Why Restaurants Need Smarter Data to Scale

If you’re looking to scale your restaurant business to multiple locations or add additional units to your existing portfolio, you’ll need more than great food and service. Scaling requires operational efficiency, financial control, and the right technology to keep everything running smoothly. 

Unfortunately, many multi-unit or multi-location restaurants still rely on disconnected systems. Because of siloed data, leaders struggle to track important benchmarks like sales, labor costs, and overall performance across locations.       

The result? Inconsistent operations, slow growth, and generalized decision-making, to name a few.         

If you’re thinking there has to be a better way, you’re in luck; there is. When you invest in connected solutions that bring payroll, HR, workforce data, and financials together, you’re better equipped to make data-driven decisions and scale successfully.

The Growing Importance of Data for Multi-Unit Restaurants

Too many restaurant operators still rely on outdated reporting methods like manual spreadsheets or separate payroll and point-of-sale (POS) systems, forcing them to either manually move the information from one system to another or just give up. These disconnected tools create bottlenecks, increase the risk of errors, and make it harder to get a clear financial picture.

Therefore, it’s not surprising that inconsistent financial tracking can lead to:

• Cash flow surprises.
• Compliance risks (like inaccurate tip reporting or overtime calculations) that can result in costly penalties.
• Labor cost overruns, especially when managers don’t have access to real-time data to adjust staffing levels based on actual demand.

Long story short: When data lives in silos, problems start to pile up. 

That’s where smarter, real-time data makes all the difference. When you can instantly see sales, labor costs, and payroll data in one place, you’re able to make informed decisions on the fly. You can spot trends, optimize staffing, and ensure payroll accuracy—all without digging through multiple reports or waiting for end-of-week reconciliations. 

Adil Shabbir, CPTO of PrimePay, believes that leaning into data unification alleviates many of the operational headaches that happen in the fast-paced food industry. He explains: “By bringing different systems together, connected platforms eliminate data silos and the inefficiencies of managing multiple technology providers. When HR and POS systems work seamlessly, operators can build a more engaged workforce, streamline operations, and scale their business in a way that puts their customers first.”

When restaurants maintain strong revenue and profit margins, they’re more likely to succeed in a turbulent market. Specifically, they can:

• Reinvest in growth initiatives
• Attract top-tier talent and investors
• Navigate industry fluctuations
• Adapt to economic pressures and consumer preferences

Even better: There’s data to prove it. ProfitKeeper reports that this kind of data integration increases a restaurant’s revenue growth rate (+7.9%) and profit margin (+4.45%) above the average U.S. restaurant industry. 

How Data Integration Supports Growth and Profitability

It goes without saying that the restaurant industry is fast-paced…and leaders are usually forced to make decisions at the same speed. 

Operators face not only boots-on-the-ground problems like managing schedules and employee retention (70% of restaurant owners face frequent turnover) but also strategic tasks like payroll management and adapting to industry needs. 

These issues grow when leaders do this work outside of automated systems. Even people with the best time management skills don’t have enough resources to manually pull payroll, check finances, and make workforce decisions on a regular basis with siloed data.

Alternatively, integrated POS and HCM systems foster a culture where informed decisions are the norm, thanks to a data-packed end-to-end solution for employee-related operations. 

Kevin Currier, CTO of TRAY, explains that integrations help “reduce the complexity of what are often manual and time-intensive processes when reconciling data and information from separate POS and HR software platforms.”

He furthers, “By combining our [TRAY and PrimePay] technologies, we’re able to simplify people management operations, which is imperative for restaurant brands looking to scale.”

The benefits of integrated systems are far-reaching and include:

• Automatic reconciliation of sales, tips, and labor costs, reducing manual errors and saving time.
• Accurate cash flow visibility, helping businesses manage their financial health effectively.
• Simplified tip allocation, ensuring compliance with tax regulations and streamlining payroll processing.
• Compliance support with local, state, and federal labor laws, such as accurate overtime calculations and proper tip reporting.
• Reduced need for additional staff or resources dedicated to manually managing payroll and cash flow.
• Detailed reporting on labor costs relative to sales, empowering businesses to optimize staffing.
• Historical data from the POS combined with payroll trends, improving budgeting and forecasting for future periods.

The Future of Data-Driven Restaurant Management

Data integration is becoming a cornerstone of business success, especially in the restaurant sector. Wondering how it looks in real life?

Consider Restaurant A, which takes a holistic and integrated data approach. They run reports across units to understand what’s working and what isn’t, and then make a plan to adapt to market changes and boost efficiency. 

Then there’s Restaurant B, which uses point solutions that report data differently (if at all). Meetings are rarely straightforward, as the time is usually spent interpreting the data instead of using it strategically. 

Which restaurant do you think has a better foundation for future success and scalability?

Choosing the Right System

Like other software, POSes and data-driven solutions aren’t made the same. By thoughtfully evaluating differentiating aspects, you can choose solutions that not only meet your current needs but also support long-term growth and adaptability.

That’s why it’s important to consider the following factors:

• Scalability: Ensure the solution can grow with your business, accommodating additional locations and increased data volume without compromising performance.
• User-friendly interface: A system that’s easy to navigate encourages staff adoption and reduces training time.
• Real-time analytics: Access to up-to-date information allows for timely decisions, which is essential in the fast-paced restaurant environment.
• Predictive analytics for workforce inventory and planning to help you anticipate demand and adjust staffing and inventory levels proactively.
• Integration capabilities: A unified data approach requires the ability to seamlessly connect with existing systems.
• Vendor support and training: Reliable customer support and comprehensive training resources can ease the transition and ongoing use of new technology.

Prioritizing Unified Technology Investments

Investing in integrated technology solutions is no longer optional for restaurant leaders aiming for scalability and profitability. Joining best-of-breed systems eliminate the silos that often lead to miscommunication and operational inefficiencies. 

Ultimately, by connecting various aspects of the business—from sales and inventory to employee management—operators can ensure data consistency and accuracy, which are critical for strategic planning and compliance.