Imagine not having to touch your credit card or mobile phone to make a payment. That’s the reality for a number of restaurants and retailers in the Pasadena, Calif. area who recently launched PopID’s facial recognition payment technology – and pandemic-related anxiety about contacting various surfaces may create more demand for such technology. After customers register an account with PopID, they can visit a restaurant and the system will scan their face, which will bring up their past orders, loyalty points and stored payment details. While drive-thru and walk-up kiosks will still require a customer to touch a screen for now, tableside orders and payments can be completely touch-free.
Is there an area where your restaurant can give a little bit in order to demonstrate customer benefits in the long run? According to this Bloomberg report for the Washington Post, Chipotle had offered free delivery for much of the second quarter to entice customers. Now it is beginning to charge for that service, but the company has found that customers who used Chipotle’s app for free delivery are now going on to use the app to place orders for pickup – especially when they are reminded that they can do this for free and for a typically shorter wait time. Chipotle is gaining new converts to pickup – as well as more customer data – all for charging more for delivery and communicating well through its app.
The lockdown period has led to a spike in the transactions conducted online – and fraud has climbed at the same time. A new study from Forter, which specializes in e-commerce fraud prevention, found that in recent months online food transactions from restaurants have increased by 134 percent and online orders from food brands have jumped 225 percent. At the same time, the study found a 32 percent increase in online fraud in the restaurant sector. That figure may grow further as it can take time to identify fraudulent transactions. As you get business back up and running, be mindful of cyber threats including the hacking of user accounts, shipping fraud and the purchase of gift cards with stolen credit cards. While you take steps to train employees on safety practices, also review your technology systems and employee training procedures to manage potential weak spots.
At a time when restaurant delivery has become critical for so many restaurants (even pre-COVID-19, off-premise orders were accounting for nearly 60 percent of foodservice occasions, according to the National Restaurant Association), new technologies that offer operators more control and monitoring of the delivery process are on the rise. They may help you zero in on the areas that need improvement and can help set you apart among competitors. Food delivery analytics software like ActiveDeliver, for example, pulls together onto a single dashboard data such as sales metrics that extract total sales for in-store, drive-thru and delivery customers, delivery metrics that illustrate trends in driver wait and travel times, customer analytics that track sales by new and existing customers and whether customer satisfaction is driven by specific menu items or delivery times, and a breakdown of food delivery fees and who is paying them. Whether you use technology designed to monitor your delivery or not, using your POS data to understand (and improve upon) the lifecycle of the delivery process will become increasingly important as you accommodate more off-premise sales right now.
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.
In March, an Eater report about the post-quarantine reopening of restaurants in China provided a glimpse at the social distancing requirements and health checks that it predicted would become the norm for restaurants everywhere. Three months later, as a second wave of virus infections is hitting China, the region is again modeling the situation restaurants in other countries may be facing in the near future. Even as restaurants reopen in the U.S., there is a nagging question about if, and when, another lockdown may be needed. Restaurant technology companies are stepping up to provide solutions to help operators not just manage new requirements but navigate an uncertain future. Food & Wine reports that companies including Resy, SevenRooms, Tock and OpenTable are offering tools to help operators reconfigure floorplans and communicate with guests about new procedures. Resy disables its reservations feature once a restaurant has reached capacity, while SevenRooms suggests delivery or takeout once a restaurant is full. In addition to helping operators manage guest traffic, such technology may provide the added benefit of helping communities contain the spread of the virus: By tracking guests’ visits to the restaurant, they can also alert them promptly if and when a second wave of the virus occurs.
Technology that enables you to transact business in a contact-free way can help you send a message to guests that you value their safety. Beyond offering contactless payments – a recent Mastercard study found that 74 percent of respondents plan to use contactless payments even after the pandemic is over – restaurant operators are increasingly posting QSR codes on tables and at facility entrances to help guests connect to their menu via smartphone. Not only can having a QSR code help you minimize menu wipe-downs, but it is also easy to get one via any number of websites that generate the codes for free.
While technology had been making sweeping changes to the restaurant industry before the pandemic, expect it to play a transformative role as we emerge from it. Many of the systems and tools that had been nice-to-haves a couple of months ago could now provide the limited physical contact needed to keep your employees and guests safe – and your business running. This doesn’t mean investing in new bells and whistles but it does mean finding ways to maximize the technology you currently have and any additional tools that can be used for free. As the National Restaurant Association’s new report Covid-19 Reporting Guidance advises, update your website and use basic text messages to communicate with guests and staff. Use your email list and social media to provide up-to-date information about your current hours, menu changes, reservations and other information that may be helpful, such as approximate wait times. Of course, contactless payment systems, automated ordering functionality and mobile ordering apps can all help too. Be in touch with your POS system provider to ensure you are fully using all of your system’s functionality and any additional features or support your provider is offering right now. Bo Peabody, a tech entrepreneur who helped create the reopening guidelines for Georgia restaurants, told the Spoon that POS companies might soon take such actions as giving restaurants the ability to add a QR code to their check – a means for a guest to pay for a meal with a quick, contactless scan of their phone. (Paytronix and Sevenrooms recently announced new contactless order and payment capabilities, and the restaurant tech company Presto is offering free contactless dining kits for restaurants while supplies last. The company says the kits can be set up in an hour – and without any contracts or costs.)
Unfortunately, the increased use of online orders and digital payments during the pandemic has elevated the risk that restaurants and other businesses are targeted by cybercriminals. FSR reports that in March alone, email phishing scams increased 600 percent. To protect your business, ensure your cybersecurity software protection is up to date, use two-factor authentication to log in to your systems, limit the number of employees who are accessing them, and make sure everyone is trained on cybersecurity precautions. Additional protections like cyber insurance may help restaurants assess their risks and prevent a breach, and, if one does occur, provide compensation, post-breach data assessment and recovery services, and public relations support.