Restaurant management systems are a type of restaurant management software intended to assist with the tasks associated with the day-to-day management of a restaurant or similar business. In this article, you can learn about what the technology does, the main features, and the different components that make up a sound system of this kind.

Table of Contents:

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 is to balance the various needs of the business, provide leadership, set strategic objectives, use restaurant management software, and ensure all departments are functioning as they should. Ultimately, restaurant management is concerned with guiding a restaurant to long-term success.

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.

A system of this type may be a comprehensive all-in-one solution, including elements of a point-of-sale system, such as payment processing, with more complex back-end features, such as workforce management, inventory management, and a booking or reservations system. However, some restaurant management systems focus on specific areas.

Restaurant Management systems are only growing in importance in the industry. According to the Restaurant Management Software Market Research Report by Maximize Market Research, the global restaurant management software market is estimated to reach a value of $12.03 billion in 2029.

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

Benefit
 Description Specific Advantages
Automation and Efficiency Streamlines operations by automating routine tasks, from orders to payments. Reduces wait times, minimizes manual errors, and optimizes staff productivity.
Enhanced Customer Experience Facilitates faster, more reliable service tailored to modern customer expectations. Improves service speed and accuracy, leading to higher customer satisfaction and repeat business.
Integrated Management Consolidates various operational aspects into a single system. Simplifies financial management, sales tracking, and performance monitoring, enhancing decision-making.
Financial Management Offers tools for payment processing, expense tracking, and financial reporting. Enables better cash flow management, profitability analysis, and budgeting.
Sales Tracking and Reporting Tracks real-time sales data, providing insights into popular items, peak times, and customer trends. Informs menu adjustments, promotional strategies, and inventory management.
Personnel Management Manages staff schedules, payroll, and performance evaluations efficiently. Enhances team productivity, facilitates smooth payroll processing, and identifies training or hiring needs.
Inventory Control Monitors stock levels, predicts inventory needs, and automates reordering. Prevents stockouts and overordering, reduces waste, and optimizes food cost management.
Compliance and Security Ensures secure payment processing and compliance with financial regulations. Protects against data breaches and financial fraud, maintaining customer trust and regulatory compliance.

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.

Using software that relies on cloud infrastructure requires continuous internet access, but the benefits also extend to greater security and compatibility with similar applications. According to the POS Software Trends Report by Hospitality Technology, 71% of survey respondents find cloud-based technology to be one of their key features.

Reporting & Analytics

Another major part of restaurant management systems is reporting and analytics features. In most cases, an easily accessible dashboard will provide a basic overview of the primary information that those involved in restaurant management may need to know daily. At the same time, more in-depth reports can also be generated.

This allows managers, owners, and other leaders to monitor restaurant performance over time closely. Meanwhile, analytics tools can help restaurants assess, analyze, and understand the vast amounts of data they collect.

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.

Restaurant Management Systems - Additional Integrations

Technical Support

Finally, your chosen restaurant management system must include technical support functions. After all, when things go wrong with your software or you encounter system failures, it can disrupt your entire business, meaning solutions need to be found as quickly as possible.

Technical support features can come in many forms, from access to live chat support or a ticketing system for accessing professional assistance to built-in help, troubleshooting, and tutorial sections within the software itself.

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 five of the most significant of these below:

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.

Video: Order Management Explained

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.

Meanwhile, marketing software can handle almost all elements of promoting your restaurant, especially online. Through such software, you can control pay-per-click advertising, your content marketing strategy, special offers, other promotions, marketing emails, and much more.

Restaurant Management Systems and the Restaurant Industry

The best restaurant management software must be versatile and customizable because the restaurant industry is so varied and complex. After all, it comprises many different types of restaurants, from fast food and casual restaurants to fine dining experiences, and within each category, there can also be significant variation.

You can learn more about the entire restaurant industry, the different types of restaurants, and a lot more in our article, “Restaurant Industry: The Complete Guide”.

Restaurant Management Systems - Restaurant Management Systems and the Restaurant Industry

An Overview of Other Restaurant Management Systems

Aside from using restaurant management systems, most restaurants will also rely on other solutions, from finance and accounting software to table reservation software, customer service chatbots, and delivery management software. Choosing the right combination of tools is crucial to achieving the best outcomes.

Information about these software types and many more, along with an explanation of the benefits, can be found in our article, “Restaurant Management Software: A Complete Overview”.

Restaurant Management Systems: Understanding Restaurant POS Systems

Restaurant POS systems offer customers the means to accept payments, making them one of the most important examples of restaurant management software. However, there can be much more to POS systems besides the simple processing of payments, as these systems also offer back-end options and integration with other tools.

To fully explore the topic of restaurant POS systems and to gain a greater understanding of the main trends influencing this software, read “Restaurant POS Systems: The Latest and Future Trends”.

Restaurant Management Systems and Other Restaurant Technology Trends

The broader restaurant industry has many technology trends beyond good restaurant management software. Examples of these trends include self-order kiosks, handheld point-of-sale devices, digital display screens within kitchens, and restaurant chatbots.

Understanding these technology trends and the reasons for their emergence helps you get the most from your restaurant. Read the “Latest Restaurant Technology Trends You Need to Know About” article.

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.

In the “Restaurant Ordering System: Tips for Restaurateurs When Choosing One” article, you will find valuable advice on assessing different ordering systems on the market and selecting the best one for your needs.

Restaurant Management Systems FAQs

Popular options include OpenTable, TouchBistro, Toast POS, and Square for Restaurants. Each has its features and strengths, such as point of sale (POS), reservation management, and more. Likewise, what’s best is largely determined by how well a piece of software’s features overlaps with a restaurant’s needs.

Inventory management systems are used to keep track of a restaurant’s stock and ensure it’s ordered as needed. Point of Sale (POS) systems are used for financial transactions. Reservation and table management systems are used for dining reservations and seating. Customer relationship management (CRM) software is used to store the preferences of customers.

Restaurant management systems (RMS) are used to assist in a variety of tasks which include orders, inventory management, customer service, and issuing reports.

Cafe management systems are similar to standard restaurant management systems but tailored to meet the needs of a cafe. The software is designed to improve overall performance and customer satisfaction. Some of the features typically found within them include inventory, customer loyalty, and incentive programs, sales reports, and order management.

Hospitality management systems are full software suites that provide a range of functions. Businesses within the hospitality industry can benefit from the system’s ability to assist in customer management, scheduling, booking, billing, and inventory management.

Restaurant management software is crucial in helping those in the industry carry out essential tasks and activities while optimizing financial results and customer experience.

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This article is written by:

Martijn Barten

Hi, I am Martijn Barten, founder of Revfine.com. With 20 years of experience in the hospitality industry, I specialize in optimizing revenue by combining revenue management with marketing strategies. I have successfully developed, implemented, and managed revenue management and marketing strategies for individual properties and multi-property portfolios.