What Is Restaurant

Management?
Restaurant management refers to
managing day-to-day operations
within a restaurant or similar
setting. It encompasses various
tasks and responsibilities, from
overseeing company finances and
facilitating business growth to
overseeing marketing, managing
the workforce, and delivering a
great customer experience.
Essentially, a restaurant
manager’s job
What Is a Restaurant
Management System?
A restaurant management system
is a type of software that has
been specifically designed for use
within the restaurant industry.
Also known as restaurant
management software, such
solutions are intended to assist
leaders and others in carrying out
the most critical managerial
tasks.
What Are the Benefits of
Restaurant Management
Systems?
Many of the benefits of using
restaurant management systems
are related to automation and
speeding up processes to improve
the customer experience. Modern
customers expect fast, frictionless
service, and restaurant
management software plays a key
role in meeting these
expectations.
Additionally, such solutions can
serve as a critical piece of
restaurant technology because
they bring many different
processes together in one
location. A comprehensive
restaurant management system
will allow for payment processing,
financial management, sales
tracking, performance monitoring,
personnel management, and
more.
Table: Benefits of Restaurant
Management Systems
What Are the Key Features of a
Good Restaurant Management
System?
The best restaurant management
systems will share similar traits
and features, including the
following:

Cloud-Based
Cloud-based restaurant
management software provides
several benefits that more
conventional on-premises
deployment cannot. For instance,
remote access to software
becomes much more
manageable, data is continually
updated and backed up, and
start-up costs are minimized in
exchange for predictable
subscription fees.

Additional Integrations
Modern businesses tend to utilize
a variety of different applications,
and the data needs to be able to
be passed between them as
seamlessly as possible. This
requires integration options,
which is why such functionality is
essential for the best restaurant
management software solutions.
Service providers offer some
cloud-based solutions that can
customize the restaurant
management system for each
business based on the
integrations they need. However,
where this is impossible, a basic
level of integration with CRM,
revenue management, and
restaurant POS systems must be
offered.
5 Most Important Types of a
Restaurant Management System
There are several different

categories of restaurant
management systems or
components that combine to
make up the entire system, and
you can learn about

POS System
As the name indicates, your
restaurant POS system, or point-
of-sale system, is where you carry
out many sales tasks. Here, you
can process card, cash, or mobile
wallet payments, manage billing,
print receipts, and have this
information automatically feed
into more comprehensive
company data.
Modern, cloud-based POS systems
are compatible with many
devices, including mobile phones,
iPads, and other tablet devices.
This has transformed point-of-sale
processes for many restaurants
because payments can be
processed using portable devices
that can also be used for various
other tasks.
Restaurant Management
Software
Restaurant management software
consolidates basic management-
related tasks in running a
restaurant. For instance, it can
bring together information from
all online booking channels,
allowing you to see all bookings
and keep this data up-to-date to
avoid double bookings.
The software can provide
automation tools so guests are
automatically sent confirmation
emails or an email or SMS
reminding them to attend on the
day of their booking. Reports can
be generated, highlighting key
performance indicators, while a
dashboard provides a general
overview of your current
restaurant status.
Order Management
Software
The order management software
component of restaurant
management systems is
concerned with managing orders
from customers and suppliers. As
customers make orders, the
information can be collected by
your order management software
and can automatically update
current stock levels.
Generally, there will be options to
view past customer orders or
access current orders so guests
receive the right food. As stock
levels decrease, orders can be
placed to suppliers for more of a
particular product or ingredient,
and orders can be monitored over
time, so you can see how much of
a specific item you are
purchasing.
Key Features of an Online
Food Ordering System
The restaurant management
systems featured will help you to
deliver for your customers, but an
online food ordering system can
be especially important for
restaurants that wish to
provide takeaway and food
delivery services. Nevertheless, it
is important to identify the ideal
system for your use cases and
requirements.
In the “Online Food Ordering
System: Must-Have Features
When Choosing One” article, you
can read a breakdown of the most
significant features to look out for
when selecting your restaurant’s
online ordering system.
Finding the Best Restaurant
Ordering System
Few restaurant management
systems are quite as important as
your restaurant ordering system.
This system helps to dictate the
customer experience and how
effective your staff is at managing
orders as they come in. A great
system can also integrate with
your financial and inventory data
and play a significant marketing
role too.

Employee Management
Software
An employee management
component within all sound
restaurant management systems
allows you to handle tasks
associated with managing your
workforce. This could include
options that will assist you with
the creation of a work schedule
that balances your business
needs with employee availability
and contractual obligations.
Usually, options will be included
to monitor attendance over time
and view when staff is away on
holidays or other authorized
absences. Payroll can also be
managed through this
component, while there may also
be some additional
communication features, along
with functions related to Human
Resources (HR) and employee
benefits.
CRM & Marketing Software
Customer relationship
management (CRM) is vital for
restaurants because customers
may contact you to make special
requests, ask dietary questions,
or complain. CRM functionality
within restaurant management
systems allows all communication
to be kept in a single place for
easy access.

What can I manage with an RMS?

You can manage almost every
pertinent aspect of your
restaurant, depending on which
type of RMS you choose. With an
end-to-end system, you will have
complete access to these
functions and features:
 Employee schedules, including

daily, vacation and sick time

 Payroll

 Financial statements

 Inventory
  Accounting

 Reporting and analytics

 Core POS

 CRM

 Menu

 Reservations

What should I consider before

getting an RMS?
Because this system will be
responsible for many of your day-
to-day processes, it’s important
to find one that works well for
you and gives you exactly what
your restaurant needs. Start by
determining a clear purpose you
need the system to serve and a
list of necessary features. Next,
give serious consideration to the
following aspects.
Type
Determine what type of system
you need. If you’re going to be
running your business on
Android devices, do not get an
iPad system. If you want a one-
stop shop, an end-to-end system
will likely be the most cost-
effective option.
Scaling
If you have plans to grow or
franchise your restaurant, buy a
system that can grow with it.
Make sure your system can
handle an increase in the
number of terminals and
handheld devices, provides
advanced large-scale analytics,
offers multibranch add-ons and
can handle a large number of
employees (and their schedules).
Integration
No system is perfect, so you will
most likely have to integrate
your RMS with other software
apps to achieve everything you
need. You should make sure your
RMS integrates easily with other
systems, such as OpenTable or
Yelp for reservations, so you
don’t waste time repetitively
entering data into separate
programs.
Ease of use
Running a restaurant is tough as
it is. You don’t want to waste
time troubleshooting your RMS
in the middle of a dinner rush.
Spend a good deal of time
testing the RMS out, ensuring
that it is intuitive and problems
are easy to fix.
Restaurant management system
pricing
The price of your restaurant
management system will depend
on how complex it is as well as
how many locations you’ll be
managing with it.
A basic RMS that manages
your restaurant’s accounting and
sales needs typically costs
around $150 per year. For a
more complex RMS suite that
tracks all of your business’s
needs across multiple locations,
you could pay thousands of
dollars per month. Additional
integrated hardware, such as
registers or tablets, will also
increase your upfront costs.
Your payment schedule will also
depend on whether your RMS
software offers perpetual or
subscription licensing. Perpetual
licensing requires you to pay a
large sum upfront to own the
license indefinitely; while your
monthly or yearly costs will be
lower, your initial investment
will be much higher. In contrast,
subscription licensing requires a
smaller monthly or annual fee;
while upfront payments are
lower, you’ll pay more in
recurring fees.
Over time, both perpetual and
subscription pricing options
typically even out. Discuss
vendors’ pricing structures with
them, keeping in mind your bar
or restaurant’s budget and
needs.
Features to look for in restaurant
management systems
When determining which
restaurant management system
to use, look for these five useful
features.
1. Sales and tax tracking
Your RMS should track all sales
data, such as your top menu
items, busiest selling times, best-
performing team members and
profits, to help you make
important business decisions.
Your software should also
provide detailed records for tax
reporting purposes.
>> Learn More: How to
Increase Your Restaurant’s
Profits
2. Order management
Your restaurant staff should be
able to manage tables,
reservations, checks and menu
items easily through your RMS.
You and your managers should
also be able to control refunds,
voids and comps and view order
statuses. If you operate a bar,
your RMS should allow you to
preauthorize credit cards to open
tabs.
Order management provides a
seamless experience for both
customers and staff, eliminating
the risk of human error and
ensuring all information is in one
place.
3. Inventory management
Knowing exactly how much
product you have on hand will
help you determine when and
how much to reorder from your
vendors. Some RMS software
offers inventory management
options, while others may
require integration with third-
party software to help you with
this.
4. Reporting and customer data
If your chosen RMS tracks and
filters your sales and customer
data, you’ll have access to a
wealth of information to help you
grow your business and make
better marketing decisions .
Understanding your customers
will help you better target them
through advertising and
personalizing their dining
experiences. For instance, you
can send gift cards or credits for
free meals on their birthdays or
other anniversaries.
5. Marketing, gift cards and reward
programs
Consider a system that offers
marketing tools, such as
promotions and loyalty or
rewards programs. Your RMS
may have native marketing tools
or require third-party software
integration for this. If you’re
interested in offering gift cards
for your restaurant, make sure
your RMS can help you manage
that as well.
A good restaurant management
system makes all the difference
in how well your restaurant runs.
While there are many factors to
consider, it is worth taking the
time to determine exactly how
the system must serve your
business and what you want to
gain from it. When you have a
clear goal in mind and a list of
nonnegotiable features, you’re
well on your way to getting up
and running with a restaurant
management system.
Sean Peek contributed to this
article.
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Kiely Kuligowski, Senior Writer &

Expert on Business Strategy
Kiely Kuligowski is recognized for
her expertise in project
management and business
software. With a strong
background in project oversight,
she excels in defining project
scopes, monitoring timelines and
ensuring high-quality deliverables
for a diverse range of clients. In
addition to her proficiency in
project management, Kuligowski
also possesses experience in
product marketing and has made
valuable contributions to
business fundraising endeavors.
In the realm of business software,
Kuligowski has reviewed a
number of modern digital tools,
such as email marketing services
and document management
systems, and advised business
owners on purchasing decisions
and usage best practices.
Recently, Kuligowski has focused
on sustainability software and
project management at IBM,
further establishing her as a
respected authority in her field.
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