Embracing Tech: Three Ways for Restaurants to Accelerate Innovation
Cristin O'Hara and Rich Watson
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIt’s a harsh reality for restaurant owners in Indiana: The National Restaurant Association reports roughly one in five restaurants in the state have closed since March 2020 – with even more in danger of shuttering in the first half of 2021. Restaurant owners who have found innovative ways to adapt during the pandemic have shown the strongest resiliency, especially those who have adopted the technology-driven solutions to meal ordering and delivery that seem to be here to stay.
The pandemic didn’t create technology innovation but rather accelerated trends already in motion. For example, a 2019 National Restaurant Association report found that nearly 60% of restaurant occasions were already off-premises, with consumers saying they were using drive-through, delivery and take-out more often than the year before. 2020 took innovation to the extreme – where virtual menus, mobile ordering and contactless payments are the norm, not the exception.
Now it’s not so much a question of how to keep up or leverage the latest gadget, but how to make the intersection of convenience, health safety, and technology a core business strategy. Following are some steps restaurant operators of all sizes can take today to accelerate the innovation process and help future-proof their businesses:
Adopt a Mobile-First Approach
Quick-service restaurants pioneered ordering by mobile app. Chains like Domino’s offer voice interface and even ordering through social media platforms.
Technology adoption before the coronavirus was slower, but the pandemic has changed the playing field. As customers adopted mobile ordering in droves as a safe and convenient option, restaurants that had already mastered this piece were at a major advantage.
This is especially true in the QSR space, with many brands posting digital sales records. Chipotle reports second-quarter digital sales grew an astounding 216% year-over-year, comprising 61% of total sales. And Yum! boasts digital orders at all of its brands (Taco Bell, Pizza Hut, and KFC) hit all-time highs.
Fortunately, launching a proprietary mobile app no longer requires custom programming or even a lot of time or money. There are a variety of “plug and play” third party services that offer full branding and top features to get operators rolling with mobile, such as appypie and AppInstitute. And best of all, it only takes a few minutes to start accepting orders.
Embrace Contactless Everything
Mobile ordering is part of the overarching trend in contactless customer interactions. This too was well on its way in 2019 – when more than 100 million tap-and-go credit cards were issued in the United States, according to Visa. Mastercard reports 82% of consumers worldwide now view contactless as “the cleaner way to pay,” with 74% saying they plan to continue using contactless payment post-pandemic.
Restaurants that have NFC (Near Field Communications) technology need to promote it, and those yet to upgrade must do so quickly or remain at a competitive disadvantage. Companies like Toast and Square can make contactless implementation easy, and can even integrate with existing touch or traditional systems.
“Contactless” is not only for customer payments but also for internal money handling and check writing. The fewer contact points, the better for everyone – and that applies at point of sale (POS) as well as the back of the house, such as when doing accounts payable. Investing in online or app-based payment systems, or in POS terminals equipped for tap-and-go payment options, saves front-line employees time and minimizes contact.
Crack the QR Code
The pandemic has made what’s old new again – and the venerable QR code from the 1990s is ready for its closeup.
The magic of QR codes is in their simplicity. Scanning a code with any smartphone gives guests access to touch-free menus, specials, discounts, or virtually anything else the operator chooses to share, including video or other multimedia content.
Although the codes require a website for hosting the content, you don’t need a web developer to get started. Beaconstac, for example, offers dynamic codes with a customizable dashboard that can be modified anytime. Codes can bring up different menus for multiple locations, even bringing up the appropriate menu for that time of day. Scanovia and Ritual are also options, and companies like GoTab also offer contactless ordering via a QR code.
There are marketing benefits too, such as integrating guest surveys or offering newsletter signups. And it’s all accessible via a device that customers already carry.
These technologies, along with other leading-edge applications such as virtual online chatbots and voice ordering at kiosks, make it clear that the restaurant industry is at a critical inflection point. Innovation will not only help businesses recover, but also pave the way forward for years to come.