Technology is one of the most important forces behind the transformation of various industries, including restaurants. It helps streamline processes and improve customer experience. It also helps restaurant owners gather insights about their operations and influence better business decisions.
Beyond these benefits, technology has made service delivery faster and more efficient. However, like any industry or field, there are limits. The challenge for business leaders is to overcome these limitations, maximize the benefits of technology, and transform their industries.
Let's take a look at the restaurant industry
In 2021, the restaurant industry boasted a global market size of $2,323.29 billion. By 2022, it had surged to $2540.05 billion, marking a significant expansion. Forecasts predict that this growth trend will continue and the industry is expected to grow at an annual rate of 10.76% until 2029.
With such impressive compound annual growth, the industry is poised for significant expansion reaching an estimated value of $5,194.6 billion by 2029 as it adapts to evolving customer expectations.
Restaurant industry challenges
As restaurants adopt digital technology, they face challenges similar to those faced by large companies when they first relied on technology.
One of the big challenges is the need to integrate different solutions. Restaurant technology company Curbit is tackling this challenge with a dynamic order adjustment tool powered by artificial intelligence.
For example, Smashburger, a popular fast food restaurant, has identified four key challenges impacting its digital operations and guest experience.
- Lack of consistent service speed data across brands.
- Guests are often provided with inaccurate wait time estimates.
- Customers will not receive real-time updates on order progress.
- Order adjustments are not made during peak traffic hours.
Curbit's advanced real-time AI platform helped Smashburger address operational challenges and significantly improve the guest experience.
Within just 90 days, locations using Curbit have seen noticeable improvements. They ran an A/B test on a cohort of his 31 stores that had Curbit enabled. They compared the results to 30 stores that served as a control group.
Restaurant owners can learn from Smashburger and leverage technology to address pain points and streamline operations.
How can industry leaders improve their restaurant business?
The honest answer to this question is: Business leaders must leverage technology to improve the way they deliver products and services.
You need to stay up to date on the latest trends and breakthroughs. Apart from that, you also need to be proactive in finding ways to apply these technologies to your own operations.
If you're looking for business technology insights, consider the following:
Use dedicated tools
Franchising is common in the restaurant industry, making it difficult to maintain consistency. A good solution to this concern is to provide franchise owners with specialized tools and technology tailored to their needs. This makes the experience more consistent and improves the overall performance of your brand.
Another challenge comes from the different ways people order food. With so many options, including ordering directly or using services like GrubHub, UberEats, and DoorDash, restaurants need help managing these systems while still providing the same experience to their customers. . Artificial intelligence (AI) can be used to handle these systems and keep your brand strong.
There are many differences between restaurants, places, brands and people. Among these factors, people are always the most difficult to address in digital transformation. We can provide you with clear information about what's going on in your kitchen and data to help you solve problems. Restaurant orders through third-party delivery services are small, but still essential.
A study conducted by PYMNTS Intelligence in collaboration with PayPal found that 1 in 4 Americans only orders food online. Additionally, he said, 36% of customers order food using traditional methods (walking in or calling) and online.
Tools like AI-assisted ordering systems can help improve omnichannel performance. One of the most important features of the innovative ordering system is the self-service interface. Utilizing touchscreen and voice recognition technology, customers can place orders without interacting with staff.
During busy times, the server is overloaded, increasing the possibility of communication errors and errors. Integrating an automated food ordering system minimizes the risk of such mistakes.
Invest in POS
Running a restaurant well is essential. To make a profit, you need to check on your employees, make sure your customers are happy, and keep an eye on your inventory. But doing all this can be difficult.
A restaurant POS system can simplify tasks such as processing sales, staying organized, and tracking important information. This information includes things like customer preferences and staff schedules.
If you want to update your menu with unique dishes and seasonal delicacies, a bespoke POS system can be of great help. Many modern systems allow you to manage menus from a remote computer.
This means you can update your menu without leaving the office, making it easy to sync changes across all your devices and locations.
For restaurant owners, tracking inventory is critical to ensuring consistent menu offerings. Advanced restaurant POS systems make this easy by allowing you to track menu items, ingredients, and other kitchen supplies.
You can monitor inventory levels and generate reports to help you order the right amount of materials. This saves you money, allows you to offer your customers a full menu, and ensures that your food is always fresh.
If you're running a takeout food service using an online ordering platform, it needs to work with your current POS system. Most restaurant POS systems offer integration with external ordering platforms.
This means you can automate tasks like accepting payments and starting to prepare online orders, making the process smoother.
Leverage Amazon Web Services (AWS)
The shift to focusing solely on off-premises business has led restaurateurs to implement new strategies and streamline processes.
These strategies include reserving a portion of your parking lot for curbside pickup, partnering with third-party delivery services, and simplifying your menu to only feature frequently carried items. .
In addition to these physical changes, many carriers are embracing technological and digital advancements to overcome the challenges.
They used data to predict busy and slow seasons, creatively promoted products to stimulate demand, efficiently managed third-party orders, and enhanced the drive-thru experience.
Taco Bell quickly adjusted its strategy when the pandemic shifted consumer demand to delivery. We leveraged AWS to seamlessly integrate our mobile and online ordering apps with leading third-party delivery providers.
Through AWS, Taco Bell efficiently distributed menu updates, promotions, and other information to all platforms where it serves its food. This quick integration with delivery services allowed them to increase revenue during a time when indoor dining was restricted.
These measures will benefit Taco Bell in the post-pandemic era, as it expects half of its orders to come from digital channels.
Business leaders must become catalysts for change
Leaders must create the changes they want to see in their businesses and industries. If a restaurant owner wants to grow his business, he must be ready to explore unknown territory to find valuable innovations. You must also be willing to take risks to achieve better results.
Finally, you also need to decide wisely which path to choose and which path to give up. They should be willing to do this much because they hold the key to their own success and the job security of those who depend on them.
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