Whether we realize it or not, most of us have probably used or enjoyed a software-as-a-service (SaaS) solution at some point in our lives. Zoom, Microsoft Office, QuickBooks, and even Netflix are all SaaS products (or at least offer a SaaS option). But what qualifies them as SaaS? And what in the world does SaaS have to do with foodservice equipment? After all, the equipment powering a commercial kitchen isn’t exactly the equivalent of Netflix. Let’s discuss!
What is SaaS?
Software as a service (SaaS) is a subscription model that allows users to pay a fee (usually monthly) to access software online. So, rather than making a one-time software purchase and updating it when new versions are available, users pay an ongoing fee for the most recent version of the software. Simply put, the software vendor hosts, maintains, updates and supports the entirety of the software on their end; users simply pay to use it.
SaaS and foodservice equipment
SaaS is a popular model that’s leveraged across a range of consumer and business industries, including the wonderful world of foodservice equipment. Within the foodservice space, a lot of commercial equipment relies on software to perform various functions. This software can be hosted within the equipment itself. But there is another way — and this is where SaaS comes in.
SaaS-powered equipment leverages software that lives on the vendor’s side, either in the cloud or on a vendor-owned or -rented server. With a SaaS subscription, this software is supplied to the operator’s equipment via an internet connection. And as we learned, when a software update is ready, the vendor pushes it directly to the internet-connected unit. But this is just part of what to expect with SaaS-powered equipment; there’s much more to be aware of.
What to expect with SaaS-powered foodservice equipment
Typically, you’ll evaluate a foodservice equipment purchase based on a lot of different criteria. Does it have the capabilities you need? What features are included or not included? Is the price point where you need it? How reputable is the manufacturer? Whether the software is delivered via a SaaS model or not is more of a secondary consideration. Regardless, there are five main considerations to keep in mind before signing on to a SaaS model:
1. SaaS comes with a cost
Equipment that functions on a SaaS platform typically requires an ongoing subscription cost. Usually, this is a set monthly rate that’s established based on various parameters like functionality, service tiers and features. Subscription fees cover things like product development and continued product innovation and improvements (such as new product or design features for future software versions, software and product maintenance, and third-party dependencies like cellular or network connectivity).
2. SaaS can be combined with other delivery models
Foodservice equipment doesn’t always rely on a pure SaaS model. Some equipment leverages a hybrid approach by combining SaaS with another model such as HaaS, or hardware as a service. These order pickup stations are one such example that uses a SaaS plus HaaS model. In this scenario, the operator pays the subscription fee like with a pure SaaS model. However, this fee not only covers access to the vendor-hosted software, but also allows the operator to lease the equipment itself and reap the rewards of a third-party handling any maintenance and management of the hardware.
3. The vendor handles the updates
One of the major benefits of SaaS is that the vendor does a lot of the heavy lifting. When a software update is ready, the vendor simply pushes it live, and just like that, you’re operating on the most recent version — no downloading and uploading required. This is particularly attractive for operations that struggle to carve out time to make the necessary software updates on their equipment or for establishments with multiple locations or units to keep up to date.
4. SaaS goes hand in hand with IoT
SaaS requires an internet connection, which naturally gives way to a whole world of internet-powered capabilities. Add an internet connection to your equipment (and toss in some sensors and computer chips) and you’re officially entering the realm of smart technology — aka the internet of things (IoT). IoT is what’s at work with the Apple Watch on your wrist or the smart thermostat in your home. But it’s also what’s happening with foodservice equipment that can do cool things like communicate with customers when an order is ready, text operators about an equipment issue, or enable all kinds of automation through a simple QR code.
5. Integrations are more accessible
SaaS-powered equipment also opens the door for integrations with other tools, whether that’s with a point of sale (POS) system, delivery service app or other go-to software. In fact, software integrations are so common that many SaaS providers even create open integrations with third-party software providers that they know their customers will be interested in. This makes off-the-shelf integrations more readily available, but it also provides operators with a turnkey way to improve their own experience, as well as that of their customers, through complementary software solutions.
6. Data analytics are within reach
Most business SaaS products provide analytics, reporting or an administrator dashboard. SaaS solutions are typically database driven and track valuable insights that operators can use to improve their efficiency, productivity and strategy. For example, let’s say that your SaaS-powered holding equipment measures trends, such as pickup volume at different time periods throughout the day. You could use this data to inform staffing decisions, reconfigure workflows, and identify problem areas that would otherwise require more careful attention.
From SaaS to digital tech and beyond.
SaaS-powered equipment is just one way the foodservice industry is moving toward a more connected and innovative customer and operator experience. There’s a ton of wonderful technologies that you can leverage to improve the experience, efficiency and productivity within your operation. From the latest apps to digital menus, contactless pay, geofencing technologies, artificial intelligence, smart equipment and more, there is no shortage of innovation for foodservice professionals to take advantage of.
Not sure where to start? Here are a few resources to get you started:
- How the Internet of Things is Revolutionizing the Foodservice Industry
- Hands Off: The Future of Foodservice Automation
- How Digital Tech Has Changed in Restaurants (And What You Need To Know)
- How Digital Innovation and New Customer Expectations are Transforming Brick-and-Mortar Restaurants
- Product Overview of the SaaS-Powered Pickup Pod™
