Restaurant technologist friends, are you playing without a full band?
In the last few weeks, I’ve spoken to the partnership's heads at several of the larger companies in the restaurant tech industry. These are companies most people would assume had partnerships teams of five or more people. However, the companies I’m referring to here all have a partnerships team of one lonely soul holding it all together with duct tape and coffee!
It still surprises me how many good-sized companies in the restaurant tech sector either don’t have a partnerships function or one that is woefully under-resourced. But, having accepted the reality to some degree, I don’t find it the least bit surprising when an early stage company is in the same boat.
I get it - when the people in the company are each wearing a lot of hats or are all-out focused on roles typically deemed more essential, it can be hard to prioritize partnerships. For most, however, the lack of time, energy and resource directed towards partnerships feels a lot more like a function of either the founders not having partnership experience or the team not realizing the business impact that could be realized with even a part-time investment in developing and nurturing key partner relationships.
Setting the Stage for a Partnerships Capability
Imagine a restaurant technology company as a rock band. Sales and marketing are the lead vocalist and guitarist, driving the energy and grabbing the audience's attention. Partnerships, however, are the amplifier and sound system. Without them, the band's music might still be good, even great, but it wouldn't reach the same volume or clarity. Great partnerships amplify the efforts of sales and marketing, ensuring the company's message resonates louder and clearer, reaching a much larger audience and creating a more powerful impact… filling an entire arena.
But why is this? Three main reasons, each of which is worthy of its own article:
Expanded Reach and Market Access
While this tends to be the most obvious one in our industry, it’s a real thing when done well. Strategic partnerships can significantly expand a company's reach by opening up new markets or customer segments. Partnering with other businesses, even ones with some overlap in product functionality, allows a company to tap into the partner's established customer base and networks. This means that sales and marketing teams can leverage these relationships to promote their products or services to a broader audience, usually with greater credibility and less effort than reaching out cold, extending the company's visibility and access far beyond its own direct efforts.
This is especially true if there is a product integration between the businesses, because otherwise prospects are likely to wonder if the technologies are going to play well with each other. A question mark in this regard is reason enough to dismiss a potential solution when there are dozens of others competing for time and attention. Whereas, a new partnership with a vendor that a restaurant brand already uses and values is inherently interesting because it’s in the same general category as a new product feature. Everyone likes to get more out of their existing investments!
Enhanced Credibility and Trust
While I touched upon it already, this has to be understood as its own benefit category. When a technology company partners with well-known and respected organizations, it gains an instant credibility boost. These partnerships serve as endorsements, signaling to potential customers (and investors) that the company is reliable and trustworthy. Sales and marketing teams can leverage this enhanced reputation to build trust more quickly with prospects. It's like having a trusted friend vouch for you—customers are more likely to engage and convert when they see a familiar and respected name associated with your brand. This credibility can shorten sales cycles and improve the effectiveness of marketing campaigns. It’s an entire shift of the bell curve, with opportunities at every stage of the funnel moving forward much more easily than before. Really strong partnerships can even result in some deals moving forward with startling simplicity as if 90%+ of the “work” was done by virtue of the client’s trust and relationship with the partner. This is why, if given the choice of a partnership between Large Company One or Small Company Two, Two can be the better choice if their customers are raging fans.
"When a technology company partners with well-known and respected organizations, it gains an instant credibility boost. These partnerships serve as endorsements, signaling to potential customers (and investors) that the company is reliable and trustworthy."
Access to Complementary Resources and Expertise
Partnerships often bring together complementary resources, technologies, and expertise. For sales and marketing teams, this means having access to a richer toolkit and a broader range of solutions to offer to customers. For example, a partnership might provide a complementary product that addresses a common objection, co-marketing opportunities, or joint sales initiatives that neither company could execute alone.
These combined resources enable more compelling and comprehensive value propositions, making it easier for sales teams to close deals and for marketing teams to craft impactful campaigns. By harnessing the strengths of their partners, companies can significantly amplify their own capabilities and effectiveness. And, by being a great partner, companies build their partnership reputation which helps attract more valuable partnerships in the future.
So, don't just play the tune—amplify it! Invest in partnerships, and watch your sales and marketing efforts reach new heights, transforming your company from a good act into a headlining sensation.
Want to learn more about how we can help you stand up a partnership function at your restaurant technology company? Reach out to us here.
