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Adobe Stock
Restaurants have invested in tech to optimize and automate staffing.
NAVIGATING THE 2024 RESTAURANT TECHNOLOGY LANDSCAPE
Nov 20 2023
Story
Adobe Stock
Restaurants have invested in tech to optimize and automate staffing.
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Relative to other industries, restaurants were slower to adopt new technology in
the early 2000s but they sure made up for lost time in the 2010s.
Fueled by technology advances (e.g., mobile and cloud computing), the need to
make their businesses more efficient and staff more productive to compete, and
lofty growth ambitions, global brands with large multi-unit operations and
independent restaurants alike began adopting software, and lots of it.
And then, once 2020 came along, restaurants were forced to quickly innovate
their way through unfamiliar guidelines, staffing shortages, rising wages and
food costs, supply chain issues, and consumers’ increased appetite to engage
through new channels (e.g., digital, delivery, drive-thru), all further
accelerating technology adoption.
Which leads us to today—where, specifically, have operators invested in
technology? There are several ways to slice the restaurant technology pie. Let’s
dig in.
At a high level, most restaurant technology falls into one of the following
categories:
* Operations Management
* Point of Sale
* Guest Experience
* HR & Financials
* Business Intelligence
To create a roadmap for your own technology investments, we’ll drill deeper in
the sections below.
Operations Management
Effectively managing operations involves understanding and controlling the key
factors that contribute to profitability in each restaurant location, while also
ensuring consistent execution of critical procedures and training staff to do
their jobs well.
Managing Profitability
Given the thin margins involved in operating a restaurant, predictably managing
the two of the most expensive costs to the business—food and labor—is essential
to ensure you’re not digging a deeper financial hole every time you open a new
location.
On the food cost side of the equation, restaurant operators are looking to more
effectively manage purchasing, inventory, recipes, food waste, vendors, and
sales forecasting. Technology investments in these areas can improve
profitability in a range of ways including ensuring you have enough inventory on
hand to meet demand, providing visibility into actual vs. theoretical food
costs, and knowing if your suppliers are giving you the products you were
expecting (vs. substitutes) at the prices you expected to pay.
With rising wages and rapidly changing labor laws, managing labor with increased
precision is also an imperative. Restaurants have invested in tech to optimize
and automate staffing, with a goal of scheduling the right number and mix of
employees for each shift while staying in compliance with local laws and
regulations.
Operations Execution
In recent years, the industry has seen accelerated adoption of software that
improves the consistency and quality of work happening in every location and the
productivity of field and store teams. Operators are investing in technology to
enable more effective task and audit management; food safety and temperature
monitoring; corrective action routing, tracking and resolution; incident
management; and overall compliance with brands standards, standard operating
procedures, and rolling out strategic initiatives.
Learning & Development
In this industry, turnover is especially high, costly, and disruptive. Operators
are investing in software to get new hires trained and “shift ready” as fast as
possible, track their performance, and enable ongoing development for their next
role as an incentive to remain with the organization.
Point of Sale
A dwindling number of independents may still be getting by with an old-fashioned
cash register, but for most of the industry, point of sale (POS) platforms are a
table stakes technology investment geared to optimize that pivotal interaction
and transaction with customers. It’s where your menu of products (including LTOs
and special promotions), employee training, and technology comes together to
present a key opportunity to engage customers and ensure a smooth and positive
experience.
The information and insight captured by the POS system is also a gold mine that
can be used to learn more about your customers over time. And this info feeds
key operations management processes like sales forecasting, inventory
management, and food prep.
Guest Experience
Guest experience systems are customer touchpoints that provide different ways to
engage with guests and attract new ones. Tools in this category range from
digital menu boards, loyalty and rewards, online ordering and delivery, review
and reputation management, survey and feedback collection, local search and
discovery, reservation and table management, and other capabilities that help
hone the customer experience and engage them in new ways.
HR & Financials
The nuts and bolts of any business, finance and human resource software is core
technology to restaurant operators of every size. Platforms include accounting,
payroll, and HRIS, the latter of which includes a range of capabilities to
support the employee journey from applicant tracking to onboarding to collecting
and storing of all pertinent employee data.
Business Intelligence
With a growing restaurant technology stack comes data–lots of data. Restaurants
are now capturing a treasure trove of potential insights that can put their
organizations in position to more effectively steer the business by identifying
issues and opportunities earlier. The challenge that most operators face is that
all of this data remains locked up in potentially dozens of disparate systems.
That is the promise of business intelligence platforms: to make it easier to
combine data sets in a way that not only makes it easier to access but also
makes it possible to intelligently prescribe the right actions to the right
people across the organization. These solutions can also uncover unforeseen
correlations in data that deliver novel insights that can drive strategic
decisions.
What’s next? With powerful advances in AI and machine-learning, the next decade
is sure to usher in even more change and opportunity to leverage technology to
run your restaurant business, no matter how you slice it.
David Karel is Chief Marketing Officer at Crunchtime. With over 25 years of B2B
and technology marketing experience, David has served in a range of leadership
roles for Zenput, LinkedIn, Clari, Bizo, and SuccessFactors. Originally a New
Yorker, he and his family live in the Bay Area.
Outside Insights, Restaurant Operations, Story, Technology
David Karel
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