# The State of the Restaurant Industry

A comprehensive look at the challenges, opportunities, and winning strategies shaping the future of restaurant operations.

## The Shift

### Consumer behavior has structurally changed

Digital ordering has fundamentally transformed how guests interact with restaurants

1st party digital  
3rd party delivery

By 2025, approximately 75% of restaurant traffic is off premise or digitally influenced.

## Market Reality

### Digital ordering is no longer a side channel

45% of total restaurant orders are now digital.  
Digital is the fastest growing order type — and the gap is widening.

## Channel Economics

### Not all digital orders are created equal

**1st Party Digital**  
Kiosk, app, web ordering  
- Full margin retention  
- Complete guest data ownership  
- Direct relationship building

**3rd Party Delivery**  
DoorDash, Uber Eats, etc.  
- Average 25% commission fees  
- Limited customer data access  
- Platform controls the relationship

## Margin Pressure

### The structural tax of 3rd party growth

$100 Guest Spend  
-$25 Commission  
-$8 Fees  
$67 Net to You

Commissions averaging 25% often exceed total store margin, making volume growth unprofitable.

## The Challenge

### A paradox is emerging

- **Digital Sales**: Growing rapidly  
- **Net Margin**: Shrinking faster

Growth through high commission channels compresses already thin margins.

## Cost Structure

### Labor costs keep rising and there's no turning back

40% of Sales Labor cost and climbing.  
Minimum wage increases and staffing shortages are permanent. Automation is the only path forward.

## Strategic Reality

### Restaurants are fighting on two fronts

**Battle 1**: In Store  
- Win the guest at the physical location with speed, accuracy, and efficiency

**Battle 2**: Online  
- Own the digital relationship and capture margin from direct ordering

### Battle 1: In Store

#### Increase in store traffic and throughput

**Highest Margin**: Orders with zero commission  
**Full Control**: Own the guest experience  
**Labor Efficiency**: Do more with less staff

Guests want speed, accuracy, and autonomy. The best operators deliver all three.

### Battle 2: Online

#### Increase the share of 1st party digital

**Unavoidable Demand**: Digital growth is accelerating  
**Margin at Risk**: 3rd party erodes profits  
**Own the Relationship**: Build direct guest connections

~70% of consumers prefer ordering directly from restaurants when given the option.

## The Problem

### Fragmented tools create fragmented decisions

Most operators are running 6+ disconnected systems  
- POS  
- Kiosk  
- Mobile App  
- Delivery  
- Loyalty  
- Reporting

### No Unified View

No unified view of guests, orders, or performance.

## Hidden Cost

### Operators have data but lack clarity

- **Slow Pricing**: Decisions take days instead of hours  
- **Reactive Promotions**: Always behind the curve  
- **Limited Visibility**: No store level insights

The biggest cost is slow decision making.

## Best Practices

### What top operators do differently

- Default guests into 1st party ordering  
- Absorb volume without adding labor  
- Centralize transaction and guest data

Top operators treat digital as infrastructure, not a channel.

## The Digital Front of House  Operating System

Built to win in store and online — without margin leakage

## Revi Ecosystem

### Unified touchpoints fueling growth

Every interaction feeds a single customer intelligence layer.

- POS  
- Kiosk  
- Phone Ordering  
- App  
- Web  
- Loyalty

### Unified Customer Experience

Single view of every guest.

## Data Collection

Every transaction enriches profiles.

## Auto Retargeting

AI campaigns that run themselves.

## Revi Solution

### Shift demand from 3rd party to 1st party

Commission free ordering saves 15 to 30%  
Unified guest and transaction layer  
Full data ownership 100% yours  
Every order builds your customer asset.

## ROI Impact

### Real results at the store level

- **15-20% Labor Hours Saved** per location per month  
- **$3-5K Commission Avoided** per location per month  
- **8-12% Revenue Increase** from upsells and loyalty

## Enterprise Value

### Small inefficiencies compound across locations

- **Fragmentation Breaks**: At 20 to 50 locations, disconnected tools fail  
- **Franchisees Demand ROI**: Clear visibility into what's working  
- **HQ Control**: Consistency without micromanagement

## Compounding Value

### Short term growth that compounds into long term advantage

Drive immediate revenue while orchestrating future transactions.

### Today's Transaction

Smart upsells, menu optimization.

### Tomorrow's Demand

Behavior capture, retargeting.

Every transaction today builds your competitive advantage for tomorrow.

## Franchise Value

### Own Your Customers.  Multiply Your Value.

- +40% Higher AOV - Average Across Locations  
- 100% Data Visibility - Across All Stores  
- 3x Exit Multiple - With owned customer data

Each location strengthens the entire system's value.

# Revi Suite + ReviOS

- **Operations**  
- **Growth**  
- **Scalability**

### Physical

- Full suite POS  
- Kitchen Management  
- Hardware & Software  
- Kiosk  
- AI agents for phone orders  
- QR Codes and table side ordering

### Digital

- Enterprise Dashboard  
- Employee Management & Payroll Management  
- Automated Franchise Fee collection and invoicing  
- White label Web & App  
- CRM & Loyalty  
- AI phone order  
- Full Stack Marketing Dashboard  
- Fully automated marketing engine  
- SEO, email campaigns, SMS blasts

## Control the digital front door.

## Protect the margin.

## Scale without complexity.

Win both battles with one unified system.