ROI For your Restaurant Software POS Investment
Return on Investment (ROI) Analysis
There are two sides of the ROI analysis that need to be considered. First, what is the investment to purchase the restaurant automation solution. Second, and perhaps more important, what is the cost associated with not purchasing the solution. In 100% of Restaurant Manager software customers, the ROI has far outweighed the monthly investment required to purchase the restaurant automation solutions.
According to the National Restaurant Association’s Restaurant Industry Operations Report 2002, the average restaurant spent a total of 35% of their annual sales on salaries, wages, and benefits. Labor costs are the highest expense. Restaurant automation integrates key business functions in order to maximize efficiency and reduce labor costs.Most restaurants operate on low profit margins. In fact, the average restaurant keeps less than a 10 cent in profit for every Euro earned. Furthermore, the restaurant industry has seen modest growth of 1% to 3% annually since 1991.
Low profit margins combined with modest growth result in numerous challenges. Restaurant automation offers opportunities to increase revenue and sales per customer.The following ROI analysis is based upon a restaurant with €500,000 in annual sales and €175,000 in labor costs.
| Annual ROI | Monthly ROI | |
| Decreases | ||
| Labor Costs (20%) | €35,000 | €2,917 |
| Increases | ||
| Revenue (5%) | €25,000 | €2,083 |
| Sales Per Customer (2%) | €10,000 | €833 |
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| Total ROI | €70,000 | €5,833 |
*All of the figures above are based upon the monthly and annual averages, and in no way guarantees specific performance.
So from the information above don’t you think its time to invest in a product and solution that will earn you money just contact us and we’ll show you how.
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