Why KEXY decided to give their inventory management and deals application away for free to all restaurants and bars
As a co-founder and CEO of KEXY (inventory management system), who previously spent nearly two decades working in the restaurant and hospitality sector, I understand the drastic impact covid has had on this industry. The pandemic has left no business untouched – restaurants, cafes, bars, and hospitality companies were hit the hardest, and restaurant associations and business owners are still struggling to cope with this intense challenge.
According to Yahoo, more than 33 million people lost their jobs since the first half of 2020, with a 14.7% unemployment rate. The National Restaurant Association reports that 75% of restaurant employees lost their jobs after businesses shut their doors due to the pandemic.
According to James Beard Foundation, About 91% of hourly and 70% of salaried employees have lost their jobs since the outbreak. The World Travel and Tourism Council says that the hospitality and restaurant industries closure led to the unemployment of over 50 million people worldwide.
KEXY has served the restaurant industry by selling our inventory and ordering applications to numerous establishments. Albeit in a different way, the pandemic affected our business significantly too, as restaurants’ mindsets shifted from thinking about purchasing an application such as KEXY to will they even be in business within the next few months. Consequently, my role as a business owner who is traditionally focused on generating profit for a business conflicted with common sense, solidarity, and my care for the industry.
The owner and chef at ilili in New York City, Philippe Massoud, said, “I think all of us have become masters of emotional elasticity, oscillating between hope and despair.” To that point, on May 1, 2020, against the wishes of my investors, I decided to make our platform free to all bars and restaurants. Not only would this allow them to handle their inventory and ordering tasks at an 85% faster rate, it will also help these businesses save a significant amount of money on their labor costs. With the entire restaurant industry under siege of economic, management, and operational challenges, I made a conscious decision to pivot and change our business model in an effort to support those within the industry who were suffering and I challenged many other companies to step up and do the same during these intense times.
The Restaurant Industry – Financial Condition
Marshall Weston, the CEO and President of Maryland’s Restaurant Association said, “Clearly, people are not going out to eat and supporting their restaurants anywhere near the numbers that they used to.”
According to the National Restaurant Association, the industry lost over $240 billion in 2020, and 61% of business owners say the federal relief is not enough to fill the gaps caused by the pandemic. The Independent Restaurant Coalition reports that more than 71% of bars and restaurants in the U.S had reduced profits in 2020 than 2019.
Taxes, payroll, and rent are the most significant financial challenges for restaurant business owners. James Beard Foundation reports that about 60% of businesses made $1.5 million less revenue in 2020. which might continue in 2021. A restaurant needs an average of $100,000 to reopen in 2021 or 2022.
Research highlights that 56% of restaurant businesses are already in debt, with an average debt of $50,000 due to the Covid-19 pandemic. A recent report shows that only 2% of restaurant owners in the U.S received loans from the Paycheck Protection Program.
Another report says that 75% of restaurants in the U.S are struggling to streamline their revenues due to inadequate inventory and food costs management. Although KEXY is an effective software application that comes with a range of features at an affordable price; I believe most restaurant and bar owners, particularly “mom and pop” establishments are unwilling to invest in a restaurant inventory and ordering management system.
KEXY’s Response to the Covid-19 Crisis
Our company was charging $99 per month for the KEXY inventory management application, and we had a good amount of restaurants and bars throughout the United States using our product to streamline their inventory and ordering operations.
Since we decided to offer our inventory management software for free to all restaurants and bars worldwide, we have quadrupled our customer base and expanded to over 20 countries. As mass vaccination campaigns improve worldwide and more restaurants start to gradually reopen, we plan on continuing to offer our application to all struggling businesses who need help.
By utilizing the KEXY app, restaurant owners and managers can track their inventories, evaluate data, automate operations, and improve accuracy with our data analytics. Improving inventory control is a necessary action that restaurants and bars must take to adjust their operations during the Covid-19 pandemic.
With over 20 years of experience in the hospitality industry, I believe that inventory management requires solid planning and execution, making it relevant to business operations. Although inventory management usually happens at the corporate level, solutions like KEXY inventory software can be very advantageous to smaller companies that struggle with optimizing their operations and processes.
I say to the hospitality business owners that the future is bright. With the free availability of KEXY software, you can meet your inventory needs, control, and manage waste to ensure your business stays afloat during and beyond the economic crisis. We also have future plans to create additional free applications and devices like POS systems and exclusive product discounts in order to better benefit businesses in the hospitality sector.
I encourage all owners to use our product and spread the word to create a supportive network that helps businesses overcome inventory-related management challenges.
How can KEXY Inventory Management Software help?
KEXY is a reliable, effective, and easy-to-use inventory management software for bars and restaurants. The cutting-edge, cloud-based application enables establishments to improve vendors’ network communication, enhance transactions, and bring transparency in their inventory-related operations.
Our software with streamlined cloud capabilities enables restaurant managers to access and view inventory data effectively and quickly without worrying about finding random excel files and searching vendor contacts. The multi-location feature of our application will make it easy to manage inventory and reduce costs.
KEXY software enables business owners and managers to access and view essential inventory data and streamline ordering and product management. As a result, you will reduce labor costs and manage ordering tasks reliably and quickly. Some of the key features of our application are:
- Smart inventory management
- One-click inventory ordering
- Vendor communications
- No excel spreadsheets
- Better data control and management
- Easy communication with sales reps
- Dedicated account manager
- Detailed authorization and permission levels
- Group connect
- Multiple locations view
- Product inventory set up
- A triple checkpoint system
and… EXCLUSIVE CURATED DEALS and OFFERS (COMING SOON)
My experience tells me that restaurant businesses are challenging to operate even in the best of times. Now more than ever, a lack of consumer demand, increased lay-offs, scarce employment pool, financial problems, inventory control issues, etc., have wreaked havoc for the restaurant industry.
However, if we stay committed, use our senses, and make supportive decisions, we can overcome these challenges and help restaurants stay afloat during the crisis. On behalf of our company, I say good times are coming, and the only thing we need is to support each other. TOGETHER.