Technology and Restaurants

8/22/2019 Technology and Restaurants

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Technology and RestaurantsEvolution of a new era in Restaurant Business

2012

4/11/2012


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Technology and Restaurants 20

Tomorrow Begins Today,htt ://www.brittcoconsultin .com/

CONTENTS

Executive Summary ...................................................................................................................................... 2

Technology And Restaurant.......................................................................................................................... 4

Why Technology Is Required ....................................................................................................................... 5

Examples Of Restaurants Using Technology ............................................................................................... 7

Dalu Rebot Restaurant With Robot Staff, In Jiang, China .................................................................... 7

Mizuya Restaurant, Sydney ................................................................................................................... 8

Inamo Restaurant, London ..................................................................................................................... 8

Sbaggers In Nuremberg, Germany ....................................................................................................... 9

Role Of Technology .................................................................................................................................... 10

Restaurant Operations ............................................................................................................................. 10

Reducing Time Lags ............................................................................................................................ 10

Inventory Management ........................................................................................................................ 10

Labor Management .............................................................................................................................. 11

Customer Empowerment ......................................................................................................................... 12

Food Customization ............................................................................................................................. 12

Ambience Customization ..................................................................................................................... 13

Marketing Tactics .................................................................................................................................... 14

Use Of Social Media ............................................................................................................................ 14

Effective Customer Relation Management .......................................................................................... 15

Complications In Use Of Technology ........................................................................................................ 16

Brittco Solution ........................................................................................................................................... 18

Conclusion .................................................................................................................................................. 19

About Brittco .............................................................................................................................................. 20

Bibliogrpahy ............................................................................................................................................... 21

Disclaimer ................................................................................................................................................... 22

EXECUTIVE SUMMARY
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Technology in restaurant has helped them become more efficient, not just in running the restaurant, but inenhancing service quality, raising efficiencies and marketing promotions.

The three major changes brought about by technology are represented in the figure below.

While technology has helped elevate the restaurant business to new heights, with it comes its own set ofproblems. These problems are summarized in the figure below

While the restaurant industry has its own challenges when dealing with technology, change is inevitable.Technological evolution is the next level of restaurant industry, and restaurants will need to adopt thesechanges for growth as well as for survival.

FinancialImplications

The pace of changes intechnology makes it difficult tospeculate when one version will

be replaced by other. This makesit difficult to calculate the ROI.

Not all restaurants have the capitalto invest in technology. So a

decision needs to be made to find

the most cost effective mix oftechnologies

Need forConstant

Innovation

Consumer constantly demand newinnovative products. While

technology helps to an extent ininnovation, it has its limitations.

Technology brings new mediaplatforms. These allow the user to

post their opinions and rate therestaurants. While good feedback

is valuable, even a single negativefeedback can prove detrimental to

the reputation of the restaurant
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TECHNOLOGY AND RESTAURANT

When we say technology and restaurant, chefs need not worry, because they still are the ones who aregoing to prepare the meals, for now, at least. With a low entry barrier, we have always seen a lot ofenthusiast entrepreneurs entering the restaurant industry, with only 6 out of 10 surviving after 3 years.

If there is something technology can do, is to help the remaining 4 restaurants thrive, when earlier theycould not. Broadly looking at the impact of technology in restaurant business, the effects can bedistributed under three broad heads.

And if you think this is all that technology has to offer you would be surprised at the innovations thathave taken place. The two biggest costs in a restaurant business are the food cost and labor cost,accounting for approximately 33% and 36% of the operating expenses. Imagine if labor cost was to justdisappear, you would be left with 36% operating profits. With the razor thin margins in the restaurantindustry today, that is a mammoth margin. While Dalu Rebot Restaurant in Jiang, China uses robots to dothe serving, s Baggers in Nuremberg, Germany has completely automated their process and food isserved through metal rail which are connected to the kitchen.

While this is just one example, we will further explore the ways through which, technology has helpedrestaurant owners and customers.


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WHY TECHNOLOGY IS REQUIRED

With technology comes change and change has been, still is and will always be difficult. This is why,before one would embrace technology as partner in their business, one would always question the

feasibility of the change. After all, nobody wants to invest thousands of dollars in something which wouldphase out before the ROI is ever made.

So lets look at the major factors which are responsible for a restaurants success, and the way technologycan help.


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While technology can bring many changes in the way business is run, the rate at which technology isgrowing also begs the question, how long before something else replaces it? The philosophy of using

something tried and tested no longer applies in the constant evolution of ways of business, and there liesthe big question, as to what to use and when?

While the figure above broadly addresses the way technology can help the restaurant owners, the nextsection would elaborate on the various ways above goal is achieved. Further we discuss, thecomplications related to adoption of technology and factors to be taken into account before implementingany new tech.

Before all that though, lets look at some examples of restaurants who have tried to maximize the use oftechnology available.


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EXAMPLES OF RESTAURANTS USING TECHNOLOGY

Having said so much about the use of technology and how it can benefit the restaurant business, a fewexamples of the restaurants using these technologies will allow you to get a better picture of what hasbeen talked about so far.

DALU REBOT RESTAURANT WITH ROBOT STAFF, IN JIANG,CHINA

.

Shandong Dalu Science and

Technology Company are thebrains behind this simple but

effective idea. It not only

serves as an efficient systems

by creating a no break taking

labor, but it also makes sure the

standards and codes of the

restaurant are being followed at

all times. It further eliminates

the factor of human error, and

thereby creates a consistent

service quality.

This place uses robots to serve

people. The whole restaurant

has a circular frame to allow

the robots to move around infamiliar territory. The robots

serving different purposes from

taking the orders to serving the

food can entertain almost 100

guests at a time.


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AMO RESTAURANT,LONDON

MIZUYA RESTAURANT,SYDNEY

Another minimal waiters

service restaurant in the list isthe Mizuya Restaurant in

Sydney, Australia. Loaded with

high tech digital tablets to

choose the food, the beverages

and ultimately make the

payment.

An authentic Asian restaurant

where the amazing food is

accompanied by quick service

(one minute wait on the food).

This place has almost maximized the use

technology. They check the reservation on

iPad; the table has a touch screen menu to orfood. Customers can also use the table to cha

colors and patterns to suit your imagination

also allows them to play games while they

waiting for their meal, and even during if t

get hooked to it. It also allows them to tak

look at the chef while he is preparing your fo

To add further to the features, it also sugg

next possible locations that they would wan

go to after their meal, clubs/bars. You can a

order a cab right from the restaurant. Ipossibly the most high tech restaurant that

would ever visit.


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BAGGERS INNUREMBERG,GERMANY

With the exception of the chefs,everything is automated here.

The table has a touch screen to

order food, customers can also

learn a lot about the food such

as the source of the ingredients,

facts about the food, portion

sizes etc. Metallic racks

attached to the table link it to

the kitchen. Once the food is

prepared the metal rails bring it

to the table.

The touch screen also allows

customers to create a list of

favorite dishes, a lot like their

own personalized menu. They

can also rate their experience,

the food, the service, the

ambience, and tell their friends

about it. As with most touch

screen menus, payment can

also be done right there. One

option that this place provides

is to pay at the end of the

month.


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ROLEOFTECHNOLOGY

Like any other business technological advances made in the restaurant industry have changed the waybusiness is done. We would now take a look at how that has happened.The three broad heads under which we have tried to cover the changes are Restaurant operations,

Customer empowerment and Marketing Promotions.

RESTAURANT OPERATIONS

Some of the major restaurant operations where technology has made an impact are

REDUCING TIME LAGS

With the new tablet systems, people can order directly from the table, and also pay for the food. This

creates an instant meal ticket in the kitchen and the time spent on taking orders and the process of billpayment can be greatly reduced.

INVENTORY MANAGEMENT

Softwares used for purchase and inventory management allow many advantages, some of which are listedbelow.

Inventory Management Advantages

Inventory products can betracked through each stageand as soon as the products

fall short, they can beordered automatically. Thisway you can be sure that a

favorite menu item does notrun out while at the sametime ensuring that you are

never overstocked

You can also check theprices of different vendors

online and compare theirproduct and price. At the

same time the software willalso generated reports based

on purchases, bids andcredits.

You can link the food costand menu, which will allow

you to be notified of anychange required in sales

price of an item, if cost ofone or more ingredients hasgone up. The software alsogives a detailed analysis ofthe menu items nutritional

analysis, cost analysiswhich gives you margins on

menu items, any changesthat occur over time.

The menu linkage allowskeeping track of food costpercentage, which items

and/or promotions are mostpopular and which items

need to be targeted forfurther promotions

It also allows the restaurantowners to cut down on the staffwaiting tables, and fewer staffcan still provide a betterexperience for the customers.


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LABORMANAGEMENT

Every restaurant owner would agree that its not Christmas every day. A restaurant has high periods andlow periods, not just in a year but it also varies according to the time of the day.

Looking at the same, one can schedule his labor requirements as per the estimate of number of guests.Keeping the same number of staff will mean fluctuations where sometimes either youre overstaffed orsometimes understaffed. This also hampers the quality of service, which would not remain consistentthrough the day or the year.

Another challenge that occurs is when you have variable number of staff through the day; you need toensure that their presence is utilized to the maximum. A good system can allow you to do that, and thatlabor management system is provided with the use of new softwares and technology available.

By putting right systems in place, you can monitor the check in, check out times as well as the timelost in breaks. This in turn gives you two advantages

You know the exact amount of hours worked and can pay accordingly.

You make sure that check in and checkout cant be cheated by putting ina system which makes sure that unscheduled breaks can only be takenwhen a manager overrides the system.

You can check the forecast of customers, match it with actual data, and make necessary changes inthe manpower. Once done you will have to do that again, while it will take some time initially, onceset up the system can generate automatic scheduling of staff as per the need of the hour and frees uptime to be utilized elsewhere, such as customer service.

You can monitor applications, recruitment, personnel information, bonuses and benefits, tax statusvacation, training requirements and training completed (E-learning modules are especially beneficialfor franchises, making sure every employee across the franchisee is equally well trained). You canalso monitor tips, paychecks, and keep in line with IRS guidelines for tax purposes.

LaborManagement

throughtechnology

Ensuring

timelypresence ofstaff

Predicting therequirement of

labor atdifferent

periods duringthe day

Keeping trackof employeeinformation


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CUSTOMER EMPOWERMENT

Customers today are in control. They need innovative beverages, meal items, they write the reviews aboutrestaurants, and the social media is one platform that has given them the freedom to make or break thereputation of a restaurant.

One of the most important factors to consider these days is that a customer likes to be in control, and ifyou give him that control, you create a sense of ownership in the customer about your restaurant. Thiswill not only result in customer retention but also may result in free promotions for your restaurant amonghis/her friends.

Some of the ways that this sense of ownership can be provided to the customers are discussed below.

FOOD CUSTOMIZATION

Many restaurants today provide options to the customers to choose the ingredients that would go in their

meal. It is a lot like a subway sandwich, only now its not limited to a sandwich. Also, there are options

which would allow the customer to even choose the way food is

cooked, if they wanted it roasted, fried, baked.

The tech.

also allows

customers

to make beverage mixers as per their own

choices. New and innovative beverages are

increasingly demanded by consumer these

days, and it has been difficult for the

restaurants to keep up the innovation. On top ofthat problem, you never know which new

beverage will be accepted and which will be

rejected. By allowing customers to customize

their own drinks, one not only gets rid of that

problem, but also increases the chances of

finding a new hit beverage for the restaurant.

Customers now also can gain

information on the nutritional

value of the meal, with detailed

analysis. This is done by

linking the menu system used

in the back office operations to

the user interface that the

customer is using. Considering

the increasing importance of

health quotient among

consumers, this is an essential

feature.

While the whole food customization idea

would have raised the problem of

estimating the cost of the new item created,

but if you have the food cost system which

was discussed earlier, that problem is also

resolved. In short, you are not only relieved

from the burden of coming up with new

items, but also pricing, when you have the

right tech. in place.


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AMBIENCE CUSTOMIZATION

Now we all know that food is not all that a customer comes in for. Agreed, its a major factor, but thesecond biggest factor is the service. Service is not just the way the restaurant waiters treat the customers,but also the feel of the restaurant, its ambience.

The restaurant owners can do this as well switching frombright lights to fluorescent lights which can result in energy savings. They also have the option ofadjusting the sound, if the chit chatter is pretty low, you can change the mood with the sound and createan ambience you want.

Many restaurants allowedthe customer to choose themusic, but it is not possibleto satisfy all, right? Wrong!!With the advent of newsound control systems,personal booth systems andsound dampening materials,restaurants can allow each

table to listen to their ownmusic, at their chosenvolume.

The use of digital tables(yes, tables not tablets),which allow people to order,can also be used to switch

pattern, color sets, as per theguests requirement. Somehave digital curtains whichcan be customized by thecustomer, and in Las Vegas,they even allow setting thedance floor lighting pattern,b ro ectin them on the


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MARKETING TACTICS

Technology affects every aspect of business. From telegraph to television to internet, the source ofinformation is ever evolving. It is necessary to use the latest channels and discover innovative ways to

reach your intended customers. Since internet is the new information giant, thats where you will need tobe to grab your customers attention. From marketing to different audiences, to providing options on foodto making a reservation, technology helps everywhere.

Online promotional offers

Using the informationavailable from your owndatabase, use it to offer

specials based on their previous choices of menu items. Online offers needto be more targeted, than generic, and if you are sending a group email,make sure the demographics of the group match; instead of hoping to getone response out of 20 emails, customize to aim for 10.

USE OF SOCIAL MEDIA

To say social media is a big factor in restaurant business today, will be an understatement. With the power

given to customers, to rate their experience in detail of any and every restaurant, restaurants need to be ontheir toes at all times. One bad review can hamper the restaurants image, which would need possibly morethan 10 positive reviews to negate that.

Remember discounts is not theonly offer, you can providegroup reservations on

graduation dates and birthdayparties, offer them anopportunity to create a themefrom the options available toyou, to create an ambience thatwould make them feel wanted.Create an online club of yourpatrons, and post offers there

online.

While a lot of restaurants dthis, what offer suits who becan be interpreted b

technology. By using your owcustomer databases, you camake sure the right offer at thright time is provided to thright person. Make offers otheir birthdays, anniversariegraduation dates and othespecial occasions. Keep aopen reservation for them othese particular dates, anincrease your chances of beinreciprocated by the customer.


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Encouraging users to voice their opinion onwebsites like Facebook, twitter, MySpace andsimilar other networking websites can help yourrestaurants image. There are options where the

user can directly go to these pages via socialsignals on your website. If you are using thetablets for ordering, these options can also be putin there, so that the customer can directly put intheir feedback from your restaurant and you willhave a better chance to get a positive result.Remember this, a customer if happy will write gloriously about your place on these websites at thatinstant, while later he/she has the time to reflect which brings out small details which may alter hisopinion. In case of an unhappy customer, there is little chance that he would change his opinion to a moreneutral perspective later on. So instant feedbacks can work wonders for your restaurants image.

EFFECTIVE CUSTOMER RELATION MANAGEMENT

An effective CRM is possibleonly by co-ordination of a lot ofthings done correctly and in realtime. Here technology can helpyou by providing a real timeupdate on customer reviews,customer choices. Many tabletswhere the customer order from

keep a record of previousorders, and can suggest othermenu items similar to previouschoices. You can also postsuggestions as to which wineswill go better with the mealselected, or based on the choicemade now and earlier.

Having said that, this is also an opportunity to

restaurants to not just reach their customers

but also engage them, and build strong

relations. For example, Papa Johns facebook

page provides information such as store

locator, email specials and even free pizzas to

its followers on facebook page. You can also

create a blog of your own, where people can

voice their opinion, and you could address the

issues that arise. This displays your concern

for your customers and also cuts back on

negative feedback which may appear on other

sites like tripadvisor.com, yelp.com and

urbanspoon.com. You can even use the

positive feedback to post on these sites andgenerate goodwill for your restaurant.

Some restaurants even allow the customers tosee the chef at work such as Inamo restaurant inLondon, or see real time updates on the timethat will be taken to prepare the meal. A tickingcountdown makes customers less anxious about

when the food will arrive. This way once acustomer knows everything about the food he isgoing to have; it creates a sense of satisfactionand control, which results in increasing his truston the restaurant. This will create patrons whowould become your regular customers, and theirsocial media updates & word of mouth willwork to bring in more people.

With the right tech. in place, will stay updated about impordates for your customers wallow you to make the right oat the right time. This givesense of ownership to the patwhich will allow them to slonger to your restaurant. Youalso create a club of patrons throw parties or buffets only oto the members of your cfurther strengthening yrelations with the customers.


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COMPLICATIONS IN USE OF TECHNOLOGY

Financial Considerations

ROI: With the rise in pace of

technology, it is very important to

consider the timing of the tech.

considered to be adopted. You may buy

a system for $20,000, and by the time

you have realized only $10,000 out of

it, a new version or something else

comes up which replaces yourtechnology. So one must strike a

balance between jumping on to a new

technology very early and moving in

too late, in order to maximize the

returns on your investment.

Size of the Business: A lot of new high tech.

will obviously have a price tag to it, which

may not be suited to all the businesses. If yours

is a new venture, maybe you should focus

more on backhand operations to ensure

efficiency, while building up enough cash to

upgrade when the time comes. If you have

been in the business long enough and haveenough capital, you should look at your

restaurant concept first, and then decide which

tech. can help you experience for your

restaurant.


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Customer Considerations

Marketing Considerations

System Complexity: You have to

ensure that the tech. that you put in

should not go beyond what your

prospective customers can understand.

In short, it should be user friendly. A

very large system with many options is

like a large menu, which can confuse

your customer and also increase the

table turnover time as they take time to

order. So even though you want a

futuristic feel, you dont want your

customers to feel alienated.

Demographics: While technology helps youidentify best customers most suited to your

restaurant, you obviously started the restaurant

with certain concept in mind focusing on a

particular demographic. You would want to

make sure that your tech. is suited to your

prospective customers by taking various

factors into account, such as age group,

spending capacity, tech. friendliness and

similar others.

System Complexity: You have to

ensure that the tech. that you put in

should not go beyond what your

prospective customers can understand.

In short, it should be user friendly. A

very large system with many options is

like a large menu, which can confuse

your customer and also increase the

table turnover time as they take time to

order. So even though you want a

futuristic feel, you dont want your

customers to feel alienated.

Demographics: While technology helps youidentify best customers most suited to your

restaurant, you obviously started the restaurant

with certain concept in mind focusing on a

particular demographic. You would want to

make sure that your tech. is suited to your

prospective customers by taking various

factors into account, such as age group,

spending capacity, tech. friendliness and

similar others.

Most Suited Media: While the social

media would be the first thing that pops

into mind when thinking about the new

age media channel, there are many

options within the media. For example,

if you have a lot of tourist customers,

there is a better chance of them looking

for a review on tripadvisor.com rather

than facebook (not undermining the

importance, simply prioritizing).

Similarly if you serve lot of locals

facebook page, and local websites

offering reviews of the place in the citywould be a good choice.

Most suited Innovative methods: While

innovation is the order of the day, you do not

want to promote your restaurant through a

method which is off your restaurant concept.

For example, if you have a fine dining

restaurant, you want to offer specials on wines

or a new innovative meal, rather than clubbing

and creating value meals, as the QSRs do.

Same applies vice-versa.


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BRITTCO SOLUTION

Brittco Advisors provides high value consulting

services to the hospitality industry creating

measurable results in sales growth, customer

satisfaction, expense/operational management and

brand awareness.

With Brittco, you can fill in the missing gaps ofyour business. With experience of being in the

actual position where most restaurant owners findthemselves today, Brittco can offer expert advice onevery aspect of running your business.

This can include a re-interpretation of the companyidentity, advertising, printed collateral, packaging,social media strategy, and overall communication ofyour brand's values to the public.

Our goal for every client, every time is to get them their best store economics contributing to stable orenhanced net operating profits.

We will not take on a client if we cannot make a difference.

Some of the services provided by Brittco are:

Audits and Action Plans: We candevelop and train franchisors/area &master developers to implement auditsand actions plans that measureperformance in areas including servicestandards, product quality, food handling,recipe adherence, cleanliness, sanitation,office accounting, and Human Resourcepractices. These audits can be a guide tostore operators, franchisees on their daily

management of operations and thebusiness.

Cost Management: We conduct reviewsof product purchasing and tender/negotiate/implement contracts with local,national, multi-national suppliers andmanufacturers.

Product Quality Improvement:Analysis of product ingredients oftenleads to opportunities to implement higherquality goods from larger suppliers atbetter pricing - resulting in a more

premium end product. Brand Development: We believe there

are two areas of brand equity. First is theperception of the brand quality and theposition it enjoys in the investmentmarketplace, and second - the


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CONCLUSION

Technology affects us every day. It plays a role in every business; it is no surprise that it has touched therestaurant industry as well. With the low consumer spending, ever increasing demand for innovative

products and razor thin margins, the traditional model of a restaurant will have to evolve to meet thedemands of today and the future.

Technology can lease new life to your restaurant. It can maximize efficiency, reduce costs, and eveninnovate to an extent for you. Many restaurants have adopted the new technology, and many are in theprocess of doing it. While all this high tech. there is a cost factor involved. While most will pay forthemselves by generating efficient systems and attracting customers, the ROI time will fluctuate. Thereason being, the speed at which one technology replaces other.

In order to stay ahead of the curve, one will inevitably have to upgrade their system, what one needs totake into account are certain factors such as

While there are many micro factors as well, on a broad level this is what one needs to take care of.Change is difficult and technology is certainly something that brings change with itself. It may be one ofthe biggest reasons for restaurant owners being skeptic about the new technology available and itsusefulness. But as always, change is necessary and technology is the new change that the restaurant

industry has been waiting for.

In the words of Pauline R. Kezer Continuity gives us roots; change gives us branches, letting us stretchand grow and reach new heights.

Let the new technology help you stretch and grow and reach new heights.

Compatibility with Concept: While so manytechs. are available in the market, they aremeant to serve restaurants in a very genericmanner. Restaurant owners will have to decidethe correct mix of different tech. required fortheir operations and one which will not alterthe concept of their restaurant. The success ofa restaurant depends on its unique concept, andeven technology cant replace it. It cancertainly help to enhance some of the features,

such as lighting, sound, menu offerings andothers. Its the restaurant owners that will haveto make the choice, what features does he wantto upgrade.

ROI: While this seems obvious enough, whatone needs to take into account is the speed atwhich technology is replaced in todays world.So you have to choose quickly what new tech.you are going to adopt, but at the same time becareful that you dont get into somethingwhich eventually is not compatible or is simplyan add on. The worth of the product is howquickly it can pay for itself, and how much

more it can generate.


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ABOUTBRITTCO

Brittco Advisors provides high value consulting services to the hospitality industry creating measurable

results in sales growth, customer satisfaction, expense/operational management and brand awareness.

We also help struggling restaurant franchise companies and chain restaurants to restructure their franchiseframeworks at operational, managerial and financial levels and achieve a better turn around, therebyrestoring profitability. Our area of expertise extends to direct dealings with hotel and propertymanagement companies, equity fund lenders, restaurant designers and architects, bankers and licensingprofessionals.

Brittco advisors have a wide range of services spread across the world, taking into detail of every aspectof restaurant industry changes, impacted by changing demographics, and specific business requirementsof different restaurants. At Brittco we understand that your requirements are unique and will need uniqueperspectives and solutions, which is why Brittco is

Globally Inspired. Globally Networked (Asia). Globally Available.

Contact Information

Ken Gooz

President

[email protected] Skype Id - ken.gooz1Direct: 780 425 4108Suite #202 2520 Ellwood DriveEdmonton Alberta, Canada T6X 0A9
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http://www.thetraveleditor.com

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Tomorrow Begins Today

DISCLAIMER

All the information presented in this paper, is a curated work comprised from data collected by variousorganizations working to create awareness about the corrosion problem across the world. We do not claimto have collected any data and the statistics based on which the charts of various types are made, are work

done by the organizations/institutions which have been quoted in the sources and the links from where theinformation was collected has been accounted for in the Bibliography.

We do not claim complete accuracy of data and deviations from the given are possible. Brittco has madethis paper for informational purposes and have tried to credit all the sources possible which could betraced back from the data. Any omission of the source is purely accidental and complete effort has beenmade to give recognition to every data source.