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THE NEXT STEPS Opening a Second (or 100th) Restaurant Location

01 02 03

a brief introduction

pt 1. staying consistent with the right systems

pt 2. scaling labor & your plan


If you’re reading this, it’s most likely because you’ve been successful in your first restaurant and - perhaps - you’re just crazy enough to open your second (or 100th) location. Opening a second restaurant location can be a daunting tast, but the below outlines some key areas to keep in mind that - if monitored and focused on - will help you make your next location as successful as the last. In the first part of this ebook, we’ll go over the overlooked element of technology and systems you’ll need when you expand to a second restaurant location. In the second part, we’ll talk about the forgotten steps of restaurant expansion you should clue yourself in on.



PT 1. STAYING CONSISTENT WITH THE RIGHT SYSTEMS When scaling, people often jump into thinking of personnel, finances, and operations (which we’ll get into in a minute). So often, the most critical component is overlooked and that is the technology.

WHY? Restaurants are a slim-margin business, and now more than ever, the availability to identify smaller pockets of inefficiency can be the difference between success and failure. Having an enterprise POS system can have huge implications in allowing your operations to run more smoothly. As one Toast customer, Jeff Jacobson, Costa Vida COO said, adding a strong POS “allowed us to significantly increase the number of transactions per hour we’re now averaging a 55% increase in transactions per hour.” So as you scale, make sure your technology is keeping up with the pace. Here are some consideration to keep in mind.


MULTI-LOCATION REPORTING & ANALYSIS If you don’t already have quality reporting, you’re flying blind. Information of total sales, table turn time, gratuity and tip averages, and more will help you make informed decisions on the challenges ahead. As you grow, you’ll need a restaurant POS that will allow you to look across all your locations and see the differences and quickly spot issues. You’ll also want reporting on your menu via a product mix comparison report that rolls up all of the key menu items that were ordered across all locations, allowing you to identify consumer taste trends, get ahead of inventory ordering and make pricing decisions.



If your next location is an entireness different concept, you’ll want to maintain separate menus across different locations, but when you’re keeping the concept the same the ability to change your menu in one location and have it update across all of them, instantaneously, can save a ton of time. As prices change quickly, this gives you freedom to be more creative with new offers.


CONSISTENT - YET CUSTOMIZABLE GIFT CARD AND LOYALTY Rewarding your best customers and offering ways for people to buy gift cards is always important, but as you get bigger, having a system that allows you to purchase a gift card in one location and redeemed at another can be a challenge (or just impossible) without the right technology. In addition, having loyalty options for all your locations can save you tremendous time and ensure the experience for your guests remains the same.

API INTEGRATIONS For those opening your second location this may not be as important, but as you open your 10th, 50th, and 100th, the ability to have API integrations to extend your POS’s insights across many different systems is imperative. With a best-in-class API from your restaurant POS, you can allow your technology to be seamlessly integrated across vendors or technology developed in-house, and - perhaps more importantly - have more flexibility to test into technology without being tied down if it is a mistake. Two specific integrations with your POS we heard were helpful were providers like Compete and Restaurant365 for accounting and financial analysis.


ROYALTY REPORTING For those of you who are franchised, being able to see the royalties and fees that are due to you can quickly allow you to manage these revenues quickly and easily.


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The Next Steps: Opening a Second (or 100th) Restaurant Location  

Toast Case Study

The Next Steps: Opening a Second (or 100th) Restaurant Location  

Toast Case Study