Serving Up Success: Revolutionising The Restaurant Industry.
The march towards digitisation has transformed numerous sectors, and the food industry has been at the forefront of this revolution. Propelled by the challenges of the Covid-19 pandemic, restaurants found themselves in a race against time to pivot and adapt or face closure or risk being one out of every ten restaurants shut down permanently. The culinary crunch pushed remaining players to cook up innovation on the fly to stay afloat.
But what does actually ‘digitalisation’ mean for restaurants? How can owners implement digital transformation effectively? Stick around and we will discus exactly this going in depth in the implementation and consequences of.
- Efficient contactless payments.
- Building a strong social media connection.
- Expanding reach through delivery partnerships.
Surge Of Food Delivery Apps
During the pandemic, food delivery apps saw a boom. Uber Eats, the largest UK food delivery service saw a 54% year-to-year increase in profits as people turned to delivery services for their fix of delectable delights. People opted to dine away from crowded areas, preferring the comfort of their homes a trend that has continued post Covid-19. This shift reflects a broader social change towards convenience and safety. With a whopping 49% of brits saying they consume takeaway four or more times per week can you blame restaurants for indulging in this irresistible new stream of revenue.
Delivery Only Restaurants
Food delivery apps have not only been a lifeline for traditional restaurants but have also paved the way for the rapid emergence of new ghost kitchens in the wake of Covid-19. While the term “ghost kitchen” might evoke visions of spooky sandwiches, its reality is far more ordinary. These are essentially delivery-only establishments who partner with delivery services such as Uber Eats. Without any physical presence, which results in significantly lower operational costs without the need for front-of-house staff. This cost-effectiveness has provided an avenue for numerous restaurants to establish their brand before committing to a brick-and-mortar location — a strategic approach that mitigates the risks of diving headfirst into the competitive food industry allowing for a strong rise in start-up restaurants…if you can call them that.
Digital Developments
The common trend in the digitisation of the food in food industry is that people prefer to be left alone. Many restaurants are adopting the digital self-ordering kiosks and as of 2022 the industry was valued at 26.45 billion USD which is later expected to rise to 43.65 billion USD by 2028. This rise of contactless payment methods, like the oh-so-convenient click-and-collects, is a big part of the story. It’s clear we’re witnessing a revolution where convenience meets technology, changing the way we interact with food services into a somewhat talk less eat more dining experience.
Targeting Gen-Z
Tech-savvy Gen-Zers are at the forefront of the digital revolution, eagerly embracing new technologies and as Sophie Wali said in her DIGSOC2 post many prefer the “value convenience more over price” which I myself can also vouch for. However this digitalisation is pushing out many of the customers, take, for instance, my dad wrestling with his mobile phone, a spectacle of confusion and determination. He’s not alone as a staggering 22% of those aged 65 and over, equating to 2.7 million individuals, find themselves sidelined, not engaging with the internet at all. This situation highlights a growing digital divide and points to the exclusion of many from the evolving digital landscape.
Environmental Impacts
It’s a common misconception that the surge in technology and delivery platforms could exacerbate pollution. However, the reality is quite the opposite, especially with the rise of e-bikes and e-scooters in the urban mobility scene. These electric vehicles have become a cornerstone for on-demand food delivery services, offering an eco-friendly alternative that meshes well with our urban environments. Electric transport is now about getting to your destination ‘sustainably, economically, and efficiently’ as identified by Joe in his DIGISOC2 post. E-bikes, favoured for their zero carbon emissions, play a pivotal role in diminishing the carbon footprint of delivery services in bustling cityscapes. This shift not only addresses traffic congestion and air pollution challenges but also aligns with broader environmental goals, such as the UK government’s ambitious aim to slash carbon emissions by 78% come 2035.
Is This Dawn Of The Digital Age Eating Up Competition?
What fate awaits independent restaurants less adept in the digital realm, and how do they navigate these challenges? There’s a concern that this trend could result in the overshadowing of authentic independent eateries by modernised digital giants armed with ample resources for implementing technologies like kiosks and hiring social media managers. Over time, this disparity may widen, compelling smaller restaurants to adapt to the digital age or risk being left in the dust.
Future Of The Restaurant Industry
Imagine biting into the perfect burger — juicy, flavourful, sandwiched between pillowy buns. You’d instantly think, “Surely, there’s a skilled chef behind this creation, right?" Well in the case of the newly opened restaurant CaliExpress you'd be wrong. Here, both the burger preparation and fry cooking are handled by robots developed by Miso Robotics. With staffing prices continue to rise and more advanced technology becoming more readily accessible it seems like a natural yet robotic step into the advancement of the restaurant industry.
How well has CaliExpress fared in terms of success? One customer left a revue stating ,
“Take away atmosphere and human connection, the end of real experience. Let the robots take away critical thinking, creative cooking, connection and jobs for humans.” — Paula Montondo on google review
Paula Montondo’s review underscores a crucial aspect missing in automated restaurants like CaliExpress: the human touch. For many, dining out is more than just eating; it’s about the experience and connections formed. This shift towards technology leaves us wondering if the essence of dining is being overlooked in the pursuit of efficiency.
So Whats The Takeaway?
The digital transformation of the restaurant industry presents a dichotomy: a world of opportunities for growth and innovation, juxtaposed with the challenge of maintaining the human connection that defines the authentic dining experience. As we navigate this digital frontier, the key to success lies in striking a balance between efficiency and authenticity.
