Staying competitive in the food and beverage industry requires more than great food—it’s about using technology to streamline operations and enhance the customer experience. becoming crucial to this transformation, becoming essential for businesses to thrive.
Imagine your customers browsing your menu, paying instantly, and accessing special deals—all from their phones. No cash, no hassle. Just a few taps, and they’re in. And for you? Payroll, tips, and other back-end tasks are easily managed through your POS system. Sounds great, right?
So if you’re ready to elevate your restaurant, let’s dive into the world of embedded finance. We’ll explore how this innovative approach can boost efficiency, drive sales, and impress your customers. Ready to transform your business? Let’s get started!
Why Embedded Payments and Finances are Trending Now
The restaurant industry has seen a massive shift toward digital transformation, especially in the wake of the COVID-19 pandemic. As restaurants scrambled to adapt to new ways of serving customers, the need for contactless payments, online ordering, and integrated financial solutions surged.
And the numbers speak for themselves. According to a 2023 report by McKinsey & Company, embedded finance is on track to generate a staggering $230 billion in revenue by 2025, with the food and beverage sector playing a big role in this growth.
- Starbucks: Starbucks mobile app is a prime example of embedded finance done right. Customers can order, pay, and earn rewards all in one place. And it’s working—nearly 25% of Starbucks’ transactions in the U.S. happen through the app.
- Domino’s Pizza: Domino’s has always been ahead of the curve when it comes to digital innovation. Domino’s mobile app simplifies payments and integrates with delivery and tracking, fueling its rise as a top global pizza chain.
- Sweetgreen: This fast-casual salad chain’s app streamlines ordering, payments, and rewards. They even provides personalized recommendations based on past orders, making the customer experience more enjoyable.
Nowadays, more and more restaurants are realizing the power of embedding financial services now. And that’s something everyone, from large chains to independent eateries, can benefit from.
Top 10 Embedded Finance Strategies for Small and Medium-Sized Restaurants
So, what exactly is embedded finance? In simple terms, it’s the integration of financial services into a non-financial business’s offerings. When it comes to restaurants, this means weaving payment processing, lending, and other financial services right into the fabric of your operations.
For example, your website or mobile app now not only lets your customers order and pay but also gives them access to loyalty programs, gift cards, or even financing options for larger purchases. It’s about making everything as seamless as possible for both you and your customers.
But how can your small food business tap into this potential? You don’t need a massive budget to take advantage of embedded finance. With the right approach, you can streamline your operations, boost customer loyalty, and even increase your revenue.
Here are ten effective strategies tailored for smaller food businesses, along with practical tips to help you implement them:
1. Mobile Payment Solutions
Offer a mobile payment system to allow customers to order and pay via a smartphone app or QR code, making the dining experience quick and hassle-free.
- Tip: Partner with a cloud-based point-of-sale system like iPos to enable easy, contactless payments that can reduce queues and improve customer satisfaction.
2. Loyalty Programs with Embedded Finance
Boost repeat business by integrating a loyalty program into your payment system. Reward your frequent diners with discounts, exclusive offers, or special perks.
- Tip: Use POS with Loyalty program capabilities to automatically track spending and apply rewards, making the experience seamless for your customers.
3. Gift Cards and Digital Wallets
Sell digital gift cards that can be purchased and redeemed through your website or app. This embedded finance strategy not only provides a convenient gift option but also encourages pre-paid revenue.
- Tip: Implement a service like iPos digital gift cards, that can be easily managed and redeemed, both in-store and online.
4. Financing Options for Customers
Provide financing options for large orders, like catering for weddings or corporate events. This makes it easier for customers to afford your services.
- Tip: Integrate Affirm or Afterpay into your payment system, allowing customers to pay in installments and making it more likely they’ll choose your services.
5. Embedded Accounting Tools
Streamline your financial operations by integrating accounting software into your POS system. Automate financial reporting, payroll, and tax preparation to reduce manual errors.
- Tip: Use QuickBooks Online in conjunction with your POS to guarantee cost-effectiveness and seamless integration, that automatically manages your restaurant’s finances, freeing up time to focus on growth.
6. Embedded Employee Payment Solutions
Improve employee satisfaction by offering instant access to earned wages. This flexibility can boost morale and reduce turnover.
- Tip: Gusto, integrated with your POS system, allows employees to access their earnings on-demand, providing them with greater financial control. Also, iPos in-built software provides a secure platform for the payroll system to simplify staff management.
7. Embedded Buy Now, Pay Later (BNPL)
Allow clients to split payments for large catering bills or event services, making it more affordable and accessible for them to book big events.
- Tip: Offer BNPL options through Affirm or Afterpay in your booking process, which can help you secure more high-value clients and boost your revenue.
8. Embedded Donations and Charity Contributions
Encourage community support by offering a round-up donation option, where customers can donate their change to a chosen charity.
- Tip: Integrate donation options directly into your POS system, allowing customers to easily contribute to local causes with their purchases.
9. Embedded Subscription Services
Create a subscription service for regular meals, exclusive menus, or VIP perks. This ensures steady revenue and keeps customers coming back.
- Tip: Utilize platforms like Patreon to offer subscription-based memberships, giving loyal customers access to special discounts, early reservations, or exclusive menu items.
10. Order Ahead and Pickup Solutions
Enhance convenience by allowing customers to order ahead and schedule a pickup time. This embedded finance strategy reduces wait times and increases customer satisfaction in restaurants.
- Tip: Implement an order-ahead feature, enabling customers to place and pay for orders in advance, making the experience smoother and more efficient.
These strategies are not just about keeping up with industry trends—they’re about making your restaurant run more smoothly, connecting with your customers on a deeper level, and ultimately growing your business. By implementing even a few of these ideas, you can set your restaurant up for long-term success. So, which one will you try first?
Successful Implementation and Reliable Tech Solutions for Embedded Finances
To effectively implement embedded finance strategies, small and medium-sized restaurants need a streamlined approach. Begin with a reliable POS system like iPos, which seamlessly integrates payment processing with other financial services. Ensure your payment gateway is secure, PCI-compliant, and supports multiple payment methods. 
Optimize your website or develop a mobile app for online ordering, mobile payments, and loyalty programs. iPosEats offers a comprehensive solution, including online ordering, delivery services without third-party apps, and marketing tools such as Google Ads, loyalty programs, and SMS campaigns—all for a simple flat fee with no additional costs for basic POS features. Download our free guide here!
- Free Resource
The Complete Online Ordering Solution
Get this exclusive asset now
Download our free iPosEats Complete Guide to see if your restaurant is a perfect fit!
Embedded finance is transforming the restaurant industry, enhancing customer experiences, and boosting operational efficiency. By adopting the right technologies and ensuring effective implementation, your restaurant can achieve significant growth.
Discover how our iPos Platform can streamline your financial operations and drive your success. Try it today and experience the difference for your business!
