What Technology Improves Franchise Operations and Profitability?

For franchise operators, technology has shifted from a competitive advantage to an operational necessity. Between labor challenges, rising customer expectations and the pressure to improve speed without sacrificing accuracy, restaurant brands are increasingly relying on technology to tighten execution across every part of the business. The challenge is figuring out what technology improves franchise operations in a meaningful way versus what simply adds another layer of complexity.

According to Vanessa Renta, the most valuable systems are the ones that improve core operations first. Renta oversees sales and profitability for The Fonseca Group, a McDonald’s franchise group operating 29 locations across New York and New Jersey, and she said the technology that consistently delivers results tends to focus on speed, labor efficiency and operational visibility.

The Technology That Improves Franchise Operations Most

When discussing what technology improves franchise operations, Renta pointed first to systems that streamline communication between the front counter, kitchen and drive-thru.

“The biggest game changers have been integrated POS systems, kitchen display systems (KDS), and mobile ordering platforms,” Renta said. “Moving from paper tickets to KDS alone dramatically improved order accuracy and speed. Second to that is drive-thru technology — things like digital menu boards or headsets and automated greetings that adjust based on time of day. Since drive-thru is such a large percentage of our revenue, even small efficiency gains there have a big impact.”

Customer-facing tools can also improve profitability in quieter ways. For Renta, kiosks have been especially useful because they ease some of the pressure on employees while giving guests more consistent prompts to add to their orders.

“Kiosks have been an important part of the refined ordering system, also improving average check by automated suggestive selling the kiosk does; and easing the need for more labor demands,” Renta said. “Also, labor scheduling and workforce management tools, like Harri, have helped us align staffing with demand much more precisely, which directly affects profitability.”

For multi-unit franchise groups, that balance between operational efficiency and profitability is what determines whether a new platform is worth scaling systemwide.

How Franchise Operators Evaluate Technology ROI

Not every new technology platform improves franchise operations in practice. Renta said operators have to evaluate tools based on measurable operational impact rather than presentation or hype.

“We look at three things: speed of service — does it reduce ticket times or increase throughput; labor efficiency — can we operate with fewer hours or reallocate staff; and check growth — does it increase average order value through upselling or suggestive selling?” Renta said. “If a tool doesn’t clearly move at least one of those within a test period, it’s usually not worth scaling.”

In a high-volume restaurant environment, even a tool with strong sales materials or impressive reporting capabilities can create problems if it slows down crews during a lunch rush or adds unnecessary steps to daily operations. Because of that, Renta said her team introduces new technology in a small group of restaurants first to see how it performs in real working conditions before making a larger commitment.

“We usually test new technology in a few restaurants before rolling it out more widely,” Renta said. “It has to work for the crew during a real shift. If it slows people down or makes the job harder, we know it is not the right fit.”

That philosophy also applies to how operators use data. One of the biggest changes in recent years has been the shift from delayed reporting to real-time operational decision-making at the store level.

“Data drives a lot of the decisions now,” Renta said. “Our managers can see hourly sales compared with labor, drive-thru times, order accuracy and product mix while the day is still unfolding. That means they can adjust staffing, production or bottlenecks in the moment instead of waiting for a weekly report. The important thing is making the information clear enough for a shift manager to use, not just someone looking at the numbers from an office.”

Technology has also changed the way multi-unit franchise groups handle training, communication and day-to-day oversight, particularly as operators look for more consistent ways to manage teams across dozens of locations without relying entirely on in-person supervision.

“Training used to be a lot more formal,” Renta said. “Now it’s easier for crew members to work through shorter lessons digitally, which fits the pace of the restaurant better. We also use messaging tools a lot more heavily to keep all the locations updated.”

Practical Takeaways for Franchise Operators

For operators evaluating what technology improves franchise operations, Renta said the first priority should be the systems that affect daily execution, labor control and the customer experience before moving into more advanced analytics or automation. A few areas to prioritize first include:

• POS and KDS integration to improve speed, communication and order accuracy.
• Labor management software that aligns staffing with real-time demand.
• Drive-thru and digital ordering systems that improve throughput and increase ticket size.

Renta said operators often make the mistake of layering on technology before strengthening their underlying operations.

“After that, layer in analytics and automation — but don’t overcomplicate it,” Renta said. “The biggest mistake I see is operators chasing ‘shiny’ tech without fixing core execution. If your base operations aren’t tight, technology just exposes the gaps faster.”

For more information on franchise technology, check out these related articles on 1851 Franchise:

• Franchise Technology Solutions: How To Choose the Right IT Supplier for Your Franchise
• How to Leverage Technology in Franchise Management
• Leveraging Technology in Modern Franchising