FinTech, Health Tech, and AgTech. Seems like there is a name given for every niche and the technology associated with it. Yes, technology is continuing to shape our world, but enough with the names already.
Every time an industry comes up with disruptive technology, there is a special name associated with it. One industry that doesn't seem to have yet adopted its name is hospitality management, specifically restaurants. So what do we call it?
GreasyTech? TableTech? Who knows–maybe I'll get credit for coining the phrase.
Regardless of the name you want to choose, I have seen quite a bit of change in the restaurant industry to warrant laying it out in this article. Several brands have been making changes in the way we will eat out in the future (as evidenced by the changes that are being made in the present).
That change? Kiosks and tablets being used to process financial transactions and track everyday business operations.
Numerous publications have taken notice of this trend in restaurant technology as of late, including Fortune that did an in-depth piece back in October 2015. Seems like many operators are waiting to see how things pan out, but for now, I would advise they take notice of how kiosks and tablets are shaping the industry.
The Olive Garden Solution to an Old Problem
Moving to Southern California is one of the best decisions I have ever made. Aside from the weather and the people, it has an unlimited supply of stores and restaurants. No more going down to the small local diner (unless you want to) simply because it is the only ticket in town.
Despite the choices available, my family loves Olive Garden. Unfortunately, it is one of the most difficult places to get into due to its popularity. If you are lucky enough to go at a non-busy time, you should only expect an hour wait. The local one I visit has a huge seating capacity, but no matter how many people they hire, there is always a wait.
So what are they to do?
About a week ago I found it very interesting to see an electronic device–kiosk–at the table for the kids to play games. While it was a great way to keep them quiet until the food came (another 30 to 40 minute wait), I quickly discovered that management found a way to help speed up the overall dining experience. This kiosk not only contained games to keep the kids busy, but also served other purposes:
- Speeds up the ordering process. (It allows customers to put in an appetizer order before someone even comes to serve their drinks.)
- Allows for quicker table turnover. (If you don't want to wait for your bill, it is right there on the device which can be paid immediately–it even prints you a receipt.)
- Creates an additional source of revenue. (Some games are premium purchases.)
From experience I can tell you that the money is in the “table turn.” If you own a restaurant, the goal is to turn a table as quickly as possible (get the people out the door, clean the table, then seat the next person). The more “table turns” you have in a night, the more revenue you will generate.
After doing more research, I found that Olive Garden was not the first to move in this direction (although they were the place I experienced it). Chili's was one of the first restaurant chains to employ the “kiosk” technology. In 2014, it began using them in all 823 of its restaurants, supplied by the company Ziosk which is considered one of the leading brands in kiosk technology for restaurants.
The In-N-Out Way of Speeding Things Up
In-N-Out Burger! Never heard of it before a local talk show host in South Bend began complaining that he missed his favorite burger place (he moved from Las Vegas). To me, it was just any other name. If it wasn't national, then it must not be good enough to expand.
Well, that's not necessarily the case (take White Castle, for instance). I also learned after moving here that there are many locations throughout the Southwest. My first In-N-Out experience came when I traveled to California to take the bar exam. I have to say that it is very addictive and would recommend people staying away unless they want to become regulars.
What shocked me (and still does) is how busy each location can be. Despite having numerous locations within miles of each other there are long lines in the drive-thru that often lead out to the busy street. The line moves fast as the menu is limited (kind of like a McDonald's in the '50s) but there is always an issue with traffic.
So how does In-N-Out tackle the problem? Tablet ordering.
In order to speed up the drive-thru process, they have one person in line who walks up to cars and takes orders. This helps eliminate any gaps between the order window and the service window that can be caused by kitchen delays, large orders, and slow paying customers.
Once the order it taken by tablet, it syncs with the software inside the store. When you get to the window, your order is on the POS screen and a cashier can then take your payment. The order is already being processed by the kitchen who also received a copy when it synced from the tablet in the drive-thru.
One of the companies that supplies the technology to make this work is mStream. It combines the ability to take orders, receive payment, run reports, and manage the employees using the software.
Mobile Payment Processing–Simple But Effective
In the age of technology, cash is only a last resort. If it weren't for parking meters and vending machines, we wouldn't really need it at all (although many of those are starting to accept electronic payment as well).
It has become difficult for people to accept electronic payments when on the fly. A great example is the food truck industry. Yes, mobile restaurants.
In order to process payments, you used to need a phone connection (modem) or access to the Internet. Now with advances in technology, you can use 3G and 4G connections to accept payments. While this may not seem like much of an advancement, it really has helped restaurants advance their businesses.
Square.com has revolutionized the way electronic payments are processed. This company was able to disrupt the industry, even though PayPal had a huge hold on the market. In fact, PayPal has actually modeled some of its most recent offerings (e.g., PayPal Reader) after the Square business model.
Mobile payment processing helps more than food trucks. Think of your last St Patrick's Day celebration. When you go to the beer tent in the parking lot of the local F.O.P., you don't see access to the Internet, let alone electrical access for a POS terminal. Everything is processed electronically on a tablet or smartphone.
These type of payments are good for those who have off-site services such as catering, or special events like tent parties. You don't need actual POS software to use apps like Square or PayPal. You simply enter the amount and swipe a card. While Square and PayPal don't supply as much detailed tracking information as companies like mStream, they are still simple but effective solutions when you need it only a few times out of the year.
Think of it. What happens next time you go to a food show as a vendor and are unable to accept payment? You need a way to recoup your vendor fee and are leaving money on the table if you cannot accept payment on the spot.
What's Next for TableTech?
Do you like how I used the new coin phrase in the heading? Fingers crossed.
According to Harvard Business Review, many people are reluctant to use the new technology. There is the “I am not paying to order my food on a kiosk” attitude, and rightfully so.
I go to a restaurant to relax (as much as possible with a 2 and 8 year old), and doing more work just doesn't excite me either. As such, I share others' sentiment in not wanting to do more work.
However, I actually believe that people will start to use it more when they see the benefits. For example, when you are waiting 15 minutes before you even see a server to order drinks, it would be nice to have your appetizers arrive at the same time. And when your 2 and 8 year old decide they are going to start tearing up the place, paying and leaving immediately is always a great option.
As more and more people become familiar and begin to use the technology, I believe you will see it implemented in more restaurants. I don't think the wait staff will be replaced with robots any time soon, but who knows what will be next in the world of TableTech.
The post The Evolution of 'Table Tech'–Changing the Way Restaurants Do Business appeared first on AllBusiness.com
The post The Evolution of 'Table Tech'–Changing the Way Restaurants Do Business appeared first on AllBusiness.com.
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