Square Teams With Sysco to Bolster Restaurant Technology
Square has launched a partnership with foodservice distributor Sysco to provide restaurants with better technology.
The collaboration, announced Wednesday (Dec. 18), makes Square a Sysco “Restaurant Solutions partner,” meaning that its technology suite will be promoted, co-marketed and sold to Sysco’s customers.
“Sysco is committed to helping our customers succeed through innovative solutions and technology,” Neil Russell, the company’s chief administrative officer, said in a news release. “Square’s technology is comprehensive and easy-to-use for operators and workers alike, and we know that their solutions can help food and beverage businesses work smarter, operate more efficiently, and find new avenues of growth.”
In addition to the partnership, Square has announced new features for restaurants, designed to become fully available early next year. For example, bars and restaurants can now preauthorize tabs for customers paying with credit cards or digital wallets.
“This feature is especially critical for bars and breweries, allowing these sellers to streamline service and start tabs without holding onto guests’ cards, all while protecting their bottomline,” the news release said.
There’s also an Instant Payouts feature, letting restaurants using Square Checking receive funds for orders made through third-party delivery platforms instantly and without added fees, giving sellers immediate access to their revenue.
“Cash flow is a major pain point for restaurants, particularly as margins get tighter, and with third-party delivery platforms continuing to grow in popularity, the delay in time-to-money for the orders they fulfill – up to 11 days in some cases — can be extremely challenging,” Square said.
PYMNTS looked at the challenges restaurants face in maintaining operations earlier this month in an interview with Mitchell Hipp, divisional vice president at Rewards Network.
“Between the Small Business Administration and banks, not a lot of them want to talk to you,” he said, noting that — in these organizations’ eyes — restaurants are a risky lending proposition.
“Most restaurants are undercapitalized to begin with, and it’s the No. 1 business that fails in the U.S.,” he said. “Six months goes by quickly when you open up a smaller restaurant. Unless people are flocking through the doors, it almost immediately becomes a situation where [owners] are chasing their tails from day one.”
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