Lightspeed Expands Partnership with 7shifts to Revolutionize Payroll and Operations for North American Restaurants

Rhea-AI Summary

Lightspeed Commerce Inc. (NYSE: LSPD) (TSX: LSPD) has expanded its partnership with 7shifts to address labor management and operational challenges in the North American restaurant industry. The enhanced integration allows Lightspeed Restaurant users to import sales, labor, and employee data directly into 7shifts, improving forecasting capabilities and automating employee data syncing.

The partnership now offers payroll features for U.S. customers, including Payroll Administration, Tip Integration, and Benefit Management. This expansion aims to streamline operations, reduce manual tasks, and save time for restaurant owners. According to Lightspeed's 2024 State of Hospitality Report, 62% of restaurateurs seek to improve labor management, while 74% look for technology to streamline operations.

The collaboration between Lightspeed and 7shifts provides a comprehensive solution for restaurant management, reflecting Lightspeed's commitment to enhancing efficiency in the hospitality industry.

Positive

• Enhanced integration with 7shifts improves forecasting capabilities for Lightspeed Restaurant users
• New payroll features available for U.S. customers, including Payroll Administration and Tip Integration
• Automated employee data syncing reduces manual tasks and errors
• Partnership addresses key industry challenges identified in Lightspeed's 2024 State of Hospitality Report

Negative

• Payroll features currently to U.S. customers only

Insights

Restaurant Industry Analyst

This partnership expansion between Lightspeed and 7shifts addresses critical pain points in the restaurant industry. The integration of sales, labor and employee data enhances forecasting capabilities, potentially improving operational efficiency. The addition of payroll features, including tip integration and benefit management, could significantly reduce administrative burdens for restaurant owners.

The focus on automating processes aligns with the industry's need to streamline operations, as indicated by 74% of restaurateurs seeking such solutions. This move could help restaurants better manage labor costs, a important factor given the ongoing challenges in the sector.

While the partnership shows promise, its true impact will depend on the seamless execution of these integrations and the ability of restaurant owners to effectively leverage these new tools. The U.S.-only availability of payroll features currently limits the global impact, but expansion to other markets could be a significant growth opportunity for both companies.

Financial Technology Expert

This enhanced partnership represents a strategic move for Lightspeed to strengthen its position in the restaurant POS market. By integrating 7shifts' specialized payroll and team management features, Lightspeed is expanding its value proposition beyond traditional POS functions.

The focus on operational efficiency and labor management aligns with key market demands, potentially increasing customer retention and attracting new users. This could lead to higher average revenue per user (ARPU) for Lightspeed, a important metric for SaaS companies.

However, investors should note that while this partnership may enhance Lightspeed's competitive position, it's not a direct revenue generator. The impact on financial performance will likely be gradual, manifesting through improved customer acquisition and retention rates over time. The success of this strategy will be measurable through metrics like customer growth, churn reduction and potentially increased market share in the restaurant segment.

With 62% of restaurateurs struggling with labor management and 74% aiming to streamline operations, Lightspeed and 7shifts strengthen their partnership to address industry challenges.

MONTREAL, Oct. 10, 2024 /PRNewswire/ - Lightspeed Commerce Inc. (NYSE: LSPD) (TSX: LSPD) ("Lightspeed" or the "Company") the unified commerce platform powering merchants to provide the best omnichannel experiences, today announced a significant enhancement to its existing integration with 7shifts, the all-in-one team management app for restaurant operators. This deepening partnership will bring powerful new functionalities to restaurant owners across North America, further simplifying and streamlining their operations.

According to Lightspeed's 2024 State of Hospitality Report, 62% of restaurateurs are actively seeking ways to improve labor management, and 74% are looking for technology to streamline operations. As labor challenges and rising costs continue to impact the industry, finding effective solutions has become essential for profitability.

"Deepening our partnership with 7shifts will enable our customers to streamline their operations even further, with seamless integration and access to essential payroll features," said JD St-Martin, President  of Lightspeed. "Through our partnership with 7shifts our customers have saved countless hours in scheduling, and significant amounts on labor costs. We believe by expanding this relationship, our customers will continue to see added benefits to the operational bottom line."

With this latest update, restaurant owners using Lightspeed Restaurant system will now be able to import both sales, labor, and employee data directly into 7shifts, enhancing the platform's forecasting capabilities. Employee data now syncs automatically, which means less manual tasks, less errors and more time saving.

In addition to the enhanced data integration, merchants using Lightspeed can now take advantage of 7shifts' powerful payroll features. Currently available to customers in the United States, it offers a range of benefits including Payroll Administration, Tip Integration, Benefit Management, and more. By automating these processes, restaurant owners can focus more on what matters most—delivering exceptional customer experiences.

"Our partnership with Lightspeed is exciting because restaurants who utilize the new integration will not only experience the benefits of being able to better forecast sales and labor, but also benefit from an all-in-one platform that connect everything from scheduling, time clocking, tip management, all the way to running payroll," said Jordan Boesch, CEO at 7shifts. "With accurate data syncing from Lightspeed to 7shifts Payroll, operators can ensure employees are paid on time and without issue. This partnership exemplifies our shared commitment to provide much-needed solutions to those in the restaurant industry."

7shifts, known for its expertise in hospitality and its leading-edge technology, has become a strategic partner for Lightspeed, helping to bring comprehensive payroll solutions to restaurant owners. This enhanced partnership reflects Lightspeed's commitment to making restaurant management easier and more efficient. Together, 7shifts and Lightspeed deliver a robust, integrated solution designed to meet the specific needs of the hospitality industry.

Lightspeed powers the world's best–restaurants and hospitality businesses, including: Taverne Atlantic (Montréal), Alinea Group (Chicago), Big Mamma (Europe), Kei (Paris). Lightspeed Restaurant is currently available in Canada, the United States, the United Kingdom, France, Belgium, the Netherlands, Switzerland, Germany and Australia.

Dive into the transformative features of Lightspeed Restaurant on our website. To witness its powerful capabilities, see www.lightspeedhq.com/pos/restaurant.

About Lightspeed 

Powering the businesses that are the backbone of the global economy, Lightspeed's one-stop commerce platform helps merchants innovate to simplify, scale and provide exceptional customer experiences. Our cloud commerce solution transforms and unifies online and physical operations, multichannel sales, expansion to new locations, global payments, financial solutions and connection to supplier networks.

Founded in Montréal, Canada in 2005, Lightspeed is dual-listed on the New York Stock Exchange and Toronto Stock Exchange (NYSE: LSPD) (TSX: LSPD). With teams across North America, Europe and Asia Pacific, the company serves retail, hospitality and golf businesses in over 100 countries.

For more information, see www.lightspeedhq.com.

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About 7shifts
Born in the back office of a sandwich shop, 7shifts was founded by Jordan Boesch in 2014 with the goal of building simple solutions to solve even the most complex team management challenges. 7shifts is a scheduling, payroll, and employee retention app designed to improve performance for restaurants. The easy-to-use app offers industry-specific features that help more than 50,000 restaurants save time, reduce errors, and keep labor costs in check. To learn more, or to sign up for free, visit www.7shifts.com.

Forward-Looking Statements

This news release may include forward-looking information and forward-looking statements within the meaning of applicable securities laws ("forward-looking statements"), including information regarding Lightspeed's partnerships, product offerings and planned product roadmap. Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and are identified by words such as "will", "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions concerning matters that are not historical facts. Such statements are based on current expectations of Lightspeed's management and inherently involve numerous risks and uncertainties, known and unknown, including economic factors. A number of risks, uncertainties and other factors may cause actual results to differ materially from the forward-looking statements contained in this news release, including, among other factors, those risk factors identified in our most recent Management's Discussion and Analysis of Financial Condition and Results of Operations, under "Risk Factors" in our most recent Annual Information Form, and in our other filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, all of which are available under our profiles on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Readers are cautioned to consider these and other factors carefully when making decisions with respect to Lightspeed's subordinate voting shares and not to place undue reliance on forward-looking statements. Forward-looking statements contained in this news release are not guarantees of future performance and, while forward-looking statements are based on certain assumptions that Lightspeed considers reasonable, actual events and results could differ materially from those expressed or implied by forward-looking statements made by Lightspeed. Except as may be expressly required by applicable law, Lightspeed does not undertake any obligation to update publicly or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Lightspeed Commerce Inc.

FAQ

What new features does the expanded Lightspeed and 7shifts partnership offer?

The expanded partnership offers improved data integration, allowing Lightspeed Restaurant users to import sales, labor, and employee data directly into 7shifts. It also introduces payroll features for U.S. customers, including Payroll Administration, Tip Integration, and Benefit Management.

How does the Lightspeed and 7shifts integration benefit restaurant owners?

The integration benefits restaurant owners by streamlining operations, enhancing forecasting capabilities, automating employee data syncing, reducing manual tasks and errors, and providing access to powerful payroll features, ultimately saving time and improving operational efficiency.

What percentage of restaurateurs are seeking to improve labor management according to Lightspeed's 2024 report?

According to Lightspeed's 2024 State of Hospitality Report, 62% of restaurateurs are actively seeking ways to improve labor management.

Is the Lightspeed (LSPD) and 7shifts payroll feature available globally?

No, the payroll features offered through the Lightspeed and 7shifts partnership are currently only available to customers in the United States.