Restaurant Management System – an all-in-one solution

The restaurant industry is fast-paced and constantly changing. Making it challenging for restaurant managers to keep pace with the latest trends and best practices in the field. In order to streamline operations, improve efficiency, and reduce costs, many restaurants are turning to innovative restaurant management systems. These systems provide a comprehensive solution for all aspects of running a successful restaurant business. Restaurant Management System by Oak Business Consultant will help to develop software that helps streamline operations in a food service business. It can be used in restaurants, cafés, bars, takeaways, food deliveries, contract catering, cafeterias, and other food and beverage vendors.

Following are the characteristics of the Restaurant Management System.

• POS system (payment system) – Monthly Fee
• RMS – SaaS technology – subscription-based, support services: customization services (one-time price), Data migration services (one-time)
• Marketplace platform to bring multiple stakeholders onto one platform for better networking and integration of services to exchange goods and services

Background of Restaurant Management System (RMS)

This Case study focuses on restaurant management systems (RMS). These systems are cutting-edge technology solutions that help streamline operations and make running a restaurant business more efficient and cost-effective. Many restaurants today are turning to RMS as a comprehensive solution for all aspects of their business. From payment processing to communicating with suppliers and customers to inventory management.

The market for RMS is rapidly growing as restaurants look for best practices in order to stay competitive. Oak Business Consultant is a leading provider of financial consultancy when it comes to the restaurant industry. We have all the expertise to provide adaptable RMS solutions that can fit the specific needs of food service businesses. With extensive experience in the restaurant industry, our expert team can customize a solution that meets your unique business requirements. Also, it provides the tools you need to stay ahead of the competition.

Following are some of the highlights of this RMS. 

• POS is an automated cash register, and it is a conversion tool for currencies and tokens
• RMS is the SaaS technology, a subscription-based technology; there are different types of services in RMS. Customized services cost you a one-time price, and data migration services also cost you a one-time price
• It brings multiple stakeholders onto one platform for better networking and exchange of services.
• They were also looking to integrate tokens in their blockchain system over which the platform will be built. So, we gave them a feasibility report on integrating tokens into their system.

The Problem with the Restaurant Management Services 

• We performed market research to identify our potential target market and made estimates on our achievable market share.
• The main challenge was integrating the two types of scenarios, pre-money and post-money, into the model structure so that they could be adjusted from input tables.
  • In pre-money, they were developing services one by one, and revenue generated from one service would be invested in another.
  • In post-money, they were developing all the services at one time, so they needed to have additional investment for that.
• In the end, we had to provide a comparative analysis between the two scenarios to help the client make the best possible decision for its future strategies.
• Identify costs, find the exact solution and integrate it into the model structure.
• A complication for us was to give them flexibility and to keep input dynamics, which required implementing complex logic through excel formulas.
• A challenge for us was to adjust the additional investment. If it came in the middle of the business, we would have to make an adjustable model so that they only need to update values and get updated outputs
• The number of customers was changing from one service to another, so we had to keep up with that change and incorporate the feature where we could adjust the subscriber count when a subscriber upgraded from one service to another. Along with subscriber churn rate was also applied.

Solution for Restaurant Management Services

• We researched a number of restaurants worldwide and found the number of restaurants ready to shift to a new restaurant system and, in the end, what portion of the market we could capture. As a result, this restaurant management system by Oak Business Consultant is able to adapt to the changing market share percentages.
• We made a dynamic yet comparable model for two scenarios and used logical formulas to give flexibility to the client.
• We made two financial statements with different scenarios, pre-money and post-money, and compared them to analyze which one was cost-effective.
• Making the model dynamic while adding features for the revenue, how free trials will affect the revenue, and how add-on services will be beneficial for revenue. It was not easy, but our experts made it possible with their extraordinary financial expertise.
• Different types of subscriptions with different types of growth rates were calculated.
• We gave them flexibility in revenue calculation for upgrades and free trials.

Input Assumptions for Restaurant Management Services

We built two sections for input assumptions, one for pre-money and the other for post-money. The two scenarios were presented side by side so that the client could compare inputs and outputs easily. The input tab consisted of tables such as loan schedule, operating expenses, monthly employment payroll, and assumptions.

Market Validation

One of the most challenging parts of our research was finding out who could be our target market worldwide.

Total Available market TAM: total restaurants, food outlets worldwide

Serviceable Available Market SAM: Total restaurants that might be interested in the service

Serviceable Obtainable Market SOM: The market share that we expect to achieve.

Revenue Analysis

Revenue totally depends on users. The more users we have, the more our revenue will be. Through market validation, we calculated users. We also calculated the penetration rate. Based on these inputs and calculations, we built a dynamic revenue model that takes into account all factors affecting revenue generation. This allowed us to identify areas where adjustments might be needed for increased revenue and profitability. With the help of assumptions, we calculated pre-money revenue and post-revenue.

Pre-money Financial Statements

Having calculated data in pre-money revenue analysis helped us create pre-money financial statements for each scenario. We included revenue, operating expenses, and cost of sales in the balance sheet. Similarly, we created an income statement to show total revenue and net profit or loss.

Post-Money Financial Statements

We also built post-money financial statements using dynamic formulas. These statements allowed us to easily update any input changes from the model inputs section. This ensured that our clients had the most up-to-date information about how their business would perform under different growth scenarios.

Cashflow Statement

In addition to the financial statements, we created a cash flow statement that took into account the timing and amount of inflows and outflows from operations. This allowed us to identify potential funding requirements for our client’s business easily.

Balance sheet

In this balance sheet, calculations of total assets and total liabilities can be seen.

Depreciation table

This table shows the calculation of monthly and yearly depreciation.

Financial Analysis 

We analyzed the company’s performance by performing a complete financial analysis.

It includes CAC/CLV Analysis, break-even analysis, Ratio Analysis, Company Valuation, Capitalization Table, and sensitivity analysis.

1:CAC/CLV Analysis

It includes the cost of acquiring new customers and retaining them. And moreover the worth of the customer to your business. We have calculated the total users and total revenue for POS and RMS.

2: Break-Even Analysis

Being an integral part of our financial analysis, this section includes the total revenue, contribution margin, and break-even sales. These metrics estimate when the company will go into profitability. It also determines how many users we need in order to achieve and maintain breakeven.

3: Ratio Analysis

When it comes to conducting a well-rounded financial analysis, our experts make sure to include the calculations of different kinds of critical ratios to measure profitability.

4: Company Valuation 

We calculated the company’s Weighted Average Cost of Capital (WACC). Company valuation was performed based on discounted cash flow method to calculate NPV and IRR. We also calculated the minimum expected equity share to offer to investors. This way, they would be able to convince the investors for making the investment. Also, our pitch deck service is quite useful in this regard. 

5: (1.1) Capitalization Table 

It is the most important and crucial part of the financial model. We calculated the yearly Return for each founder on the basis of equity shares. And it shows how much of the investment each founder owns.

5 (1.2 ) Cash Utilization

This section summarizes how the investment will be utilized on a yearly basis. It gives an idea to the potential investors on where their money will be used and how it will help in the company’s growth.

6: Sensitivity Analysis

Sensitivity analysis helps the client get an idea of how much their profitability will be affected by the change (increase or decrease) of their customers/subscribers.

It is a critical part of our financial analysis as it helps get an estimate of how much flexibility your business has to maintain its profitability.

Dashboard

The dashboard provides a high-level overview of the key business metrics for your restaurant management business. It includes information such as total customers/subscribers, monthly and yearly revenue, cost of sales, profitability metrics, etc. We believe that this detailed financial analysis will help our clients make data-driven decisions to drive growth and maximize ROI for their business.​

Outcome

We made all these efforts on the client’s demand to compare two different scenarios and decide which one is profitable. Also, we did everything possible to make the model dynamic using complex formulas just to create ease for the client.

The analysis includes detailed information on key restaurant metrics such as revenue, profitability, cost of sales, and more. With our industry expertise and innovative approaches, we believe that we can help you maximize ROI for your restaurant management business and achieve long-term success. To learn more about our services and how we can help your business succeed, please contact us today.