Restaurants Need Better Systems; Small Business Sales Slow

Most restaurants feel their current financial technology stack, which includes point-of-sale systems, needs improvement, according to SpotOn Transact LLC’s 2025 Restaurant Business report.

SpotOn’s survey found 84% of restaurants say their current financial systems need an overhaul. Of those, nearly half say they should spend more time on financial tracking, but struggle to do so. Overall, 99% of restaurants agree strong financial management is critical, according to the report.

SpotOn surveyed 200 U.S. independent and chain restaurants. The survey was conducted with consulting firm Penta Group LLC.

Factors fueling dissatisfaction include limited access to real-time financial data, inefficient tracking, and difficulty forecasting revenue, according to the survey. Less than half of operators have the financial data they need to make informed decisions, and only 15% can easily access key cost inputs like food and labor costs as a percentage of sales, according to the canvass.

“Many restaurants, independents in particular, lack the financial infrastructure of large restaurant groups and chains, making it harder to manage costs and pricing effectively,” Kevin Bryla, chief marketing officer for SpotOn says by email. “Time is another hurdle—nearly half say they need to spend more time on financial tracking but can’t. Without smarter, automated tools, operators are stuck with spreadsheets and guesswork.”

Modern financial systems include POS systems that act as financial hubs, tracking sales, costs, labor, and inventory in real time, Bryla adds. “[Some] 54% of operators say POS and inventory tools are critical for managing profitability,” he says. “Some POS systems also offer built-in lending, but only 12% of operators have explored POS-based financing, sticking to traditional loans instead.”

Many restaurant operators have limited access to the data and insights they need to run their business. “When financial data is buried in spreadsheets or disconnected systems, it’s difficult for operators to act on it in a meaningful way,” says Bryla.

Handicapping efforts to update financial systems is that operators are stretched thin. “Half of operators say they should spend more time on financial management,” Bryla says. “Financial management is essential, but with outdated systems, it becomes a manual, time-consuming burden and as a result is often neglected.

In related news, small-business sales and transactions grew in January and February, albeit at a slower pace than the same period a year ago, according to Fiserv Inc.’s Small Business Index.

Dollar sales for the two-month period increased 3.5% from a year earlier, about 1.5 percentage points less than in 2024. Lower average ticket size was the main culprit, while transaction growth remained steady, the report says.

Among the merchant categories showing growth were restaurants, furniture, auto parts, clothing and health care. Sales at restaurants increased 2.3% in February compared to the previous month, while transactions increased 3.9% during the period. Average ticket size declined 1.6% month over month, reflecting the overall trend in declining ticket sizes.

On a year-over-year basis, however, sales at small restaurants declined 2.4% during the period, in spite a 5.9% increase in foot traffic. “The pace of growth has slowed a bit, even though foot traffic is still strong,” a Fiserv spokesperson says by email. “Slowing growth with strong foot traffic is attributable to a decline in average ticket size.”

Fiserv’s Small Business Index is compiled monthly using point-of-sale transaction data, including card, cash, and check transactions in-store and online across 2 million small businesses in the United States.

While restaurants enjoyed an increase in monthly sales during February, service-oriented merchants saw a 0.2% decline in sales for the month. On a year-over-year basis, however, service-oriented merchants saw a 2.3% increase in sales.

Fiserv defines a service-oriented merchant as a business that provides services to its clients or customers rather than selling physical goods.

One reason service-oriented merchants saw a decline is that consumers are shifting their spending to retail and wholesale goods, the Fiserv spokesperson says. 

Service-oriented merchants posting the highest annualized growth rates were professional services (8.7%), religious, civic, and professional organizations (7%), and truck transportation (7%). Service-oriented merchants posting the largest sales declines were equipment manufacturing (-9.3%), rental and leasing services (-5.9%), and transit and ground passenger transportation (-5.2%).