Cut+Dry’s Post

TOST - Toast Inc, Reiterating Long Term Buy I spoke about this investment in the past but as a reminder this is the POS restaurant system that you often see when your waiter/waitress collects your order using a handheld device. They provide technology for about everything that a restaurant needs to run their business but they lead with the POS system. They will even provide their customers short term loans to meet payroll or for a new capital investment. Toast held an “investor day” today and it was a solid event. It was slow to get going but it had some great content and was filled with some new things. The stock sold off as I think investors were looking for “improved guidance” and they largely got a reiteration of previous guidance. The stock had ran up after really good Q4 ‘23 and Q1 ‘24 so once it was clear that it was virtually the same guidance the stock sold off. I requested to attend the event in person and got the run around and was only able to attend virtually … disappointing. With that said, it really was an analyst day. Not being at the event, I wasn’t able to network to perhaps get different opinions to help me with my investment perspective. That’s why I try to attend in person. So, for the time being I’m going to slowly add to a rather small investment until I get more clarity. Positives - Some great information on their sales “flywheel” and how it works with their salesforce and referrals from current customers. I recently was in Savannah GA and they had virtually every medium/high end restaurant. Restaurant employees that move from one restaurant to another are totally comfortable with the Toast tools. Owners have much more confidence in the systems knowing every one in town uses the systems. This is not the case in areas where they have a small footprint. It’s a lot harder for a salesperson to win customers in those areas. They also discussed a new “Team App” for their customers' employees. A one stop app for employees to train on Toast, see scheduled shifts, payroll, etc. I can see a nice opportunity here both for the restaurant and for employees. Maybe some advertising revenue down the pipe? Negatives - They talked a lot about expanding into new vertices. First, the Food/beverage category where they have 220K locations vs. 1.2MM restaurants. The solutions that Toast provides here are very different from the restaurant vertical. I don’t understand why put focus on this when they have so much opportunity in restaurants (their words) except that it’s low hanging fruit? They’re barely getting started with their international expansion in the restaurant space. With that said, this is why I would have liked to have networked at the conference to get various perspectives … I might be wrong and this new vertical could provide nice growth, I just don’t know. Linked below is their Investor Day Presentation … It's worth a good review. As always, consult with your financial advisor, I am not one.

Empower your restaurant with the latest in online ordering technology. Our blog post explores the transformative impact of white label online ordering platforms, providing insights into enhanced branding, streamlined operations, and increased profits. Discover more now! https://buff.ly/3OFz5bN #RestaurantIndustry #DigitalInnovation

📊 Mastering Inventory: The Key to Seamless Bar Operations! 🍹✨ Effective inventory management is the heartbeat of your bar, restaurant, or nightclub. Striking the right balance is an art – too little, and you risk service interruptions; too much, and you tie up crucial cash flow with excess inventory. Explore valuable insights in this informative article from our collaborators at Square POS, one of the many POS vendors already seamlessly integrated with us at Barmetrix San Francisco Bay Area! Ready to streamline your inventory process? Let's chat about optimizing your operations! 🌐🚀 #InventoryManagement #BarOperations #StreamlineWithBarmetrix #BarmetrixSF #SanFrancisco #LiquorInventory #Bars #Restaurants #Nightclubs 📊

🤯 **Why Outsourcing Inventory is a No-Brainer for Bars & Restaurants** Okay, let’s talk inventory management in bars and restaurants. And I’m going to say it straight – trying to handle this beast in-house is like willingly stepping into quicksand. Why? Let me break it down for you. **The In-House Inventory Disaster** First off, doing inventory internally is a massive time-suck. Picture this: Your staff, who could be engaging with customers or making killer cocktails, are stuck counting bottles and keying in numbers. And let’s not even get started on human error – one wrong count, and your whole inventory is a mess. 🙄 Then, there’s the “expertise” aspect. Most of us didn’t get into the hospitality biz to geek out on spreadsheets and stock levels. Consistency? Forget about it. Everyone’s got their way of doing things, and that’s a one-way ticket to Inaccuracy City. **Tech Woes and Financial Fumbles** You think tech will save you? Sure, there are apps and software out there, but they're like a band-aid on a broken leg if you don’t know what you’re doing. And about saving money by going DIY – it’s a myth! Mistakes in inventory lead to over-ordering, under-ordering, and just plain bad ordering. Your cash flow will cry for mercy. 💡So, here’s a thought. Why not let pros handle it? I’m talking about folks who eat, sleep, and breathe inventory management. They've got the tools, the know-how, and – this is the kicker – they’re not emotionally invested in your stock like you are. They’ll tell you straight up if that fancy liquor you love is just gathering dust on the shelf. **What You Gain** 👉 Real COG vs. Budget Fantasies: Discover the truth about your Cost of Goods Sold (COG). Forget budgets; we’re talking real, actionable COG targets. 👉 POS System Sanity Check: Is your Point of Sale system a help or a hindrance? Time to find those missing keys and fix the glitches. 👉 Ordering System Overhaul: Stop the madness of overordering. Get just the right amount of stock 👉 Pouring Perfection (or Lack Thereof): Overpouring? Underpouring? 👉 Cocktail Consistency Check: Are those cocktails masterpieces or mishaps? Plus, your team can focus on what they’re awesome at – making your customers happy. And here’s the big one: peace of mind. No more lying awake wondering if your inventory is a ticking time bomb of lost revenue. Let the pros handle it, and you handle running a fabulous bar or restaurant. Okay, rant over. But seriously, if you’re still doing inventory the old-school, in-house way, it’s time for a wake-up call. Outsourcing isn’t just a fancy option; it’s a smart business move. It’s almost 2024, folks. Let’s work smarter, not harder, and leave the number-crunching to people who actually enjoy it.

Some enlightening stats on how much restaurant chains are leaning into automation and how it seems to be benefitting them. https://hubs.li/Q02jnVnw0 #restauranttech #restaurantdevelopment #RestaurantSpaces

How To Solve Staffing Challenges In Your Taproom No matter what stage of growth your food and beverage business is in, staffing is an ongoing challenge to perfect. But, with the right tools, you can support a happy, efficient team. Here are 4 common staffing challenges and solutions to each of them:

Wendy’s will introduce surge pricing by the end of 2025. Your Baconator could cost more during the lunch rush. Finally, Wendy’s created a way to make waiting in line even worse: paying more when you get to the end of it. The fast-food chain, already the most expensive on the market, said it would introduce “dynamic pricing,” Uber-like surge pricing for menu items at certain times of the day, next year. Wendy’s CEO Kirk Tanner revealed that the company will spend about $20 million through the end of 2025 to install digital menu boards at its US locations that can facilitate surge pricing during busy periods like lunch rushes. Get used to it: Ride-hailing apps and ticketing companies like Live Nation have caught flak for introducing markups due to surge pricing on their platforms. But despite extreme customer pushback, these companies continue to dominate their fields, so it’s either pay the elevated prices or…don’t see the Eras Tour and walk home in the rain. Within the last year, President Joe Biden and lawmakers have criticized Live Nation for its exorbitant prices and fees while the Justice Department investigates the company on antitrust grounds. The company still plans to expand its dynamic pricing model and offer even higher-priced VIP options. Wendy’s move is likely to draw even more ire since the whole proposition of fast food is that it’s supposed to be relatively cheap and consistently priced. Looking ahead…if successful, Wendy’s adoption of surge pricing could spread to other fast-food chains and restaurants as digital menus make the option much more feasible than when all menus used to be printed. It’s already crept into everything from bowling to (for a brief, hated moment) getting a good seat at the movie theater.—MM https://lnkd.in/eqZfkTVs #foodandbeverage #foodandbeverageindustry #foodandbeverageservice #sergepricing #pricing #pricingstrategy #pricingstrategies #pricingoptimization #hospitalitymanagement #hospitalityindustry #hospitality #hospitalityleadership #financialnews #financeandeconomy #economicnews

When selecting a POS system for your restaurant, consider the following factors: 👇 1. 𝐒𝐢𝐳𝐞 𝐚𝐧𝐝 𝐭𝐲𝐩𝐞 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐫𝐞𝐬𝐭𝐚𝐮𝐫𝐚𝐧𝐭: Smaller cafes might find Square or Kounta sufficient, while larger operations may benefit from the advanced features of Lightspeed or Toast. 2. 𝐁𝐮𝐝𝐠𝐞𝐭: Consider both upfront costs and ongoing fees. Square offers a free plan, while others require monthly subscriptions. 3. 𝐅𝐞𝐚𝐭𝐮𝐫𝐞 𝐫𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬: Assess which features are must-haves for your business, such as inventory management, table service, or online ordering capabilities. 4. 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐧𝐞𝐞𝐝𝐬: Ensure the POS can integrate with your existing tools for accounting, payroll, and other business operations. Scalability: Choose a system that can grow with your business, especially if you plan to expand in the future. 5. 𝐒𝐮𝐩𝐩𝐨𝐫𝐭 𝐚𝐧𝐝 𝐭𝐫𝐚𝐢𝐧𝐢𝐧𝐠: Consider the level of support and training offered, particularly if you're less tech-savvy. For more like that follow FoodOS 💙

How to Successfully Launch 12+ Restaurant Branches Per Year? After speaking with Supy customers and drawing inspiration from the successful expansions of brands like ALBAIK Food Systems Co., Shawarmer - شاورمر, and others, I noticed a pattern among the brands that achieved success. All successful brands have these elements in place during expansion: 1. Scalable Systems: Implementing standardized operating procedures, including inventory management, staffing, and customer service protocols, ensures consistency across all branches. This is crucial for maintaining your brand’s reputation and customer satisfaction. 2. Financial Planning: Expansion requires robust financial backing. This includes funds to cover initial costs, ongoing operations, and unexpected expenses. Aim for each new branch to reach profitability quickly, providing the financial support needed for the next launch. 3. Location Strategy: The location of your new branch can significantly impact its success. Choose locations strategically, considering market research, foot traffic, competition, and local demographics. 4. Hiring and Training: A strong team is key to maintaining quality and brand consistency. Develop a streamlined hiring and training process to ensure your staff is well-equipped to deliver excellent service. 5. Supply Chain Management: A reliable supply chain is essential for smooth operations. Establish relationships with suppliers who can support your expansion rate and negotiate bulk discounts to optimize costs. 6. Marketing and Branding: Consistent branding across all branches is crucial. Develop a robust marketing strategy to build awareness and attract customers to each new location. 7. Technology Integration: Leverage technology to streamline operations. Restaurant management and inventory software like Supy, POS systems, and CRM tools can all contribute to smoother, more efficient operations. 8. Regulatory Compliance: Each branch must comply with local health, safety, and business regulations. Stay updated on these regulations to avoid legal complications and maintain your brand’s reputation. Put these measures in place, and you’ll be on the road to success. Have you successfully scaled a restaurant chain? If so, what would you add to the list? If you’re scaling and need support with procurement, inventory management, and business intelligence, drop me a message. I’ll be happy to share my experiences and help you navigate your expansion.

Potbelly Sandwich Works recently partnered with MarketDial to test vendor ROI, seeking to learn if the investment would have justifiable returns. They were surprised to discover that vendor outcomes during the test didn't align with outcomes following the test due to vendor behavior. Learn how MarketDial empowered Potbelly to manage vendor relationships, and see how MarketDial can help you measure vendor ROI before full-scale rollouts. #testandlearn #restaurants #restaurantstrategy #vendormanagement #retailstrategy