A step-by-step guide to digitizing your back office

You know what they say, “If it ain’t broke, don’t fix it.” And this may be true for your great-grandmother’s pasta recipe, that sweater that’s sure to get a few compliments or your impeccable karaoke cover of the entire Cheetah Girls 2 album. But when it comes to restaurant operators getting a better grip on their back office, making even small improvements to existing processes can have a huge impact on your business.

Managing your back office may not be the most glamorous part of the job, but it’s a pretty important one. Whether it’s managing inventory, handling labor and scheduling, financial reporting or all of the other things that make up the behind-the-scenes of managing a restaurant, having a reliable system is key when it comes to maintaining and growing your business.

We know what you might be thinking: Why should I digitize my back office? My current system works great. The good news is that there’s always a way to make a good system even better. There are a lot of great things about digitizing your processes. Let’s go over a few.

Three reasons digitizing your back office is a game-changer for restaurants

• Efficiency: Digitizing your back office simplifies and automates important tasks like inventory management, labor scheduling and financial reporting. This reduces manual errors and saves time, allowing you to focus more on running and growing your restaurant.
• Scale smarter: A digital system provides a more reliable and scalable solution compared to manual methods. It ensures your back office can keep up with the demands of a growing business, making it easier to adapt to changes and challenges.

• Improve your current system: Even if your current system works well, digitization offers opportunities to make it even better. By upgrading to digital processes, you can unlock new efficiencies, insights and capabilities that elevate your restaurant's operations to the next level.

Digitizing your back office isn’t about kicking your current systems to the curb, but improving them, and in turn making one of the many hats you wear as an operator a little bit smaller.

Now that we’ve gone over a few ways digitizing your back office improves your business practices, let’s take a look at a few steps to begin the process of digital transformation (and don’t worry, it’s not as scary as you might think!).

A step-by-step guide to digitizing your back office

1. Identify your pain points

It’s no secret that manual entry for things like invoices and inventory can be time-consuming. In fact, according to 7shifts, the average restaurant operator spends more than 100 hours a year just on payroll, and a third of operators spend even more than that. Digitizing your back office can reduce administrative tasks by as much as 30%, giving you back up to 12 hours per week.

So, where do you start? Make a list of your biggest pain points.

What takes the most time? What processes experience the most errors? What feels outdated, overly complicated, or like something you’d simply like to take off your plate? This is a great step to collaborate with your team on. What pain points are they experiencing, or would they like to see improved? Be as specific as possible.

You can also start keeping a record of how much time you’re spending on specific tasks and go from there. Make a list of things you’d be able to get done if you got that time back (even if your answer is just a well-deserved nap!).

2. Set your goals

Now that you’ve got a grasp on what to improve, it’s time to create specific goals. Start by deciding what you want to achieve; whether it’s saving time, reducing errors, cutting costs or improving overall efficiency. Just make sure they’re measurable goals.

For example, you can swap out a goal like “I want to save time” and aim for something like “Reduce payroll processing time by 50% within the next three months.”

These goals should align with your broader business objectives, such as improving customer service, increasing profitability or just freeing up your and your team’s time.

It may be helpful to list goals in terms of priority. For example, which goal would have the biggest impact on your business? Which goals are more passive, or can be delayed if necessary?

By setting clear, specific goals and prioritizing, you’ll create a roadmap for success and ensure that your digitization efforts deliver the results you want.

3. Do your research

Once your goals are set, the next step is to research the tools and technologies that will help you achieve them.

Start by exploring digital solutions tailored to your specific needs, whether it’s payroll automation, inventory management or accounting software. Look for platforms that fit your business size, industry and budget, and pay attention to features like ease of use, integration capabilities and customer support because it takes a village to make systemic changes.

Take advantage of free demos and research reviews to get a sense of how each tool works to determine if it’s a match. Compare multiple options to make sure you’re making an informed decision, and don’t be afraid to reach out to customer service departments or onboarding teams with questions about their product’s capabilities.

The best route when picking a digital back office solution is to choose one that easily integrates with your existing systems. Remember, finding a digital solution shouldn’t feel like a job in itself. Pick a system that does the heavy lifting for you. Thorough research will not only help you find the right tools but also ensure that your choice delivers maximum value and supports your long-term business goals.

4. Take baby steps

Once you’ve found a digital solution, it can be tempting to dive headfirst into digitizing your processes. But just like when making tiramisu, good things take time.

Start by digitizing just one process. For example, if you’d like to start digitizing your vendor payments, start by setting up one of your bills with a digital bill payment solution.

Once you’ve gotten into the swing of things, begin adding additional bills until your entire system has been digitized. Then you’re ready to move on to another process to digitize, such as payroll or inventory management. By taking it one process at a time, you’ll create a solid foundation for a fully digitized back office without feeling overwhelmed.

5. Let's get digital 

Now that you’ve taken the steps to digitize one process at a time, you’re ready to incorporate your new processes into more areas of your business. Start with the goals you created in the beginning, in order of priority. How can your new digital tools help you achieve your other business goals? Most digital back office management tools today are multi-functional, especially with AI becoming more common, so ask your vendors and partners if there’s something that can help with another part of your operations.

Don’t be afraid of trial and error, and keep in mind that if a system isn’t working for you, there are endless approaches to take until you find the right one. Remember, digitization is about finding what works best for your business, so stay flexible and don’t hesitate to pivot if needed.

Your back office has been with you through thick and thin, but even the most reliable systems can benefit from a tune-up. Digitizing your back office not only improves your restaurant processes but also gives you back time and peace of mind. When you digitize, you identify inefficiencies, reduce errors and create a more effective foundation for your business. It’s an opportunity to not just improve your current systems but to reimagine how your back office can better support your long-term goals. With the right (digital) tools, you can make running your business smoother than chocolate pudding.