In-house development may be best for a large-scale, fully customization solution, whereas a vendor solution could offer a quicker, cost-effective option, Boris Popovschi, hospitality solutions engineering manager at Vita Mojo writes
As we know, tech adoption is becoming essential for modern hospitality businesses. But, once you’ve decided to integrate technology into your company, the next big question is: should you build an in-house solution or rely on a vendor?
Both approaches have their advantages and challenges, and the right decision depends on your business size, resources, and long-term vision. The information below is aimed at helping you make an informed choice, through sharing the advantages and disadvantages as we’ve experienced them.
If you’d like to build an in-house solution, this approach will involve developing a custom software system tailored specifically for your business. While you can outsource certain parts of development, the key decision-making, quality control, and customization remain within your team.
The pros of in-house development include having full control and customization. You design and build the software exactly how you need it, ensuring it aligns perfectly with your business processes.
It’s likely there will also be room for innovation within your technology solution, meaning it can grow with your business. In-house development allows you to experiment with new tech and workflows, potentially creating unique competitive advantages. Many famous industry innovations started as internal R&D projects.
With an in-house solution you also maintain full control over customer data and operational insights, which is crucial for privacy and compliance.
In terms of drawbacks, this type of programme will come at a cost. Developing software from scratch requires hiring product managers, engineers, QA testers, and customer support teams, a costly investment both financially and in time.
It can also take time. Compared to vendors who have spent years refining their solutions, building an in-house system means reinventing the wheel and facing long delays before deployment.
There’s also a lot more scope for errors, or for things to go wrong. Even large brands struggle with in-house tech. Example: Starbucks’ mobile order system initially had major issues due to unexpected demand, causing long wait times instead of efficiency. On the other hand, McDonald’s succeeded with its scalable, high-performance system, but that required significant investment and iteration.
The other option is to look at a vendor solution. The market is filled with ready-made software solutions for hospitality businesses. These range from POS systems and kitchen displays to automated inventory management and CRM tools.
In terms of the ‘pros’ of this type of solution, first of all they come at a lower cost with the option to scale. You only pay for what you need, and subscription-based pricing makes it easy to scale up or down based on business growth.
These can be implemented quickly, unlike building from scratch, vendor solutions work out of the box. After signing a contract, most features are ready to use immediately.
It’s likely you’ll have external support and maintenance when things don’t go to plan. Vendors handle system updates, bug fixes, and security patches, reducing the need for an internal tech team. Many vendors also offer 24/7 customer support.
However, there are some drawbacks too, for instance, customisation of your solution might be limited. While many solutions offer flexibility, they may not fully align with your specific needs, requiring you to adapt your processes to fit the software.
There’s also less control as you rely on third-party providers, your business is subject to their pricing changes, service availability, and data policies.
Some vendors will also come with costly contracts that are hard to leave. Switching providers can be difficult especially if your operations become too dependent on one platform.
When it comes to making the right choice for your business, we’d advise the following.
Choose in-house development if your business is large-scale and you need full customization. If you have technical expertise and resources to support development, it can also be a great solution for you. Likewise, If you’re planning long-term innovation that requires unique technology.
A vendor solution would be better if you need a quick, cost-effective solution. If your business is small to mid-sized and doesn’t require heavy customization, it can also be a great fit. Finally, if you want to focus on operations rather than software management, a vendor solution can leave you space to do this.
Both building and buying hospitality tech have their advantages, and the right choice depends on your business’s size, budget, and expansion plans. Some companies start with vendor solutions and transition to custom in-house systems as they grow. Others use a hybrid approach, integrating vendor software with tailored in-house components for maximum flexibility.
Whichever path you choose, the key is to ensure that your technology serves your business needs, not the other way around.
This content is provided by Vita Mojo. Vita Mojo supplies end-to-end, flexible Order Management Systems to 150+ brands worldwide, including Subway, LEON and YO!
