Tech partnerships in hospitality often begin with promises of seamless integration, innovation, and support. But as businesses evolve—and sometimes as ownership or priorities shift at the vendor’s end—those partnerships can become costly, stagnant, or even harmful. Patrick Yearout, FMP, CHT – Director of Innovation, Ivar’s and Kidd Valley Restaurants, knows this better than most. Between 2020 and 2023, Ivar’s and Kidd Valley severed ties with 11 vendors—a process that Yearout described not as a failure but as a learning opportunity. During a session at the 2025 National Restaurant Association Show, Yearout offered a candid, experience-based guide for hospitality leaders facing the inevitable challenge of ending relationships with technology vendors.
1. Spot the Cracks Before They Break the Foundation
Vendor relationships often begin to fail gradually. Look for signs like:
- Surprise price hikes without clear justification or improved features.
- Declining support, especially when your go-to rep gets promoted and you’re handed off to someone unresponsive.
- Lack of innovation, where new features are either impossible or outrageously expensive to implement.
- Guest complaints tied to tech, which start appearing in reviews or feedback platforms.
- Data security concerns, which could leave you vulnerable to breaches or costly PR damage.
2. Document Everything
Keep a running record of every issue—however minor—while they’re fresh. Include:
- Date and location(s)
- What happened and how it affected operations, income, guests, or staff
- Any remediation offered (or not)
Whether it’s a note on your phone or an internal ticketing system, documentation becomes essential later when you’re negotiating or transitioning.
3. Convene a Cross-Departmental Review
Bring together every department impacted by the tech—operations, IT, finance, HR, training, marketing—and review the compiled issues. This helps everyone understand the full scope and start exploring whether a new vendor would better meet your current needs.
4. Decide: Fix or Flee
Sometimes, vendors just need a wake-up call. Present your documented issues and give them a chance to improve within a clear timeframe. But if the problems are systemic or the relationship has soured beyond repair, it’s time to start planning your exit.
5. Break Up Professionally
When it’s time to leave:
- Notify your vendor respectfully, regardless of frustration. You’ll need their cooperation during the handover.
- Plan your data migration early—including formats, timelines, and responsibilities.
- Develop a full transition plan with clear tasks and ownership across departments.
6. Prepare for Gaps and Communicate Early
Expect a gap between old and new systems. Plan low-tech or manual backups. Communicate early and often:
- Internally: Train staff, answer questions, and provide support.
- Externally: Inform guests through emails, signage, or in-app messaging—especially if loyalty programs or ordering systems are affected.
7. Final Steps and Follow-Through
Before your contract ends:
- Settle any disputes or refunds while you’re still technically a client.
- Watch for phantom invoices—automated billing that doesn’t stop on time.
- Back up your data independently as a failsafe.
- Debrief with your team after the transition to document lessons learned.
Switching tech vendors isn’t just about finding something better—it’s about protecting your brand, your guests, and your bottom line. By treating the process as a strategic shift rather than an emotional reaction, hospitality leaders can ensure the technology they rely on grows with their business—not against it.
