And it collapsed.
Yes, I’ve seen restaurant owners struggle with expansion at multiple locations. Recently, I read one more news about a particular restaurant that has lost $600k because of inconsistent service quality among multiple branches. But when you have more than one branch in different locations, how can you keep consistency and maintain the same brand value among all branches if you can’t be present everywhere at the same time?
You see, technology has made our lives easier than ever before. In today’s blog, I will walk you through how technology shapes the chain restaurant industry, what challenges keep them from growing, and how to overcome those.
So let’s dig in.
What is A Chain Restaurant?
Restaurants with more than one branch in different locations are called chain restaurants. So, whether you visit one in your town or another city, you’ll find it feels and tastes the same.
These restaurants are often known for their famous dishes and logos, and they can do this because they follow a set of rules to ensure everything is the same no matter where you go. Think of it like having your favourite burger or pizza place in many different neighbourhoods, and you can always count on it to be just as you expect it to be!
Why can’t all restaurants become chains if the chain restaurant is so popular?
Here, I’ll divide the chain restaurant challenges into two segments-
- Technology challenges
- Common challenges
Let’s find out more about these challenges.
9 Technology Challenges of A Restaurant Chain
As the world is becoming more digitalised, chain restaurants are not lagging behind. Let’s find out the crucial 9 technology challenges of a restaurant chain.
1. Online Order Optimization
Making online orders work perfectly for a chain restaurant can be a bit like solving a puzzle.
You have to ensure all apps are in sync and both dine-in and takeaway orders are parallelly active alongside the online orders (scheduled orders, cash on delivery, etc.). Which is a big technical challenge for chain restaurants.
2. POS Precision
The POS (Point-of-Sale) system in a restaurant chain has to be powerful enough to connect all user apps across all devices. It’s a system that accurately tracks everything- order placement, food type, payment method, stock record, invoices, etc. So that related users, such as admin, chef, waiter, deliveryman, and customer, all know what role they have next.
3. Data Analytics for Decision-Making
It is a super-smart sidekick that helps determine what food people love the most. It uses smart analytics and real-time reporting systems to look at lots of information, such as which food is the most popular, to make sure they always have the right options on the menu.
In the case of a restaurant chain, it’s crucial to have this technology in place for smart decision-making.
4. User-wise Mobile Apps for Better Experience
Developing user-centric mobile apps for a chain restaurant involves challenges like creating a dynamic and intuitive digital platform.
The app must be compatible with users’ diverse preferences for smooth functionality. Incorporating innovative features to enhance the overall dining experience requires a balance between style and functionality.
5. Delivery Management Digitalisation
Digitising delivery management for a chain restaurant involves synchronising orders, optimising delivery routes, and ensuring timely and accurate deliveries. To make sure everyone gets their favourite meals at the right place & right time.
6. API Integration
The lack of API integration is a big drawback for any chain restaurant that wants to go online or already has an online delivery system. It’s like connecting different apps to work together seamlessly, such as linking the online ordering system with the kitchen and inventory tools.
The challenge lies in ensuring these connections are smooth so information flows effortlessly between various systems, making the whole operation more efficient and organised.
7. Introduction to IoT
Introducing IoT (Internet of Things) in a chain restaurant can integrate smart devices that talk to each other.
Such as having fridges that tell the kitchen when ingredients are running low. Or having a device in the kitchen that tells the waiter and customer when the food is ready. But the challenge is making sure all these smart things work together like a team.
8. Responsive Web Design for Conversion
Challenges in responsive web design for conversion in a multi-chain restaurant include ensuring that the website looks and works well on various devices, like phones and tablets. So customers can easily order their favourite meals.
Balancing a visually appealing design with quick loading time and user-friendly navigation helps to convert visitors into happy customers. To maintain this consistency, restaurant chains have to confirm proper synchronisation through a responsive web design.
9. Data Security
Restaurant owners often struggle with securing customer data across multiple branches at once. Not to mention potential data breaches and hackers trying to pull out a vast amount of data, including names, personal identifications, bank account numbers, locations, etc.
To keep a multi chain restaurant afloat, the owner(s) must be extra cautious regarding top-notch data security. Otherwise, the business will not be sustained.
7 Common Challenges of Chain Restaurant Management
Common challenges mean both internal and external challenges the owner faces before launching & during chain restaurant management.
1. Branch-wise Stock Management
Branch-wise stock management in a restaurant means keeping track of how much food and supplies are available at each location separately. In most chain restaurants, the owner/manager doesn’t know what they have in stock in different places, so they can’t make sure each branch has enough ingredients and items for their menu.
2. Calculation of Product Profitability
Calculating product profitability in a restaurant is like figuring out how much money they make from selling each item on the menu. But in terms of chain restaurants, it’s not easy to keep track of all branch-wise sales without any automation system.
3. Employee Management
Managing employees in a chain restaurant ensures everyone knows their jobs and works well together. But sometimes, it can be challenging because there are lots of people, different tasks, and they need to make sure everyone is happy and doing a great job.
4. Payment and Billing System
In a chain restaurant, the payment and billing system is how they handle customers paying for their food. Sometimes, it is tricky because there are many customers and different ways to pay, and the restaurant needs to make sure everything adds up correctly and smoothly.
5. Customer Retentions
Customer retention in a chain restaurant means keeping people coming back for more delicious meals. But, it is challenging because restaurants must ensure customers are happy, remember to visit again and tell their friends about their tasty experience. And it has to be the same for all branches!
6. Centralised Management System
Any restaurant business will collapse if you can’t maintain everything centrally. In the case of restaurant chains, it’s even more difficult and much much more important. Synchronisation is impossible if you can’t bring everything under a central surveillance system. For this, the role of a centralised management system is crucial.
7. Guest Checkout and Scheduled Delivery
In guest checkout, the challenge lies in providing a seamless and hassle-free experience for customers who prefer not to create accounts. It’s about finding the right balance between collecting essential information for the order and respecting the user’s desire for a quick and anonymous transaction.
On the other hand, scheduled delivery presents challenges in producing a precise and reliable delivery service. This includes accurately predicting delivery times, optimising logistics to handle multiple scheduled orders, and ensuring the food arrives fresh and on time. Striking this balance is crucial to meet customer expectations and maintaining a positive experience. The complexities involved in managing a timely and coordinated delivery process across different locations in a restaurant chain.
Importance of Technology Implementation in Chain Restaurants
The implementation of technology in chain restaurants is crucial for various reasons.
First, it helps streamline operations for staff to take orders, manage inventory, and ensure that delicious meals are prepared efficiently. Additionally, technology enhances the overall dining experience for customers by providing faster service, convenient online ordering options, and even cool innovations like interactive menus.
Embracing technology makes the restaurant more efficient, customer-friendly, and able to keep up with the fast-paced demands of the modern world. So you know how important it is.
How to Resolve Technology Challenges and Grow Chain Restaurant Business
Now, enough talking about the negative stuff. If there’s a problem, there’s always a solution. Let’s see how we can resolve the technology challenges & grow the chain restaurant business.
✅ Develop mobile apps and digital menus as transparent as possible for all users.
✅ Introduce contactless payment systems to your restaurant chain for a seamless payment experience.
✅ Use Supply Chain Management Software to keep track of all products and raw materials and their distribution across all branches.
✅ Table Reservation Systems are crucial for any chain restaurant to go online. This technology enables flexibility for customers in a hurry or wanting to pre-plan an eating out.
✅ How can you entrust people with your food quality and services online if you don’t take any Cybersecurity measures? So you must ensure that users feel safe and their data is secured with your online restaurant chain.
To match and resolve all your technological problems, I know a solution that’s just right for your chain restaurant: eFood.
Why eFood is A Future-Ready Chain Restaurant Management Solution?
eFood is a Multi Branch supported restaurant food delivery management system that comes with all the necessary web panels and apps you need to operate your restaurant business in multiple locations. What’s more, you can manage, monitor and control your multi chain restaurant operations from a centralised admin panel.
The eFood solution is developed by 6amTech renowned eCommerce software development company. But why am I recommending eFood?
That’s because-
✅ eFood is multi-branch supported with a dedicated branch panel.
✅ The code is written in PHP with a clean & maintainable structure.
✅ It has various delivery options such as takeaway, home delivery, and scheduled order.
✅ You’ll get real-time reporting systems such as an admin dashboard, earning, order, product, and sales reports.
✅ Necessary API integration facilities such as Firebase notification, 3rd party payment & SMS gateways, email configurations, Google Maps, Recaptcha, etc.
✅ Multi-language & multi-currency integration facility.
✅ Built-in POS system for both online and walk-in order taking.
And these are only the tip of the iceberg- some basic technical features that’ll help you thrive in your restaurant chain business.
What comes with eFood?
| Laravel Panels | Flutter Apps |
| Admin Panel | Customer App |
| Web App | |
| Branch Panel | Table/Waiter App |
| Kitchen/Chef App | |
| Deliveryman App |
Being the most positively rated item on CodeCanyon, eFood has been on trend for a month and is always loved by its users.
Author Note
Now that we’ve reached the bottom of the blog, let me sum it up for you- going online with your chain restaurant business can be daunting and challenging. It must be complicated, but it’s not impossible.
With proper guidelines, right decision-making and consistent improvement, you too, can make your restaurant chain a success. And eFood can bring you quite a few steps closer to your destination.
Bye for now!
FAQs
What is the meaning of a food chain restaurant?
A food chain restaurant is a set of restaurants that operates in various locations but offers a consistent menu & dining experience to customers.
What are the characteristics of a chain restaurant?
The chain restaurant maintains a consistent logo, brand colour, standard recipe, food preparation, and packaging style that gives customers the same branded experience in any location.
Is KFC a restaurant chain?
Yes. KFC is a fast food chain restaurant from America.
Is McDonald’s a restaurant chain?
Yes. McDonald’s is known as the biggest food restaurant chain in the world.
What’s the difference between a restaurant chain and a franchise?
A restaurant chain is a group of restaurants under the same brand and menu. At the same time, a franchise is a business arrangement where individual entrepreneurs (franchisees) operate outlets using the established brand and systems of a larger company (franchisor). For this, they pay fees for the privilege.
Say hello to Shamsi! A words warrior behind the tech scenes. She can slice and dice complex tech talk into everyday narratives. Shamsi aims to make tech simple and friendly so everyone feels welcome in the digital world. When not weaving words, you might find her talking to plants and doodling here and there!