How Software Mistakes Can Cost Your Restaurant

Technology is supposed to make restaurant operations easier. When it works, it does. But when it doesn't, it causes major problems. In 2017, software mistakes cost the economy 1.7 trillion dollars—that's trillion with a "T."

Understanding where software mistakes happen helps you avoid them in your restaurant.

POS Software Mistakes

Restaurant POS mistakes can result from several issues. The most common stem from having the wrong type of POS system.

Restaurants should use POS systems designed specifically for restaurants, not multi-purpose systems suited for any small business type. Generic systems lack:

• Table management features
• Order modification workflows
• Kitchen display integration
• Tip handling capabilities
• Restaurant-specific reporting

Installation errors represent another frequent problem. Improperly installed software creates numerous operational issues that may not surface until you're busy.

Some POS systems may also violate merchant services agreements, resulting in unexpected fees and penalties. Restaurant-specific POS vendors understand transaction types and online order classifications—which differ from standard retail transactions.

Learn about the best Clover POS apps for pizzerias.

Inventory Software Mistakes

Inventory management affects accounting, budgeting, and reordering processes. Despite its importance, most restaurants struggle with inventory software implementation.

The fundamental challenge: inventory software depends on people. Success requires:

• Appropriate software designed for food service
• Trained staff who follow procedures consistently
• Proper procedures for counting and recording
• Regular audits to verify accuracy

Generic inventory software doesn't account for:

• Spoilage and waste
• Recipe-based usage tracking
• Portion control monitoring
• Variance analysis

Restaurant-specific tools understand these unique requirements.

Accounting Software Mistakes

Most accounting software errors stem from user mistakes rather than software failures. Common errors include:

• Entering wrong numbers during manual data entry
• Misclassifying entries (is that repair an expense or capital improvement?)
• Dating transactions incorrectly
• Failing to reconcile regularly

Complex software amplifies these problems. Given the restaurant industry's fast pace, simpler, intuitive accounting systems perform better.

Additionally, many restaurants neglect regular backups of accounting data, creating serious risks.

The Backup Problem

Software investments are substantial for restaurants. Yet many operators don't back up their critical data regularly.

Consider what happens if you lose:

• Customer contact lists
• Historical sales data
• Vendor payment records
• Employee information
• Accounting history

Even minimal data loss in accounting and inventory systems can create complete operational disruption.

Backup best practices:

• Automate daily backups
• Store backups off-site or in the cloud
• Test backup restoration periodically
• Keep multiple backup versions

Prevention Strategies

The core principle: difficult-to-use software generates costly errors. Optimal software is user-friendly and restaurant-specific.

Reduce software mistakes by:

1. Choosing restaurant-specific tools that understand your business
2. Proper installation by qualified professionals
3. Comprehensive staff training before go-live
4. Regular data backups with verified restoration
5. Integrated systems that reduce manual data entry

When your POS automatically updates inventory and feeds into accounting, you eliminate the manual steps where errors occur.

Choose Wisely

The right software saves time and money. The wrong software costs both—plus creates frustration for you and your staff.

Want technology built for pizzerias? Schedule a demo to see how Restaurant Fire integrates seamlessly with Clover POS.