It has now been four years since the COVID-19 pandemic reshaped the landscape for small business owners, leaving a lasting impact that continues to be felt today. Despite some signs of softening the effects of the pandemic, particularly in terms of staffing challenges and inflation, persist with no immediate resolution in sight. In response to these ongoing challenges, small business owners are increasingly turning to technology as a means of adaptation and survival.
On a daily basis, I engage with small business owners across the panhandle, spanning various industries and the common thread among them remains the significant issue of staffing. The quality of staff can make or break a business, with employees serving as the backbone of operations. However, certain positions, such as late-night shifts at minimum wage or temporary roles, often prove to be the most difficult to fill and retain. Employees in these positions may not take their responsibilities seriously, leading to issues such as tardiness, absenteeism, and inconsistent service or product delivery. These challenges place additional strain on existing staff, result in slower customer turnover, and create operational inefficiencies. While the local consumer base has shown understanding and empathy towards the struggles faced by small businesses here on the panhandle, there is a growing sense of frustration as the prolonged economic downturn continues to impact consumers' financial well-being.
At Gateway Payments we are undergoing a rapid transformation into a technology-driven company. While our core offering has always been payment technologies, we are now shifting our focus toward leveraging technology as a strategic tool to drive business growth and efficiency. The adoption of technology presents a myriad of benefits that can revolutionize operations for businesses of all sizes. Consider the example of a food truck operating in a traditional manner with a cashier managing orders and payments. This setup often leads to slower service and long lines, which results in slower churn and deters potential customers. By integrating technology, such as a QR code for direct ordering, the food truck can streamline its operations significantly. Customers can place orders by scanning the QR code, which seamlessly integrates into the kitchen display system. Automated text notifications can then be sent to customers when their orders are ready for pickup, enhancing efficiency, speed, and customer experience, and captures their phone number for future marketing opportunities. This approach not only reduces the reliance on additional staff but also improves sales throughout, customer satisfaction, and business scalability. Similar technological solutions can be applied to quick-service restaurants, optimizing their operations and enhancing customer churn and engagement as well.
Another example of technology replacing traditional staffed positions is the implementation of payment kiosks. You can see this transition is already taking place with the majority of fast food operations. With advancements in hardware and AI capabilities, payment kiosks can now offer personalized suggestions to customers based on their previous orders, leading to increased sales through upselling. This automated feature eliminates the need for manual upselling by cashiers and has been shown to significantly boost sales revenue. Furthermore, digital payment methods have been found to increase tip percentages for employees, thereby enhancing job satisfaction and overall performance. This can also help expand retention and lengths of employment times for preexisting and future staff.
The argument against payment kiosks revolves around the absence of human interaction during the sale process, which can impact the customer experience. Personally, I value the rapport built with a cashier that remembers my name. However, if I have to wait ten minutes to get a cup of coffee then the customer experience can also be impacted. The allure of time-saving convenience often outweighs the aspect of human interaction in my opinion. This is why Starbucks excels and dominates the coffee industry. Also, having kiosks does not translate into a totally robotic front of the house model. Staff from the back of the house can still interact with customers when handing off products and goods to the consumer as an example.
As technology continues to evolve at a rapid pace, it is imperative for businesses to adapt and embrace these innovations to remain competitive in the marketplace. While smaller markets, such as those outside major cities like Destin, may adopt technology at a slower pace, it is essential for businesses to recognize the importance of evolving with the changing landscape. The post-COVID era may usher in permanent shifts in consumer behavior and business practices, necessitating a proactive approach to technological integration. Businesses that fail to adapt risk being left behind in an increasingly digital world.
In our nearly eight years of operating in the region, I have witnessed firsthand the transformative power of technology in revitalizing businesses and ensuring their long-term sustainability. By embracing technological solutions, businesses can not only survive but thrive in challenging times, offering streamlined processes and enhanced customer experiences.
We at Gateway Payments stand ready to support local businesses on their journey towards digital transformation, providing the tools and expertise needed to navigate the evolving business landscape successfully. While we excel at improving payment solutions for businesses, our true value lies in our customer support and service. We are committed to being a supportive partner in fostering the growth and success of our community. Our goal is to be a reliable ally in empowering local businesses to thrive.
We are undergoing a rapid transformation into a technology-driven company.
Our goal is to be a reliable ally in empowering local businesses to thrive.
