“Points of Profit” demonstrates how flexible, integrated technology can help restaurants break out of the 5 – 7% profit margin plateau.
- According to the Independent Restaurant Coalition, 42% of Independent Restaurants that did not receive RRF grants are on the verge of bankruptcy
- SpotOn challenges the restaurant industry’s single-digit profit margin standards, offering guidance and complementary tools for owners and operators to boost profit
- Calculator, whitepaper, and educational sessions offer real-world examples to help restaurants translate insights into action
SAN FRANCISCO - March 21, 2022 - There is a path to higher profits for restaurants, and the needle isn’t in a haystack, it’s in their tech stack. With the launch of “Points of Profit,” SpotOn, a leading software and payments provider, is showing restaurant owners and operators how it is possible to get to double-digit profit margins. Backed by data, case studies, and insights from industry operators, the campaign is supported by Maximizing Profit Margins, a whitepaper that details the ways in which restaurant owners can consolidate their technology to win back profit points and an interactive profit margin calculator that helps restaurants quantify where money might be hiding in plain sight. SpotOn’s Points of Profit arrives as restaurants face record-high inflation, serving as a roadmap for operators to protect margins from rising costs and generate new revenue.
“The pandemic has had a profoundly destabilizing impact on our industry and made the dream of profitability even more distant for many operators,” Matthew Kenney, CEO of Matthew Kenney Cuisine, says. “With 'Points of Profit' SpotOn is showing restaurant owners the strategies they can employ to help protect their margins from inflation.”
In 2019, profit margins for single location full-service restaurants averaged 6.2 percent, according to an IBIS World report. Over the last two years, amidst pandemic shutdowns, a labor crisis, the rising cost of goods, and a sluggish supply chain, already slim profit margins have shrunk even more. With its Points of Profit campaign, SpotOn is taking on one of the longest held (and most limiting) norms in the restaurant industry—that there’s a single-digit ceiling to profit margins.
Around the globe and across industries, businesses that were able to accelerate their digital evolution were able to best weather the economic impacts of the pandemics. Points of Profit provides a practical, incremental plan to help restaurant owners reduce costs and offers a profit margin calculator to determine potential new revenue based on data from current SpotOn customers.
“Running a restaurant is hard work, so it can be deflating when you see how little of that effort is showing up in your bottom line. That’s because hard work isn’t what’s missing,” Zach Hyman, Co-CEO and Co-Founder of SpotOn says. “When hard work and technology come together, your restaurant’s profit margin can go from the 5 – 7% that you’ve come to expect to the double digits that you deserve.”
SpotOn has built a suite of integrated solutions designed to increase revenue and lower costs, so restaurant owners can earn higher profits. Its flexibility enables you to implement what you need when you need it.
“Add a new tool, add to your bottom line. A half-a-point here, two points there. Month after month, the points of profit add up,” Hyman says. “And you’ll see the impact on much more than just the bottom line. You’ll see it in the outdoor patio you can finally build, the pastry chef you can finally hire, maybe even the vacation you can finally take. Because that’s the real point of profit.”
The whitepaper is available for download at www.spoton.com/pointsofprofit and will be a featured topic during education sessions at The Bar & Restaurant Show in Las Vegas on March 22, 2022, and the National Restaurant Association's TechTalk in Chicago on May 23, 2022.
SpotOn is one of the fastest-growing software and payments companies with comprehensive, cloud-based technology for small, midsize, and enterprise businesses in the restaurant, retail, sports, education, and entertainment space. Known for its rapid innovation and industry-leading customer service, SpotOn offers integrated solutions including marketing and loyalty, website development, ecommerce, reservations and waitlisting, mobile ordering, digital payments, review management, and both retail and restaurant point-of-sale (POS) solutions. SpotOn has 1,600 employees and maintains offices around the world, including San Francisco, Los Angeles, Chicago, Mexico City, Detroit, Atlanta, Denver, and Krakow. For more information, visit www.spoton.com.
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