Hospitality
4
min read

The Hospitality Industry’s Drive to Thrive: A Strategic Imperative for Operators

Learn more about how implementing AnyDay into your business will positively impact your bottom-line & help drive your business to thrive.
By
AnyDay Financial
March 25, 2024
4
min read

With the majority of restaurants now operating at a loss, restaurant leaders must rely on technology to support the forge ahead through monumental economic challenges.

A recent report from Restaurants Canada reveals that 62% of all restaurants are currently operating at a loss or barely breaking even (compared to just 10% pre-pandemic), adding that the industry’s remarkable growth has not translated into bottom-line growth for most operators.

An even bleaker stat, restaurants saw a notable upsurge in closures in 2023, with bankruptcies up 44% – the highest annual figure in a decade. Despite broader signs of recovery in the post-pandemic economy, restaurants are still facing a unique set of challenges — and the path to recovery seems uncertain and longer than anticipated.

In short, restaurants are really struggling. And to make matters worse, there are various government regulations being passed that continue to cause a strain on the restaurant industry, without providing solutions to help them stay afloat. 

This is an important moment in time for restaurant operators - a self-imposed call to action for hospitality businesses to actively lean into these challenging times, pivot strategically, and cultivate a culture of excellence to not only survive, but thrive in today’s competitive landscape. Within our technology-centric world, that means leveraging technology to overcome day-to-day challenges of operational efficiency, labour shortages and regulatory compliance, so that operators can focus on leveling up excellence in areas where technology intervention cannot be applied. 

AnyDay is a fintech built by hospitality, for hospitality - designed and just as importantly priced to serve restaurant operators for bottom line improvement, not impediment. 

There are some fintech companies in the market that build solutions for solutions’ sake. These fintechs prioritize their own profitability, without thoughtfully structuring a model that benefits both the operation’s profitability as well as the employees who work within it. This is a shortsighted and short-term strategy. Because the industry is already strained with rising operational costs, it’s almost impossible to absorb additional expenses related to technology.

AnyDay specializes in payments for operational efficiency, employee retention and regulatory compliance - with specific attention to how to create a win-win scenario for all stakeholders (not shareholders) by leveraging the power of technology. 

This means:

  1. Fair market price for operators to leverage technology so they can positively impact their bottom line through operational efficiency
  2. Support operators’ employees with fee-free methods to access their earnings 
  3. Offer employees the unique ability to retrieve earnings on-demand, which inturn helps employers recruit and retain talent through the benefits of instant earnings
  4. Ensure points 2 & 3 are facilitated in a secure, compliant and dependable manner

The momentum behind the movement for daily access to earnings — for both tips and hourly wages — is rapidly gaining traction across the U.S., Europe, and Canada. 

The premise of on-demand pay is straightforward: financial obligations wait for no one, and statistics reveal that many hardworking people lack sufficient savings to address unforeseen expenses. Whether it's a flat tire, an unexpected medical bill, or even a seemingly minor expense like $200.00, such situations can compel vulnerable workers to turn to high-interest credit cards, or hefty bank overdraft fees.

Providing fair and equitable daily access to earnings for workers is not just a moral imperative but also a strategic employee offering. As highlighted in a recent research study from Harvard Kennedy School, employers stand to benefit in four ways:

  • Reduced turnover costs resulting from improved employee retention.
  • Enhanced recruitment efforts driven by the appeal of on-demand pay.
  • Increased productivity stemming from better employee financial health.
  • Better payroll integrity across the entire organization.

There exists a realm where effective business practices and the art of running a profitable restaurant can coexist. This intersection occurs where software solutions add tangible value that operators experience immediately. It's a space where the cost-benefit analysis associated with the platform is meticulously quantified to warrant the investment through substantial cost savings. At AnyDay, we cultivate sustainable business models, and consistently innovate to enhance our offerings that continue to foster the win-win scenarios.

Let's be frank: if restaurant owners cannot sustain their operations, there will be no jobs, earnings, or tips to discuss. As food and alcohol costs continue to climb and the expenses associated with human capital increase, alongside challenges in recruitment and retention, restaurateurs are in dire need of relief. — Marilyn Schafer, CEO XTM Inc.

Apart from the intricacies tied to managing a profitable restaurant, operators must also navigate the complexities of CRA compliance and the ever-evolving employment standards. While Canadian regulators maintain pressure on the financial viability of restaurants, they also neglect to provide adequate support to the industry. As noted by Restaurant Canada President & CEO Kelly Higginson, “after almost 4 years of volatility, the federal government has failed to extend compassionate, meaningful support to the foodservice industry.”

Curious about CRA Compliance? Download our CRA Compliance guide today.

Fintech companies specializing in payments play a crucial role in providing financial support to hospitality businesses across Canada. Here's a proposed checklist of the top five digital payment essentials for restaurant operators to optimize their bottom line, enhance employee retention, recruitment, and workplace satisfaction:

  • Does my digital payment system streamline operations and save resources?
  • Does my digital payment system motivate and engage my staff, encouraging them to accept additional shifts by providing daily access to their earnings?
  • Are my employees able to access their earnings free of charge, and are their funds secure?
  • Does my payment provider promote financial inclusivity among my staff, offering a platform for them to improve their personal finance management skills?
  • Am I witnessing a substantial return on investment from my payment solution, equivalent to a minimum of 100%?

A weekly deposit into an employee's bank account may not meet the gold standard. On the other hand, offering on-demand daily pay, coupled with tools to enhance financial well-being, represents a thoughtful employee experience that gives employees more flexibility. 

Want to learn more about how implementing AnyDay into your business will positively impact your bottom-line & help drive your business to thrive? Learn more here.

All employees should have access to their earnings and tips without incurring any costs. It’s equally important to create a viable and sustainable business environment for restaurant operators, where employees are motivated to show up and perform at their best, while still allowing for restaurants to prosper. AnyDay is committed to fostering sustainable and rewarding environments for both hospitality businesses and their employees! Happy employees get paid AnyDay.

When everyone flourishes financially, it benefits all parties involved—a true win-win scenario. — Marilyn Schafer, CEO XTM Inc.

Learn more about our Earned Wage Access solution today!

Source: Restaurants Canada

Share this article
Contributors
AnyDay Financial