Still using paper menus? In an environment where AI-powered digital menus can upsell, cross-sell and suggest dishes based on a customer’s past orders or even the weather, the paper menu is likely to become an increasing liability. According to McKinsey research, personalization can deliver five to eight times the return on investment on marketing and can increase sales by 10 percent or more. What’s more, having a data-driven understanding of what customers are ordering will help you better predict what they are likely to order in the future – and help you minimize waste and the expense it generates.
Machine learning was singled out by Modern Restaurant Management recently as one of the top technologies that will differentiate restaurant brands as we emerge from the pandemic. It cited research from Hospitality Technology that found that 42 percent of guests will choose takeout from a restaurant if they receive offers tied to their past orders. These sort of precision analytics can fine-tune operations in the back of the house too – helping you monitor the supply chain to more accurately forecast food costs and order with less waste. How can you enhance the precision with which you order – and deliver to customers – just what they crave?
If you can customize and personalize your menu for guests, you earn loyal guests, which are what operators need right now. Technology is making it easier for operators to give guests the choices they want on demand. Case in point: Taco Bell recently unveiled a feature called Veggie Mode on its self-order kiosks. It will allow users to push a button and immediately change the options on their screen to vegetarian ones. Ostensibly, it’s a feature that could be extended to eliminate any food to which a guest has an intolerance or dislike. Through your website, app and text/email promotions, are you using your available technology to help guests quickly see the options best suited to their tastes?
Data is valuable currency for any restaurant business. But as cybersecurity becomes increasingly precarious as retail and restaurant brands experience more breaches, consumers will continue to be wary about parting with the personal information that helps you create experiences that will bring them back. However, if you find ways to tap into what your guests value most and build memorable experiences around those things, people will be more inclined to share their data with you. That was a key perspective shared by several speakers at Customize, a food personalization summit hosted by The Spoon recently. At the event, Melanie Bartelme, a Mintel analyst, said restaurant operators can provide real value in their products, services or experiences by offering such benefits as diet or cooking tips guests can use, food products that benefit their health, or even a streamlined technology experience. These benefits are advantageous in that they can appeal to broad swaths of your customers without being generic. Then once these customers are comfortable sharing their personal information with you, you can zero in on offering them more personalized experiences based on their preferences – seasonal drink recipes might appeal to the at-home entertainer, or customized Friday-night text messages could prompt a customer to order his favorite vegetarian pasta dish as he leaves work.
Our increased reliance on technology to conduct business right now is making cybersecurity all the more important – and not just within your restaurant but throughout your supply chain. When you conduct business with current suppliers and screen new ones, ensure those vendors are protecting against the risk to data they store about your business. Ask them what they are doing at the moment to tighten their security. Where are their weak points and what are they doing to address them? Security patches, multi-factor authentication and increased focus on recordkeeping can all provide some protection at a time when cybercriminals are looking for vulnerabilities.
What do you most loyal guests want right now? A recent Datassential report finds that some consumers want operators to do such things as post on social media about the steps they are taking to make their restaurant safe, such as working with a limited staff. Others want to visit a restaurant to pick up their food and observe what precautions the business is taking. Boomers, an at-risk group, are more likely to be comfortable picking up food curbside or at a drive-thru. Across the board, customers are looking to order multiple meals that can be eaten over the course of a few days. What does your data tell you about what different customer groups want and how they want you to offer it? It may provide some answers that can help you maintain your connections with them.
The tech tools you have at your disposal to operate more efficiently are critical assets to your business right now. They can ensure you quickly have the figures you need to make decisions about inventory and staffing on short notice, for instance. Restaurant365 suggests you forecast sales using recent weeks as your guide instead of the same period last year, order only what you expect to sell based on those forecasts (and cutting back on orders with suppliers as needed), and use tools to help you stay as close as possible to optimal labor costs.
What if running a profitable restaurant became less about analyzing databases and spreadsheets and more about following AI-generated directions? That’s increasingly becoming a reality for some restaurants. In a recent roundup from Modern Restaurant Management about major disruptions to expect in the coming decade, AI applications were among the major changes industry insiders expect. David Bloom, chief development and operations officer for Capriotti’s, sees increasing potential for video to work hand-in-hand with AI – using facial recognition to identify guests and connect them with loyalty programs, reducing theft by video monitoring, and improving employee performance by monitoring their actions and providing on-the-spot upselling and service advice. #restauranttech
Despite recent news about bans on cash-free (i.e. app- or card-based) payment requirements at restaurants in New York and other states, there is plenty of momentum pushing restaurants toward even more seamless, tech-based payment systems. Software companies like PopID, for example, are providing artificial intelligence-enabled facial-recognition platforms that can not only process payment rapidly but also recognize a customer – then quickly pull up previous orders, which are often repeated at quick-service restaurants. Payments Journal reports that the result at CaliBurger, a brand using the technology, has been shorter lines and compressed ordering times.
As labor costs escalate, how are you ensuring you have the right number of employees scheduled at the right times? More brands are adopting artificial intelligence-based programs to help with scheduling. Domino’s, for one, has been testing an AI algorithm to help ensure they are using the most efficient number of staff hours in their stores, Restaurant Dive reports. As major cities enact predictive scheduling laws designed to ensure a fair work week for employees – Widget Brain reports that New York, San Francisco and Seattle are among them – finding ways to use AI to forecast labor demand, and then build and fill schedules, can help operators not only maximize labor expenditures but also comply with the law.