The Future of Restaurants in Mexico Is Omnichannel

Times are changing quickly for restaurant owners in Latin America. While the use of restaurant technology has increased considerably, there are several areas of opportunity where the industry can grow by offering a better customer experience.

During my time interacting with thousands of restaurants in Mexico, I have come across plenty of head-turning data. For one, it’s a huge market. Mexico’s population of 126 million people supports a thriving and growing restaurant industry, estimated to be over 600,000 restaurants and bars nationally, according to an  INEGI report. Over 2 million people in Mexico are employed in food and beverage and a whopping 12% of national GDP comes from the restaurant industry. At last count, over 44 million international tourists visit Mexico annually, which contributes to the thriving food ecosystem. These visitors bring tremendous economic growth as well as high expectations for service and quality. 

For all its culinary glory, Mexican restaurants themselves are lagging behind other regions with respect to technology adoption and digital operations. Over the last decade in the US and Canada, the industry has seen an explosion of services geared toward making restaurants and bars fully omnichannel experiences, like Toast, Square, SpotOn, PopMenu, OpenTable, and others. Paper menus and cash alone have largely become a thing of the past. 

US-based payments giant Square calls this “omnichannel commerce,” or “the ability to create a consistent experience for your customers regardless of where, when, or how often they interact with your business. It’s a business strategy that enables you to engage your customers and prospects wherever they are — and make the sale.” 

We noticed that less than 10% of the restaurants we visit in Mexico have their own first-party website. Web searches for the establishment drive customers to third-party delivery platforms, review sites, and reservation management websites where the restaurant owner cannot control their message or customer experience. That’s a problem.  

One of the many reasons we chose to launch Pacto in the region, specifically in Mexico, is because we recognize that the restaurant industry may have world-class cuisine but lacks a comprehensive solution to help them navigate the process of digitizing their operations and promoting their offerings to the world. 

After conducting a careful analysis of their needs, we developed a platform that enables them to have an all-in-one experience, from front of house (hosting first-party websites and dynamic menus) to back of the house (table, order, and inventory management) through the integrated accounting reconciliation with their bank. Pacto empowers restaurant owners to seamlessly promote their offerings on multiple channels with valuable customer data and sales insights into their business to make data-driven decisions and improve their operations.

Let’s explore a few reasons why an omnichannel approach is so powerful:

Increasing Reach 

The global restaurant industry is continuously changing, and one of the challenges that restaurants face is the mix of different generations as customers. Each generation has its preferences and habits when it comes to finding their favorite places to eat. For example, millennials are more likely to use Instagram or TikTok to discover new restaurants, while baby boomers tend to rely on word of mouth and more traditional media sources. 

Providing online service options, as simple as a website, or digital ordering and home delivery, is a crucial tool for attracting new customers and expanding a restaurant's reach. By offering these channels, restaurants can also attract customers who may not have visited the establishment through traditional means, people who prefer the convenience of online ordering or those who live far from the area. This can help restaurants tap into previously untapped markets, increase sales, and grow their customer base.

Operational Efficiency

In addition to enhancing operational efficiency, software tools can automate specific tasks, expedite service, lower operating costs, and streamline processes. 

For example, a mobile app allows customers to place orders and make payments autonomously, reducing wait times and making the purchasing process faster and simpler. It also enables restaurants to send personalized notifications to customers about promotions and discounts. This also helps in fostering customer loyalty and attracting new customers. 

Integrated Payment with Point of Sales (POS)  

One of the advantages of an omnichannel digital strategy is its flexibility in payment methods, allowing customers to choose from different options, such as online payments, cash, credit cards, and more. By providing a range of payment choices, restaurants can cater to their customer's preferences and offer a more convenient and enjoyable purchasing experience.

Going one step further, a truly integrated POS software and payment acquiring system can improve the guest experience, drive higher tips, and reduce manual reconciliation to “square up” the two decoupled systems. 

Collecting First-Party Data 

By using different channels to interact with customers, such as social media, online orders, mobile applications, or online surveys, restaurants can collect valuable information about their customer's preferences, purchasing habits, and opinions. This data can be used to make informed decisions about product and service offerings as well as to adapt digital marketing strategies to reach a wider audience and increase sales. 

With data, they can track the most popular dishes, identify busy hours, and even know if the weather has an impact on customers. By analyzing these data points, they can adapt their menu, hours of operation, or marketing strategy to meet customer needs and preferences. They can also use the data to offer personalized recommendations and promotions to individual customers, increasing their satisfaction and loyalty to the restaurant. 

Our platform not only provides restaurants with a way to promote their offerings on various channels but also offers them access to valuable data and insights into their business performance, enabling them to make data-driven decisions and optimize their operations. In the future, ChatGPT and other generative artificial intelligence platforms could accelerate the benefits of this data-first approach. 

We firmly believe that by offering a platform tailored to the unique needs of the restaurant industry, we can assist restaurants in thriving and continuing to provide their unique products and services to customers in Mexico and beyond. At Pacto, we are dedicated to helping restaurants succeed and are confident that our solution can make a positive impact on the industry, contributing to its continued growth and success.