Restaurant ERP vs. Restaurant CRM: What’s the difference?

Operating a restaurant has always been a daunting task. So much information and transactions have to be registered, compiled, and analyzed in a food and beverage unit. Earlier, most of these tasks were done manually, creating a big mess as transactions of various departments had to be reconciled to know the financial status of a food business. Using spreadsheets for accounting was a norm making it difficult to get a 360-degree view of the business’s financial status. 

A restaurant can somehow manage its business manually when operations run on a small scale. The real problem begins when they opt for expansion or scaling up of business. Compiling manually generates data from different outlets makes it extremely difficult for a restaurant to calculate the cost and profits, and there are greater chances of pilferage and unaccounted wastages. One of the major solutions to this problem is the digitization of the food business. 

Digitization of the food business makes it possible to compile data from all the outlets and analyze the bottom line of each unit. In case there is wastage or pilferage, the same can be detected and rectified before eating into restaurant profit. In short, the digitization of restaurants is no more an option but a necessity. There are two softwares used in a firm: ERP (Enterprise resource planning) and CRM (Customer relationship management). In the below article, let’s discuss the two digital avenues of the restaurant. 

What Restaurant CRM and its Benefits?

Customer relation management software is used to record the transaction and the details on the customer side of the business. In generic terms, the objective of CRM software is to collect all the customer’s details like their name, phone numbers, email IDs, and transactions. When it comes to the CRM restaurant, the most important feature is to simplify the process right from taking the order to collecting payment. Below mentioned is the most important features and functions of a restaurant CRM.

Basic POS:-

Point of sales is by far the most important module of a restaurant. A restaurant POS’s main function includes:

  • Punching orders in the system.
  • Issuing KOTs in the kitchen.
  • Issuing invoice and collecting the payment.

In this way, the transaction circle of an entire order is tracked and stored in the POS.

Online order management:-

During the pandemic, there was a steady rise in the orders received from the food aggregators like Siwggy and Zomato. Even as the pandemic declines, the orders received from the food aggregators and online orders of the restaurant website are still at an all-time high. Restaurant CRM software integrates with the food aggregators and receives, executes, and delivers orders smoothly. The flow of information from the CRM and the aggregator are so seamless that the end client can easily track at which stage of delivery the food is.

Maintaining Customer database:-

Another major function of a restaurant CRM is maintaining the details of the guest. Imagine how irritated the guest will be if every time they have to repeat their address when giving a food delivery order. An efficient restaurant CRM should be able to store information about the client and also keep it safe. Wishing guests by sending personal messenger or email on their special dates like birthdays and anniversaries can create a recall value for the restaurant in the guest’s minds. In short, a restaurant CRM also aids the restaurant in maintaining customer satisfaction.

Smooth Billing operations:-

Billing is one of the most important aspects of any business. A food business needs to see that the billing is done smoothly without guests feeling discomfort. Today, guests can pay through cash, credit card, UP, etc. The restaurant software should be able to take payment in whatever option the guest feels comfortable. A restaurant CRM should also be capable of splitting bills based on the amount of dishes with ease. 

What restaurant ERP and benefits?

ERP or enterprise resource planning is software used by restaurants for the day-to-day operations of a restaurant, especially for managing the inventory. The most important module of a restaurant ERP handles inventory management, followed by human resources, generating reports, etc. A few important components of an ERM are mentioned below.

Inventory management:-

If not managed properly, a restaurant’s inventory cost can be a resource drain for a restaurant. An inventory module of a restaurant ERP gives an exact movement of stock across the outlets, thus giving transparency to a food business. This helps prevent pilferage and losses and thus increases the business’s profit margins. It’s also possible to set alerts in your system when a food product is going overstock and then order immediately.

Supplier management:-

The restaurant buys from various vendors, and it’s a sane business practice of not depending on one vendor for all your needs. To procure the best deals, there needs to be a price comparison among the various vendors, which is one-way restaurants can reduce their costs. With an efficient restaurant ERP, all the suppliers can be managed from the dashboard. Now, one can see the real-time availability on your screen and purchase as per the availability. So no more making numerous phone calls and hassles; the entire transaction can happen transparently and seamlessly.

Detailed report generation:-

Detailed report generated by a restaurant ERP gives the proprietor all the happenings in every outlet without physically visiting the location. An enterprise resource software can generate details of sales made, discounts given, available stock, staff performance, etc. Analyzing the reports generated by this software allows you to decide on real-time data.

Third-party software integration:-

Restaurant ERPs have the provision of integrating the restaurant CRM. The integration makes it possible for the ERP to extract data from the CRM and prepare a comprehensive data report. These data include orders, billing details, and day-wise sales details. ERPs like SupplyNote make it possible to integrate third-party accounting softwares like Tally and also ecommerce sites like Shopify.

What is the difference between a restaurant CRM and ERP ?

DetailCRMERP
DefinitionSoftware meant for recording transactions and interactions with clients.Software that manages the business processes in a restaurant
UtilisationFront of the houseBackofffice and Administration
ObjectiveSimplify sales processMinimising cost
Used byMostly big food businessMedium and big food business
OrientationTowards CustomerTowards management
SpecificationSubsetSuperset

An ERP is most suitable for a chain restaurant; a standalone, moderate, and small food business will not find it profitable due to its scale of operation. Even small and medium-sized restaurants use a CRM and food businesses, which has become essential in today’s competitive environment.

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