When it Comes to Technology, Restaurants Need to Stay Up To Date or Risk Falling Behind

It would be an understatement to say that a lot is happening in the restaurant and hospitality industry. Between changes in wages, the intense discussion around tipping policies, implications of the Affordable Care Act, and the massive shift in the war for talent, restaurant owners have a lot on their plates.

But perhaps most of all, we are seeing a continued shift in how restaurants view and use technology to power every aspect of their businesses. These days, restaurants are getting better at understanding today’s competitive landscape and how they can use technology to fuel their success. And as such, they're making the enhancements needed to evolve, stay relevant and become more convenient.

Scheduling, training, inventory, recruiting, loss prevention, ordering, loyalty programs and reporting—many restaurants are using technology to manage some or all of these processes. And in the years to come, it’s expected that things will only become more automated, more streamlined and more connected than ever before.

Still, many restaurant owners and managers face challenges with restaurant technology. According to research from NCR, cost of upgrades was one of the top obstacles. Other challenges included security risks associated with technology, as well as the cost of maintaining that technology.

Paul Langenbahn, president of NCR’s Hospitality division, recently said in a press release ahead of next week's National Restaurant Association Show in Chicago that as technology changes, so does a customer's expectation of your brand.

“Customers expect a cohesive omnichannel experience and restaurant brands that aren’t anticipating this and embracing technology to enable a frictionless guest experience will significantly fall behind their competition,” said Langenbahn.

At the forefront of any technology discussion related to restaurants is the nationwide shift to EMV and chip authenticated card transactions. While we undergo this shift, brands can’t lose sight on data security. While large chain attacks will continue to garner headlines, breaches at the unit level can possibly cause the most damage. Every restaurant needs to establish security measures to protect their networks and their customers’ data.

Restaurants focused on technology are also increasing focus on their mobile experience and how online ordering can directly impact a brand’s bottom line. But just creating an app is not the answer. You want it be easy for customers to sign in, place orders, and redeem loyalty points in order to ensure repeat business.

And one of the biggest challenges that any restaurant operator continues to face is labor. Fortunately, as technology continues to evolve, restaurant owners and managers have access to real-time data, which in turn is fueling productivity at the unit level. Additionally, customer-focused technology is allowing the optimization of labor costs as guests become more comfortable with kiosk and online ordering systems.

While big investments in technology often make a difference, it’s the little things that guests really notice. Saladworks, the nation’s largest fresh-tossed salad franchise, is just one example of a brand making changes to better incorporate technology into its day-to-day operations. In February 2016, Saladworks rolled out its new store design, which features Wi-Fi bars, charging stations and communal seating.

“We are seeing a ton of new customers because of the shifts we’ve made in our store design and our continued investment in technology,” said Jena Henderson, vice president of brand services for Saladworks. “Our existing customers are also coming an additional day per week.”

The Saladworks team is also working on a new app-based loyalty program to promote more convenient repeat visits. In addition to the loyalty program, the Saladworks app will have mobile ordering and payment capabilities, all with the touch of a button.

With technology changing seemingly every minute, one thing is clear for businesses—stay up to date or fall behind. Whether this means modernizing through a build-out or making everything accessible in the touch of a button, the life of customers will become more and more convenient.