Whether it’s a casual cafe, bistro or restaurant, there are so many things to think about when setting up a business. The tools and technology are daunting because this is the area that most business owners are unfamiliar with. Many rely on others in the restaurant business to recommend or advise them on the best approach to take. However, what works for one cafe in the heart of the CBD doesn’t necessarily suit a casual dining venue in a trendy inner city suburb.
In 2012, Entrepreneur reported the foodservice industry “outpaced the economy for the 12th consecutive year with sales expected to reach $632 billion, a 3.5% increase over 2011.” Today, the disruptive technologies within the foodservice industry is growing rapidly making it more of a challenge to keep up with evolving your business with the right technology.
A common perception
From the numerous restaurants/cafes/bars that we’ve interviewed, many restaurant managers, staff and bartenders feel threatened by technology. One restaurant owner commented that “robots will be servicing us food like the vending machines in Japan”. But robots will not be replacing staff anytime soon. “50% of restaurant guests said that being served by a robot would not improve their experience and 40% would visit less” according to Restaurant 2025.
Technology has already influenced much of what happens in the foodservice industry today. People often forget the early times of a new technology that “rubbed us the wrong way” before it was widely accepted and become the new norm. Imagine that your best friend asks you to try this new trendy restaurant and make the reservation. Do you jump online or call the restaurant to make your reservation? According to a study from Toast, “25% regularly make online reservations.”
The reality of technology’s role today
“…guests lean heavily on the Internet to make dining decisions — from finding places to eat and choosing the right restaurant for them, to figuring out how to get there.” — OpenTable
Technology plays an important role in the foodservice industry. From food delivery to seating management, reservations, paying the bill and sales reporting, technology has helped restaurants keep up with the consumer demands and needs. Compared to 10 years ago, today we have a very different dine out experience and expectation of this service.
Tech history at a glimpse
- Cash register (1879, by Ritty invented the “Incorruptible Cashier,” a device that registered transactions made at his business)
- Point of sales, POS (first point of sale software created by Martin Goodwin and Bob Henry)
- Credit cards and fingers signing
- Seating management
- Online reservations
- Online reviews
- Tap and pay
- Post weekly specials on social (eg. Facebook and Instagram)
- Increase orders with takeaway offering
A big change on the horizon
The internet has given the foodservice a huge opportunity to connect with more people, more often. It also provides a way to learn more deeply about your customers, enabling you to provide a more personalised experience before, during and after a customer sets foot in your restaurant.
“86 percent of diners regularly check out menus online before dining out.” — OpenTable
Almost every customer today has a smartphone, 81% of Australians to be exact. Yet, businesses are somehow being convinced that they should be investing tens of thousands of dollars into buying new and expensive devices (eg. iPads) for their restaurants. Don’t forget there’s also the ongoing maintenance and replacement costs for these expensive devices, in addition to costs associated with the software.
“The time for expensive software is coming to an end.”
The time for expensive software is coming to an end. Smartphones are the next opportunity. Here are a few reasons why:
- Let’s assume a small restaurant with 25 tables wants to allow their customers to order from their tables. Your business will save over $12,000 by not purchasing new iPads.
- Customers are already familiar with their own devices and 75% likely to have already searched your restaurant’s menu
- Gain a deeper understanding about your customers to meet consumer demands of better service
- Send personalised promotions, gifts and messages to people based on their dine out behaviours.
With these self-owned devices, the possibilities are endless.
A more enjoyable and profitable way of doing business
Allowing customers to use their mobile devices throughout the lifecycle of their dine out experience empowers businesses to learn more intimately about their customers behaviours. It also allows them to experiment more frequently and reach out to more people in a more meaningful way. With the help of technology, businesses can spend more time personalising the experience for the guest in their venue. This makes for a more enjoyable and profitable way of doing business.
The Restaurant 2025, a global research conducted by Oracle, highlighted overall that
“Consumers are most willing to engage with brands with new technology if they feel that they are in control of their experience and enjoy a personal experience. “
Together with the right tools, knowledge and process, you can efficiently deliver a more personal experience to your customers and better meet their demanding expectations. Let’s make the foodservice industry glamorous together!
If you’re interested in learning more about how to use digital in your business to increase profits, let’s talk. Feel free to get in touch at hello@atumio.com.
