As eating places grapple with excessive meals and labor prices, some operators are turning to expertise options to chop prices and construct income. The Nationwide Restaurant Affiliation’s 2023 State of the Restaurant Industry report reveals that 90% of operators view inflation as a big problem, with 92% of operators saying that meals prices pose an enormous problem and 89% responding equally about labor prices.
Three years in the past, the pandemic pushed many operators to rapidly adapt applied sciences that eased operations as they shifted to an off-premises and low-contact mannequin—together with on-line ordering and funds, handheld POS units, and digital menus accessed via QR codes. At this time, restaurant operators proceed to innovate and adapt as they face the challenges that inflation poses, turning to high-tech options to assist increase their backside line. Price-cutting expertise Tech options can streamline back-of-house operations, trimming meals and labor prices:
AI ordering assistants. Panera Bread and Popeyes are among the many eating places testing AI voice assistants at their drive-thru eating places. The chatbots take buyer orders, asking follow-up questions, as wanted, and upselling drinks, desserts and sides. In the meantime, workforce members can consider getting ready visitor orders. In a check run at a Popeyes franchise, the AI voice platform took orders with 99.9% accuracy and elevated soda gross sales by 150%.
Distant employees. Not prepared for AI, however in search of ways in which expertise may also help deal with orders? Some eating places with walk-up counters or drive-thru home windows are turning to distant employees, who seem stay on a video display. Nearly all of clients in all ages group have a positive response to this ordering technique, together with 78% of Gen Z adults (age 18-26), in line with the State of the Restaurant Trade Report.
Labor administration options. “When you will have instruments for labor administration that give managers time again of their day and provides workforce members nice transparency, you’re setting your self up for achievement,” says Hillary Holmes, operator in residence for restaurant tech and funds firm SpotOn. Information-driven scheduling software program may also help managers anticipate their labor wants by drawing on gross sales historical past, climate forecasts and upcoming occasions. “Guided worker scheduling helps operators maintain their labor prices down, as a result of it mechanically seems at your schedule and checks if you’re overscheduled or under-scheduled,” decreasing the prices of overstaffing and the inefficiencies of understaffing. Built-in scheduling apps empower workforce members, inserting the flexibility to swap shifts of their palms. With the proper software program, operators can slash the period of time managers spend scheduling and performing different labor-management duties, together with payroll and tip distribution.
Kitchen show techniques. Seeking to streamline your kitchen? Some operators have moved to a paperless system for dealing with orders, counting on digital shows that manage, prioritize and monitor orders, reasonably than printed or handwritten order tickets. “Kitchen show techniques (KDS) are huge for the culinary world,” Holmes says. “They permit eating places to function with fewer workforce members and transfer rather a lot quicker, simply purely based mostly off of group and with the ability to see the whole lot they want at a look.” Pair this with a handheld POS, and an order will seem on a kitchen show earlier than a server leaves the desk.
Stock administration software program. Thorough stock administration means much less meals spoilage and might deter inner theft—each methods to trim meals prices. Most stock administration software program can combine with a restaurant’s POS to trace stock in actual time; in truth, stock capabilities are constructed proper into some POS techniques. These software program packages can forecast stock wants, present re-order alerts, and create buy orders, shaving hours off a supervisor’s back-office work. Some techniques even hook up with foodservice distributors for automated value updates, and have recipe-costing capabilities that may inform menu and pricing choices to assist enhance revenue margins. Income-boosting expertise Restaurant operators are additionally leveraging expertise to pinpoint their advertising efforts. Some tendencies to look at:
Variable pricing. Taking a web page out of the journey trade’s and ride-share’s playbooks, some eating places are shifting towards a variable pricing mannequin—providing reductions throughout slower instances and better costs throughout peak demand. About 4 out of 5 adults have a positive response to this restaurant pricing technique, in line with the State of the Restaurant Trade Report.
Eating places have lengthy dabbled with variable pricing; assume early chook and completely satisfied hour specials. At this time, they will faucet into expertise that allows this technique. Not solely do subtle POS techniques enable for time-based pricing constructions, however some tech platforms work to optimize dynamic pricing based mostly on a restaurant’s gross sales information and real-time demand, serving to operators reap bigger margins throughout busy instances and entice value-oriented visitors throughout slower instances. Cellular apps and social media assist alert clients to reductions and specials. On-line ordering, digital menu boards and QR code menus all ease versatile pricing.
Metaverse advertising. Main restaurant chains are opening storefronts within the digital actuality world, constructing model consciousness and buyer engagement in new realms. For instance, VR lovers can discover the Wendyverse in Meta’s Horizon Worlds, the place they play cheeseburger shuffleboard and shoot baskets with Wendy’s Breakfast Baconator. “You may have a possibility to succeed in out to a unique viewers,” says Asif Khan, president of the Location Based mostly Advertising and marketing Affiliation. “The demographics usually skew youthful.” Eating places are experimenting with promos and new product launches within the digital world that translate to actual world gross sales.
Location-enabled advertising. “The placement-based advert focusing on area has modified rather a lot within the final variety of years,” Khan says. Apple and Google privateness updates make it tougher for companies to push adverts to shopper telephones within the neighborhood. “Actual-time location information is tougher to get.” In flip, Khan is seeing a progress in cohort- or audience-based promoting that tracks shopper site visitors patterns in quest of people who match standards that mesh with a model, and gathers their cell phone IDs. For instance, a restaurant specializing in salads would possibly search for shoppers who go to a gymnasium and store at an natural market. The restaurant can then goal its promoting finances, reaching these people via social media adverts.
Prepared at any time when you might be. Wouldn’t it’s nice to have a visitor’s takeout order prepared simply as they arrive, even when they have been caught in site visitors? Some operators are leveraging location-based expertise to just do that, and are branding themselves for his or her dedication to customer support. “It really works like a reverse Uber,” Khan explains. “I’m sharing my location as I’m on my technique to decide up my espresso, versus I order an Uber, and I wish to see how distant my driver is.” The restaurant receives an estimated time of arrival together with updates, which helps prioritize the order appropriately and facilitates an environment friendly and easy handoff. Khan notes: “It’s about leaning into the concept of comfort and customer support and associating that together with your model.”
The 2023 State of the Restaurant Trade report is the authoritative supply for trade gross sales projections and tendencies. It’s based mostly on evaluation and forecasts by Nationwide Restaurant Affiliation economists and surveys of restaurant operators and shoppers carried out all year long. Obtain a duplicate here.
