Software as a service can be defined as a software distribution model in which an application is proposed by the provider to serve as a service on demand (Laudon and Traver, 2011). Third party ASPs (Application service providers) are responsible for providing the licenses (Laudon and Traver, 2011). SaaS would be very attractive for the restaurants due to the fact that as clients, they would only have to subscribe for a fee to get the software functionality online; rather than having to purchase the software, and have it installed on their computers (Laudon and Traver, 2011). The cost for the technology such as servers would hence be reduced. For seasonal restaurants that do not have the huge sums of money to purchase the whole software, this would be a very attractive option (Laudon and Traver, 2011). Therefore, they are able to use the SaaS software for the limited peak season months. Dynamic pricing can also be done whereby price incentives may be offered during the low season (Laudon and Traver, 2011).
SaaS would also enable the restaurants to leverage on the proficiency of the experts, enabling them to concentrate on their chief competencies like food, ambience, and service (Laudon and Traver, 2011). The model would help to cut on the expenses of having to recruit, maintain, and retrain IT professionals. SaaS would offer a one-stop shop in which all the IT requirements of a company can be met in one place (Laudon and Traver, 2011). Due to upgrade of software, and multiple applications integration, the clients gain from the economies of scale (Laudon and Traver, 2011).
Another advantage of SaaS to a restaurant would be the ease of access and productivity. Due to its nature of being a web based application, a restaurant’s management can be able to access its data from anywhere (Laudon and Traver, 2011). The workers are also able to view the data, hence more cooperation and productivity. Monitoring services and making marketing campaigns can therefore be done even from home. A restaurant’s clients can also make reservations from anywhere. Last but not least, there is freedom of choice for a customer to move from one service provider to another (Laudon and Traver, 2011). It is made possible by a lack investments locked in the servers and security systems, among other technologies (Laudon and Traver, 2011).
Reference
Laudon, K. C., & Traver, C. G. (2011). E-commerce: Business, technology, society. Boston, Mass.: Pearson Education.
