards are instant revenue. Even if they're never redeemed, you’ve secured a profit. Whether they’re gifts for friends and family or impulse purchases by returning diners, gift cards are a great way to increase sales. If you’re a seasonal business, you can promote gift cards to get an influx of cash until customers start coming back in.

Plus, once a gift card recipient’s foot is in the door, you have the chance to upsell. [CapitalOne Shopping](https://capitaloneshopping.com/research/gift-card-statistics/) found that 61% of customers spend more than the card’s value — amounting to $31.75 on average. If they don’t use the entire gift card on the same visit, don’t worry; now they have another excuse to come back!

### Attract New Customers
Gift cards are a great way to bring new customers into your restaurant. According to [FSR](https://www.fsrmagazine.com/feature/gift-cards-effective-marketing-strategy-restaurants/), gift cards encourage 44% of customers to try new restaurants. When family or friends gift their loved ones an experience at your restaurant, that’s a vote of confidence in your business. With the power of word-of-mouth marketing, you have a unique opportunity to turn them into loyal customers.

Promote your gift card program on your usual channels, including on social media and in your restaurant. You could also offer a limited-time promotion to encourage more gift card sales.

### Turn Existing Customers into Repeat Business
While gift cards are a great way to bring in new customers, they’re also powerful tools for increasing brand [loyalty](https://www.skytab.com/features/loyalty-and-marketing).

[FSR](https://www.fsrmagazine.com/feature/gift-cards-effective-marketing-strategy-restaurants/) found that 56% of customers want a gift card from their favorite restaurant. That means there’s likely already a desire for gift cards among your existing customer base — so why not fill that gap? 

Gift cards make it easy to upsell to your customers, encouraging them to come back and spend even more on their next visit. Plus, if you encourage returning customers to reload their gift cards, you can reduce new card costs.

Gift cards can also make it easier to turn unhappy customers into loyal ones. If a customer has a poor experience at your restaurant, a gift card can help make it right. By turning that bad experience into a better one, customers are more likely to try your restaurant again. Then, you have an opportunity to show them your best.

## How to Start Selling Gift Cards for Your Restaurant
Would your restaurant benefit from a gift card program? If so, then let’s dive into the steps you need to take to sell gift cards successfully for your restaurant.

### 1. Choose a Gift Card Provider
Before you can start selling gift cards, you need a gift card provider. Your [restaurant POS system](https://www.skytab.com/) may already have a built-in gift card program. Otherwise, you can use third-party gift card programs for restaurants that integrate with your POS system. 

Whichever direction you choose, ensure that your gift card provider charges a flat monthly fee. Otherwise, you could be hit with transaction fees for selling, redemption, and balance inquiries.

Gift card providers typically offer a starter kit with gift cards and marketing materials to help you promote the program. For example, SkyTab’s gift card program starter kit comes with 50 free gift cards, envelopes, one window sticker, an acrylic stand with an insert, and two register decals. 

Your gift card program should include necessary features like:
- The flexibility to sell gift cards in any desired amount
- Rechargeable cards for multiple uses, enhancing customer convenience
- Online visibility of gift card balances, allowing customers to check their card's value easily
- Customizable gift card design to align with your brand identity
- Smooth conversion of existing cards to the platform, ensuring a seamless transition
- Powerful reporting capabilities to gain valuable insights into gift card sales and usage

You can start selling digital gift cards for your restaurant as well. eGift cards are only rising in popularity — Cyber Monday in 2021 saw a [31% increase in eGift card sales](https://www.globenewswire.com/news-release/2022/11/30/2565015/0/en/Cyber-Monday-is-the-New-Black-Friday-for-Restaurant-Gift-Cards.html). Your gift card provider should support eGift cards and provide you with a customized eCommerce site to sell them on.

### 2. Customize Your Gift Cards
Gift cards are another valuable opportunity to advertise your restaurant and increase brand awareness. However, if your gift cards are plain and generic, you won’t be getting your restaurant’s name out there. Customers may even lose track of which restaurant the gift card is for.

![Woman holding a blue gift card that says "Shift4Gift" - SkyTab - Shift4](https://res.cloudinary.com/peter-white/image/upload/v1701100961/ST_Incontent_Should_Your_Restaurant_Have_a_Gift_Card_Program_v2_f947af6a1a.png)

Your provider should allow you to customize gift cards to match your restaurant’s branding. SkyTab’s gift card program allows you to upload an image file, choose a template, or get a custom-designed card.

### 3. Decide How You Want to Use Gift Cards
Now that you have branded gift cards at your disposal, it’s time to determine how you want to use them. How will you sell them? Where will you display them?

Use the advertising materials provided to you by your gift card provider to let diners know about your program. Ensure that you have gift cards ready to purchase at the register or host stand so that customers can easily buy one on their way out. Offer set amounts for customers to choose from and a custom amount option.

You can use gift cards for more than their traditional purpose, though. Gift cards can be great for:
- **Incentives**: Use gift cards as rewards or incentives for employee recognition programs.
- **Promotions**: Employ gift cards in promotions or special offers to attract more customers.
- **Fundraising**: Partner with local organizations or charities and donate a portion of gift card sales to support a cause.
- **Customer Appreciation**: Show gratitude to loyal customers by offering exclusive discounts through gift cards.
- **Events**: Use gift cards as prizes or giveaways for special events or contests.
- **Comp Cards**: Do you need a quick and easy way to resolve a customer’s negative experience? You can smooth things over by providing them with a gift card with any custom value appropriate for the situation.

By thinking creatively, you can maximize the impact of your restaurant's gift card program and enhance its overall value.

### 4. Start Selling Your Gift Cards
Now that your gift card program is ready to roll, it’s time to launch it! Ensure that your employees are all fully trained on the program and how gift cards will work in your restaurant. They should be prepared to answer any questions your customers will have about the program.

Encourage your staff to share the news about your new gift card program with customers. You can set up an incentive program for the employees who sell the most gift cards! Promotion is vital — if customers don’t know that your gift cards exist, they won’t buy them.

## Give the Gift of Your Restaurant
It’s clear that a gift card program can be a significant benefit for any restaurant. Not only can it increase your sales, but it can also bring in new customers — and turn existing ones into loyal advocates.

Starting a restaurant gift card program is more accessible than most might think. With the right POS system and gift card provider, you can start selling gift cards in no time. 


Restaurant employee handing a gift card to a customer - SkyTab - Shift4

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Should Your Restaurant Have a Gift Card Program? How to Get Started

While the holiday season feels like a joyous and magical time, it can be anything but for those in the food service industry. The rush of customers can add up to a lot of profits, but without the staff to handle them all, your restaurant won’t be able to keep up.

Not only does it become more challenging to fill regular shifts with employees seeking time off to celebrate, but you also have to consider hiring seasonal employees to fill the gaps. And we haven’t even mentioned the added complexity of holiday parties and catering orders!

Ensuring you have enough hands on deck is difficult during the holidays — but not impossible. Don’t let your business drown in the holly jolly hustle and bustle. Follow these tips to prepare your restaurant’s holiday staffing plan this year.
 
## 1. Identify Your Holiday Needs
Evaluating the needs of your restaurant is the best place to start. Think back to years when you felt unprepared for the influx of customer traffic.

Were the cooks able to handle the additional orders, or could they use extra hands in the kitchen? Was there only one server for a party of 25 when there should’ve been two? Try to plan for worst-case scenarios so you always have a backup strategy. You can’t afford to be understaffed and left without answers.

Next, review the reservations, party bookings, and holiday events that are confirmed up to this point. This information will show you when you’ll need additional employees beyond your regularly scheduled staff.  
 
## 2. Use Historical Data
If your restaurant has made it through the holidays before, you can use that experience to your advantage. Historical data from your [POS system](https://www.skytab.com/) can help you determine how much your sales increased during the holidays. Were weekends especially busy? Were Thursdays a popular day for company parties? 

You can use [POS reports](https://www.skytab.com/blog/pos-reports-data-driven-decisions) to find information like:
- Total number of guests
- Table turnaround time
- Average check size
- The frequency of menu items ordered

Knowing this historical information will allow you to confidently forecast this year’s inventory, overall sales, labor costs, and scheduling. 
 
## 3. Determine Your Holiday Staffing Budget
![Graphic representing a holiday staffing plan for a restaurant - SkyTab - Shift4](https://res.cloudinary.com/peter-white/image/upload/v1698694034/ST_Cover_Holiday_Staffing_Plan_fb53099ad4.png)
Most of your holiday staffing will hinge on one factor: your budget. Extra employees will cost more, so you want to ensure your restaurant can reasonably take that on before hiring.

You’ll likely need to add temporary servers, bussers, bartenders, and line cooks to your team. Federal law requires that regular and [seasonal employees receive the minimum wage](https://www.dol.gov/general/topic/workhours/seasonalemployment), so keep that in mind when building your holiday budget. If you have employees receiving tips, they must also receive direct wages according to your state or local jurisdiction.  

Luckily, technology makes this a lot easier. Using the [labor management](https://www.skytab.com/features/labor-management) functionality in your POS system, you can project the total cost of hiring seasonal employees. For example, if you need two bussers from the beginning of October until the end of January, your system can calculate the total cost for them to work 28 hours weekly at a set wage.

## 4. Post Effective Job Listings
Once you know the supporting cast members you need and how much your budget allows for wages, it’s time to write a job description and post it.

It’s essential that the job description thoroughly detail the requirements of the position. Let potential job seekers know what duties they’ll be expected to perform, the number of mandatory shifts or hours, time off flexibility, wages, and any other benefits or perks. Setting the proper expectations upfront will help attract the best possible candidates. 

However, it’s not enough to just write a great job description and post it in one spot. You must be strategic about placement and post your listings in areas where candidates are already searching.

How do you do that? For starters, you should understand that 73 percent of [candidates are passive job seekers](https://www.apcinc.com/2022/09/22/new-statistics-on-passive-candidates/). Although these applicants may not be actively looking for a job, it doesn’t mean they’re not interested in a new opportunity.

Social media channels can be a great place to start. [Facebook’s job posting feature](https://www.facebook.com/business/learn/facebook-page-post-jobs) is an excellent passive medium that can reach a wide range of potential employees. And unless you pay to boost your post, it’s an entirely free resource.

On the other hand, active candidates may search on job search platforms in the food service industry, such as [Culinary Agents](https://culinaryagents.com/) or [Careers in Food](https://www.careersinfood.com/). These sites may yield higher quality candidates than social channels or generalized job boards like [Indeed](https://www.indeed.com/).
 
## 5. Reach Out to Former Employees
Are you having a hard time attracting new hires? Don’t be afraid to invite back qualified former employees.

Asking previous employees to come back and work for you on a seasonal basis is a terrific way to find temporary help. Not only are you already familiar with them and their performance, but their existing knowledge will drastically reduce the time it will take to train them.

Look at past employees who left on favorable terms and would potentially be receptive to a seasonal position. These individuals already know the restaurant’s operations and culture, taking away the worry that they may not be a great fit.
 
## 6. Start Training Sooner Rather than Later
Even if you can find a seasoned vet to fill an open position, it’s essential that you allow plenty of time for training new and former seasonal hires. You want to ensure that temporary staff have time to learn service standards and adjust to your operations. Even if you’ve hired back a previous employee, you may have changed specific processes since they’ve left.

Train seasonal staff in the same manner as you would a full-time staff member. This will allow them to fully grasp the restaurant’s procedures and potentially lead to them becoming a full-time employee — or a returning seasonal staff member for next year.

## 7. Schedule Employees with Flexibility
Once you feel your new trainees have grasped the restaurant’s inner workings, it’s time to focus on how you’ll schedule team members for the holiday rush. 

Before you make a schedule and post it, ask employees about their availability during the holiday season. While you won’t be able to accommodate everyone, your employees will appreciate that you’re making an effort to recognize their needs.

Another option is to ask staff to sign up to work a specific holiday of their preference. For example, if your restaurant is open on the fab-four of holidays (Thanksgiving, Christmas Eve, New Year’s Eve, and New Year’s Day), ask each employee to sign up for at least two. This tactic lets them choose their preferences and equally distributes coverage on those days.

Post the holiday schedule in advance and give employees enough time to trade shifts or make minor adjustments to fit their holiday plans better.

You will need to create a team-wide communication method to notify all employees when they are required to work extended hours or specific holiday dates. It’s also advised to keep two to four members on call to prepare for emergencies.

Once again, your POS system is an excellent resource for employee management. A POS system like SkyTab will support various [third-party integrations](https://www.skytab.com/features/third-party-integrations) as well as native options that can streamline this for you.
 
## 8. Show Appreciation to Your Employees
Lastly, please don’t forget to show your gratitude to the team for their effort and dedication to your business during its busiest time of year. Even if you’re hiring seasonal employees, you should reward your whole staff for their hard work.

You can [plan a holiday celebration](https://www.zenefits.com/blog/how-to-plan-company-holiday-party/) or purchase a small gift for each member of the staff as a way to say thank you. Even if it’s after the New Year, plan to do something to express how much you value their efforts.
 
## Ready. Set. Hire.
Your restaurant’s holiday staffing plan shouldn’t give you a headache. With the right strategy, your team will endure the holiday season unscathed while your customers enjoy fantastic service. 

When you start staffing for the season, remember to:
- Evaluate your business needs
- Make data-informed predictions
- Budget accordingly
- Get the word out about job opportunities
- Tap former talent to fill seasonal vacancies
- Prepare your staff with training
- Schedule team members appropriately
- Reward your hard-working staff

Give yourself enough time to prepare, take a strategic approach, and get started as soon as possible — the holidays are just around the corner. 


Two customers ordering drinks at a restaurant bar during the holiday season - SkyTab - Shift4

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Your Restaurant’s Holiday Staffing Plan: 8 Tips for Success

Food waste — and eliminating it — has become a hot topic of discussion in the restaurant industry. And for good reason: According to [ReFED](https://insights-engine.refed.org/food-waste-monitor?break_by=destination&indicator=tons-surplus&sector=foodservice&view=detail&year=2021), U.S. restaurants generated 12.9 million tons of food waste in 2021. 

Alarming statistics like this are leading restaurant owners nationwide to commit themselves to reducing food waste. Not only does it hurt your bottom line, but it also hurts our environment. 

Eliminating food waste begins with understanding what happens to the food we serve. How much leaves our kitchen, and how much is uneaten?

Whether it’s customers leaving meals untouched or unused ingredients in the garbage, restaurant owners must realize they’re wasting a significant amount of money by generating abundant food waste.

We’re diving into how food is wasted and what your restaurant can do to reduce that amount. Let’s get started.

## Understanding Food Waste
Before you can eliminate food waste, you must first understand what it is and where it comes from within your restaurant. Generally speaking, food waste refers to food that is discarded, unused, lost, or uneaten by the customer. Many processes across the food supply chain can result in waste, from primary production to distribution and consumption.

Not only does the amount of food waste impede cash flow, but what makes it so precarious is that it remains hidden behind normal [restaurant operations](https://www.skytab.com/blog/tips-for-improving-restaurant-operations). From overstocking and over-prepping to spoilage and half-eaten meals, these are all costly forms of waste often concealed by regular restaurant operations.

Think about it. Does a busser let a manager know every time they toss a half-eaten entree in the garbage during a Saturday dinner rush? Does your chef tell you every time they toss out a half case of lemons because they are spoiled? The answer is: probably not.

The food service industry has two basic types of food waste: pre-consumer and post-consumer. Let’s look at the difference.

### Pre-Consumer Food Waste
Pre-consumer waste (a.k.a kitchen waste) refers to food that never leaves the kitchen. For instance, an ingredient tucked away in the walk-in cooler past its expiration date is now money down the drain. Poor food prep techniques, such as improper slicing and dicing, can lead to added kitchen waste because you’re not getting the most out of the ingredients.

### Post-Consumer Food Waste
On the other side of the food waste equation is post-consumer waste. Post-consumer waste is food purchased by restaurant patrons but not eaten. The most common example of this type of waste is leftover food on a customer’s plate.

## Performing a Food Waste Audit
The best way to get a handle on the food waste your restaurant is producing is by conducting a food waste audit. The objective of an audit is to uncover places where you’re generating food waste so that you can implement strategies to help eliminate it. The[ Environmental Protection Agency](https://www.epa.gov/sustainable-management-food/resources-assessing-wasted-food) (EPA) has some great tools to help you with this assessment. 

When tracking food waste, it’s essential to find its source. Keeping a record or journal of how much food is going to waste and how many guests are coming in to dine is the best way to understand your restaurant’s food waste problem.

Develop a system for the staff to keep notes on:
- What is being thrown out?
- Why is it being thrown out? 
- How much food is going into the trash or compost bin?

Depending on the size and logistics of your restaurant, you might want to have one or two dedicated employees tracking this information for the entire restaurant. Alternatively, each employee can monitor their assigned station.

Either way, find a method that works best for your operation. Collect data during peak and non-peak times over an extended period to get an accurate sample size.

Pay close attention to how much food your diners purchase but do not eat. For instance, note when a dinner party orders multiple appetizers and leaves most of their entrees untouched or asks for doggie bags. It’s worth evaluating this information to see how much it adds up.

Also, in your audit, remember to note what the weather is like that day or events happening around the community. Data like this helps determine your restaurant’s future customer volume and can help account for any anomalies in sales volume.

For example, your audit may show you have an average of 250 guests come in for Sunday brunch when it’s 80 degrees and sunny out, but that number drops dramatically to less than half that amount during the winter. Tracking this information allows you to identify customer trends and plan inventory purchasing around those findings.

Your food waste audit results should help reveal actionable data that you can use to help reduce food waste.

## 7 Ways to Prevent Food Waste in Your Restaurant
![Restaurant employee using Lighthouse Business Manager to track inventory and manage food waste | SkyTab | Shift4](https://res.cloudinary.com/peter-white/image/upload/v1697658340/ST_Food_Waste_In_Content_fdc3728b22.png)
Prevention is the key to reducing food waste. Knowing how to prevent waste in your restaurant can help you save money and significantly cut food costs. Here are some ways to reduce food waste and increase your bottom line.

### 1. Properly Store Food
Using proper food storage techniques will substantially increase the shelf life of your inventory. First, ensure that you’re storing all food items in accordance with all applicable [food safety codes](https://www.fda.gov/food/fda-food-code/food-code-2022). Use only appropriate containers for storage at precise temperature levels.

You can also develop a labeling system for your kitchen staff so that containers with perishable products have the date they were received, the expiration date, and the amount of product in the container.

Lastly, take the necessary [precautions to prevent cross-contamination](https://www.compliancemate.com/blog/tips-prevent-cross-contamination-restaurants), such as storing raw meat on the bottom shelves of your walk-in cooler. Placing the raw meat on the bottom shelf will ensure the juices don’t run down and contaminate the food stored below it.

### 2. Utilize the FIFO Method
Another prevention technique along the same lines as proper food storage is the first-in-first-out (FIFO) method. Using the [FIFO method](https://www.forbes.com/advisor/business/fifo-method/), chefs will organize and rotate ingredients so that older items will be used before newer ones to help reduce spoilage.

For example, if pizza dough is prepared on Monday and then again on Wednesday, the remainder from Monday should be used before (first) the dough made on Wednesday.

### 3. Use a POS System to Manage Inventory and Food Costs
A [restaurant POS system](https://www.skytab.com/) is a must-have for any establishment serving food. It facilitates the order process and communication between the front of house (FOH) and back of house (BOH). With the right POS system, you can also easily monitor inventory levels, food costs, margins, and purchase orders.

POS systems like SkyTab have automated [tracking and reporting](https://www.skytab.com/features/reporting-and-analytics) capabilities, providing restaurants with powerful business analysis tools. Your staff can better plan and prep for services because of the system’s ability to monitor stock inventory of all recipes and forecast inventory requirements based on menu and sales performance. 

For example, a [POS report](https://www.skytab.com/blog/pos-reports-data-driven-decisions) can show you that you only use 25 pounds of potatoes weekly even though your weekly order is 50. It can also raise attention that potatoes are only used in ⅓ of your menu’s dishes. 

By integrating with inventory management software, you will notice a significant reduction in unused food that minimizes over-purchasing and overproduction, resulting in increased savings. Ensure that your POS system supports [third-party integrations](https://www.skytab.com/features/third-party-integrations) to bolster its functionality.

### 4. Develop a Smaller Menu
A POS system can be a practical resource for analyzing the profitability and popularity of each item on the menu. Your [POS menu](https://www.skytab.com/resource-center/sky-tab-pos-menu) should give you a streamlined view of your entire offering, making adjusting easier.

Moreover, the results obtained from a simple analysis will allow you to review and condense the menu. Shrink the menu down to only the dishes that are selling to help eliminate spoilage of unused ingredients. 

You can also decrease the size of your menu by repurposing ingredients across multiple dishes. This can minimize waste and create a more sustainable menu. Use chicken from tonight’s dinner special for tomorrow’s soup of the day or yesterday’s bread that has gone stale as croutons for salads.

### 5. Monitor Portion Sizes
Your food waste audit should examine whether you serve guests huge portions. Use tools like portion scales and spoons so you and your employees know exactly how much food gets plated for each dish. Train kitchen staff and standardize recipes to ensure that portion sizes are plated consistently.

As for your menu, consider offering varied portion sizes for some of your larger or more popular menu items. For instance, you can charge $8.00 for a large bowl of chips and guac and $5.00 for a small bowl. Using your POS system, you can easily [update your menu](https://shift4.zendesk.com/hc/en-us/articles/360033980214-Menu-Items-on-SkyTab-POS) to reflect these changes.

### 6. Properly Train Employees
Speaking of training kitchen staff, the entire team must work towards reducing food waste. Offer chefs and prep cooks guidance on cutting techniques to get the most out of ingredients. Also, encourage employee feedback about ideas they have to help waste reduction efforts further.

Overall, your entire staff must be on the same page. You can dedicate a training session to reviewing techniques your employees, from chefs to bussers, can utilize to help reduce waste. 

### 7. Zero Waste
If you still notice that your restaurant is throwing away ample food after implementing these changes, consider some alternatives. 

Donate leftover food that is still safe for consumption to local food banks and offer food scraps to local farms to use as animal feed. Just because your restaurant no longer has a use for the food doesn’t mean it can’t be put to good use somewhere else. 

Partnering with a local nonprofit to donate food can improve your community and generate goodwill surrounding your business.
 
## It’s Time to Take Action
Understanding how to reduce food waste in your restaurant is an ongoing process and doesn’t happen overnight. However, with the right attitude and strategy, your efforts will pay off in the long run.

Food waste can be a challenging and tedious problem to fix. It’s essential that you:
- Regularly monitor the waste produced in your restaurant and make changes to your strategies as necessary. 
- Utilize these [resource tools](https://www.epa.gov/sustainable-management-food/resources-assessing-wasted-food) the EPA offers to monitor and manage food waste. 
- Always pay attention to your customers' ordering behaviors and trends to ensure your menu is fulfilling their appetites and reducing waste at the same time.
- Never waste ingredients or money on dishes that aren’t being ordered.
- Make sure new employees are adequately trained and knowledgeable on food waste reduction. 

Even after you put strategies into place and notice a significant decrease in waste, you should still find more innovative ways to continue your efforts.

Two chefs cooking in a restaurant kitchen preventing food waste | SkyTab | Shift4

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From Waste to Worth: 7 Methods to Reduce Food Waste in Restaurants

_Disclaimer: The following content is provided solely for informational purposes and is not intended to serve as accounting, tax, legal, or other professional advice. You are solely responsible for your own compliance with laws and regulations. You should contact your accountant, attorney, or other relevant advisors for advice specific to your circumstances._

What’s the key to running a successful restaurant business? Keeping costs and expenses low, while simultaneously increasing sales and profit margins — all without compromising quality or service.

Tracking data in the form of a profit and loss statement (also known as a restaurant P&L) is vital to monitoring a business' financial health — especially in the food and beverage industry. 
With increased wages and [inflated food costs](https://www.restaurantbusinessonline.com/financing/restaurant-menu-price-inflation-showing-little-sign-slowing) to account for, a restaurant profit and loss statement will help you keep track of the data you need to keep your restaurant in the black.  

## Profit and Loss Statement: What Is It and Why Is It Important?
Having profit and loss data at your fingertips is essential, but it won't be very helpful if it’s not organized or updated frequently. A restaurant’s profit and loss statement is a master overview of all sales, costs, and operating expenses in your restaurant.

By monitoring expenses and revenue to determine net profit or loss during a specific date range, you’ll be better equipped to make decisions that benefit your restaurant and increase your profits — thus, increasing the likelihood of success for your business.

A restaurant’s profit and loss statement is the key to:
- Identifying where to scale or cut costs
- Finding areas of the business to improve or double down
- Encouraging management to stay accountable in hitting key metrics

If you’re not sure how to read a P&L statement — let alone how to create one — you’re not alone.

Many restaurant operators don’t always grasp what a P&L contains, so this guide will simplify terms and help you create a basic statement to start tracking data in your business.

## What Information Is Needed to Create a Profit and Loss Statement?
Whether you’re just getting started with a profit and loss statement or you’re looking for a more efficient way to collect the necessary data, here are the components you need:
- **Sales** – Includes sales from all [revenue centers](https://www.shift4.com/blog/unifying-your-revenue-centers) and a breakdown of each revenue item.
- **Less: Cost of Goods Sold (COGS)** – Includes the direct cost associated with the food and beverage inventory.
- **Less: Operating expenses (Selling, General and Administrative or SG&A)** – Includes every expense required to keep daily operations afloat. This section lists them all, from marketing to supplies, necessary repairs, and occupancy expenses (i.e., rent, taxes, insurance, utilities).
- **Less: Labor costs** –  Includes salaries and wages for chefs, bussers, wait staff, and hosts. A vital number to monitor as tracking labor costs helps you determine how to schedule employees best. 
- **Equals: Net profit (or loss)** – Once you have the above information, compare it to the restaurant's total sales. If the number in this section is greater than the total of the above, the restaurant is operating with a profit. The business loses money if the total is less than what’s going out every month.

![Sales - cost of goods sold (COGS) - operating expenses (selling, general and administrative or SG&A) = net profit (or loss) - SkyTab - Shift4](https://res.cloudinary.com/peter-white/image/upload/v1696870113/ST_Graphic_What_Is_a_Restaurant_Profit_and_Loss_Statement_1_e4aa35f224.png)

One of your go-to sources for finding most of this information is your [restaurant POS system](https://www.skytab.com/). For instance, with SkyTab POS, you can log into the [back office, Lighthouse](https://www.skytab.com/features/reporting-and-analytics/), and pull [reports for sales, labor, and inventory costs](https://www.skytab.com/blog/pos-reports-data-driven-decisions). You can also select a predefined date range or set a custom date range.

## Creating a Profit and Loss Statement
There’s always a way for you to track your restaurant’s financial health. Even if it means creating a P&L using a basic spreadsheet or using [reports from a point of sale system](https://www.skytab.com/features/reporting-and-analytics), staying on top of the total sales and costs is the best way to stay on track. Every business is unique, so don’t be afraid to create a statement that works for you!

Creating primary sections and tracking revenue and costs is enough for some restaurants to make sound business decisions. Larger or more complex restaurants might need to break things down further when creating or customizing a profit and loss statement.

For example, in a basic P&L statement, you can list all COGS based on food and beverage type to determine the profitability of each category. This will allow you to analyze the cost and revenue associated with food items like appetizers, main courses, or desserts, and beverages.

But maybe you want to track other areas where you’re spending money, such as marketing. For more complex businesses, you may want to track your marketing and special event expenses on a monthly basis. This enables you to evaluate the effectiveness of your marketing campaigns and investment in special events. You can identify how much money you are spending on these activities and assess whether they generate increased revenue or customer engagement.

## How to Analyze Data From Your Restaurant’s P&L Statement
![Graphic representing data from a restaurant profit & loss statement - SkyTab - Shift4](https://res.cloudinary.com/peter-white/image/upload/v1696610594/ST_Cover_What_Is_a_Restaurant_Profit_and_Loss_Statement_fcd74fadd3.jpg)
Putting the information together is a big challenge, but the other half is understanding how to use that data to make informed business decisions. Depending on where your restaurant falls in the net profit or loss column, the P&L statement helps you better see what’s working and what’s not. Additionally, the P&L is essential in allowing you to forecast sales or upcoming costs during various restaurant seasons.

To identify strengths and weaknesses in your restaurant, collecting and analyzing data is critical. The information taken from your P&L helps you get crystal clear information on everything — from which dishes are selling best (or not) to whether or not there’s enough money coming in to sustain your restaurant. It’s vital data you want before making a decision.
Think of your restaurant’s profit and loss statement as the pulse of your reporting data. It sets the rhythm and tone for all your business decisions. 


Two employees looking at a restaurant profit and loss statement on a laptop - SkyTab - Shift4

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What Is a Restaurant Profit & Loss Statement?

In the foodservice industry, effective restaurant marketing can make all the difference between a thriving establishment and an empty dining room. With so much competition, it's essential for restaurant owners to have a strategic approach to promoting their unique offerings and building a loyal customer base. 

In this blog post, we'll dive into six restaurant marketing strategies with tips that will help you attract your target audience, stand out from the competition, and elevate your establishment to new heights. Whether you're a seasoned restaurateur or new to the industry, get ready to indulge in these marketing insights and strategies. 

## 1. Create a Brand Identity
Establishing your brand should be a top priority because it permeates every element of your restaurant marketing. Your brand identity is the unique personality and essence that sets your establishment apart from competitors. It should also resonate with your target audience and set the stage for a memorable dining experience. 

One way to establish a compelling brand identity is through visual elements like a distinct logo, color palette, and interior design. These design elements should reflect your restaurant's unique personality and concept. And when it comes to visuals, consistency is king. The branding across menus, signage, and online should have the same design and tone. 

Beyond visuals, a restaurant can establish its brand identity through its cuisine and the overall dining experience it creates. Whether it's focusing on farm-to-table ingredients, a specific culture, or a unique dining concept, aligning your restaurant’s brand with its core offerings helps create a cohesive identity.

## 2. Build a Strong Online Presence
Having a strong online presence is crucial for any business — including restaurants. With the rise of social media, online reviews, and food delivery apps, potential customers are much more likely to search for your restaurant online before deciding to visit. 

### Create a Website
The first thing you’ll want to do is create a website for your restaurant. Think of it as a digital business card — a place to share the most important information about your restaurant, including location, hours, menu, and more.

Don’t worry if you’re not tech-savvy. There are plenty of user-friendly website builders that don’t require any coding experience. You can also check with your point of sale provider, who often has integrations with website builders to support online ordering.

Your website should be visually appealing, mobile-friendly, and easy to navigate. Use high-quality images that capture the ambiance and essence of your restaurant.

### Social Media
Next, [create social media accounts](https://sproutsocial.com/insights/starting-new-social-media-account/) for your restaurant on popular platforms such as Facebook, Instagram, and X (formerly Twitter). These platforms provide an excellent opportunity to engage with your customers, share updates about your restaurant, and post mouth-watering pictures of your menu items. 

### Online Review Platforms & Directories
Lastly, remember to claim your restaurant's listing on popular review sites like [Yelp](https://www.yelp.com/) and [TripAdvisor](https://www.tripadvisor.com/). These sites allow customers to leave reviews about your restaurant, and having positive online comments can help attract new customers.

By claiming these sites, you’ll be able to update information about your restaurant so it is valid and respond to any of the reviews that are submitted by your customers. 

## 3. Offer Special Promotions and Discounts
![Two women working with a tablet in a coffee shop to market their restaurant - SkyTab - Shift4](https://res.cloudinary.com/peter-white/image/upload/v1695416306/In_content_6_Restaurant_Marketing_Tips_to_Grow_Your_Business_2ce456045c.jpg)
Offering special promotions and discounts is a great way to attract both new and returning customers. Some popular offers include happy hour specials, lunch deals, and limited-time menu items.

Spread the word even further by offering discounts to customers who refer their friends or leave a positive review of your restaurant.

Another idea is to create a loyalty program that rewards customers for frequent visits or purchases. [SkyTab's customer loyalty feature](https://www.skytab.com/features/loyalty-and-marketing) creates tailored rewards programs and enables businesses to engage patrons with targeted offers –– leading to increased repeat visits and higher sales. 

## 4. Host Events and Partner with Local Businesses
Hosting events is an excellent way to promote your restaurant and attract new customers. Consider hosting live music nights, trivia nights, or charity events.

You can also partner with local businesses, such as wineries or breweries, to host tasting events or dinners. Collaborating with other local businesses can help you reach new audiences and build strong relationships within the community.

## 5. Utilize Email Marketing
Email marketing is a cost-effective way to stay in touch with your customers. You can use email marketing to announce new menu items, special promotions, or upcoming events.

Start by collecting email addresses from your customers when they visit your restaurant or sign up for your loyalty program. You can also add a sign-up form to your website and social media pages.

Once you have a list of email subscribers, create a regular email newsletter that provides updates about your restaurant, special offers, and other relevant information. Make sure your emails are visually appealing and mobile-friendly.

With [SkyTab's POS integration with MailChimp](https://www.skytab.com/features/third-party-integrations) you can win over new and repeat customers and boost sales with this easy-to-use email marketing automation platform.

## 6. Partner with Food Bloggers and Influencers
Food bloggers and [influencers](https://blog.hootsuite.com/influencer-marketing/) have become a significant force in the food industry. They have large followings on social media and can help promote your restaurant to their audiences.

Consider partnering with local food bloggers and influencers by inviting them to dine at your restaurant and share their experience with their followers. You can also offer them a free meal or special discounts in exchange for a review or post about your restaurant.

Research the blogger or influencer before partnering to ensure they align with your restaurant's values and brand.

## Conclusion
Marketing your restaurant may seem daunting, but by implementing these top restaurant marketing tips, you can effectively promote your business and attract new customers.

Building a robust online presence, offering special promotions, hosting events, utilizing email marketing, and partnering with food bloggers and influencers can help you stand out in a crowded market and grow your business.


Person posting a picture of food on social media with notifications surrounding the phone - SkyTab - Shift4

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6 Restaurant Marketing Tips to Grow Your Business

Do you love how SkyTab has streamlined your restaurant’s operations? Or have you had a great experience using SkyTab at a restaurant you frequent? However you’ve enjoyed SkyTab, there’s now a way to get rewarded when recommending it to another business.

Introducing: the SkyTab Referral Program. We offer the most competitive and attractive referral program in the industry. Your success is our success, and we want to ensure that you are generously rewarded for your efforts.

## What is the SkyTab Referral Program?
With our POS referral program, anyone, yes, anyone, can refer a business. We’ve made it effortless for someone passionate about SkyTab to start earning with our referral program.

If you know of a restaurant or bar that can benefit from [SkyTab’s next-gen POS system](https://www.skytab.com/), send them our way and we’ll send some extra cash your way. 

## Why Partner With SkyTab?
While SkyTab may be the new kid on the block when it comes to point-of-sale systems, we’ve got some well-established roots that set us apart from the rest.

SkyTab is backed by [Shift4](https://www.shift4.com/) — a global leader in commerce-enabling technology. For 25+ years, Shift4 has powered payments for restaurants, hotels, retail merchants, and other businesses. 

Your referrals are getting a complete end-to-end solution that empowers them to operate more efficiently and run their business on their terms. Any restaurant you refer is in good hands with us. 

Last but not least, your referrals also get:
- 24/7 in-house customer support
- Local support and service
- Ironclad security with point-to-point encryption
- Integrated online ordering and reservations
- Marketing and loyalty tools
- Advanced reporting and business intelligence
- And for a limited time - a $5,000 signing bonus when switching from another POS system!

So, let’s toast to the beginning of something great! Ready to [get started](https://www.skytab.com/referral)? 

## How to Start Earning with the SkyTab Referral Program
So, how do you get started? We’ve made our referral program as simple as possible to enable you to get restaurants on board with our supercharged tech.

### Step 1: Sign Up as a SkyTab Referral Partner
Signing up to be a SkyTab Referral Partner is quick and easy! Simply visit [skytab.com/referral](https://www.skytab.com/referral) to sign up.

On this page, you’ll need to complete a simple form that asks for basic information, including your name and contact details.

Once you’ve completed the form, you’ll be given access to Impact — the referral management platform we use for the SkyTab Referral program. In Impact, you can view the status of your referral payouts. (We’ll get to this later)

![Step 1 Sign Up as a SkyTab Referral Partner.png](https://res.cloudinary.com/peter-white/image/upload/v1693321850/Step_1_Sign_Up_as_a_Sky_Tab_Referral_Partner_f3507ff996.png)

### Step 2: Complete the Referral Form
Once you’ve successfully signed up for the SkyTab Referral Program, you’ll be automatically redirected to your custom referral form. Remember to save and bookmark the custom link provided to you — this is your custom SkyTab referral link that you will continue to use for every referral.

To finish submitting your SkyTab referral, simply complete your custom referral form. You’ll need to enter the merchant’s contact information, and you can choose to include details such as their website or your SkyTab Sales Representative.

![Step 2 Submit A SkyTab Referral.png](https://res.cloudinary.com/peter-white/image/upload/v1693321926/Step_2_Submit_A_Sky_Tab_Referral_f0c1627178.png)

### Step 3: Add Banking & Tax Details
Once you’ve submitted your referral form, you should receive an email with instructions on setting up your payment details in Impact. To receive your referral payout, you will need to add your banking and tax details to the platform.

To complete this step, you’ll need to:

1. [Log in to Impact](https://app.impact.com/bla/Shift4/login.user) using your email address.
2. Add the required Tax Documents. Once logged in, [navigate to the Tax Documents section](https://app.impact.com/secure/mediapartner/finance/fr/finance-electronic-document.ihtml?u=%2Fsecure%2Ffinance%2Fapp%2Fview-document-main-flow.ihtml) > Select Form W-9 > Select Continue > Complete and submit the form electronically.
3. Add your Bank Account information. Once logged in, [navigate to the Bank Account section](https://app.impact.com/secure/mediapartner/finance/view-edit-mp-payment-setting-flow.ihtml) > Add your bank account or PayPal information > Set your desired payout schedule > Select Save.

![Step 3 Email with Instructions.png](https://res.cloudinary.com/peter-white/image/upload/v1693323000/Step_3_Email_with_Instructions_9f786a64f8.png)

![Step 3 Add Tax and Banking Information.png](https://res.cloudinary.com/peter-white/image/upload/v1693322116/Step_3_Add_Tax_and_Banking_Information_71b35fdb27.png)

### Step 4: The Business Is Setup, Installed, and Processing
As soon as your referral form has been submitted, our sales team will contact the business. Now, you only need to sit back and relax while we do the rest! Our team will walk them through setup, installation, and processing. 

Once the restaurant you referred is processing payments with SkyTab, your $2,000* referral bonus payout will be triggered. You will be able to see that pending payout in Impact.

### Step 5: Payout is Issued Automatically
Cha-ching! It’s time for the money to roll in! Once your pending payouts have been approved, they’ll be automatically issued to your bank account based on the information you added to Impact.

## Join the SkyTab Referral Program Today!
We told you it was that easy! You can be rewarded for sharing SkyTab’s next-gen tech with the world with just a few simple steps. And, with all of the advanced benefits that SkyTab offers, you can rest assured that your referred restaurants are getting a best-in-class solution.

Ready to start making money with SkyTab? Get started at [skytab.com/referral](https://www.skytab.com/referral).

_*The $2,000 referral bonus is a limited-time promotion._

SkyTab POS system on a blue background representing the SkyTab Referral Program | SkyTab | Shift4

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SkyTab Referral Program: How to Earn a $2,000* Referral Bonus

Over the past decade, restaurants have been making significant changes to keep up with technology's transformation in the hospitality industry. As a result, more and more restaurant owners are adopting new technologies to improve their day-to-day operations and customer experiences. 

According to FSR Magazine, technology can enhance the dining experience for consumers that are short on time but [crave personalization](https://www.fsrmagazine.com/expert-takes/diners-crave-personalized-experiences-are-you-delivering). Among these different types of technologies, pay-at-the-table devices are on the rise because they benefit both the customer and the business owner. 

Let's dive deeper into pay-at-the-table (or PATT for short) technology and see if it's the right move for your restaurant.

## What is Pay-at-the-Table?
Before getting into the benefits and capabilities, let's ensure we're all on the same page and understand what this technology is. [Pay-at-the-table](https://www.skytab.com/features/mobile-ordering-and-payment) is a simple and straightforward system that allows customers to pay their bills directly at the table without needing the server to go back and forth to the stationary Point of Sale (POS) system.

## Benefits of Pay-at-the-Table
Tableside payments can be highly beneficial for restaurants and customers alike. Here are just a few benefits this type of feature can offer.

### 1. Increase Operational Efficiency
Pay-at-the-table technology allows you to integrate with your [POS software](https://www.skytab.com/) seamlessly. By enabling this technology to take care of customers more quickly, you can increase the number of table turns. Turning tables faster is a great way to reduce customer wait time and boost revenue coming into your business. Here are some of the great features that PATT technology can offer you.

- Full mobility with Wi-Fi and 4G connectivity
- Reorder items directly from the table
- Quickly split checks and add tips
- Send e-receipts or paper receipts with built-in printer

### 2. Improve Customer Experience
Tableside payment solutions allow for overall improvement in a customer’s experience with your business. 

Most customers love to interact with technology, so incorporating it into their dining experience helps keep them engaged. This improvement in customer experience will create a lasting impression, thus improving the likelihood of them returning.

Additionally, PATT technology makes dining convenient and easy for customers. With the ability to pay and go, customers no longer have to wait for their servers to return with their receipts. 

### 3. Increase Customer Satisfaction
Pay-at-the-table solutions like SkyTab offer more than just payment technology. They also allow you to keep a close watch on customer satisfaction. By prompting customers to rate their experience before leaving your establishment, you avoid poor Yelp reviews or other detrimental online reputational damage. In addition, technology like SkyTab can be great for management because it allows you to receive real-time alerts when a customer is dissatisfied with the service they were provided.

### 4. Build Your Marketing Database
Are you getting familiar with pay-at-the-table yet? It's also an excellent way to gather customer information during checkout without any hassle. You can use the information to notify your customers about any sales or promotions at your business. Plus, it allows you to market more efficiently to your customers in the future using the valuable data provided by your PATT solution. Here are some ways PATT can assist you in developing your marketing database.

- Collect customer email addresses to build a database
- Develop customer profiles, including their menu preferences
- Create intelligent & effective marketing campaigns/promos

### 5. Increased Payment Security
Switching to an EMV-capable terminal can not only benefit your overall security, but it can also reduce [chargebacks](https://www.shift4.com/blog/chargebacks-a-guide-for-merchants). Chargebacks have been a big problem for restaurants since the Liability Shift in 2015. That’s why you need a payment solution that provides [card authorization, capture](https://www.shift4.com/blog/card-authorization-and-capture), and effective anti-fraud tools.  

Solutions like SkyTab can accept EMV, NFC, and swiped card payments, with the added benefit of Point-to-Point Encryption (P2PE) and Tokenization for maximum security.

## What To Look For in a Pay-at-the-Table Solution
![Pay-at-the-table_one customer and server using PATT technology.png](https://res.cloudinary.com/peter-white/image/upload/v1689175158/Pay_at_the_table_one_customer_and_server_using_PATT_technology_5f4fecb3ed.png)
As you consider your options for a PATT solution, keep in mind the key features that are absolutely essential. Let's explore these crucial components.

### Connection Type
Choosing the right connection type for your tableside payment solution is vital. Does your business need Wi-Fi or Bluetooth capabilities? Will you be processing orders exclusively on-site, or will you also have off-site deliveries? These are the things you need to take into consideration. Although both options are great, each comes with benefits and drawbacks. Choosing which connection type that's right for you is based on several factors.    
#### Bluetooth
This connection type is excellent for smaller-scale businesses such as [coffee shops](https://www.skytab.com/restaurant-types/coffee-shops) and cafes. The great thing about Bluetooth is that it’s also immediately ready to use upon implementation. Bluetooth terminals allow you to communicate wirelessly with a wired internet-connected base station up to 300 feet. 
#### Wi-Fi
With a Wi-Fi option, your pay-at-the-table solution operates solely off your business's Wi-Fi. Usually, larger companies use this connection type because Wi-Fi terminals support larger surface areas better. This is all thanks to these terminals being able to roam across multiple access points and using wireless Local Area Networks (LANs) already in place.  
#### Cellular
This connection type is excellent for large and small businesses. Your mobile POS device will work anywhere your cell phone works so that you can make payments anywhere. This type of mobility benefits restaurants that offer delivery, outside dining, or catering services.


### EMV and NFC Transactions
Ensuring your device can process EMV and NFC transactions is vital in today's evolving landscape. A recent survey conducted by NerdWallet found that 78% of respondents are pleased with [EMV cards](https://www.nerdwallet.com/article/credit-cards/emv-survey). Of the 2,000 U.S. adults surveyed, 47% believe the cards boost the security of transactions, and nearly half said it's their preferred payment method. 

Pay-at-the-table technology is needed more than ever with the increasing problem of personal data breaches. Ultimately, customers like to know that their personal information is protected. This is why tableside payments are a no-brainer for any small business owner. Putting the customer in control of their payment security gives them confidence in dining at your establishment. 

### Simple Order & Reorder Functionality
PATT technology allows your customers to dine with ease. Thanks to this new technology, servers can easily and quickly order food and drinks, providing customers quicker service. And, if they want to reorder anything, they can easily do that with PATT tech as well. Making it easy for customers to order and reorder their items with a pay-at-the-table solution will keep your customers happy and bring in more revenue.

### Split Check Functionality
Whenever multiple parties gather at a restaurant, they'll often want to split the check. Whether by total or by items, you'll need this functionality from your tableside payment solution. 
Splitting checks at the table makes it easier for the servers. In addition, it ensures accuracy for customers because both parties can communicate in real-time to separate the bill.

### Gratuity Suggestions
Many PATT solutions now allow customers to tip directly through the system. Some even give customers the exact amounts to tip based on different percentage rates. These suggestive tipping rates have shown an increase in customers tipping their servers. Taking out the hassle of customers figuring out how much to tip their waiter makes a difference. 
Restaurants can expect higher tipping rates due to the speedy customer service and persuasive tip prompt screen within this technology. This type of feature is not only monumental for business, but it's also great for your employees. Satisfied employees lead to higher productivity rates. 

### Hardware Warranty
Making sure your pay-at-the-table device has a warranty should be a top priority. Things happen in high-volume environments, so preparing for the worst is always best. Preferably, you want to ensure a lifetime warranty on your [POS hardware](https://www.skytab.com/pos-hardware). A lifetime warranty guarantees that things like water damage, poor maintenance, or software glitches are all covered if they occur.

## Supercharge Your Restaurant With the Latest Tech
Every point-of-sale system has strengths and weaknesses, but tableside payment technology gives you way more than you bargained for. About 80% of restaurant owners in the U.S. [say that technology](https://www.pymnts.com/news/retail/2016/us-falls-short-in-restaurant-technologies/) would help to increase sales, make their restaurants more productive, and give their business a competitive edge. You can expect a rise in revenue, and your customers and employees will thank you for making the change. So, what are you waiting for? Discover what pay-at-the-table can do for your business.

Pay-at-the-table - table of customers and server using PATT technology - SkyTab - Shift4

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5 Reasons To Use Pay-at-the-Table Technology in Your Restaurant

In today's fast-paced world of dining and hospitality, creating a seamless and enjoyable experience for customers is paramount. One way to elevate the efficiency and engagement at your point of sale is by incorporating customer-facing displays. These sleek and intuitive screens not only enhance the checkout process but also offer a range of benefits for both customers and businesses alike. 

In this blog post, we will explore the advantages of customer-facing displays and how they can elevate the way you interact with your patrons, making their experience more personalized and efficient.

## What is a Customer-Facing Display?

A customer-facing display, guest-facing display, or customer display screen — whatever terminology you prefer — is a component of your [point-of-sale system](https://www.skytab.com/) that’s designed to elevate the customer experience. 

The customer-facing display (or CFD) is a digital checkout screen that shows patrons itemized details of their transactions. Typically, this includes all items in the order, sales tax, discounts, and the transaction total. The screen may also show payment, gratuity, and loyalty program prompts as well as payment confirmation. Once the payment is complete, it can prompt for receipt delivery options such as email, text, paper receipt, or no receipt at all.  

## 6 Benefits of Using a Customer-Facing Display

Customer-facing displays are everywhere, from [coffee shops](https://www.skytab.com/restaurant-types/coffee-shops) and cafes to [pizzerias](https://www.skytab.com/restaurant-types/pizzerias) and pop-up restaurants. Should your restaurant jump on the bandwagon? Let’s dive into the benefits you can expect to see with a customer-facing display.

### 1. Build Trust with Transparency

It should go without saying that businesses are more likely to succeed if they are trusted by their customers. The data backs this up, with [this report](https://www.edelman.com/sites/g/files/aatuss191/files/2021-06/2021%20Edelman%20Trust%20Barometer%20Specl%20Report%20Trust%20The%20New%20Brand%20Equity.pdf) from Edelman showing that 57% of survey respondents are more willing to purchase a new product when they fully trust a brand.

While there are many ways to build trust between your customers and staff, implementing a customer-facing display is one of the easiest and most effective. 

With a customer-facing display, customers can easily see the full details of their order without relying on an employee's spoken word. Before any money is exchanged, customers can rest assured that they have final approval on what they’re paying for. All taxes and fees are clearly presented before them, removing any fear of hidden fees.

### 2. Improve the Customer Experience

Every restaurant strives to deliver the best possible experience to its customers — and that’s because a better customer experience keeps customers coming back. According to Deloitte, 60% of restaurant guests said they’d dine more frequently at establishments that provided a positive [customer experience](https://www2.deloitte.com/us/en/pages/consumer-business/articles/restaurant-customer-experience-strategy.html).

That said, improving your restaurant's technology is an effective way to enhance your diners’ overall experience. Once your restaurant implements a customer-facing display screen at checkout, your customers can expect to see some of these significant improvements:

- **Accuracy**: Customers can quickly check the accuracy of their order information on the customer-facing display, including any special requests they’ve made. Pricing and any applied discounts will also be presented clearly.

- **Speed**: The ordering process can be sped up exponentially by reducing the typical back and forth over pricing and payments. This ensures that checkout lines stay short and customers can finish their orders quickly.

- **Engagement**: While wait times can be reduced, they will never be eliminated. A customer-facing display can keep guests engaged once they reach the POS, drawing attention away from the wait.

- **Hygiene**: The checkout process can be much cleaner by eliminating the need to pass devices or credit cards back and forth between the customer and staff. This is especially important for many customers in a post-COVID world.

### 3. Boost Sales and Tips

According to NELP, wait staff and bartenders [depend on tips](https://www.nelp.org/publication/wait-staff-and-bartenders-depend-on-tips-for-more-than-half-of-their-earnings/) for over half their wages. With that in mind, it’s evident that any tool that can boost tips is beneficial for your restaurant.

A customer-facing display can present customers with various tip options, making it as easy as tapping the screen to add a tip that feels right for them. Typically, these displays split tips into different percentage options, one custom option, and a “no tip” option. You can customize these options and set them as high as you’d like — which could lead to higher tips than you’d typically see without them.

Customer-facing displays make tipping much more manageable than searching for cash or doing the mental math required when filling out a receipt. Not only does this improve the overall customer experience for your guests, but it also makes it easier for restaurants to collect and disseminate tips to staff.

### 4. Reduce Checkout Errors

Not much can sour the restaurant checkout experience more than order errors. Dealing with the hassle of bringing up an issue post-transaction and potentially setting up a refund for the error can take a toll on time and patience. 

However, with a customer-facing display, errors made at checkout can be significantly reduced — before the transaction is finalized. 

Rather than waiting until the customer receives their receipt to ensure the order is accurate and correcting issues after the fact, customers can quickly call out any errors they see in real-time before paying. Compared to the several minutes it would take to fix the order and issue a refund, restaurant staff can adjust the items in just a few seconds.

### 5. Increase Customer Loyalty

Customer loyalty is the bread and butter of any successful restaurant. Not only do new customers cost up to [25 times more](https://hbr.org/2014/10/the-value-of-keeping-the-right-customers) to acquire than retaining an existing one, but loyal guests and repeat customers can also become valuable brand advocates.

What’s the easiest way to encourage customer loyalty? It’s in the name: loyalty programs. If your restaurant doesn’t already have a loyalty program, now’s the time to start one.  And what better way to introduce a loyalty program than with a customer-facing display system?

Customer-facing displays can be instrumental in building and maintaining a loyalty program for your restaurant. With a display, customers can effortlessly sign up for rewards by entering their email address or phone number — rather than verbally communicating it to staff. It’s easier for returning customers to enter that information too.

Customers can also easily see how many points they’ve earned and any rewards that they’re close to earning. This can be a great upsell opportunity — only 50 more points and you can get a free drink, so you might as well add on a cookie to get there!

By showing all of the necessary loyalty information on a customer-facing display, customers and staff can save time and headaches by helping to answer questions about points and rewards before they’re asked. 

And, with the information you’ve collected from that loyalty program, you can continue encouraging customer engagement by marketing to them via text or email, regularly sending out coupons, sale updates, and news about the restaurant.

### 6. Comply with Local Laws

While customer-facing displays are beneficial, they’re not typically legally required for your business. However, some states in the U.S. require your [POS system](https://www.skytab.com/) to include a customer-facing display. 

[California’s Business and Professions Code](https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=BPC&division=5.&title=&part=&chapter=13.&article=1.) requires businesses to conspicuously display prices to customers as they are added to the transaction at checkout. 

[Arizona’s Administrative Code](https://agriculture.az.gov/weights-measures/retail-upc-price-posting#:~:text=Consumer%2DFacing%20Price%20Displays,at%20each%20check%2Dout%20location.) also requires retailers to “display the price of each item purchased visibly to the public at each check-out location.”

If you’ve decided that the above benefits aren’t enough for your business to consider adding a customer-facing display to your [POS hardware](https://www.skytab.com/pos-hardware) suite, then you may want to take the time to check your local laws.

## Does My Restaurant Need a Customer-Facing Display?

Ultimately, deciding whether a customer-facing display suits your restaurant is up to you. However, if you ask us, we think that the pros far outweigh the cons — especially if your POS solution offers an affordable customer display screen.

_Disclaimer: The following content is provided solely for informational purposes and is not intended to serve as accounting, tax, legal, or other professional advice. You are solely responsible for your own compliance with laws and regulations. You should contact your accountant, attorney, or other relevant advisors for advice specific to your circumstances._

Customer-facing display on a checkout counter in a restaurant. A waitress is holding a tray of food and smiling. CFD. SkyTab

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Customer-Facing Display: Does My Restaurant Need One?

Restaurant technology is revolutionizing the way we eat out (and order in). From customer-facing tech like online ordering, mobile payments, and QR code menus to back-of-house systems, including automated inventory management, purchasing, and AI-driven decision-making. 
In fact, the global food tech market is expected to [grow by more than 55% to reach $342.5 billion by 2027](https://www.statista.com/statistics/1238860/food-tech-market-size-worldwide/). 

There’s one crucial node in a restaurant's tech stack that ties all of these components together – the restaurant point of sale system. 

That’s why choosing your point of sale system should be one of your restaurant’s top priorities. The right [restaurant POS system](https://www.skytab.com/) is the foundation that the rest of your technology should be built upon.

Let’s explore the essential features of a modern POS so you’ll know what to look for when choosing one for your restaurant. 

## What is a POS System for a Restaurant?
POS stands for point of sale and was traditionally a networked solution that processed transactions as customers left the restaurant. Over time, the concept of a restaurant POS system has evolved from a simple cash register to pay your check to the hub of your entire operation.

Modern POS systems have a lot more features and aren’t confined to a stationary setup in a restaurant. It’s now commonplace for POS software to run on mobile devices inside and outside the restaurant — for ordering at the table or taking payments for curbside takeout, for example.

The POS now acts as the central processing unit for the business. The right POS integrates seamlessly with your other restaurant software solutions to make data sharing across your business efficient and valuable.

## Why Choosing the Right POS is Important
Your restaurant’s POS system is used by your staff day in and day out to perform essential tasks like taking orders, processing payments, and communicating information to customers. So, you must choose a POS system with the appropriate features, functions, and hardware for your restaurant. 

The right POS can streamline your restaurant operations, simplify tasks for your team, connect your front and back-of-house, and provide you with all the data you need to optimize your processes and profits. 

Having the best system in place for your restaurant will help it run more efficiently in every department. This can lead to increased sales, improved customer experience, lower labor costs, and reduced food waste. 

## 7 Features to Look for in a POS System
How can a point of sale system provide all of the benefits we’ve covered? Here are the essential [POS features](https://www.skytab.com/features) to consider when choosing one for your restaurant.

### 1. Contactless Payments & Ordering
What was once considered a nice-to-have or a futuristic feature is now table stakes for a modern dining experience. As more people become accustomed to dining out with minimal contact, touch-free ordering and payments are quickly becoming the norm. 

Whether you operate a sit-down [table-service restaurant](https://www.skytab.com/restaurant-types/table-service-restaurants) or a quick-service cafe, contactless dining can be implemented for a variety of concepts. 

A point of sale system like [SkyTab POS](https://www.skytab.com/) will deliver contactless dining in two flavors: [mobile ordering and payments](https://www.skytab.com/features/mobile-ordering-and-payment). 

With tableside ordering, servers can take a customer’s order and then send that order to the kitchen using a handheld device.

Tableside ordering improves efficiency on the frontline of the restaurant while providing customers with a better experience. Servers don’t have to go back and forth between the POS terminal and the table or risk making errors with pen and paper.

If customers prefer to order on their mobile device, they can scan a [QR code](https://www.skytab.com/features/qr-code-ordering-and-payment) at the table that brings up a menu on their smartphone. They can browse, order, and pay, and their order is sent straight to the POS. 

Mobile ordering isn’t confined to the table, though. Contactless payments can be taken on portable payment terminals wherever the customer is — at the table, counter, or curbside. QR codes can even be used to bring up a customer’s bill on their own device.

In the restaurant, contactless payments eliminate the need for servers to leave the table with a customer’s credit card. Not only is this more efficient, but it also promotes a sense of security. 

### 2. Reservation Management
With table reservations coming in from multiple channels, your POS solution needs the tools to manage all that information. Not only do you need to give the customer a smooth booking experience, but you also need to gather the all-important customer data.

Gone are the days of a tattered reservation book. Digital reservation management systems have cleaned up the process of taking [reservations and managing waitlists](https://www.skytab.com/features/reservations-and-waitlist) at the door. 

Reservations coming in from multiple channels can be handled by the POS system: 
- Customers can book online, with the information sent to the POS via a built-in feature or direct software integration.
- Phone reservations can be manually added to the POS by staff members.
- Walk-ins can be added to the waitlist at the door.
Customers get a clean experience with an online booking system and staff saves time and hassle with a system that holds all the data.
 
### 3. Customer Loyalty & Marketing Tools
One of the benefits of digital reservation management is what you can do with customer data. With all your best customers’ details and dining preferences stored in your system, you can develop [marketing campaigns and loyalty programs](https://www.skytab.com/features/loyalty-and-marketing) to boost repeat business.

SkyTab helps you collect customer email addresses, for example, so you can send them special offers tailored to their preferences. It allows you to segment your audiences into like-minded groups so that they can be targeted with more effective campaigns. 

It’s hard to overstate the importance of remarketing and loyalty programs, as it could cost [as much as 25 times more](https://hbr.org/2014/10/the-value-of-keeping-the-right-customers) to acquire a new customer than to retain an existing one. Putting an effort into your marketing can easily pay dividends. 

![marketing and customer loyalty programs prompts displayed on a POS screen POS features](https://res.cloudinary.com/peter-white/image/upload/v1666651537/earn_rewards_tablet_60a44f220e.png)

### 4. Robust Reporting and Analytics
Because your POS system is tracking so much data, it becomes the ultimate source of truth when it comes to the financial side of the business.  

Therefore, your POS system must have excellent [reporting and analytics](https://www.skytab.com/features/reporting-and-analytics) capabilities that you can get the most out of your data.

Customer and business data can drive the most critical business decisions, such as optimizing staffing levels, which dishes to promote on the menu, and inventory and stock management decisions. 

The right system will be able to produce detailed sales, employee, inventory, and customer reports at the click of a button. This allows management to make data-driven decisions quickly in all areas of the business.

### 5. Third-Party POS Integrations
As we’ve seen, modern POS technology can do a lot. But certain functions are better performed by a more specialized piece of tech. To connect those pieces, you need a POS solution that will integrate with your other restaurant applications.

The POS system is where sales and customer data come into your restaurant software platforms.

So it affects how the rest of your system processes that data. If all your data is in a consistent format, all your tech platforms can use the data and communicate information effectively.

[Third-party integrations](https://www.skytab.com/features/third-party-integrations) with other software providers gives you everything you need to run the business. Here are some of the functions you can unlock with the right POS integration: 

#### Inventory Management and Purchasing
Most POS systems come with essential inventory management functions. For example, when a customer orders a steak, your POS system is not only adding it to the bill and alerting the kitchen that an order has been made. 

If the POS is integrated with your inventory system, it can share the information that a steak has been ordered so stock levels can be updated. If levels reach a certain threshold, an alert can be sent to the owner or manager.

#### Marketing & Loyalty Programs
Connect your POS to specialist marketing software to gain access to marketing automation tools and loyalty features. POS customer data can be used to create segmented audiences to run more effective campaigns and loyalty programs.

#### Labor Management
One of your most important assets are your employees, so you’ll want a POS with built-in [labor management](https://www.skytab.com/features/labor-management) features to improve scheduling, payroll processing, and other staff-related tasks is ideal.

#### Accounting Software
Financial data from your POS is passed directly to your accounting software, eliminating the need to print or download data and then re-enter the information manually. Trust us, your finance team will thank you!

![Third-party POS integrations shown on a tablet point of sale features](https://res.cloudinary.com/peter-white/image/upload/v1666646365/Integrations02_cf3aeff32e_2b9d8a2f50.png)

### 6. The Latest Hardware
A POS system is only as good as its hardware. Running your restaurant with out-of-date, bulky devices will slow down service and annoy customers and servers alike. 

Your system should interact seamlessly with sturdy, stylish, and functional [POS hardware](https://www.skytab.com/pos-hardware). Here are the key devices to look out for:
- **POS Terminal**: A touchscreen terminal with a sleek design looks sexy and doesn’t take up too much space in the restaurant.
- **Receipt Printer**: Many customers still prefer paper receipts, so you want to have the option available.
- **Cash Drawer**: We’re not in a cashless society yet, so many customers will still want to pay with paper money.
- **Credit Card Reader**: EMV and contactless credit card readers are essential for efficiency and data protection.
- **Mobile Devices or Tablets**: A mobile ordering device saves servers time and reduces errors, and can also accept payment at the table for increased efficiency. 
- **Kitchen Printer & Kitchen Display System**: Connecting your POS to a kitchen display system and ticket printer will improve communication between the front and back-of-house and speed up service in the kitchen.

### 7. Affordable Pricing
One thing we haven’t mentioned yet is the cost of your POS system. You want it to have all the features you need, but it also can’t financially cripple the business. 

Lucky for you, some POS providers won’t charge for hardware up-front and provide the software on affordable monthly payments. Gone are the days when you needed to outlay thousands of dollars on physical infrastructure like networked servers and bulky terminals that take up space in your restaurant. 

A cloud-based POS system is more like a software subscription service with the latest hardware provided and upgraded when you need it.

## The Right POS System Spells Success for Your Restaurant
These days, a modern POS solution runs from the cloud and seamlessly connects with your restaurant’s other business management applications.

It should come with the latest payment and ordering hardware and robust reporting and analytics tools — all while staying affordable. No matter which POS you choose, ensure it has these powerful features.

Woman using a SkyTab POS countertop workstation in a restaurant - SkyTab

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7 Features to Look for in a Restaurant POS System

liquor license bar owner standing in front of a bar smiling Shift4 SkyTab

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How to Obtain a Liquor License: A State-by-State Guide

Now more than ever, streamlining your restaurant’s daily operations is critical for success. If you’re struggling with improving restaurant operations, this article will help you explore different ways to increase operational efficiency.

## 1. Streamline Your Menu
Your menu is what usually attracts customers to your restaurant initially. If the food is good and the service is exceptional, customers will be more likely to return to your establishment time and time again. 

The key to consistently dishing out great food is to create a flavorful, concise, and easy to produce menu. If your menu is pages upon pages of options trying to capture everyone’s different tastes, your food costs are probably through the roof. Remember, quality over quantity is always a good rule of thumb when running your restaurant.

Many industry experts — including [Jon Taffer](https://shop-jontaffer-com.3dcartstores.com/taffer-management-series-menu-design-dynamics) — agree that crafting a menu that is one page enhances the flow of your restaurant. Take it a step further and break down the menu items into categories so that customers can easily scan the menu and order quickly for better table turnaround time. 

Menu optimization for delivery is also a must. Not all of your dine-in menu will be suitable for takeout and delivery. Some foods don’t carry well and the quality can suffer. Analyze your menu and leave out the items that don’t make sense for transportation. This analysis will also make it easier for your kitchen staff to prepare meals and stay on top of delivery and takeout orders. 

## 2. Invest In and Train Your Employees
Ensuring your staff is trained correctly will go a long way when it comes to running a smooth operation. Having a [well-trained and happy staff](https://modernrestaurantmanagement.com/training-tips-for-new-restaurant-staff/) can reduce errors, improve the overall customer experience, and make for a restaurant that can operate like a well oiled machine — even under pressure! 

Use these quick tips to develop a cohesive staff that can effectively run your restaurant while you’re managing behind-the-scenes operations: 

- Track employee performance with your point-of -sale system
- Continuously update training procedures 
- Hold monthly staff meetings and training seminars 

Putting in the effort to invest in your staff is just as important as proper training. Establish a positive atmosphere by providing your employees benefits and perks. Keep communication open for suggestions on how to make the job better and more manageable for all parties. Not only does this help your employees feel good about coming to work and doing their jobs, but it also leads to less turnover. 

## 3. Invest in the Right Restaurant Technology
With the right technology, even the most tedious tasks of running your restaurant become a breeze. The restaurant industry is continuously evolving, which is why it’s essential to update your old technology to keep up with this ever-changing environment. 

### Restaurant POS System
These days, most restaurants use a point-of-sale system for their day-to-day operations, including ringing up sales, tracking inventory, managing employees, and much more.

[Restaurant POS systems](https://www.skytab.com/) have countless long-term benefits such as: 

- Helping restaurant owners and employees manage the restaurant better 
- Processing all payment types such as cash, credit cards, and NFC payments 
- Keeping track of all sales, cash flow, food inventory, employees, and even customers
- Simplifying communication between the kitchen and wait staff 

### Contactless Technology
You’ll want to make sure your POS system setup includes devices that can [accept contactless payments](https://www.skytab.com/blog/contactless-dining). Nowadays, with the elevated awareness of spreading germs and a growing desire for quick checkout, it’s necessary to use touch-free payment technology alongside your restaurant POS system. 

Typically, contactless payments use [Near Field Communication (NFC)](https://www.nerdwallet.com/article/small-business/nfc-payments) technology with a mobile wallet such as Apple Pay, Samsung Pay, and Google Pay. These transactions are commonly referred to as tap-and-go or tap-and-pay.  

However, more recently, [Quick Response (QR) code](https://vimeo.com/429319845) technology is gaining momentum as a secure, touch-free way to pay for goods and services. QR codes are similar to barcodes because they are scannable codes that can be quickly read by a device to display information. The main difference between standard barcodes and QR codes is that QR codes contain a much more comprehensive range of information, so they are now commonly used in the restaurant industry for payment processing. 

Another way restaurants are leveraging this type of technology is for contactless ordering. [QR code ordering](https://vimeo.com/466702109) lets customers scan a QR code and pull up the menu in a web browser on their phone. Guests can then input their orders and send them directly to the point of sale system. 

QR ordering helps you become one step closer to creating an all-around contactless customer experience. QR code menus also help to eliminate time spent sanitizing physical menus in between customers.

### Mobile POS and Self-Service Kiosks
[Mobile POS systems](https://www.skytab.com/features/mobile-ordering-and-payment) serve as an extension of your existing restaurant point of sale. Some eateries place tablets on the dining tables so customers can order and pay their bills right from the tableside device. Other restaurants opt to equip their waitstaff with mobile devices (which is the more cost-effective solution) to carry from table to table and input orders in real-time. 

These mobile solutions improve order accuracy, which helps reduce waste, and speed up ticket times and table turns by eliminating unnecessary trips back and forth to a stationary POS system. 

If you’re operating a [quick-service restaurant](https://www.skytab.com/restaurant-types/quick-service-restaurants), tableside devices might not be the best solution. Instead, self-service kiosks are probably a better fit. These self-serve devices, such as the ones used in McDonald’s, also help improve order accuracy and order times.

### Kitchen Display System (KDS)
Giving customers the best all-around dining experience includes upgrading your back-of-house technology, too. [Kitchen display systems](https://www.skytab.com/pos-hardware) are a digital way to present order tickets to the kitchen staff. Monitors strategically placed in prep areas will show pending orders as they are sent from the point of sale system. This electronic delivery can help reduce order mistakes and confusion and get dishes out to customers much quicker.

![restaurant operations_employee using a POS system_Shift4.png](https://res.cloudinary.com/peter-white/image/upload/v1675297922/restaurant_operations_employee_using_a_POS_system_Shift4_916ecb6dfc.png)

## 4. Utilize Third-Party Integrations
These days, practically all POS systems have integrations with other popular business management programs. These connections are better known as [third-party integrations](https://www.skytab.com/features/third-party-integrations). They work their magic by seamlessly integrating with your POS system to help you manage all aspects of your restaurant. 

Some common POS third-party integrations that you may already be using include:  

**Marketing integrations:**
Email marketing platforms such as [MailChimp](https://mailchimp.com/features/email/) allows you to communicate with customers by easily customizing unique email campaigns and promotions. 

**Delivery integrations:**
Offering delivery as a takeout option is so important these days. By partnering with third-party delivery services as [DoorDash](https://get.doordash.com) and [Uber Eats](https://www.ubereats.com/restaurant/en-US/signup), you open up another revenue stream for your restaurant with just a few clicks. 

**Online ordering integrations:** 
In addition to delivery, you need to expand your menu for online ordering. With apps like [Menufy](https://restaurant.menufy.com/shift4), customers can search and order directly from your restaurant. Orders are sent straight to your point-of-sale system. 

**Employee scheduling integrations:**
Scheduling staff can be made simple by using an all-in-one application like [SocialSchedules](https://www.socialschedules.com/integrations) — which enables employers to manage employees’ shifts, as well as build schedules and communicate with employees.

## 5. Keep Up With Inventory
Unlike retail stores where inventory items merely go out of style, restaurant inventory can go bad and be a complete loss. Once an item reaches its shelf life and is still hanging around the kitchen, you’re going to have to toss any chances of turning a profit right in the garbage.     

With restaurant inventory, you’re always walking a fine line between excess and eighty-sixed. However, with the right inventory management tool — often a feature of a restaurant POS system — managing your inventory becomes easier than ever before. 

Inventory management POS features can help you improve the flow of the backend of your restaurant in the following ways: 

- Keep track of your entire inventory to help with menu planning
- Set predetermined thresholds for automatic reordering of low stock items
- Reduce food waste by analyzing the data from your inventory reports and making more informed inventory decisions
- Detect possible employee theft
- Determine what items are your big sellers versus products that aren’t making you much profit

## 6. Remember Your Customers
Having a loyal customer base and actively trying to reach new customers is key to improving your restaurant performance. While it’s not as direct as the other tactics mentioned above, keeping customers happy has a trickle effect on your business’ functionality. 

Thankfully, with evolving technology, you can monitor customers’ satisfaction across multiple platforms and create ways to improve their experience. The following are a few ways to leverage these insights and amp up your business’ operations:

- Utilize customer feedback surveys to improve upon areas of your customer service experience that need help. For example, if customers are most unhappy with the waitstaff, you can use this information to tweak your training manual and techniques. 

- Develop creative ways to reach new customers. This can include [user-generated content (UGC)](https://www.hortongroup.com/blog/user-generated-content) incentives such as rewarding customers for posting reviews and photos at your restaurant on social media. 

- Use your POS system to implement a [loyalty program](https://www.skytab.com/features/loyalty-and-marketing) that rewards customers for continuously dining at your restaurant. As reported by [Forbes](https://www.forbes.com/sites/blakemorgan/2020/05/07/50-stats-that-show-the-importance-of-good-loyalty-programs-even-during-a-crisis/?sh=7106b1c62410), 79% of consumers say loyalty programs make them more likely to continue doing business with brands. The more loyal customers you gain, the more your business will flourish. 


## The Tipping Point
Small changes can have big results. Nobody ever said running a restaurant would be easy, but it’s a labor of love for passionate restaurateurs like you. Using these tips to improve your restaurant operations will set you up for success.




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6 Tips for Improving Restaurant Operations

Restaurant reputation management is vital to owning and operating a successful restaurant. Yet, it doesn't get talked about as often as it should. 

Your reputation — especially your online reputation — will always precede you. According to a [TripAdvisor survey](https://www.tripadvisor.com/ForRestaurants/r3227), 94% of U.S consumers base their dining decisions on online reviews. So, suppose your restaurant is plagued with a bunch of bad reviews. In that case, chances are potential customers will keep scrolling and end up dining elsewhere.  

We all know it’s impossible to please everyone all the time, so bad reviews are inevitable for any business. But how you handle those reviews and take control of your restaurant's reputation will make all the difference in the world. 

There's no time like the present to start! Here are five steps you can take to manage your restaurant's reputation. 

## 1. Keep Your Online Profiles Up To Date
Beyond serving delicious food and creating five-star customer experiences, your [online presence](https://get.doordash.com/en-us/blog/5-ways-to-boost-your-restaurants-online-visibility) is also a key ingredient to your restaurant’s success. Everything from your website and Google Business page to your social media accounts and beyond represents your digital existence, so keeping them up to date is essential.   

You’ll want to ensure the following items are current across all your online profiles:

- Business name
- Business location(s)
- Business website
- Operating hours
- Menu listing
- Media, such as images and video


While you update the business profiles that you're aware of, it's worth taking a look around cyberspace to see if your business appears on other [restaurant review sites](https://thedigitalrestaurant.com/10-best-review-websites-for-restaurants/). For example, some review sites like Yelp allow users to add a business to their platform. And, while they'll take steps to verify the company's legitimacy, you can't count on the accuracy of the user's input. 

If you find your restaurant listed on a random online directory, you'll be able to claim your profile. Taking ownership of your listing will allow you to make changes, update the site as needed, and respond to reviews.

## 2. Monitor Reviews for Useful Feedback
Now that you’ve taken the time to update your business profiles, try not to let that effort go to waste. Legitimate reviews are based on actual experiences, so you’re going to get honest insight into what people think about your establishment — the good, the bad, and the ugly. 

If you’re reading reviews, make sure you’re taking into consideration what they’re actually saying — especially any negative feedback. Although it’s not necessarily what you want to hear (or read), unfavorable comments can shed light on ways to improve your business. 

For instance, maybe someone left a two-star review saying something to the effect of: “the food wasn’t as good as the last time my family dined here.” 

Take into consideration why a customer might say something like this. For example, did you hire a new chef and they're not entirely up to speed? Are recipe cards accessible to the entire kitchen staff? Were any ingredients on the verge of expiration or not appropriately stored and maybe shouldn't have been served?


Getting to the root of the problem will not only improve the quality of your cuisine in this case, but it will also help avoid these issues in the future. Therefore, potentially saving you from more negative reviews down the road.

## 3. Be Diligent About Responding to Reviews
If you're going to read customer reviews, you should take the time to respond. According to a recent survey, 56% of consumers say a business' [response to a review](https://financesonline.com/customer-reviews-statistics/) changed their opinions. 

Taking a few minutes out of your day to respond to reviews — good or bad — can go a long way. For example, suppose a potential customer reads a poor review about your establishment and your courteous response. In that case, there's a good chance they'll still consider giving your restaurant a try.

![restaurant reputation-management-customer review stars.png](https://res.cloudinary.com/peter-white/image/upload/v1673537755/restaurant_reputation_management_customer_review_stars_768060b5c7.png)

## 4. Regularly Ask for Reviews
As the popular phrase goes, “it never hurts to ask.” So if satisfied customers aren't feeling compelled to leave reviews, a little nudge could help get the ball rolling.  

### What Customers to Ask to Review Your Restaurant?
The customer database in your point of sale system is a good starting point. Your [POS system](https://www.skytab.com/) should have a customer database to capture each guest's name, phone number, email address, and dining history. 

With a SkyTab POS system, you can also take advantage of our mobile device that includes a built-in customer satisfaction survey. With [SkyTab Mobile](https://vimeo.com/335952672), you get real-time customer feedback during the checkout process — before they ever leave your restaurant.

### How to Ask Customers to Leave a Review?
When asking your customers to leave a review, you should make it as easy as possible for them to do so. Unless someone has a negative experience to share, the average customer will not look for ways to leave your restaurant a review.

#### Email Campaigns
Ideally, your customer database should integrate with a [third-party email marketing platform](https://www.skytab.com/features/third-party-integrations/) so you can easily create email campaigns such as review solicitation. 

You can start segmenting your customer list by guests who have dined with you more than once. Presumably, if a guest visits more than once or twice, it's because they're satisfied with the quality of the food and service. Thus, there is a better probability that they'll leave positive feedback.  

Once you've segmented your list, craft a short email (1-3 sentences) and include links to a couple of your review profiles. Customers will go directly to your account with one simple click to leave a rating and review. 

#### Text Message Campaigns
While email campaigns are great, you may also want to try a text message campaign. [Text messages](https://www.gartner.com/en/digital-markets/insights/the-future-of-sales-follow-ups-text-messages) have a 98% open rate compared to a 20% open rate for emails, so they’ll potentially have more exposure. 

You should be able to upload your customer list into an [SMS marketing platform](https://www.g2.com/categories/sms-marketing) and easily create a review request campaign.

#### Signage
Last but not least, there’s signage. Remember, you want to make it as easy as possible for customers to leave a review, so including a QR code would be a smart idea. Customers can scan the QR code with their phone and link directly to one of your review profiles. 

Some types of signage you might want to consider are:

- Window graphics or decals
- Digital signage
- Floor graphics
- Table tents
- Postcards to drop in takeout orders

## 5. Boast About Reviews on Your Website
If you got it, flaunt it, right? If customers are writing rave reviews about your restaurant, why not [display them on your website](https://birdeye.com/blog/why-you-should-display-reviews-on-your-website/)? 

Review sites like TripAdvisor or Yelp have badges, widgets, or snippets that you can embed on your website. They will also provide a simple line of code that you can easily copy and paste onto your site.  

If a particular review platform doesn’t have a badge, there are a variety of other creative ways you can repurpose online reviews and [showcase them on your site](https://keap.com/business-success-blog/customer-service/customer-experience/how-to-showcase-your-online-reviews).

## How to Manage Your Restaurant’s Reputation
While all this information may seem overwhelming, we also know it's manageable, so there's no need to panic. Instead, like everything else in your business, you just need to create a process for managing online reviews.  

Once you've claimed and updated your online profiles, in most cases, you'll get an email notification when you receive a new review. You'll be able to click on the link from the email and go directly to the review so you can respond. 

However, the review notification may get lost in the shuffle if your inbox is cluttered with hundreds of other emails. 

An easier way to manage everything is to use [review management software](https://www.capterra.com/review-management-software/). These programs allow you to manage your ratings and reviews at scale across multiple platforms.

## Manage Your Reputation Before Someone Else Does it for You
Restaurant reputation management can make or break your business. Taking an active role in your online reputation is really an extension of your customer service, and can make a positive impact on your bottom line. 






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Conquer Restaurant Reputation Management in 5 Easy Steps

Over the last few years, the restaurant industry has gone through considerable transformation. While many trends that popped up during COVID are likely to be temporary, contactless dining is one pandemic-related trend that’s here to stay. A recent survey found that [61% of customers](https://www.restaurantbusinessonline.com/technology/customers-demand-touchless-experiences) now prefer to purchase from businesses accepting contactless payments.  

For restaurants, contactless payments are only half of the equation. You must also consider contactless ordering to give consumers a more convenient dining experience. So let's explore the ins and outs of contactless dining so you can decide if it's the right choice for your business.

## What Exactly Is Contactless Dining?

Contactless dining is an experience where customers can view the menu, place an order, and pay the bill with limited staff interaction. While varying degrees of touch-free technologies have been around for some time, the COVID-19 pandemic has undoubtedly accelerated business and consumer adoption.

## Find the Right Type of Contactless Dining Tech for Your Restaurant

Now that you know what touch-free dining is, let's look at different ways you can implement this kind of restaurant tech.

### Quick Response (QR) Codes

Better known as [QR codes](https://www.kaspersky.com/resource-center/definitions/what-is-a-qr-code-how-to-scan), these two-dimensional barcodes have come a long way since they were first introduced in 1994 to identify car parts. These days, QR codes are used for everything from manufacturing and marketing to payments. 

QR codes are a great way to facilitate contactless dining for restaurateurs because they cover both main components of the dining experience — ordering and payment.


#### Order with QR Codes

By scanning a QR code from a table tent, patrons can pull up the restaurant’s menu on their phones via a web browser. 

With some POS systems, the customer can only view the menu, and the server will still have to input the order into the POS. However, with a SkyTab POS system, you get more than just a contactless menu. Our QR code solution allows customers to input their order from their phone and send it directly to the point of sale system. 

#### Pay with QR Codes

Paying with QR codes is just as simple. For full-service restaurants, the server can present a check with a QR code at the end of the meal. Once the customer scans it, a prompt will appear asking for payment by inputting a credit card number or using one stored in their mobile wallet.

![contactless dining customer scanning a QR code with their phoe.png](https://res.cloudinary.com/peter-white/image/upload/v1668617261/contactless_dining_customer_scanning_a_QR_code_with_their_phoe_baf345f242.png)

### NFC Payments

Suppose you’re not ready to implement a completely contactless dining experience with QR codes. In that case, you can get your feet wet with [NFC payments](https://www.nerdwallet.com/article/small-business/nfc-payments). NFC (Near Field Communication) is a set of communication protocols between two electronic devices. For contactless payment systems, it allows a secure mobile payment to occur.

For full-service restaurants, the easiest way to enable contactless payments is using a handheld device that servers can bring to the table when they present the check. For instance, a mobile device like [SkyTab Mobile](https://www.skytab.com/features/mobile-ordering-and-payment/) will allow customers to pay at the table using NFC (or EMV) payment methods. 

For quick-service restaurants, a contactless payment terminal connected to your point of sale system is the best way to facilitate touch-free payments.


### Online Ordering

[Online ordering](https://www.skytab.com/features/online-ordering/) opens up a new revenue stream for your restaurant, and it’s also the pioneer of a contactless experience. Online ordering drives a completely touch-free experience — from ordering to pushing the info directly to the POS system and taking payments.

Whether the customer prefers carryout or delivery, your restaurant can accomplish both without much physical contact. For carryout orders, you can designate a particular area of your eatery where your staff places the orders for pick up. You’ll also want to distinguish carryout orders from delivery orders, especially if you use a [third-party delivery service](https://www.skytab.com/features/third-party-integrations/) like DoorDash or UberEats.

## The Benefits of Contactless Dining

We understand that contactless dining may not be the right fit for every restaurant. Still, the benefits are undeniable and require a very minimal learning curve for staff and guests. 

### Improve Order Accuracy

When customers take control of the ordering process, there’s less room for error or miscommunication between the patron and server. Improved accuracy will help reduce waste from incorrect orders, increase customer satisfaction, and put less stress on your kitchen staff. 

### Quicker Table Turns

Undoubtedly, your table turnover rate is one of the key metrics your [full-service restaurant](https://www.skytab.com/restaurant-types/table-service-restaurants/) is tracking. The faster you flip a table, the more customers you’ll serve and the more sales you’ll make. 

Contactless dining helps eliminate a lot of the downtime in a traditional dine-in experience. For instance, guests don’t have to wait for menus or to hear the specials. They don’t have to wait impatiently for a server to present the check and then wait some more with all the back and forth to the POS system.

### A Revenue Boost

Beyond the additional revenue stream of online ordering, contactless dining is also an opportunity to increase your check average. 

According to the [Harvard Business Review](https://hbr.org/2015/03/how-self-service-kiosks-are-changing-customer-behavior), customers feel more comfortable without social friction and someone judging them (whether that judgment is real or perceived) on the other end. In addition, without traditional waitstaff interaction, guests are more at ease to order as they please, which often results in higher check averages.

### Save Money & Reduce Environmental Impact

There's no comparison — a digital menu is much easier to maintain than traditional menus. With conventional paper menus, you have to print new ones every time you make a menu change or update pricing. With a digital menu, updates happen electronically and in real-time. So there's no additional cost for printing and time spent inserting them into the menu covers, and you're reducing your environmental footprint. 

  
### Improve Restaurant Staff Productivity

Adequately staffing your restaurant is a challenge you and many of your peers face. One way to alleviate this stress is to incorporate some form of contactless dining.  

When guests are in control of their dining experience, it reduces the number of demands put on your staff. That allows your restaurant to be more productive with fewer resources. 

## Contactless Ordering & Payments is the New Norm

The bottom line is that contactless dining is here to stay. The pandemic changed consumer behavior and tech innovations propelled it. So, now’s the time to embrace touch-free dining to elevate the customer experience and improve operational efficiency at your restaurant. 




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Contactless Dining: Your Guide to Touch-Free Tech

As a business owner, you've likely realized that running a successful restaurant depends on doing many things well. One of the most critical matters is making educated financial decisions. The fiscal state of your business will determine your restaurant's short and long-term success. Therefore, it's imperative that you have a solid understanding of where you stand.

Financial statements, such as a restaurant balance sheet, are vital in keeping a pulse on the financial health of your business. So let's explore this and other important reports you'll need to make intelligent, data-driven decisions.

### What is a Restaurant Balance Sheet?

Let's start by defining what a restaurant balance sheet is. In its simplest terms, it's a snapshot of your restaurant's finances at a specific point in time. It summarizes financial balances into three categories — assets, liabilities, and equity.

- Assets: things your restaurant owns, such as equipment and cash on hand
- Liabilities: what your restaurant owes, such as vendor bills, loans, and rent
- Equity: the difference between assets and liabilities

You don't need to reconcile your balance sheet daily, but setting up a recurring reconciliation schedule such as monthly, bi-monthly, quarterly, or semi-annually is a smart idea. Sticking to a regular timeline will give you a clear picture of your restaurant's financial health and help you avoid unpleasant surprises.

### P&L and Cash Flow Statements

While your restaurant's balance sheet gives you a comprehensive overview, it's not the only financial report you'll need to keep a pulse on your business.

In addition to a balance sheet, you'll also want to keep a record of both a profit and loss (P&L) statement and a cash flow statement to tell the whole story of your business' financial health.

The profit and loss statement, also referred to as the [P&L statement](https://www.thebalancemoney.com/what-is-a-profit-and-loss-statement-5195531) or income statement, provides data to measure your restaurant's efficiency and performance. The P&L statement summarizes your restaurant's revenue, cost of goods sold (COGS), operating expenses, and fixed charges over a certain period of time — the sum of which results in net income or net loss.

The [cash flow statement](https://www.netsuite.com/portal/resource/articles/financial-management/cash-flow-analysis.shtml) helps you understand the amount of cash coming in and cash paid out that relates to your restaurant’s operating, investing, and financing activities.

While the cash flow statement is closely related to the P&L statement, it also includes other sources and uses of cash, such as investments in equipment and proceeds from a bank loan, so that you can monitor how efficiently your restaurant is utilizing its money. Cash management is vital because it impacts how effectively you can operate, invest in, and finance your restaurant.


## The SkyTab Diner: An Example Of Financial Reports In Action

Now that we know the different types of financial statements let's look at them in action.

Let us introduce you to an up-and-coming, fictional restaurant: The SkyTab Diner. We've been open for one month and think we're doing okay so far. Still, we need to carefully evaluate our finances to know for sure.

### P&L Statement Example

Our P&L statement lets us know how many waffles, burgers, and drinks we sold – our revenue. We also know how much we spent on waffle mix, beef, buns, and soda – our COGS. Lastly, we need to track labor costs and other expenses such as rent, utilities, advertising, and loan interest to calculate net income. The following is the formula and example for your P&L statement:

***Net Income/Loss = Revenue - Expenses***

![restaurant_balance_sheet_net_income_loss_example_f87a918b1f.png](https://res.cloudinary.com/peter-white/image/upload/v1666805073/restaurant_balance_sheet_net_income_loss_example_f87a918b1f_b1e8ed03d8.png)

When finding these figures for your P&L statement, one of the first places you should look is your point of sale (POS) system. Your [POS system](https://www.skytab.com) tracks your restaurant's activity, and the [POS reports](https://www.skytab.com/features/reporting-and-analytics) deliver a wealth of information. For instance, with a SkyTab POS system you’ll be able to pull a profit margin report that includes inventory cost. Additionally, you can leverage one of our advanced [inventory management integrations](https://www.skytab.com/features/third-party-integrations) for even more data.

### Balance Sheet Example

To get a complete view of SkyTab Diner’s financial well-being, we also need to look at our balance sheet, which you can calculate using the following formula:

***Assets = Liabilities + Equity***

The balance sheet provides us with the financial health of our business at a specific point in time, as well as the short and long-term cash needs. Here’s SkyTab Diner’s balance sheet at the end of our first month.

![restaurant_balance_sheet_example_f1be11ec40.png](https://res.cloudinary.com/peter-white/image/upload/v1666805272/restaurant_balance_sheet_example_f1be11ec40_2e8483d850.png)

You can see that our current assets ($140,000) are more than enough to cover our current liabilities ($40,000). Our current assets will allow us to continue operating our restaurant without raising additional capital.

Additionally, like the P&L statement, you'll be able to find some of these numbers using a mix of POS reports and your accounting software — the latter of which should integrate with your POS system for a smoother restaurant accounting process.

### Cash Flow Statement Example

Finally, we will look at our cash flow statement. This statement details the sources and uses of cash in our business. The cash flow statement formula and example are as follows:

***Beginning Cash + Cash Provided by Operating Activities - Cash Used in Investing Activities + Cash Provided by Financing Activities = Ending Cash***

![restaurant_balance_sheet_cash_flow_statement_example_bb8c029f2a.png](https://res.cloudinary.com/peter-white/image/upload/v1666805369/restaurant_balance_sheet_cash_flow_statement_example_bb8c029f2a_577fd21d72.png)

From an internal perspective, a positive cash flow indicates that you can generate enough cash to stay afloat and grow your business. From an external perspective, banks and other financial institutions will use your cash flow statement to determine the creditworthiness of your business should you need to secure a business loan or other type of working capital.

## Bring Balance To Your Restaurant’s Finances

Regarding your business' overall financial health, there isn't one report that will give you all the information you need. Unfortunately, most owners put so much emphasis on restaurant sales reports that they never look at the bigger picture. So, while sales reports are important, they provide only a tiny glimpse into the restaurant's finances.

As a best practice, using a combination of POS reports and accounting software to create a restaurant balance sheet, a P&L statement, and a cash flow statement to give you a holistic picture of your business' finances so you can make smart, data-driven decisions.

*Disclaimer: This content is provided solely for informational purposes and is not intended to serve as accounting, tax, legal, or other professional advice. You are solely responsible for your own compliance with laws and regulations. You should contact your accountant, attorney, or other relevant advisors for advice specific to your circumstances.*

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Know Your Worth: Understanding a Restaurant Balance Sheet and Other Financial Statements

What is a POS system, exactly? From simple old-school cash drawers to more complex new-age touch screens? Whether you are just beginning to research POS systems or looking to upgrade your existing technology, you’ll be able to make a more informed decision if you have more knowledge on the topic.

Understanding the technology that makes for a good Point of Sale (POS) system can be a bit challenging, but no need to worry — we’ve got you covered.

## The Perfect POS System Isn’t Magic – It’s Having the Right Software and Hardware

Simply put, a [POS system](https://www.skytab.com) is made up of hardware and software that works together to manage operations and process sales. It performs a wide range of functions like ringing up food and drink orders, tracking employee time, calculating taxes, reporting on inventory levels, and more. When done right, a POS system controls and simplifies every aspect of your restaurant.

A typical [POS hardware](https://www.skytab.com/pos-hardware) setup includes a touchscreen monitor, cash drawer, receipt printer, and a credit card reader. Additional optional hardware can include a barcode scanner, customer display, remote printers, or kitchen display system. There are three primary options for the software side of the equation: on-premise, cloud-based, and hybrid.

### On-premise

With traditional or legacy POS systems, all the software and data is stored on a local server within the restaurant's four walls. To access any information related to the point of sale, like back office reporting or inventory, you'll have to be on-premise at the business location. Before cloud-based computing and the internet existed, on-premise was the only POS solution.

With this type of setup, you'll need to make an upfront investment for the hardware and software. When the software company introduces new features and updates (a.k.a. a new version), you'll likely have to pay to upgrade your software to the latest and greatest.

### Cloud-based

With cloud-based POS systems, your data is stored on a server in a remote location — "the cloud" — and the point of sale connects to the cloud through the internet. Saving your business data in the cloud allows you to access and manage the back office of your POS system from anywhere via the internet.

Cloud-based POS systems are typically priced as a software-as-a-service (SaaS) business model. This can provide significant upfront savings, and you pay a monthly fee for ongoing support and software updates. The only drawback of a pure cloud-based solution is that internet connectivity is required to operate, so any connectivity issues can disrupt your business.

### Hybrid

If you want the best of both worlds, a hybrid POS system is the way to go. Hybrid point of sale systems connect to the cloud for data backup and remote management, but also store data locally so that connectivity issues don’t disrupt operations. SkyTab POS utilizes a hybrid approach to deliver the best possible experience.

## The ABCs of POS

Now that you have a solid understanding of how a POS system is set up, let’s dive into how it all works during a traditional dining experience and how SkyTab POS delivers an enhanced guest experience.

### The Arrival

A party of four walks into your restaurant during prime dinner hours. Typically, they’d have to wait around for upwards of 30 minutes for a table. But, thanks to a simple [reservation button](https://www.skytab.com/features/reservations-and-waitlist) on your website, they were able to reserve a table in advance online — and all your host needed to do was seat them.

Now let’s imagine that the same party of four forgot to make a reservation prior to arriving on a busy evening. An extended wait time would typically drive potential customers away. With a modern POS system like SkyTab, your host can easily manage reservations, walk-ins, and the waitlist in one place.

With the click of a button, your FOH team can alert the waiting guests that their table is ready with a SMS text or pre-recorded phone call. Now your guests can use the wait time to grab a drink at the bar or do some shopping down the street — and you won’t need to worry about losing business.

### The Order

Next, a server walks over with a pen and paper ready, greets the table, takes their drink order, and possibly their app and entree order too. Once the order is collected, the server would then walk over to the POS system and input the order they wrote down on the piece of paper.

With SkyTab POS, this entire process is streamlined. Rather than writing down the order, the server can input the order into SkyTab Mobile which routes directly to the POS. Alternatively, restaurants can print a QR code on table tents, placemats, or on the menu itself for customers to scan and order directly from their phone. The order is sent directly to the POS system and routed to the appropriate prep station printer or kitchen display system in both scenarios.

### The Check

When it comes to paying the check, it’s typically a multi-step process that plays out like a waiting game of tag between the customer and the server.

- The server drops the check and walks away.
- They wait and watch for the customer to place payment in the check presenter.
- The server circles back to the table and grabs the check.
- They walk over to the point of sale system and close out the bill.
- The server then returns the change or the credit card to the customer.
- The customer leaves a cash tip or fills out the merchant copy of the credit card receipt.
- The server comes back to the table to collect the tip and then back to the POS system to finalize the check if the customer used a credit card.

That's a whole lot of steps and time just to pay the bill. However, with a SkyTab POS system, customers can pay their bill on the spot using SkyTab Mobile. Alternatively, the customer can pay their check right from their phone by scanning the QR code that’s printed on the bill. Both options help eliminate the unnecessary back and forth, so tables turn faster.

![what_is_a_pos_system_server_taking_payment_at_the_table_with_Sky_Tab_15bc29dcc0.png](https://res.cloudinary.com/peter-white/image/upload/v1666806413/what_is_a_pos_system_server_taking_payment_at_the_table_with_Sky_Tab_15bc29dcc0_622b7abb1a.png)

## Behind the Scenes and Back of House

Not only does a POS system help streamline your front of house operations as described above, but it also keeps everything behind the scenes in order. Let’s take a look under the hood of a POS system.

### Inventory Management

POS systems can replace manual counts with time-saving and accurate automated processes. Menu items are automatically deducted from inventory counts when the server inputs an order and alerts the user when stock levels are running low.

### Employee Management

Employees can clock-in and clock-out directly through the POS system, making labor management a breeze. You can also use your POS system to generate employee schedules, saving you time and resources.

### POS Reporting

[POS reports](https://www.skytab.com/features/reporting-and-analytics) allow you to track key performance indicators (KPIs) so you always have a top-level view of your business and can make data-driven decisions about your operations. The real-time reports from your POS system will help you identify your best-selling items, most productive employees, and much more.

### Third-Party POS Integrations

SkyTab POS includes an app marketplace to integrate directly with your favorite accounting software, online ordering solutions, marketing tools, or other business-related applications. With a direct integration to these [third-party applications](https://www.skytab.com/features/third-party-integrations), you can centralize all your business programs in one place to streamline operations and reporting.

### Marketing and Customer Loyalty Programs

Whether it’s a simple customer database or a full-blown [customer loyalty program](https://www.skytab.com/features/loyalty-and-marketing), your POS system can help you develop a network of customers to create marketing campaigns that drive repeat business. SkyTab offers a built-in loyalty program as well as various marketing tools to help you keep your customers coming back.

# POS Systems are Your Business’ Backbone

We’ve come a long way since James Ritty’s cash register invention in the 1800s and IBM’s [first computerized point of sale system](https://www.mobiletransaction.org/history-of-point-of-sale) in the early 1970’s. And thanks to modern technology, the barrier of entry for small businesses to implement high tech POS systems that only large enterprises could deploy 20 years ago has been greatly reduced. As a result, you have the same tools at your disposal to turn your small business into an empire.

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What is a POS System, Exactly?

If you live and breathe technology — for work or recreation — you’re probably familiar with the term integration. But for hard-working business owners keeping their noses to the grindstone, tech terms probably aren’t top of mind. That’s okay because we’re here to help.

## What is a POS Integration?

An integration is the act of combining separate elements into an integral whole to work in unison. Point of sale (POS) integrations are tools or business management applications that work with your POS software to simplify operations. These technologies securely share relevant information that helps streamline and automate the operational workflow of your business.

Now that you understand this tech term, let's explore a few important types of POS integrations and how your restaurant can make the most of them.

## 1. Online Ordering And Delivery Integrations

Along the same lines as integrated payments, you’ll also want your [restaurant POS system](https://www.skytab.com/restaurant-types/table-service-restaurants) to integrate with online ordering and delivery solutions. As an additional revenue stream and sales channel, it’s only logical for these two elements to communicate with one another.

According to CB Reports, Research & Markets, the [food delivery industry](https://www.businessofapps.com/data/food-delivery-app-market) saw its largest growth in the last five years and is expected to grow to $320 billion by 2029. This means takeout and delivery are now must-have options for any restaurant looking to succeed in an increasingly competitive market.

So, whether you want to leverage a third-party service for online ordering and delivery or manage everything in-house, there are a few options that could work for your restaurant:

- [DoorDash](https://get.doordash.com/en-us/integrations): DoorDash has the largest share of users at 58% and allows you to reach new customers, market your restaurant, and grow your business by offering on-demand delivery and pickup.

- [Uber Eats](https://merchants.ubereats.com/us/en/technology/manage-orders/pos-integration): Uber’s global platform gives you the flexibility, visibility, and customer insights you need to connect with more customers.

- [Menufy](https://restaurant.menufy.com/partners): Menufy is a full-service solution that enables delivery service and full-data ownership, loyalty program capability, complimentary analytics, and a suite of digital and print marketing services.

- [TakeOut7](https://www.takeout7.com/shift4-marketplace): TakeOut7 is a fast and easy ordering experience for your online customers with an affordable on-demand delivery program.

## 2. Labor Integrations

Now that you'll be bringing in more sales from online and delivery orders, you'll need to make sure you have enough staff on hand to manage them. As a restaurant manager or owner, you already know that creating a weekly employee schedule and administering payroll eats up a bunch of your time. So why not take back some of those hours and streamline these processes?

The following are three partners that can help:

- [7Shifts](https://www.7shifts.com): 7shifts provides an all-in-one platform that helps restaurants simplify employee scheduling and labor management.

- [Social Schedules](https://www.socialschedules.com): Social Schedules is an all-in-one team management tool. It can help you save time by building your work schedule in minutes, simplifying payroll, staying compliant with labor laws, and much more.

![Labor_Mangement04_14c16e7b18.png](https://res.cloudinary.com/peter-white/image/upload/v1666648571/Labor_Mangement04_14c16e7b18_118dbae08c.png)

## 3. Inventory Management Integrations

Another time-consuming task most restaurateurs face is inventory management. From managing vendors and food storage to following FIFO and keeping up with your daily PAR sheet, making sure you have enough inventory on-hand to feed guests can be a tedious task. Tedious or not, its got to get done. After all, overstocking and food waste drags down your bottom line.

Most POS solutions come with built-in inventory management tools. However, third-party integrations typically offer more robust capabilities. Here are three integrations to consider:

- [BarVision](https://barvision.com): BarVision is a liquor monitoring solution that helps bars and restaurants add more revenue, deliver a consistent customer experience, and sell more profitable drinks.

- [Craftable](https://craftable.com): Craftable is an inventory management platform that connects purchasing, recipes, inventory, and sales using POS data to help restaurant operators drive profit.

- [Orca Inventory](https://orcainventory.com): Orca offers fully integrated management software for restaurants that automates the inventory and ordering processes.

## 4. Marketing & Loyalty Program Integrations

By now you should be staffed, stocked, and ready to rock! So, another integration you'll need for your point of sale system is marketing tools. Your customers are your bread and butter, so you'll want to make sure they can find your business online and that you're always top of mind when it comes time to dine.

Here are a few tools you’ll want to have in your arsenal:

- [Fisherman](https://www.gofisherman.com): Fisherman takes a unique approach to building a custom website for your restaurant that minimizes the amount of work involved.

- [Mailchimp](https://mailchimp.com): Mailchimp is an easy drag-and-drop designer to create email campaigns that match your style, complete with social media integration.

- [Customer Loyalty Program](https://www.skytab.com/features/loyalty-and-marketing): A customer loyalty program will help you engage current customers and bring in new ones with point-based rewards and custom campaigns.

## 5. Gift Cards

An extension of your marketing integrations is a gift card program. Gift cards open up an additional sales channel, and it's also a great way to build brand awareness and enhance your customer loyalty program.

When vetting gift card providers, you’ll want to make sure that you can sell both traditional and eGift cards. You’ll also want to ensure that you can manage the entire program from issuing, redemption, balance checks, and replenishment.

While some POS providers leverage a third-party service to manage gift card services, SkyTab offers an in-house gift card program, including eGift, so you can add this critical functionality from the same source as your POS system — streamlining the entire process.

## Closing Thoughts

If you want to streamline operations by increasing automation, POS integrations are the only way to go. Your time is valuable, and you shouldn't spend it on tasks that you can easily automate. So which of these POS integrations are you going to implement?



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5 Must-Have POS Integration Types to Streamline Restaurant Operations

POS reports aren’t the sexiest part of running a restaurant, but that doesn’t mean they’re not important. After all, without in-depth reporting, you’re missing out on a wealth of data and will be at a competitive disadvantage. From stock levels and profit margins to employee performance and customer data, understanding your business better will drive a healthier bottom line.

The simplest way to gather this data is through your [point of sale (POS) system](https://www.skytab.com). Your POS system aggregates data from all the inputs and outputs of daily activities and pulls that information together into a valuable reporting package. Let’s take a look at some of the most beneficial [point of sale reports](https://www.skytab.com/features/reporting-and-analytics) that will help you make intelligent, data-driven decisions.

## 1. Sales Reports

Sales reports give you clear insight into the profitability of your restaurant. It’s a commonly known fact that the restaurant industry operates on pretty slim [profit margins](https://budgetbranders.com/blog/average-restaurant-profit-margin), so understanding your sales trends will help keep you in the black.

Here are some examples of the types of reporting you should expect from your POS system:

- **Sales Activity:** Get a high-level overview of purchases and returns during a given period.

- **Profit Margin Report:** Know what products are the most profitable and which are a drag on your bottom line.

- **Sales by Employee:** Identify the rockstar employees that are producing the most sales and which ones may need more upsell training.

The data you mine from sales reports will provide real-time, weekly, monthly, and historical insight into your small business’ financial situation. You’ll better understand which items are driving the most profit, what time of day and day of the week is the busiest, and what percentage of your business is dine-in, takeout, and delivery.

## 2. Transaction Reports

Awareness of sales numbers is essential, and so is knowing how your restaurant is receiving payment for those sales. Running any of the following reports will provide that visibility:

- **POS Transaction Report:** From credit cards to gift cards and cash payments, know what payment methods are transacting at the point of purchase.

- **End of Day Reports:** Better known as X (end of shift) and Z (end of day) reports, this information will give you an overview of your daily activity.

- **Financial Comparison Reports:** Whether you’re comparing month over month or year over year, know how your business stacks up against previous periods.

- **Weekly Performance Indicators:** Track your business’ most important key performance indicators (KPIs) in one report.

POS transaction reports provide insight into what percentage of customers are paying in cash versus those using credit and debit cards or gift cards. This data is especially critical when reconciling your statement from your payment processor to ensure you can account for every one of your hard-earned dollars.

## 3. Inventory Reports
As vital as sales and transaction reports, inventory reports will help ensure your stock levels align with your sales volume.

The following are some of the reports you can run to keep your inventory levels on par:

- **Inventory Valuation:** Know the total cost of all your on-hand inventory and understand the actual value of your greatest assets.

- **Cost of Goods Sold (COGS):** Ensure your cost of sales never exceeds your revenue by monitoring the cost of goods sold.

- **Product Mix Report:** Know your top-selling items from your worst-selling items to keep on top of inventory needs.

With current supply chain obstacles, knowing what items are nearing minimum levels gives you the extra time you need to place orders or make menu adjustments based on product availability.

![Sky_Tab_Blog_POS_Reports_Lighthouse_Backoffice_Feature_image_b516063dd1.png](https://res.cloudinary.com/peter-white/image/upload/v1666806981/Sky_Tab_Blog_POS_Reports_Lighthouse_Backoffice_Feature_image_b516063dd1_24c6879caa.png)

## 4. Employee Reports
Keeping a pulse on your staff is another critical component to successful restaurant management. Your business is only as good as the people who work for you. Determining which employees are performing and which are not can be subjective. Employee reports allow you to remove opinions from the equation and make data-driven decisions.

Here are just a few examples:

- **Payout Reports:** Whether it’s a refund or you’re transferring funds to the bank, keep tabs on money that leaves your register.

- **Labor Reports:** As the minimum wage increases across the country, it’s more important than ever to ensure your labor costs never outweigh your sales.

- **Payroll Reports:** Whether it’s clock-in and clock-out times or payroll hours, make sure your POS system can track all of the data you need.

Getting a detailed view of who is contributing to your bottom line, along with labor and payroll reports, helps you keep overhead expenses in check.

## 5. Customer Reports
On the other side of the equation of staff reports are customer reports. These reports are full of data points that can also help drive your decision-making.

Using POS reports will allow you to track all of the following and more:

- **Sales by Customer:** Know your most loyal customers from the occasional shoppers.

- **House Account Balance:** Whether you take deposits for big-ticket items or give VIP customers carte blanche, you need to keep an eye on the IOUs.

- **Customer Loyalty Program Report:** Get a better understanding of your customers’ buying habits and see how they engage with your brand.

Gaining a better understanding of your guests and their buying habits will help you create more personalized, and therefore, more effective marketing campaigns.

## 6. Auditing Reports
Although he may not be an actual customer, reporting for Uncle Sam is just as essential as customer reports. While paying taxes is inevitable, audits can be avoided with proper reporting.

These reports can help you keep Uncle Sam satisfied:

- **Tax Details:** Not all products and services have the same tax rate. Get a detailed breakdown of sales tax and revenue classes.

- **Till Transaction Summary (Till Management):** Know every void, discount, and transaction that transpires at the point of purchase and ensure crafty employees aren’t ‘hiding’ money.

- **Open Ticket Detail:** Before it’s in the books, know the details of every open ticket and what you can expect to close.

Knowing how products and cash move through your business is a surefire way to keep auditors at bay. The reports also help navigate the confusion brought on due to products and services being taxed at different rates in different locations.

## 7. Loss Prevention Reports
Last but not least, don’t forget to keep track of what might be missing — loss can be the invisible killer. Loss prevention is often overlooked because most of it isn’t obvious unless you’re tracking the data. POS reports can help by providing audit trails that log and boost your fraud detection efforts.

Give your fraud detection efforts a boost with these reports:

- **Audit Trail:** Keep a data log of activity and pertinent information about daily business events.

- **Refund Detail and Reasons:** From how the refund was issued to who performed the transaction and why, keep an eye out for any red flags.

- **Discount Detail:** Ensure managers don’t take advantage of their user permissions with generous discounts at your expense.

Having this kind of information allows you to keep an eye out for irregularities and identify trends as they happen or recognize patterns over time.

## Point of Sale Reporting Wrap Up
With razor-thin profit margins and competition on every corner, the survival of your restaurant depends on your ability to find any advantage you can. It doesn’t matter if you own one restaurant or operate multiple locations, incorporating POS data into your business decisions will allow you to drive better outcomes.

Leveraging POS reports will provide valuable insight into sales, employee performance, inventory management, and more. All of which will allow you to make more informed decisions, increase profits, and focus your attention on creating memorable dining experiences for your guests.



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