A recent Technomic report, “Harnessing Technology to Drive Off-Premise Sales,” found that when consumers are ordering restaurant food, 60 percent of the time they are ordering it for off-premise consumption – whether at their home, office, or other location convenient to them. However, there still isn’t a smooth connection between what consumers want and what restaurants currently provide, particularly when it comes to technology. While there are certainly outliers – Taco Bell, for one, is tapping into artificial intelligence to deliver a more personalized in-app ordering experience – Technomic’s report found that 56 percent of consumers want to be able to order delivery from a restaurant’s website, but only 45 percent of operators offer the option. Similarly, 43 percent of those who order delivery do so via a restaurant’s app, but only 18 percent of operators offer that option. More broadly, consumers expressed an interest in having more ordering flexibility via technology than they currently have: For example, 31 percent of consumers said they would like to be able to place a food order via a smart speaker such as the Amazon Echo, but only 12 percent of operators make that possible. As you consider new technology – or how to adapt your restaurant service model for off-premise sales – are you aware of how your guests want to connect with you and how you can best facilitate those connections?
Who hasn’t had the experience of trying in vain to catch a server’s eye to ask for the check after a meal? Mobile payment isn’t just for your online orders. If you’re looking for ways to improve the experience your restaurant delivers for guests, whether they eat with you or take their food to go, consider the process you require them to go through to pay for an order. While speedy payment is helpful in any category of restaurant, it can ease a major pain point in full-service restaurants or other establishments that take payment following a meal. Consumers are likely to use mobile payment more frequently in the next few years: Research from emarketer forecasts that by 2023, 80 million people – or about 34 percent of smartphone users – will be making mobile payments, up from 59 million in 2018.
If you’re looking to steer your restaurant away from third-party delivery this year – whether due to the expense, customer data ownership, development of your in-house technology or some combination of the above, you will need to find a way to bring customers to you online while third-party delivery companies try to compete for their business. Noah Glass, founder and CEO of the mobile and online food ordering platform Olo, said restaurants need to take steps to protect their territory amid the rise of delivery companies and ghost kitchens. He told Forbes that one of the simplest steps restaurant operators can take to protect themselves and ensure customers find them via the restaurant’s app and website is to use a non-compete agreement that prevents third-party vendors from bidding on certain brand-related keywords used in online searches. Such agreements can prevent vendors from redirecting online traffic that would otherwise go to your restaurant.
Are you generating the greatest possible benefit from your POS system? Particularly during periods when sales are lagging, it can help to be able to automatically pull detailed business data to help you understand the factors that are driving your business and how you might need to adjust them. If you have an integrated system, for instance, you can quickly assemble reports of your sales, average check totals and staff costs. As Toast reports, some systems let you compare time periods, as well as peak sales by hour and menu item. You can use that information to develop specials and promotions at the right times and have the ideal number of staff on hand to help.
Don’t fear introducing artificial intelligence (AI) at your restaurant – especially if it keeps the cost of menu items downs or streamlines the ordering process. Those were two key takeaways of a recent survey of more than 2,000 adults about consumer perceptions about quick-service and fast-casual restaurants. The survey, which was conducted this past September by the Harris Poll for the ad-tech firm AdTheorant, found that 71 percent of respondents would be amenable to these restaurants using AI in their business, particularly if it controlled costs (43 percent) or sped up the ordering process (43 percent). Those factors came in ahead of AI’s ability to offer “personalized food recommendations based on previous orders” (22 percent) but that may change once consumers gain more experience with the small but growing number of brands – McDonald’s among them – that are rolling out personalization technology.
Any technology you introduce to make the process of ordering and managing guest inquiries is only good if it delivers the experience your guests want from you. But how should your restaurant evolve when one guest wants to order via a smartphone without any human interaction and another with a serious food allergy takes comfort in speaking with a human when placing an order? Restaurant tech is available to create the sort of VIP experience you want to provide, no matter your guest preferences. Consider Chipotle, which has been generating positive news in recent months for its automated digital ordering experience. As Forbes reports, SNQ3 Restaurant Solutions provides Chipotle’s voice-ordering system, which automates online, app and phone orders and allows customers to choose the kind of interaction they prefer. In response, the system can rapidly process reorders, greet a returning customer by name, and, if a customer has questions or concerns that the voice bot can’t accommodate, a live agent is there to help as back-up.
As a new year approaches, it’s prime time to take stock of what went well and set the stage for the tests you’re likely to face in 2020. For most operators, labor spending and management continues to be a perennial challenge, along with such obstacles as managing the complexities of your inventory and finding a profitable path to offering delivery. Restaurant365 shared a list of operational challenges operators can expect in the coming year, along with some suggestions on how to manage them. While it’s not the most uplifting of countdowns, it does cover some important territory and may help you prioritize the steps you want to take to build your business in the months ahead. We summarized some of the key challenges here – along with some tech tools that can help you manage them. First, to manage labor costs, particularly if your state is in the roughly half of the country that is increasing its minimum wage in 2020, make the most of tech tools that can save you time and money. By integrating your POS with an accounting and scheduling platform, for example, you can analyze your labor and sales data to optimize scheduling and improve your forecasting capabilities. If you struggle with keeping your inventory accurate and your ingredient costs in line, consider inventory management software that can guide the process from start to finish – and offer tools such as smart ordering and receiving, which can help you maintain profit margins on menu items and pinpoint when vendor costs are higher than normal. Finally, if you want to offer delivery in an effort to meet consumer demand, make sure you’re making data-driven decisions when selecting a service model. Restaurant365 advises you use operations software to automatically calculate and track your delivery profits based on sales, cost of goods sold, and delivery expenses.
At a time when the need to minimize food waste is impacting restaurants’ brands and bottom lines, hiring suppliers with strong automation capabilities can help in several ways. Beyond offering the traceability of a food item through its supply chain, automation can also maximize the shelf life of the ingredients you prepare by shrinking the percentage of a food’s life cycle that must be spent in transit or awaiting transit. As Food Quality & Safety reports, automated order-picking systems can speed up and improve the precision of order picking, making it possible to reduce lead times, spoilage and waste.
Gift cards: they’re among the few gifts that are never returned. And they’re a win for restaurants. According to data from Givex.com, 65 percent of those who receive gift cards tend to spend about 38 percent more than the face value of their gift card. If your guests are interested in both purchasing gift cards and making payments via mobile, consider raising the bar for next year by providing digital stored-value cards that can be loaded onto a mobile app. Your guests won’t have extra cards cluttering their wallets and as Restaurant Technology News reports, digital cards hold a lot of appeal for guests who want the option of making fast, seamless payments.
A recent study by NCR and Technomic found that two-thirds of restaurant operators don’t use artificial intelligence (AI) to improve their businesses. The respondents said that if they were to invest in AI, it would be to help drive their mobile ordering, mobile applications and promotions. The restaurant operators surveyed who aren’t yet using AI said they either don’t fully understand its potential benefits or they hesitate to invest in emerging technology. Where do you stand? If you’re among the hold-outs who think AI may have some potential to help your business, imagine being to your most loyal guests what Netflix or Spotify are to people who love movies and music – having the ability to match your guests with meals they may not have considered but are likely to enjoy. AI can both empower your ordering functionality and make it seamless. As a report in Restaurant Technology News explains, on top of allowing a guest to order via mobile app, AI technology can offer functionality like conversational ordering through Facebook Messenger or Alexa. Having voice and chatbot ordering powered by AI can allow your customers to use any kind of phrasing when they place an order. Then, based on a person’s ordering history and cross-comparisons with other customers who have similar tastes, the technology can suggest meals and upsell additional items they are likely to enjoy – instead of leaving those guest experiences to chance.