How Restaurant Technology Companies are Changing the Way We Dine

The Global Restaurant Technology Market

In September this year, Chipotle piloted a cook-to-needs kitchen management system at eight of its Southern California outlets. The system provides ingredient preparation forecasts and demand-based cooking to optimize throughput, maintain freshness, and minimize food waste.

The system, powered by Precitaste, leverages artificial intelligence (AI) and machine learning to check ingredient levels in real time and apprises the team about the time required to prep and cook. According to Curt Garner Chipotle's Chief Technology Officer, the system has eased off the manual labor for their crew and "given restaurant managers the tools they need to make informed in-the-moment decisions" for an outstanding customer focused approach and better culinary experience.

Speaking of culinary experiences, tech companies are constantly innovating to improve it. Beyond Oil is one example. This food-tech innovation company wants to extend the life of frying oil to help restaurants reduce their food (and oil) costs and decrease waste. The company has partnered with Canada's Joey's Seafood Restaurants and will launch their product in December 2022.

Along with its kitchen management technology, Chipotle piloted another technology at 73 of its locations. An advanced location-based tech -- a contextual restaurant program -- it utilizes Radius Networks' technology platform, Flybuy. The program engages with Chipotle App users on arrival and leverages real-time data for a better experience. Scott Boatwright, Chief Restaurant Officer, Chipotle, said it's important to empower its restaurants with advanced technologies to meet the brand's "ambitious growth plans".

Indeed, technology has emerged as a means for restaurants to enhance their services to improve customer experience. That may be why Grand View Research anticipates that the restaurant management software market size will reach USD 14.70 billion by 2030 globally.

Let's look at some of the restaurant technologies that are commonly in use.

Technologies Used by the Restaurant Industry

The restaurant industry must make sure it has the right tech tools to manage all aspects of its business, from taking orders and payments to stocking supplies and tracking customer data, while providing an optimal experience for diners at the same time.

The industry has been reluctant to embrace tech innovations for the longest time. Except for a few big players who were innovating, spending, and implementing technology, most restaurants relied on human skills. This made sense because eating out is more about interpersonal communication. However, the pandemic changed many things. With stringent protocols, like following social-distancing norms, ensuring hygiene, etc., technology came through as a solution. And now that the industry has embraced it, there is no looking back. Technology solutions have become the backbone of the industry and are being implemented to improve the dining experience for their customers. Some common tech solutions include-

1. Mobile Ordering and Payment- Customers can now use their smartphones to order food and pay for it via apps or mobile-optimized websites. It is a convenient option for customers who are on the go and want to place their orders quickly.
2. Online Reservations- Many restaurants now allow customers to make reservations online through their website or a third-party site like EatApp, Tock, OpenTable, or Yelp. It helps restaurants manage their seating capacity and ensure enough tables are available for walk-in guests.
3. Digital Menu Boards- These are becoming more common at restaurants, especially fast food chains. The boards can be updated quickly and easily, which helps run promotions or highlight new menu items.
4. Robots/Automation- Some restaurants have implemented robots or other automation tools to handle cooking, cleaning, and delivery tasks. By taking on the grunt work, such as prep and cleaning, these machines allow chefs and cooks to focus on more creative tasks, like coming up with new menu items or perfecting existing dishes. In addition, some bots are helping speed up service by delivering food to customers' tables.
5. Inventory Management Systems- These systems help restaurants keep track of their food and beverage supplies. It allows them to avoid overstocking or running out of items, which can lead to lost revenue.
6. Point of Sale (POS) Systems- These systems are vital for any restaurant. It helps streamline the ordering process, keep track of sales and inventory, and manage customer information.
7. Loyalty Programs- Loyalty programs that easily integrate with POS systems help encourage repeat business by offering customers rewards like discounts or freebies after they reach certain spending thresholds. These programs can be managed digitally through an app or cards that customers scan when purchasing.
8. Kitchen Display Systems (KDS)- A KDS is a digital display that shows orders as they come in from the POS system. It allows kitchen staff to quickly and accurately prepare meals, ensuring that customers receive their food promptly, avoiding errors that could result in a negative dining experience.
9. Customer Relationship Management (CRM) Software- CRM software helps restaurants track customer contact information and preferences. A restaurant can use this information to send targeted marketing material or personalized messages, increase customer loyalty, and repeat business.

How Restaurant Technologies Improve Ordering

Panera Bread's ordering system -- Rapid Pick-Up -- is one of the best examples of an efficient ordering system. Customers place their orders online or on Panera's mobile app and then pick up their food at a designated time from a special section of the restaurant reserved for Rapid Pick-Up orders. This system helps reduce congestion in the dining area and ensures that customers get their food fresh and hot when they want it.

With tech-based ordering platforms, customers enter their orders into a digital format, eliminating potential mistakes that could occur when taking handwritten orders over the phone or in person. Digital orders also make it easier for kitchen staff to accurately prepare each dish as ordered, reducing potential errors (and unhappy customers).

Research shows that restaurants using online ordering platforms see a 10-30% sales increase, mainly due to increased efficiency and reduced ordering errors. In addition, a business receives improved insights into customer behavior as most tech platforms come with built-in reporting features.

Advanced ordering technologies have streamlined and facilitated the restaurant ordering experience for customers and staff. Here are some solutions that have made the process efficient and user-friendly.

1. Online/Mobile Ordering- Customers can place their orders through a restaurant's website or mobile app, which can be convenient for those who are short on time or looking to avoid long lines. It also allows restaurants to take advantage of upselling opportunities by displaying additional items that may interest the customer.
   
2. Kiosks- Self-service kiosks are becoming increasingly popular in restaurants as they provide a quick and easy way for customers to place their orders without waiting in line. Kiosks also free up staff from taking orders, allowing them to focus on other tasks.
   
3. POS Systems- Many modern POS systems come with order management features that help in the swift processing of orders. They also integrate with the kitchen display systems and customer loyalty programs that can further improve the dining experience for both customers and staff.
   

How Restaurant Technologies Improve Customer Service

Of course, there is customer relationship management software to help restaurant businesses keep track of customer data, monitor customer preferences, and build long-term relationships with them. But there's a lot more. Implementing AI has perhaps been the most innovative tech solution to serve customers better. It is being used in multiple ways to improve restaurant customer service -- from chatbots that can answer common questions to systems that can predict what a diner might want to order based on past behavior.

Then, there are table management systems that help restaurants keep track of customer orders and preferences and make it easy for servers to deliver excellent service. And we already mentioned digital ordering technologies that make the dining experience convenient for guests. Mobile apps that allow customers to place orders and pay from their phones are a great example of this, as are self-service ordering kiosks and tabletop tablets that let guests order and pay without ever having to interact with a server. And, of course, many restaurants offer delivery or takeout options through third-party services like Uber Eats or Grubhub -- which, again, helps make the dining experience more convenient for guests.

There are quite a few different restaurant technologies that can help improve Customer Service in various ways. Perhaps most importantly, many of these technologies can streamline communication between staff members and between customers and staff.

How Restaurant Technologies Help Keep Up With Food Trends

Once upon a time, restaurants could easily distinguish between guests. There were either vegetarians or non-vegetarians. However, over the last two decades, with the advent of social media, there has been a proliferation of consumers who are aware and particular. And so, the diversity has increased -- there's a flexitarian diet, vegan, dairy-free, plant-based, vegetarian, gluten-free, fruitarian, ovo-pescatarian... Phew! That's not all.

Some of these diets are a result of consumers becoming over-enthusiastic about their dietary choices in order to stay healthy. Some have resulted from conscious consumers wanting to give back to the planet and reduce their carbon footprint. The reason could be numerous, but ultimately it is the food and restaurant industry feeling the strain to keep up with the growing demands. Restaurants have struggled with customer profiling for the longest time. But solutions have started to emerge, thanks to technology.

Technology has revolutionized the food industry, making it easier to keep up with food trends. By simply tracking social media platforms, restaurants can connect directly with customers and get instant feedback on new dishes or menu items. This helps restaurants to quickly adapt to changes in customer preferences. The result is a hundred times better if a social media analytics software, like HootSuite, is implemented to track trends.

Then, software and applications like point of sale systems make it easier for restaurant managers to track customer preferences by crunching the big data collected over time.

How Restaurant Technologies Streamline Inventory

Efficient Inventory Management is one of the most important aspects of any restaurant business. It not only helps businesses save money on storage space and other costs associated with keeping track of a large inventory, but it also helps staff members to quickly and easily locate the items they need, which can improve efficiency and decrease the chance of error.

A streamlined inventory can streamline restaurant operations while reducing unnecessary food waste. Again, technology comes to the rescue.

Modern, cloud-based inventory management software programs allow restaurants to track inventory levels in real time so that they can always be aware of what needs to be ordered and when. It helps avoid issues with over-ordering or running out of supplies.

Technology can also help to automate the ordering process for restaurants. By integrating with suppliers, orders can be placed and received automatically, which helps to save time and ensure that the restaurant always has the supplies it needs on hand.

And then, integrating different software systems like online ordering platforms and POS systems into the inventory management system can help restaurants better understand their customers' needs and preferences. Through customer surveys and feedback forms, restaurants can gather data that can be used to improve the menu, service, and overall experience for diners.

Conclusion

According to the National Restaurant Association, the average commercial kitchen throws away approximately one pound of food per meal served. That waste affects a restaurant's profitability and creates environmental and social concerns. And, of course, a loss-making business can never serve its customers as well as it wants to. Fortunately, new technologies are helping restaurants reduce food waste, streamline operations and become more sustainable and profitable.

While online ordering systems and cloud-based restaurant management software solutions have been hogging the limelight, smaller technological advancements like commercial composting systems are helping restaurants turn their organic waste into nutrient-rich soil. It helps reduce landfill waste and makes it easy for restaurants to incorporate sustainable practices into their business model.

Then, something as pedestrian as a smart fridge is helping businesses manage stock levels and order inventory automatically. They can also be set to alert staff when certain items need replenishing, so nothing is left forgotten in the back of the fridge.

Technology is truly remarkable and is helping businesses in more ways than we can imagine!