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.
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.
Your restaurant has no doubt been making adjustments to its menu – both in terms of dishes and the physical list you present to customers. Have you thought about moving your menu to phones and mobile devices? A report from The Spoon predicts the shift toward digital ordering will make this inevitable. The approach has its benefits, beyond the germ-related. Customization is a critical one. Consider a guest who wants to know the origins of the fresh produce on your menu, access reviews prior to ordering, or even request special portion sizes or ingredients. Digital hand-held menus can build in that functionality, all while allowing you the flexibility to make prompt changes to pricing, ingredients and limited-time offers.
In case it wasn’t already clear pre-pandemic, off-premise dining isn’t going anywhere. Since third-party ordering poses ample challenges for operators it’s important to entice customers to order directly from you. Have you thought about how to encourage them to do that in the coming months? You might try incentives like filling every takeout order with a coupon good for a discount off their first direct online order from you, or offering some extra value for signing up for your in-house app (if you want to build your own ordering app, here is one option that may help https://bit.ly/36maBNz). Beyond that, make it as easy as possible for customers to order from you directly. Ensure your business information is accurate and up-to-date – particularly with adjusted hours – on Google. Your ordering button and menu links should be visible as soon as someone loads your webpage. Toast also suggests you find ways to simply make it more interesting to come to you directly – from including a personal thank-you note or small Instagrammable memento in each takeout bag, to selling special merchandise, to offering rotating promotions like Taco Tuesday to-go packages or EBTV (Everything But the Vodka) take-home Bloody Mary kits.
If you’re looking for technology help as you reopen, there are deals to be had on everything from third-party delivery to tech platforms as companies look to stand out in the market and rebuild business themselves. One case in point is OpenTable. Even if you haven’t taken reservations before, you may be considering taking them while social distancing requirements call for fewer guests in your restaurant at one time and for more vigilant management of traffic at your building’s entrance. OpenTable just announced its Open Door program, a three-tiered, subscription-based reservations program that provides services at a discount for the remainder of 2020. The program allows operators to access the OpenTable system without subscription fees through the end of the year. Further, there are no cover fees through September 20 and up to 50 percent discounts on cover fees for the fourth quarter of the year. Learn more at https://restaurant.opentable.com/opendoorprogram-2/
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.
Consumers don’t consider technology to be an eliminator of jobs but rather a means of improving convenience – and restaurants are investing in more of such customer-facing technology solutions this year. These were key tech-related takeaways from the National Restaurant Association’s latest state-of-the-industry report. When it comes to customer-facing tech, kiosks and other self-service technology still pay dividends. Their biggest benefit may be speed – by visibly reducing congestion and automating orders, they expedite the order process and shorten lines – but this technology is also winning consumers over for its ability to customize. The proof is in the payment: The convenience that kiosks provide can lead guests to spend 15 to 20 percent more per order, according to Pymts.com. #restauranttech
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.