Cost Control F B Report

Cost Control in
Food & Beverage

How Technology Can Help Maximize Profits
Cost Control in Food & Beverage
INTRODUCTION
The research findings are Great food and great service, delivered consistently, are at the heart of any
designed to help successful restaurant business.
quantify the significance of
But success — and survival — also depend on being profitable. Every restaurant
back-office functions and,
owner, whether independent or part of a large chain, understands that labor and
more importantly, shed
inventory costs represent a significant variable expense to the business. Keeping
light on the ramifications control of those costs is as critical as the culinary magic that occurs in the kitchen.
they have on so After all, how can a restaurant expect to make a profit when they are regularly
many other facets of overstaffing or running out of ingredients?
the operation.
The same goes for loss prevention — if a restaurant owner is losing money through
shrinkage or waste but has no way of tracking it, how can the business succeed?
In this research report, Oracle Hospitality partnered up with Technomic to survey

more than 200 independent operators and chains. We wanted to understand how
those operators are managing the task of controlling the costs of labor, inventory,
and loss prevention. Where do their priorities lie? What are their biggest issues?
How can the task of managing costs become more efficient?
By sharing the findings of the research with food and beverage operators globally,
Oracle Hospitality aims to show that managing labor, inventory, and loss prevention
is a global challenge that can be met by putting cost-control technology at the very
heart of your operation.
How Technology Can Help Maximize Profits | oracle.com/hospitality 2

EXECUTIVE SUMMARY
How much of a restaurant’s revenue is spent on food and labor costs? Where are
restaurants losing money? What are the key priorities when it comes to managing
Though these staff and inventory? These are just some of the questions that we asked our 200
back-office problems are restaurant operators, to help us establish the importance of cost control in a food
significant, food and and beverage operation, and how it can be improved. Among the key findings:
beverage operators
are finding an ally 1. Labor and inventory, on average, combine to account for more than 50% of
revenues. The magnitude of their impact on budget clarifies priorities: Food and beverage
in cloud-based technology operators must make cost control a key part of their operation. To offset labor costs, two-
to resolve them. thirds of independent operators reported raising menu prices — directly impacting the guest
experience.
2. Valuable time is often diverted and wasted on labor scheduling. Food & beverage
operators resoundingly rank recruitment, training and retention as top priorities for labor
management, yet often find themselves mired in the mundane: 63% of restaurants change
schedules prior to posting and 49% do so after posting. What’s worse, even after all these
adjustments, 44% reported that understaffing is an issue, which can impact the dining
experience.
3. Inventory management also takes up valuable time. A third of operators said that
they spend more than 3 hours per week managing stock, when the top priorities for
inventory actually lie in meal quality and kitchen staff empowerment.
4. Over-portioning and food waste are among the primary loss culprits. But 50% of
independent operators said they do not track prepared waste. Furthermore, 60% reported
they do not use a forecasting system to improve ordering, which likely contributes to the
waste problem.
There is no doubt that cost control needs to be a significant priority for any food and
beverage operation. By using technology to manage labor, inventory, and loss, operators
can increase efficiencies while reducing the manual effort needed to achieve maximum
control — releasing that time for other priorities.

LABOR MANAGEMENT
LABOR MANAGEMENT
Finding #1: Labor makes up a quarter

of revenue
For enterprise and independent operators alike, labor accounts for roughly a quarter of total
revenues. And a sizeable percentage of limited-service restaurants (17%) and full-service
establishments (13%) reported spending a staggering 30% or more of revenues on staffing.
To offset high labor costs, restaurateurs almost inevitably boost menu prices: Indeed, two-
thirds of independent operators reported taking such action, and 38% of operators who had
not raised prices said they planned to do so in the next six months. The cost of labor is one
of the most significant factors in a restaurant business, and consequently, its variation can
have a rippling affect across all operations. Which explains why controlling it is of paramount
importance. < 15% 9%
15–20% 24%
Technology Tip: 20–25% 34%
Technology helps corral

LABOR COSTS AS25–30%
% OF SALES 16%
labor cost in various HOURLY + MANAGEMENT

30%+ 17%
ways — with tools that
build efficient scheduling, < 15% 9% < 15% 3%
track staff hours and 15–20% 24% 15–20% 13%
retain top employees.

20–25% 34% 20–25% 48%
25–30% 16% 25–30% 23%
30%+ 17% LSR 30%+ 13% FSR
Limited Service Restaurant Full Service Restaurant
< 15% 3%
15–20% 13%
20–25% 48%
INCREASED MENU PRICES TO
25–30% 23%
OFFSET LABOR COSTS
30%+ 13%
Quick Service
QSR
Restaurant
74% 26%
Fast Casual 74% 26%
Midscale 64% 36% YES
NO
Casual Dining
CDR 71% 29%
Restaurant
Fine Dining 45% 55%

LABOR MANAGEMENT
Finding #2: Training, recruitment

and retention are the top labor concerns
Training, recruitment and retention — enterprise and independent operators wholeheartedly

agree that these are their top priorities when it comes to labor, ahead of other concerns such
as productivity and government regulations. In an era of individualization, when customers
covet personalized attention and service, it is critical for restaurants to hire first-rate staff
and train them to meet, if not surpass, marketplace expectations. To carve out appropriate
time to address foremost priorities, management needs to simplify and efficiently handle
“processing tasks,” including new employee onboarding and training delivery.
Technology Tip: Cloud
solutions can simplify

TOP LABOR CONCERNS
onboarding, deliver
training efficiently
and empower employees 70%

to better manage their 66%
Training employees 67%
schedules — providing the 65%
73%
ingredients for a happier,
68%
connected workforce. 60%
Recruiting employees
Recruting 61%
59%
67%
66%
58%
Retaining employees 58%
59%
76%
26%
54%
Productivity 39%
50%
45%
32%
24%
Government regulations 58%
41%
15%
6%
14%
Poor forecasting software 15%
21%
9%
QUICK SERVICE MIDSCALE FINE DINING
QSR
FAST CASUAL Fast Casual Midscale
CASUAL DINING CDR Fine Dining

LABOR MANAGEMENT
Finding #3: Schedules are frequently

changed before and after posting
Staff schedule changes are a fact of life; 63% of restaurants either “frequently” or
“somewhat frequently” change schedules prior to posting, and 49% “frequently” or
“somewhat frequently” make changes after posting. Such frequency suggests that better
processes are required to minimize the time and effort required to manage these changes.
Indeed, with far more pressing tasks to tackle, half of the independent restaurants surveyed
will encourage staff to use their own mobile devices to manage schedules, and 51% of
those plan to introduce it in the next six months.
Technology Tip:
Technology can help

PRIOR TO POSTING AFTER POSTING
manage one of the
headaches of the business:
schedule changes. It can Limited Service

LSR 20% 45% 30% 5%
LSR 13% 37% 46% 4%
Restaurant
enable employees to
electronically make their Full Service

FSR
Restaurant 21% 38% 38% 3%
FSR 15% 33% 48% 4%
own changes, and keep
operators abreast of FREQUENTLY & VERY FREQUENTLY SOMEWHAT FREQUENTLY RARELY NEVER
staffing needs.
Technology Tip: Equipping OPERATORS PLANNING TO

staff with better tools to HAVE EMPLOYEES USE OWN DEVICES
do their jobs, such as
mobile devices, fosters a Limited Service

LSR 45% 55%
Restaurant YES
sense of “ownership”
Full Service NO
in their work — and FSR 50% 50%
Restaurant
makes managers’ lives
Yes No
easier, too.
WHEN WILL THIS BE REQUIRED?
44%
40% Limited Service Full Service
Restaurant Restaurant
26%
24%
20%
16%
11% 10%
4% 4%
Already required 1–3 months 3–6 months 6 months – year 1 year +

LSR FSR
LABOR MANAGEMENT
Finding #4: Understaffing is an issue
44% of independent operators say understaffing occurs “somewhat frequently” or

more often, despite all the scheduling and changes to schedules that we saw on the
previous page. The issue is most pervasive in fast-casual restaurants, with 54% reporting
understaffing as a somewhat frequent or more frequent issue. By comparison, only 24%
of independent operators said overstaffing was an issue. Ever watchful of labor costs, it is
no surprise that restaurants err on the side of understaffing when it comes to scheduling
practices, but such findings remind us that the guest experience can be jeopardized by
overstretched resources.
Technology Tip: Forecasting
tools do more than just

UNDERSTAFFING IS A CHALLENGE
project sales; they can pull
data from POS systems
and automatically build
staff schedules that Quick Service

QSR 16% 28% 52% 4%
Restaurant
factor in labor costs and
productivity needs.
Fast Casual 6% 48% 38% 8%
Midscale 6% 27% 58% 9%
Casual Dining
CDR 15% 32% 47% 6%
Restaurant
Fine Dining 12% 21% 55% 12%
FREQUENTLY & VERY FREQUENTLY SOMEWHAT FREQUENTLY RARELY NEVER

LABOR MANAGEMENT
Finding #5: Changing government

regulations are a big concern
For 33% of operators, government regulations are among their biggest concerns, especially
as they relate to minimum wage legislation. To counter rising wages, the most common
measures taken by restaurants include restricting the amount of hours an employee can
work and creating split shifts. Such actions, managers said, place a greater premium on
technology solutions that can alert them when their employees are approaching overtime or
work-hour limits.
Technology Tip: Staying

“Lowered staffing levels due to minimum wage,
on top of regulations
have created many split shifts to minimize slow and
governing wages and
down times.”
benefits is a challenge,
but technology can help
ensure compliancy.
Solutions such as
Oracle Hospitality “We look for efficiencies in operations—

inMotion, for example,
equipment, recipes, BOH layout—and how to
sends alerts if an
capture areas of waste by tracking trends and peaks
employee is approaching
to maximize productivity with minimal staff.”
overtime.
“We have to do more with less, and given the

job market is strong, that makes it doubly-hard to
find quality people.”

INVENTORY MANAGEMENT
Finding #1: Food cost accounts for

25% or more of revenues
Food cost, along with labor expense, rank first and second, respectively, when it comes to
consuming restaurant revenues. In fact, more than 71% of independent operators said food
cost accounts for 25% or more of revenues, including 10% who reported that the line item
exceeded 35%. By comparison, only 6% said they managed to keep food cost under 20%.
Considering its super-sized impact, inventory cost is a lynchpin for financial success — and
getting it under control is an absolute priority.
Technology Tip:
Menu-modeling solutions
FOOD COST AS PERCENTAGE OF SALES
evaluate margins when
food costs rise, giving
restaurateurs options
to alter recipes or adjust 2%

12% 6%
<20% 3%
menu prices.
9%
6%
22%
32% 23%
20–25% 24%
21%
12%
34%
32% 39%
25–30% 39%
50%
45%
12%
28% 22%
30–35% 27%
18%
27%
20%
6%
35%+ 6% 10%
3%
9%
QSR Fast Casual Midscale CDR Fine Dining
FAST CASUAL CASUAL DINING

Finding #2: Over-portioning and

food waste are the greatest areas of loss
Over-portioning and food waste are considered the two biggest factors for loss, according
to nearly a third of all operators surveyed. They dwarf other factors that certainly can
undermine a restaurant’s financial health: giving away of food (13%), incorrect ring-ins (12%),
theft (9%) and unapproved discounts (4%). The good news is, the top issues can be curbed
through education and monitoring. Training staff with proper guidelines can minimize over-
portioning, and addressing waste by making it a priority and tracking it accurately can be an
effective deterrent.
Technology Tip: Better
training and monitoring

AREAS OF GREATEST LOSS
can address some of
the industry’s most
persistent problems,
and technology helps on 26%

36%
32%
Over portioning 18%
both fronts: POS 32%
45%
systems can print recipe
20%
cards to prepare dishes 32% 30%
properly and be used Waste 39%
32%
to track waste — keeping 27%
employees committed 20%
to tasks.
14% 13%
Giving away food 15%
6%
6%
10%
10% 12%
Incorrect ring-ins 12%
21%
9%
8%
Theft 9%
16% 9%
0%
9%
6%
2%
Unapproved discounts 6% 4%
3%
3%

Finding #3: Food consistency and

staff empowerment are
the top inventory concerns
Delivering consistent food preparation and meal quality (68%), and cultivating a sense of
“ownership” among staff for their work in the kitchen (64%) were among the top inventory
management concerns cited by independent operators. The two issues are understandably
linked, because staff members that care about their craft invariably lead to better preparation
and quality meals. Using kitchen display systems can play an instrumental role on this front:
By helping maintain recipes and guiding proper food preparation, they help “teach” staff,
fostering confidence, competence and a sense of empowerment.
Technology Tip: Kitchen
display systems can help

TOP ISSUES FOR MANAGING INVENTORY
maintain recipes and
provide the resources to
make sure staff knows how

68%
to best prepare food. 72%
Consistent food
70%
quality/prep 68%
61%
58%
56%
Staffing ("caring"
82%
about business) 71%
58%
36%
66%
Inefficiency 42%
71%
33%
44%
48%
Manual tracking 36%
50%
39%
38%
30%
Interpreting
39%
reports 15%
42%
FAST CASUAL QSR Fast Casual

CASUAL DINING Midscale CDR Fine Dining

Finding #4: Operators spend more than

3 hours a week managing inventory
Operators need to extract efficiencies from across their enterprise, and one task that
can stand obvious improvement is stock management: About one-third of independent
operators reported spending more than three hours per week managing inventory.
Automating “processing tasks,” such as stock counting and ordering process, improves
speed and accuracy. Just as important: Automation does more than minimize the
mundane; it creates time to innovate.
Technology Tip: Minimize
the mundane. An inventory

TIME SPENT MANAGING INVENTORY
management system
automatically calculates
totals and volume, 10%

4%
allowing you to spend
< 1 hours 6% 6%
less time counting stock, 9%
3%
while employing greater
accuracy. 30%
16%
1–2 hours 24% 26%
44%
21%
28%
44%
2–3 hours 39%
18%
34%
42%
28%
24%
3–4 hours 21%
18% 22%
15%
4%
12%
4+ hours 9%
12% 10%
18%
QSR Fast Casual Midscale CDR Fine Dining


Finding #5: The web is the preferred

choice for ordering stock
For most types of restaurants, the web is the preferred channel choice for ordering stock.
Indeed, 70% of mid-scale restaurants rely on the web, and so do 60% of all independent
operators surveyed. B2B ordering is another common means, typically outpacing other
options such phone, email and in-person ordering. However, all of these options are failing
to capitalize on a valuable efficiency: By integrating inventory management and ordering,
restaurateurs can increase accuracy and reduce manual effort, freeing up time for more
pressing tasks.
Technology Tip: Ordering
stock remains a time-

DISTRIBUTOR ORDERING CHANNELS
consuming, manual task
for many. By integrating
inventory management
60%
and ordering, faxing 52%
or emailing orders to Web 70%
62%
distributors becomes a 64%
thing of the past: Orders
62%
can be sent right through 54%
B2B electronic
the POS. 45%
ordering 12%
58%
28%
34%
Phone 48%
59%
45%
14%
22%
Email 21%
29%
36%
6%
18%
In-person 30%
38%
21%
QSR
FAST CASUAL Fast CASUAL
CasualDININGMidscale CDR Fine Dining

Finding #6: Most operators do not use

automated forecasting
By employing automated forecasting tools to enhance direct purchasing, operators can reap
immediate benefits: Most notably, accurate orders mean carrying fewer items in storage and
using less labor time to sort through deliveries or resolve shortages. Surprisingly, however,
60% of independent operators are not taking advantage of integrated inventory system
forecasting tools to create stock orders. The exception to the rule: 64% of quick-service
restaurants have embraced automated forecasts for purchasing.
Technology Tip: The
benefits of forecasting PURCHASING DRIVEN BY AUTOMATED

tools extend far FORECASTS
beyond just placing
more accurate orders;

Quick Service
they mean carrying less QSR 64% 36%
Restaurant
inventory and
fewer headaches
managing deliveries Fine Dining 45% 55%

and shortages.
Midscale 39% 61%
Fast Casual 28% 72%
Casual Dining
CDR
Restaurant 21% 79%
YES
NO

Finding #7: Half of operators do not

track prepared waste
50% of independent operators do not track prepared waste, despite waste being one of
the biggest areas of loss to a restaurant business. Failing to track prepared waste is akin to
ignoring losing money. But as difficult as it may be to comprehend, such indifference is fairly
consistent among all restaurant types. On the bright side, among those who do track, 71%
have a waste-tracking system integrated with their point-of-sale system.
Technology Tip: Using a
waste-tracking system
OPERATORS TRACKING PREPARED WASTE
integrated with a POS
system is the most
efficient way to monitor
money being lost. More Fine Dining 52% 48%

importantly, it’s a great
tool to help hold everyone

Quick Service
accountable. QSR
Restaurant 50% 50%
Fast Casual 46% 54%
Midscale 45% 55%
Casual Dining
CDR
Restaurant 44% 56%
YES
NO

LOSS PREVENTION
Maximize Profits
LOSS PREVENTION
Finding #1: Shrink prevention

training is conducted at least once per
year for 26% of operators
Casual-dining restaurants lead the way when it comes to training staff on shrinkage: 26%
carry out training programs at least once per year, and 41% conduct such training even more
frequently. By simply using an inventory or loss-prevention solution, operators send a clear
message to employees that they are being vigilant — and that is often enough to discourage
misdeeds. It is important, too, for managers to understand business performance and
financials so they can identify variances that indicate potential issues.
“We provide lots
of on-the-job training.
SHRINK PREVENTION TRAINING
Managers need to
understand business
performance and financials

30%
so that they can look for 38%
Once a year + 30%
variances and spot any 68%
48%
issues. They also need to
understand their 16%

More than once 20%
profit-and-loss statements 12%
a year 41%
and know what [they] 30%
mean in order to 14%
discover why things are 18%
Once a year 18%
out of whack.” 26%
18%
14%
– CEO, Casual Dining Restaurant
Less than once a 14%
14%
year 6%
15%
32%
Once during 32%
33%
initial training 15%
27%
24%
16%
Never 12%
12%
9%

CLOUD SOLUTIONS
CLOUD SOLUTIONS
Finding #1: The future of labor

and inventory management is cloud
At least 50% of independent operators already rely on cloud solutions for both labor and
inventory management. And the shift to the transformational technology is only going to
hasten: Of those not using cloud for labor management, 50% plan to do so, and among
that group, 32% intend to make the switch in the next year. Likewise, 44% of operators
without a cloud inventory system plan to adopt one within the next 12 months. Why is
cloud becoming the solution of choice? Besides resolving the industry’s age-old issues
linked to labor and inventory, cloud is alleviating IT’s biggest headaches: Escalating cost and
complexity.
Technology Tip:
OPERATORS USING CLOUD BASED
Cloud changes the way
LABOR MANAGEMENT SYSTEMS
that your entire business
operates, bringing benefits

Quick Service
QSR 80% 20%
to everyone. With a Restaurant
cloud system you can

Midscale 79% 21% YES
reduce IT costs, deliver
NO
consistency across
locations, engage with Fast Casual 78% 22%
guests through mobile
devices, and much more. Fine Dining 70% 30%
Casual Dining
CDR 29% 71%
Restaurant
OPERATORS USING CLOUD BASED

INVENTORY SYSTEMS
Quick Service
QSR 66% 34%
Restaurant
Fast Casual 60% 40%
Midscale 58% 42%
Fine Dining 45% 55%
Casual Dining
CDR 21% 79%
Restaurant

TAKEAWAYS
The challenges of cost-control are many and seemingly confounding. But with
a better understanding of their scope and root causes, they can be remedied
Gaining insight is the systematically — especially with the aid of technology. Here are a few key
first step toward takeaways:
meaningful action,
1. Making cost-control a top priority is of paramount importance. With line items such
whether fixing a problem as labor and food, on average, consuming more than 50% of revenues, it is glaringly evident
or improving a process. that effectively managing costs is crucial in determining a restaurant’s fate.
Though these 2. With so many critical labor tasks to tackle — such as training, recruitment and
back-office problems are retention — management cannot afford to waste time with “processing tasks” such
as scheduling, onboarding new employees and training delivery. Automated solutions
significant, food and exist to deal with such functions — use them.
beverage operators
3. Integrated inventory management not only enhances accuracy of key tasks, but
are finding an ally are invaluable means for saving time and money. Among the helpful options: using
in cloud-based technology forecasting tools to improve ordering (and reduce waste), employing solutions to track
prepared waste, and automating ordering with distributors as well as automating stock
to resolve them. management. Bottom line: These solutions help free managers to focus their attention on
the things that matter most.
4. Cloud technology puts cost control at the heart of your operation — half of
operators are already using cloud for managing inventory and labor, ensuring that they
have centralized control of costs across multiple locations while minimizing the cost and
complexity of IT. Find out more in The Power of Cloud for Food & Beverage — what
every F&B executive needs to know.
METHODOLOGY
Oracle Hospitality commissioned an independent research agency to prepare
this study, which included conducting 200 quantitative surveys with independent
operators and small chains; participants comprised 100 limited-service
establishments, including fast casual, and 100 full-service restaurants. In addition,
information in this report is based upon 12 in-depth, qualitative interviews with chain
accounts based in the United States.

ORACLE HOSPITALITY SOLUTIONS
Oracle Hospitality provides cloud technology solutions to hotels, restaurants, coffee

shops, bars, stadiums, theme parks and other hospitality operators to help them
deliver exceptional guest experiences. Our cloud platforms provide operators with
the enterprise agility that they need to remain innovative and responsive to change,
while maintaining the reliability that is essential in our industry. Our comprehensive
suite of hardware and software solutions optimizes operations from the back office
to the kitchen to the front desk.
For more research on Oracle Hospitality Simphony Cloud can spearhead your cost-control initiatives.
food and beverage, please With a single cloud platform for managing POS, kitchen management, inventory,
labor and loss prevention — as well as loyalty and reporting — Simphony tackles
visit The Lounge
the following tasks:
ntrol in
www.oracle.com/the-lounge
Labor management: build profitable schedules using forecasting and historical
Beverage data; centrally onboard staff; foster real-time collaboration among a mobile-
empowered staff
Help Maximize Profits Inventory control: conduct ordering based on forecasts; manage recipes and
product-costing capabilities; view real-time product usage; maintain global overview
of purchases by vendor, store and item
Loss prevention: reduce food, labor and other variable costs; reduce shrink
and increase sales; quickly identify fraud incidents and collect court-admissible
evidence; analyze data by location, server and transaction
Reporting & Analytics: gather sales and productivity data while off-site,
monitor when employees are approaching overtime, examine reports featuring
comprehensive sales, financial, and operational information
Forecasting & Budget: create forecasts, set projections for KPIs, guide stock
ordering and staff scheduling to ensure demand is met
Kitchen Management: simplify kitchen communication and processes, increase

efficiency, reduce errors, and enhance food quality and speed of service

FOR MORE INFORMATION
on Oracle Simphony
onPlease
Oracle Simphony
contact us:
OracleHosp_ww@oracle.com
www.oracle.com/hospitality
@OracleHosp
Please contact us:
Cost Control in www.facebook.com/OracleHospitality
Food & Beverage

@OracleHosp
www.facebook.com/OracleHospitality
How Technology Can Help Maximize Profits
on Oracle Simphony
on Oracle Simphony
Please contact us:
Please contact us:
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of Oracle and/or its affiliates. Other names may be trademarks of their respective owners. VDL24881 151006
@OracleHosp
@OracleHosp
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Cost Control in

Food & Beverage

In this research report, Oracle Hospitality partnered up with Technomic to survey

How Technology Can Help Maximize Profits | oracle.com/hospitality 2

How Technology Can Help Maximize Profits | oracle.com/hospitality 3

Finding #1: Labor makes up a quarter

Technology Tip: 20–25% 34%

Technology helps corral

labor cost in various HOURLY + MANAGEMENT

ways — with tools that

build efficient scheduling, < 15% 9% < 15% 3%

track staff hours and 15–20% 24% 15–20% 13%

retain top employees.

25–30% 16% 25–30% 23%

30%+ 17% LSR 30%+ 13% FSR

Limited Service Restaurant Full Service Restaurant

Fast Casual 74% 26%

Midscale 64% 36% YES

Fine Dining 45% 55%

How Technology Can Help Maximize Profits | oracle.com/hospitality 5

Finding #2: Training, recruitment

Training, recruitment and retention — enterprise and independent operators wholeheartedly

Technology Tip: Cloud

solutions can simplify

and empower employees 70%

QUICK SERVICE MIDSCALE FINE DINING

How Technology Can Help Maximize Profits | oracle.com/hospitality 6

Finding #3: Schedules are frequently

Technology can help

headaches of the business:

schedule changes. It can Limited Service

electronically make their Full Service

own changes, and keep

Technology Tip: Equipping OPERATORS PLANNING TO

mobile devices, fosters a Limited Service

WHEN WILL THIS BE REQUIRED?

Already required 1–3 months 3–6 months 6 months – year 1 year +

How Technology Can Help Maximize Profits | oracle.com/hospitality 7

Finding #4: Understaffing is an issue

44% of independent operators say understaffing occurs “somewhat frequently” or

Technology Tip: Forecasting

tools do more than just

data from POS systems

and automatically build

staff schedules that Quick Service

Midscale 6% 27% 58% 9%

Fine Dining 12% 21% 55% 12%

FREQUENTLY & VERY FREQUENTLY SOMEWHAT FREQUENTLY RARELY NEVER

How Technology Can Help Maximize Profits | oracle.com/hospitality 8

Finding #5: Changing government

Technology Tip: Staying

but technology can help

Oracle Hospitality “We look for efficiencies in operations—

“We have to do more with less, and given the

How Technology Can Help Maximize Profits | oracle.com/hospitality 9

Finding #1: Food cost accounts for

food costs rise, giving

to alter recipes or adjust 2%

QSR Fast Casual Midscale CDR Fine Dining

QUICK SERVICE MIDSCALE FINE DINING

FAST CASUAL CASUAL DINING

How Technology Can Help Maximize Profits | oracle.com/hospitality 11

Finding #2: Over-portioning and

Technology Tip: Better