free app vs paid app profit

5 Reasons Why Restaurant Apps Should Cost Less

Journalists anticipate growth in the restaurant sector with technology playing a “key role” in maximising footfall; if this is the case do restaurants then deserve a low cost restaurant app? See our top five reasons why restaurant apps should cost less to help boost the industry’s recovery.

Contact us to talk in confidence about how a low cost app can help your restaurant thrive.

Reason 1 — Restaurants Already Have Enough on Their Plates

The first point is the most obvious: low cost restaurant apps help restaurants save money. This is crucial — especially when considering that restaurants already have too many costs to bear.

Take costs of goods for example. Restaurants rely on spending a reasonable amount on supplies and food ingredients — also on sustaining good relationships with suppliers. 

A New York Times report warns consumers that prices increase for goods; as such, food expenses are also expected to rise.

Read more: 12 Ways to Save Money on Restaurant Bills.

The same can be said for labour costs. Now the problem transcends dealing with payrolls — today restaurateurs have to worry about actually finding people to work for them. The combined effect of workers leaving for jobs elsewhere and extended furlough schemes have created staff shortages.

Celebrity chef Michael Caines, based in the UK, operates two restaurants Lympstone Manor and The Cove, both in south England. “Without question,” he has said, right now “recruitment is a challenge”. When it comes to sustaining business, “there’s a bit of nervousness from an employee’s point of view” — the problem threatens to limit business. 

However, there is still hope: Michael has also said that the summer season will bring a boost in recruitment as many people (e.g. students) will be on the lookout for restaurant jobs. 

What better way to ensure restaurants maintain a healthy business and make the most out of an app? Easy: keep overall costs low and make the app affordable.

Learn about users: Surprising Success of a Restaurant App in Northern Spain.

marketplace--low cost restaurant app--carl

Figure 1. Jean Talon Market by Carl Campbell via Flickr (creative commons 2.0)

Reason 2 Restaurants Have Tight Profit Margins 

The cost of restaurant technology is a thorn on the restaurant industry’s side. So let’s talk about profit margins: they’re already thin for many restaurants.

At the end of the year, profit is the total money earned after a restaurant subtracts all expenses from gross revenue. A quick scan of these expenses makes a restaurant’s service look pricey: rent, labour, payroll, card processing fees, refunds. . . . the list goes on.

So why add an app’s high-cost service fees to the list? 

Discover more: 7 Common Reservations with an Online Hospitality Platform.

After making end-of-year calculations restaurants simply don’t have a lot of money left. In fact, to be profitable, a restaurant must save as much money as possible — to pinch pennies, you could say.

Unlike other business-related apps aimed at other industries (i.e. retail management systems that have a customer base with a much larger gross revenue in overall profits and therefore can make the purchase), the hospitality industry cannot afford to make any more expenses. In a sense, a low cost restaurant solution is really the only option. 

profit calculator--low cost restaurant app--mike

Figure 2. Profit by Mike Lawrence via Flickr (creative commons 2.0)

Reason 3 Restaurants Will Always Face Tremendous Challenges

Restaurant apps should be cost less to support the hospitality sector — not further damage it.

Running a restaurant effectively is like walking a tightrope, a careful balancing act. Branding, staffing, menu design, business plans, loans, capital — these are the things restaurant operators need to focus on.

It’s no secret that many consider the restaurant industry a high-risk sector. When a restaurant opens its doors for the first time, both staff and operators have to grapple with tremendous challenges, doing everything they can to stay in business. Long hours and loads of planning are a traditional recipe for success.

Learn more: 4 Things to Know about a QR Code Ordering System.

We have all heard unlikely survival stories in the industry — restaurants on their last legs applying for more loans to prevent bankruptcy. When considering a low cost app vs expensive app, restaurants clearly need all the help they can get.

Not to mention the extended challenges related to COVID-19. 

“During the pandemic,” says Jennifer Leigh Parker, technology at the table “became essential”. Throughout 2020 New York saw many of its popular restaurants pay software companies to provide digital services, helping them to manage reservations, handling table capacity online.

Between 2020—21, amid mass closures and unprecedented competition with delivery companies, restaurants have suffered a lot in the name of casualties. Asking them for more — to pay huge sums for software plans —  is only a rough hand over an open wound.

In addition, dealing with no-shows and long waiting lines will always bug the industry. We discuss this more in other articles — find out how an affordable app counters these issues.

So the resolution is clear: Give restaurants ease of access to apps for both the here-and-now and for the post-COVID future. This will ensure that restaurants receive well-needed support for regrowth throughout the years ahead. 

Reason 4 Restaurants and App Developers Both Benefit

An easy, affordable app is mutually beneficial for both parties. 

One of the chief reasons developers choose to offer their app at a low cost is this: to increase user traffic and reach the largest audience possible. Asking for a high cost is a barrier of entry for many users. 

But when an app is cheap, there is little to prevent the user from downloading it.

Read about when Houston hired Carbonara App.

Making an app low cost is ideal for the restaurant operator and for the developer too. As developers increase their user base, restaurants will increase returning customers because an affordable app makes dining out convenient for everyone. It’s a win-win situation. 

Services like the Carbonara App make revenue via other activities, so there is no need to ask restaurants for any large costs whatsoever. Unlike other apps — which use adverts and freemium models to generate revenue — Carbonara App demands little from the end user. 

smartphone users public transport--low cost restaurant app--rawpixel

Figure 3. People Using Smartphones by Rawpixel Ltd via Flickr (creative commons 2.0)

Reason 5 Restaurants Require an Easy Option: Low Cost vs Expensive App

Carbonara App is a low cost option, designed to save restaurants money, and will always stay that way. 

Start free and grow your business with a flexible plan today!

Also, check out our ultimate guide to find out how an affordable restaurant reservation app compares to other options on the market.

Discover customisable restaurant seating features with Carbonara App.