It’s no secret that running a successful restaurant has always been difficult. And doing so today comes with even more challenges than it did five years ago. Owners and managers are now grappling with a new generation of workers who expect more from their employers: more money, more autonomy, and more perks. Plus, increased competition from the gig economy means that even businesses with W2 employees are under pressure to offer the flexibility and freedom gig work can provide. Pair all of this with the steady decline in cash usage, inflation, and the steep learning curve for new restaurant technologies, and it’s easy to see why so many restaurant owners may feel like business growth is a secondary goal—one that cannot be achieved unless all of these immediate “fire-drills” cease.
Fortunately, there are ways for restaurants to address these concerns and see growth. Whether your goal is to open another location, expand into new concepts, or simply increase your revenue, same-day payments can actually help you scale and grow. Let’s explore how pivoting to same-day digital pay for your workforce can provide the fuel you need to grow your business, serving as the foundation for better scalability.
Helping you retain the best talent
Though no one has a crystal ball, it’s become pretty clear where the world of work is headed—and that’s towards accelerated pay. In a recent survey, 83% of employees believe they should be able to access their pay at the end of each day. Another survey from Insurica found that 62% of workers felt more valued when they could access their earnings every day. Whether same-day pay comes in the form of earned wage access or instant tip payouts, you can boost employee satisfaction and ultimately retention by embracing these solutions.
Fati Mixha, owner of Fairview Farmers and Jessica’s Restaurant, knows this firsthand. He rolled out instant payments through Branch because he realized it was a must-have for retaining talent.
“Some restaurants go about cashless tipping by adding tips to their employees’ paychecks—those restaurants have high turnover,” Mixha says in this case study. “They can’t retain employees to the same level. Their employees aren’t as happy. So that was out of the question for us.”
Restaurant workers have more than enough options these days and can swiftly find another place to work; in fact, new LinkedIn data shows that 48% of hospitality workers plan to look for a new job this year. When you can’t deliver a server’s tips quickly enough—either because you hold them until their next paycheck, or need to make constant trips to the bank for change—it works against today’s economic climate and the demands of today’s workforce who need faster access to what they earn.
Offering the chance to cultivate customer loyalty
Most restaurants today don’t have a shortage of customers—they have a shortage of workers. And when you can’t hold on to your talent, your service suffers. No-call, no-shows run rampant and your customers pay the price with longer ticket times and disgruntled staff.
Yet when you can motivate your team with the magic of instant payments, you boost retention and cut down on turnover. When people get digital tips after each shift, or use the power of earned wage access to handle an unexpected bill that comes their way, they feel more financially secure and more motivated to come to work. Your restaurant may start to see the results of being fully staffed as opposed to constantly dealing with people calling out, quitting, or simply not showing up. This offers the potential to shift the culture at your restaurant from one of negativity and burnout to positivity and better morale.
Simply put: when you can create an environment of engaged, motivated employees, you’re better equipped to deliver a delightful dining experience for your guests. Satisfied employees can help create more loyal customers, and loyal customers are an essential component of business growth.
Streamlining admin processes and freeing up time
When you’re bogged down in the administrative headaches of cash handling, till monitoring, and trips to the bank, your time cannot be used on the big fish: growing your business and focusing on the customers. Instead, you get sucked into the minutiae of those administrative tasks and before you know it, another day has gone by without tackling your strategic plans for scalability.
When you switch to same-day pay—whether digital tip payouts or earned wage access—you eliminate those administrative headaches that take you away from bigger initiatives. Plus, you don’t have to deal with the hidden costs and hassles of mailing out paper checks or paycards.
Adam Johnson, area coach for Hot Pizzas, experienced this when he switched to Branch to for instant digital tip payouts for his staff. “I’ve gained 10 hours a week back into my life,” he says in this case study. “I’m now able to spend more of my time with the team and focus on coaching them to take care of customers.”
Time is one of your most valuable assets as a restaurant manager or owner; don’t spend it making trips to the bank, reconciling the till, or issuing paper checks. Use your talents where they’re most needed: on strategic initiatives to help develop your business.
Fueling Business Growth, One Instant Payment at a Time
Restaurant owners face a rising tide of demanding staff, gig economy competition, cash decline, and inefficient processes. Growth can feel impossible when you’re constantly trying to put out these fires and simply get through the day. But same-day digital payments can serve as the fuel your restaurant needs to retain the best staff, deliver superior customer service, and cut down on administrative costs and headaches that are draining you of your time and energy.
Learn more about how pivoting to same-day pay can transform your restaurant this year:
