Discover how restaurant inflation is reshaping the industry and explore expert tips, AI tools, and pricing strategies to maintain profitability in 2025.

Restaurant inflation: how rising costs are impacting the industry

Skyrocketing costs and Trump administration’s tariffs are forcing most restaurants to reinvent nearly every aspect of their operations in 2025. Menu prices have risen 27.2% since 2019 according to the U.S. Bureau of Labor Statistics, and Civic Data found in its Q3 2024 report that 55% of U.S. adults are spending less on eating out. From menu design and staffing models to pricing strategies and loyalty programs, restaurant owners and franchises are looking for ways to mitigate the rising costs. 

How do you, as a business owner, manage escalating costs across food, labor, rent, and utilities while addressing the drastic change in consumer behavior? In this article, we’ll answer your pressing questions by exploring:

Inflation's impact on restaurant profitability

Technology solutions that can help businesses thrive

Don’t let ongoing cost pressures crumble your business. Whether you’re running an independent eatery, a franchise, or a coffee shop, there are ways to navigate the turmoil. Through menu engineering, dynamic pricing, and a whole lot more, Otter’s guide will help you navigate the waves of restaurant price inflation in 2025.

If you think inflation leads to simple price increases, think again. The current economic landscape is fundamentally altering operational dynamics and reshaping customer relationships. Here’s what we’re seeing:

Profit margins are already thin for this industry, and restaurant owners today are caught in a difficult price balancing act. While costs for ingredients, labor, and utilities continue rising, not all customers understand the coincidental increase in food prices. This type of compression leads to tough decisions about menu offerings, staffing levels, operating hours, and portion sizes. To adapt, restaurants are incorporating the following:

Menu adjustments: Operators are removing high-cost or low-margin items, and simplifying dishes to reduce waste and preparation time

Staffing changes: Owners are cross-training staff and tightening schedules to optimize efficiency

Decreased hours: Some establishments are shortening operating hours to cut labor and utility expenses

Money sensitivity has become a dominant factor in dining decisions. Price is now, more than ever, a top consideration for diners when choosing where to eat. Heightened cost consciousness is changing the way people dine out and order.

36% of respondents to a Revenue Management Solutions survey said they plan to dine out less in 2025

The same study revealed that 79% of diners are more likely to return to their preferred quick-service restaurant instead of trying somewhere new

According to Push Operations, more consumers are seeking bundled deals and loyalty programs to get more value for their money

Push Operations also found that 53.1% of consumers feel fast food prices are unfair

Raising prices without losing customers is a delicate task. Restaurant owners are employing all kinds of strategies, from combo meals to portion control. Others are emphasizing high-quality ingredients or an unwavering commitment to sustainability to justify higher prices and enhance their perceived value.

Some of the most effective solutions lie in leveraging technology. Tools like AI-driven pricing models, predictive analytics for inventory management, and labor automation can help streamline operations and improve profitability. We will explore this idea in more detail in the next section.

The real effect on restaurant operations and profits

In December 2024, restaurant chain Chipotle raised national menu prices by 2% to offset rising costs for ingredients essential to their meals, including beef, dairy, and avocados. To justify the increase to customers, Chipotle focused on their generous portion sizes, proving to restaurants all over the country that rising costs does not mean bankruptcy. 

Let us help you navigate today’s inflationary economy. Here is a list of tangible ways today’s restaurants are managing rising costs and supply chain disruptions.

Large and small restaurant owners are reimagining menus to uphold current margins without alienating price-conscious diners.

Reducing SKUs: By eliminating underperforming or high-cost items, it’s possible to reduce food waste and labor costs while keeping a focus on the most profitable dishes (smaller yet delicious menus for the win!)

Ingredient substitutions: Replacing expensive imported ingredients with quality domestic alternatives maintains the menu’s integrity at significantly lower prices

Strategic pricing: Implementing incremental price increases on high-margin items minimizes customer resistance while protecting the bottom line

Portion adjustments can help manage costs, but restaurants must be careful with implementation. Lightspeed’s 2024 State of Hospitality report found that 40% of diners have noticed "shrinkflation" and many are not happy about it. To ensure subtlety, here are a few strategies to use:

Smaller plates or standardized portion scoops that create consistent serving sizes

Introduce portion changes in a positive way to staff, emphasizing quality, sustainability, or reduced waste

Offer tiered portion options so customers have a choice in dish size while optimizing food costs

Forward-thinking restaurants are leveraging technology to navigate inflation and seeing positive results. 

AI-powered analytics: Using artificial intelligence to optimize marketing promotions, menus, pricing, and inventory based on actual sales data and trends

Labor automation: Implementing self-service kiosks and automated scheduling tools to manage rising labor costs while improving service

Predictive forecasting: Employing advanced and unified analytics to anticipate customer demand patterns, optimize staffing, decrease downtime, and save money

A restaurant operating system, like Otter POS, already has the essential tools you need for inflation management.

Pricing controls: Adjust menu prices in just a few clicks––across all locations and channels––based on demand patterns to ensure profit during peak times and offer strategic discounts during slower periods

Integrated marketing: Targeted promotional campaigns on top delivery apps help restaurants attract customers across multiple channels without relying on broad discounts

Real-time menu updates: Instantly update menu items across channels and delivery platforms to quickly respond to changing ingredient costs or customer preferences

Restaurants weathering inflation with success are embracing these multi-faceted approaches. By combining thoughtful menu engineering, careful portion management, and strategic technology adoption, they’re able to maintain profitability while continuing to deliver value to customers.

Tips for restaurants responding to inflation

AI technology has emerged as a critical tool for restaurants battling inflation. The good news is AI is now accessible to businesses of all sizes through platforms like Otter Marketing.

Predictive pricing & menu optimization: AI analyzes sales data and customer behavior to identify optimal price points and menu combinations that maintain profitability without sacrificing customer satisfaction. Otter's menu optimization features help restaurants identify their most profitable items while preserving value perception.

Smart inventory & order management: Intelligent systems predict ingredient needs based on historical patterns and demand forecasts. This reduces waste and over-ordering and directly addresses food costs, one of the most inflation-sensitive expenses. Otter's order management system helps restaurants optimize purchasing and inventory control.

Automated marketing & loyalty: AI identifies customer preferences to create targeted promotions that drive repeat business without broad discounts. Otter's loyalty tool enables personalized marketing that increases average check size while enhancing customer experience.

Labor optimization: With labor costs rising, AI scheduling tools match staffing precisely to anticipated demand, eliminating costly overstaffing while ensuring proper coverage when needed. These systems help control restaurants' second-largest expense category.

Today's restaurant AI solutions feature user-friendly interfaces that don't require technical expertise, making powerful inflation-fighting tools accessible to independent restaurants and small chains. Through platforms like Otter, all restaurants have access to tools that help maintain profitability despite the current economic climate.

Using AI to stay profitable in an inflationary environment

It’s no secret that recent tariff impositions are intensifying an already-challenging economic environment. At the time of writing, trade policies have added a 10% baseline on imports from most countries, with rates exceeding 125% on goods from China. For an industry operating on thin profit margins, these tariffs represent a significant crunch on top of existing inflation.

The effect of tariffs on the restaurant industry 

Restaurants are particularly vulnerable to tariff-related cost increases in several key areas:

Food imports and specialty ingredients: The U.S. is dependent on imports for coffee, cheeses, spices, seafood, oils, and wine. Fresh produce costs alone are projected to rise by 4%.

Equipment and supplies: Food isn’t the only item in the kitchen affected by trade relations. Tariffs on aluminum and steel are increasing costs for kitchen equipment, utensils, and packaging materials, creating additional expense categories beyond just food.

Beyond price increases, the tariffs immediately disrupted supply chains. As a result, restaurant owners are seeing shortages in critical ingredients, complicating menu planning and inventory management.

Strategic restaurant responses to tariff pressures

Despite the current touch-and-go nature of the tariff situation, restaurants are working to implement tariff-specific strategies alongside their broader inflation responses.

Supplier diversification: Reducing dependency on heavily tariffed regions like China or the European Union by cultivating relationships with domestic producers.

Contract negotiation: Securing bulk purchasing agreements or locking in prices before tariffs take full effect to hedge against future volatility.

Menu engineering with tariffs in mind: Redesigning menus to highlight dishes less affected by tariffs, reformulating recipes with domestic alternatives, and using bundling to protect margins.

Addressing tariffs and inflation as interconnected challenges can help ease the blow. Restaurant owners are now incorporating tariff considerations into their broader inflation response strategy, hoping to maintain profitability while still delivering value.

How tariffs are amplifying restaurant inflation in 2025

The restaurant industry is an adaptive one, and everyone from upscale dining to food trucks are navigating themselves with grace through 2025’s inflationary ups and downs. While price increases are moderating compared to these last years, the cumulative impact and evolving consumer behaviors are transforming the dining landscape.

Here’s what we know: the severe price hikes of 2022-2023 appear to be easing, with full-service restaurant menu prices projected to rise by 3.6% in 2025. This is a significantly more manageable rate than previous years. 

However, underlying pressures continue to remain consistent across multiple expense categories. To offset food costs like outlandish egg prices, labor, rent, utilities, and debt service, there has been a 27.2% cumulative increase on menu prices since 2019. Restaurants must maintain their focus on operational efficiency and strategic pricing in order to prevail.

With higher menu prices, consumers are cutting back on dining out in favor of bulking up at grocery stores and eating in. Those that do eat out are prioritizing deals and loyalty programs more than ever. Instead of giving up, successful restaurants are responding by developing "value narratives" that help customers understand why their dining experience justifies the cost. Through newsletters and social media, restaurants are showcasing their portion sizes, ingredient quality, unique offerings, or exceptional service to encourage traditional in-house dining.

The most resilient restaurants are also embracing adaptation through technology. By implementing AI-driven solutions and self-service kiosks, it's possible to optimize pricing, inventory, staffing, and marketing strategies for higher profits. Some are developing hybrid models that combine dine-in, takeout, retail products, and virtual restaurant concepts. Tiered pricing options, bundling, and enhanced loyalty programs are also proving to be resilient methods in today’s fluctuating economic climate. 

What the future holds for restaurants amid ongoing inflation

While inflationary pressures will likely persist through 2025, they may stabilize at more moderate levels than the turbulent post-pandemic period. Restaurants that embrace technology, operational efficiency, and transparent customer communication will be best positioned to overcome this evolving environment.

For diners, even though the future likely holds continued menu price increases, there will also be an increase in value-conscious options. This means better quality ingredients, more unique experiences, and a focus on convenience. Opportunities for innovation are growing, giving restaurants a rare chance to differentiate themselves from the pack despite rising costs.

Otter’s latest restaurant product features for April. Review guest profiles and loyalty programs using a new app and reports, control your menus better, and prep in batches with KDS. Plus POS sequential ordering number system for better workflow is here.

Otter Product Updates – April 9, 2025

What: Guest profiles, previously found in the Marketing app, can now be found in the new Guest Directory app. The directory will contain guests who order through your Otter POS, Otter Kiosk, and Online Ordering channels. You can also adjust their Loyalty program’s points balance if they’re enrolled in one. 

Value: Previously, there were no easy ways to search for a particular guest or manage their loyalty balance. Now, it’s all streamlined into our one intuitive, easy-to-use platform.

What: A new report in Analytics shows you how your loyalty programs are performing, with breakdowns of the percentage of loyalty orders to total orders and details per loyalty order. 

Value: With new reports, you can track loyalty program adoption and performance, solving a challenge that previously made it difficult to assess their effectiveness.

What: Users now have the option to switch to a sequential order numbering system, with order numbers generated according to predefined parameters. This feature can be configured in the Otter POS settings within the Otter Dashboard. 


Value: The current numbering system generates a random sequence of numbers and characters. With this update, front-of-house and back-of-house staff can work and coordinate tasks more efficiently with less risk for error by calling out order numbers.

What: Toggle to a new All Day View to see a list of all items ordered across all active tickets, regardless of channel. Open the All Day View panel and tap the items to highlight which orders they belong to. 


Value: Preparing ingredients common across several menu items is much easier when you can chop, boil, or bake them in one go. With the All Day View, you can forecast how many you’ll need to prepare with a simple list instead of checking every order.

What: Supervisors can adjust drawer starting balances, pay-ins and pay-outs, and closing balances using the Drawers app. Edited fields will be noted beside each item, showing when and who made the updates. 


Value: Make it easier to correct mistakes after reconciling discrepancies with balance editing.

What: Make some of your modifiers preselected by default. For example, when a customer orders fries, a ketchup packet can be preselected to accompany it. The customer can still choose to remove it upon checkout. To set this up, head to the Menus app and edit the modifier group you need.


Value: Making some modifiers preselected can speed things up for you and your guests. They will no longer have to scroll through your menu to find the necessary condiment or utensil.

What: Entire menus, categories, items and their modifiers, or modifier groups can have their own internal names that only you and your staff can see. These will be the names used by Otter POS and KDS for your staff to refer to. You can also search using these names. 


Value: Create a shorthand that only you can see for some of your menu items to make it easier for you and your staff to search for them while keeping them enticing and descriptive for your guests.

What: Reorder your categories and items to prioritize what is shown first or last. Head to the Menus app, select the reorder button, and drag items with items at the top shown first. Your customers will see these changes if their ordering channel supports them. 


Value: The simple ordering of your menu items can impact your sales. Items seen first can be purchased more often, especially if the menu is long.

What: Control when tickets are printed. Dine-in tickets can be printed when the order is sent or when the customer’s tab is closed. All other tickets can now be printed only when the order is adjusted. Head to the settings page of your Order Manager or Otter POS device. 


Value: More control over printer settings allows you to personalize your Otter products to your restaurant's workflows.

Order Manager and Otter POS: Printer Configurations

Is your restaurant ready for franchising? Our new guide shares the blueprint successful brands use to expand, covering everything from operations manuals to franchisee recruitment. Unlock new revenue streams while maintaining quality across multiple locations!

How to franchise a restaurant: A step-by-step guide for success

In the year 1919, Roy W. Allen opened his first root beer stand in Lodi, California. It was such a hit amongst the locals that by 1922, Allen partnered with his employee, Frank Wright, to open a brick-and-mortar business called A&W. Three years later, it became the first restaurant to franchise in the United States, paving the way for the modern fast-food franchise system we know today.

Franchising is an alternative path to traditional restaurant ownership. It gives entrepreneurs the chance to open a dining establishment while sharing the possible risk and reward. With a franchise, you can expand your restaurant’s brand without fronting the costs of opening new locations. Instead, other business owners, known as franchisees, can invest their money and time to run restaurants using your brand, recipes, and systems. The benefits of franchising, like faster growth and extra income from fees, come with challenges, such as legal requirements and quality control across multiple locations.

Otter, a leader in optimizing modern restaurant operations, has compiled a guide to help you turn your restaurant into a successful franchise. We'll cover everything from how to know if your restaurant is ready for franchising to marketing your franchise opportunity. By following these steps, you'll be well-prepared to join the ranks of successful restaurant franchises throughout the country.

A restaurant franchise is a business agreement where the owner of a restaurant brand (the franchisor) gives another business owner (the franchisee) the right to use their brand name, menu, and business system in exchange for royalty fees. The franchisee gets to open a restaurant using a proven business model, while the franchisor can grow their brand without investing all the capital themselves.

There are several types of restaurant franchises:

Single-unit franchises: A franchisee owns and operates one location.

Multi-unit franchises: A franchisee owns multiple locations within a specific area.

Area development franchises: A franchisee has the rights to open a set number of locations in a region.

Master franchises: A franchisee can sub-franchise to other individuals.

Well-known examples of restaurant franchises include McDonald's, Subway, Domino's, Taco Bell, KFC, Dairy Queen, and Pizza Hut, each of which has thousands of franchised locations worldwide. Smaller businesses often find a lot of success in franchising their establishments, including Otter client PONKO Chicken.

That’s good news, because the restaurant franchise industry continues to show strong growth. According to the International Franchise Association, quick-service restaurant (QSR) franchised units are projected to grow by 2.2% in 2025, reaching 204,366 establishments. The overall output of the QSR franchise sector is forecasted to increase by 5.4% in 2025, meaning it will outpace general economic growth for the second year in a row. Numbers like these are encouraging for restaurant owners considering franchising as a path to expansion.

In a restaurant franchise relationship, there are two key parties, each with their own responsibilities and benefits. 

A franchisor is the original restaurant owner. They've developed a successful concept and want to expand without opening every new location themselves, so they license their brand and business model to others. Famous franchisors include McDonald's, Subway, and Domino's Pizza.

A franchisee is the business owner who purchases the rights to operate a restaurant under the franchisor's brand. They invest their own capital and run the day-to-day operations while following the franchisor's established system.

The franchisor offers valuable assets and support systems, including, but not limited to:

Brand name, logo, and intellectual property rights

Detailed franchise staff training programs

The franchisee takes on various operational and financial obligations in their particular location, such as:

Initial franchise fees and ongoing royalties

Operational guideline adherence and brand standard maintenance

The relationship between franchisor and franchisee, as well as a location’s success, is interdependent. The franchisor only flourishes by working with capable franchisees who maintain quality standards and grow the brand's reputation. Meanwhile, franchisees rely on the franchisor's established support systems, marketing power, and continued innovation to stay competitive.

For restaurant owners thinking about becoming franchisors, this relationship presents both opportunities and challenges. Let’s get into the nuts and bolts of restaurant franchising for both the buyer and the seller.

McDonald's is the perfect example of the benefits that come with a successful franchise model. A highly standardized and replicable system makes it easy to scale across diverse geographic locations. Every aspect of a McDonald’s franchise, from menu items to operational procedures to restaurant design, is uniform, making it simple for franchisees to adopt the business model.

How does it work? McDonald’s provides each franchisee with a comprehensive training program, detailed operational manuals, and a robust support system, ensuring a consistent brand experience worldwide. The result speaks for itself: Forbes reports that in 2023, McDonald's earned a total profit of $15.4 billion from its global network of franchises.

By carefully considering these pros and cons, and learning from successful examples like McDonald's, you can determine whether franchising is the right growth strategy for your restaurant business.

Real-world example of a successful franchise: McDonald's

Turning your restaurant into a successful franchise requires careful planning and execution. Here's a step-by-step guide to help you navigate the process:

Step #1: Assess your restaurant's franchise potential

Before diving into franchising, evaluate whether your restaurant concept is truly ready for expansion. A franchisable restaurant typically shows:

Consistent profitability over multiple years

A strong, distinctive brand that stands out from competitors

Systems and processes that are easy to replicate

Customer loyalty and demand beyond your original location

To determine potential, ask yourself the following questions:

Has my restaurant been profitable for at least 2-3 years?

Is my concept unique enough to attract franchisees?

Can someone else run this business using a detailed manual?

Do I have the financial resources to develop a franchise system?

Is there market demand for this concept in multiple locations?

If you answered "yes" to these questions, your restaurant may be ready for franchising.

Step #2: Create a franchise business plan

A comprehensive franchise business plan outlines your expansion strategy and financial structure. In it, you should include:

Your chosen franchise model (single-unit, multi-unit, area development, or master franchise)

Financial structure, including initial franchise fees, royalty percentages, and marketing fees

Franchisee qualification criteria, such as access to liquid capital, management experience, creditworthiness, and net worth

Territory protection policies that define the geographic areas where the franchisee is authorized to operate

Estimated costs for franchisees (initial investment, working capital)

Support systems you're committed to providing to franchisees

This plan will guide your franchise development and serve as a reference for potential investors and franchisees.

Step #3: Understand legal and regulatory requirements

Franchising comes with substantial regulatory obligations, particularly in the United States. Key legal requirements include:

Providing a Franchise Disclosure Document (FDD), which must be given to potential franchisees at least 14 days before any agreements are signed

Registering properly in states with specific franchise registration requirements, such as California

Developing franchise agreements that protect your intellectual property

Establishing trademark protection for your brand name and logo

Working with an experienced franchise attorney is critical at this stage. The legal documentation is complex and mistakes, even small ones, can lead to significant problems down the road.

Step #4: Develop a franchise operations manual

Your operations manual is the blueprint for your restaurant franchise. It ensures consistency across all locations by documenting every aspect of your business. Be sure to outline:

Service standards and customer interaction guidelines

A comprehensive, well-organized operations manual is crucial for maintaining quality across all franchise locations. Using point-of-sale systems like Otter’s can help streamline operations for both you and your franchisees.

Technology plays a vital role in modern restaurant franchises. Some franchise systems require specific POS and online ordering solutions, while others allow franchisees to choose from a list of approved options.

Investing in a unified platform for ordering, inventory management, and reporting to make implementation of the new location as seamless as possible. Otter, for example, provides an integrated system that helps maintain consistency while giving franchisors access to visible performance statistics across new markets.

Finding the right franchisees is critical to your success. Look for individuals who:

Have relevant business or restaurant industry experience

Demonstrate strong work ethic and people skills

Once you've selected franchisees, they will need access to a comprehensive training covering all aspects of the business. A franchisor will usually provide:

Classroom training at the franchise headquarters or original location

On-site training at an existing restaurant

Opening support at the franchisee's new location

Ongoing training and development opportunities

The better your training program, the more successful your franchisees will be.

Step #7: Market and launch your franchise

With your system in place, it's time to market your franchise opportunity and foster the launch of new locations. Effective marketing strategies include:

Attending franchise expos and industry events

Leveraging digital marketing and public relations campaigns to reach potential franchisees

For each new location, provide promotional support to ensure a successful grand opening. Tools like Otter's AI marketing capabilities can help franchisees attract and retain customers in their local markets.

Whether you're a restaurant owner looking to expand your brand or an entrepreneur interested in opening a franchise location, understanding the advantages and disadvantages of the franchise model is essential. This balanced perspective will help both franchisors and franchisees make informed decisions when entering a franchise relationship.

Fast business expansion with lower financial risk: Franchising is an opportunity to grow your restaurant brand quickly without the financial burden of a full investment. Your franchisees provide the capital for new locations, reducing your risk.

Shared marketing and brand recognition: As your franchise network grows, so does your marketing power. With multiple locations comes greater brand visibility, with the added benefit of shared marketing costs. 

Additional revenue from franchise fees and royalties: Franchising creates new revenue streams that go far beyond the sales of your original restaurant. You'll collect initial franchise fees when new franchisees join your system and ongoing royalties based on their sales. This can significantly increase your overall profitability.

Franchisees take on operational responsibilities: Day-to-day management of locations falls to your franchisees, freeing you to focus on brand development and a franchise support system. Tools like Otter’s POS system can help franchisees manage their operational responsibilities more efficiently.

High upfront legal and business setup costs: Creating a franchise system requires significant investment in legal documentation, operations manuals, training programs, and support systems. These investments are necessary prior to selling your first franchise.

Risk of inconsistent customer experience: When different people operate your restaurants, maintaining consistent quality can become a challenge. Customers expect the same experience at every location, and variations can damage your brand.

Loss of direct control over day-to-day operations: While you create and provide the system and guidelines, franchisees will still make many decisions independently. This loss of direct control can be difficult for restaurant owners accustomed to overseeing every detail.

Legal and compliance challenges: Franchising is heavily regulated, meaning there are many rules to follow. This includes providing detailed information and continuously ensuring you comply with the law. These regulations make running a franchise more complicated and expensive.

Franchising your restaurant can be a rewarding way to grow your brand and create new revenue streams. The journey from single restaurant to successful franchise requires careful planning, significant investment, and ongoing commitment to your franchisees. By following the steps outlined in this guide, you'll be well-positioned to build a franchise system that benefits both you and your franchisees.

In today’s franchising world, the benefits of technology cannot be overlooked. Modern tools for reporting and analytics give franchisors visibility into each establishment’s performance, helping identify both problems and opportunities. Digital systems for ordering, inventory management, and marketing enable franchisees to operate efficiently while maintaining brand standards. By investing in the right technology infrastructure, both franchisors and franchisees will enjoy continued success across locations.

Otter empowers restaurant franchises with a cloud-based POS system that automates operations, enhances order management across locations and channels, and boosts sales. From AI Marketing to real-time analytics and self-service kiosks, Otter is elevating franchises globally. Book a demo today.

Why restaurant franchises are switching to Otter’s all-in-one system

The restaurant franchise business is evolving. With sales projected to hit $1.5 trillion in 2025 and millions of jobs driving the sector forward, staying afloat isn’t enough. Franchise operators now face a new set of challenges: shifting consumer preferences, rising labor costs, and the dominance of delivery and takeout.

Quick-service restaurants are gaining traction, ghost kitchens are booming, and consumers expect digital convenience. These shifting operational and customer demands are pressuring restaurant owners to find smarter, more efficient ways to run their businesses.

Otter’s cloud-based POS solution—along with Always On, Revenue Recapture, Analytics, and Kiosks—helps franchise businesses overcome these changes, streamline operations, and boost sales across all locations. By leveraging AI-driven automation and data-driven insights, restaurants can reduce errors, improve efficiency, and capture more revenue in an industry that demands agility and innovation.

In this article, we’ll break down how Otter helps turn today’s operational challenges into opportunities for growth—all with transparent, competitive pricing.

Digital transformation is no longer optional; it’s the foundation for efficiency, profitability, and long-term success. But adopting technology isn’t just about adding more tools. The real game-changer is having the right systems that work seamlessly together to reduce complexity and drive growth.

In an industry facing rising labor costs, evolving consumer preferences, and an explosion of new ordering channels, franchise business operators need more than quick fixes. They need integrated solutions that streamline operations, eliminate inefficiencies, and unlock new revenue opportunities.

Otter can help with that. With Otter’s cloud-based POS solution, Order Manager, and Online Ordering, franchise operators can centralize operations, minimize costly errors, and maximize profitability. Otter’s all-in-one system simplifies multi-location management, enables real-time menu updates, and provides actionable insights, all from a single platform.

In the next section, we will explore how Otter’s solutions help your franchise stay efficient, boost profits, and scale confidently.

The franchise challenge: balancing efficiency and growth

Running a franchise or quick-service restaurant comes with challenges—but Otter makes it easier. Our POS system simplifies multichannel operations, Always On prevents costly downtime, Revenue Recapture helps reclaim lost earnings, Analytics delivers real-time insights, and Otter Kiosks boost efficiency while increasing check sizes. These tools work together to streamline operations, cut costs, and drive growth. Do you want to know more about these products? Let’s explore how these solutions can help your business thrive.

Otter’s top solutions for franchise and quick-service restaurants 

Otter POS is the only true multichannel point-of-sale system designed to handle the complexities of today’s restaurant industry. It integrates directly with delivery apps and direct-to-consumer partners, allowing restaurants to consolidate orders, update menus in real time, and track performance with live reporting.

With industry-leading low processing fees (just 2.39% + 15¢ per transaction), seamless direct integrations, and modern, restaurant-grade hardware, Otter POS helps restaurants slash costs, reduce tech headaches, and operate with confidence. Plus, features like offline mode, customizable kitchen workflows, and 24/7 customer support ensure restaurants stay online, efficient, and ready to serve.

Otter POS: The smarter way to run a restaurant

Unexpected disruptions can throw a wrench in your restaurant’s operations, leading to missed orders, lost revenue, and frustrated customers. On average, restaurants lose 6.5 sellable hours per month due to unforeseen store pauses, translating into missed orders, lost revenue, and frustrated customers. 

With Always On, restaurants can monitor storefront status in real time and receive instant alerts on their phone if they go offline unexpectedly. The system automatically reopens stores that were accidentally paused by staff, ensuring uninterrupted order flow. Additionally, it helps businesses fine-tune their operations by notifying them of missing menu hours, disconnected ordering channels, and other critical issues before they impact sales.

For multi-location businesses like franchises, Always On provides automated failsafe protection, guaranteeing that every store remains operational and that orders are processed accurately. By seamlessly integrating with Otter’s POS system, it ensures consistency across all locations and digital storefronts, eliminating discrepancies that could lead to lost revenue or incorrect orders. 

With Always On, restaurant owners and managers gain peace of mind, knowing they’ll be instantly alerted to any issue that could affect their bottom line.

Always On provides live alerts for restaurants that can safeguard your business operations.

Always On + live alerts enhances operational efficiency

Every failed order, accidental cancellation, or refund dispute chips away at your profits–even if you don’t realize it upfront. Otter’s Revenue Recapture reclaims lost revenue for your business automatically, so you don’t have to chase down missing payouts or worry about win-backs.

Ordering channels

Otter Point of Sale

Kiosk

QR Ordering

Online Ordering

Order management

Order Manager

Kitchen Display

Order Handoffs

Unified operations

Menus and 86ing

Guest engagement & growth

Loyalty

Marketing

Virtual Brands

Intelligence & reporting

Live Alerts

Otter Go™ mobile app

Financials

Disputes & Refunds

Analytics

Fast casual

Bakery

Cafe

Food truck

Food Court

Pizzeria

Enterprise restaurants

Help center

Blog

Local food trends

Become a partner

Product demos

Product release notes

Point of Sale

Delivery Partners

Direct to Consumer

Couriers

Staff Managment

Virtual Brands

Inventory Management

Gift Cards

Products

Ordering channels

Otter Point of Sale

Kiosk

QR Ordering

Online Ordering

Order management

Order Manager

Kitchen Display

Order Handoffs

Unified operations

Menus and 86ing

Guest engagement & growth

Loyalty

Marketing

Virtual Brands

Intelligence & reporting

Live Alerts

Otter Go™ mobile app

Financials

Disputes & Refunds

Analytics

Restaurant Types

Fast casual

Bakery

Cafe

Food truck

Food Court

Pizzeria

Enterprise restaurants

Resources

Help center

Blog

Local food trends

Become a partner

Product demos

Product release notes

Integrations