The annual Foodservice Technology Conference (FSTEC) took place last week at the Gaylord Texan Resort & Convention Center in Grapevine, Texas. For those interested in the impact technology is having on the industry, this is one of the must-go-to conferences. Restaurant Business’s editorial team recently returned, sharing some insights into the direction ResTech is headed.
Labor Challenges and Technology
Interestingly, one of the takeaways was that the rise in technology designed to help with the labor challenges of recent years wasn’t really doing that much to help. Self-order kiosks were reported to increase the need for additional labor, while voice-order AI may prompt some labor savings.
This information is a far cry from the many headlines that suggest technology is our savior. According to HungerRush, Restaurant technology can reduce labor by 21%. A few of their suggestions include handheld tablets, AI for phone orders, self-ordering kiosks, and digital QR menus.
Third-Party Delivery Holding Steady
It seems there have been several restaurants of late that have tried to develop their own delivery model only to return to third-party delivery services. It is hard to tell whether the cause is the processes involved, dealing with a delivery model that includes their own drivers, or the high insurance cost.
Panera Bread transitioned to a hybrid delivery model that incorporated their own delivery drivers while using third-party partners to process the orders. Taziki is also using a hybrid delivery model. Chick-fil-A has developed a new prototype with two lanes provided solely for mobile-order-ahead customers.
Apparently, one of the challenges with delivery is customer expectations. Do you remember Domino’s “30 minutes or free” promise? While no longer in effect in the U.S. due to reckless driving, lawsuits, and lost reputation, for many, it’s still considered the golden rule. When it takes longer to get their delivery orders, dissatisfaction ensues. But is that a practical benchmark? No, not really.
Pizza Hut acquired Dragontail Systems, a kitchen order management and delivery technology system. It uses AI to plan optimal delivery routes, sync the timing of the orders, and combine orders by location. David Gibbs, CEO of parent company Yum Brands, told Nation’s Restaurant News that the technology increased consumer satisfaction by 7%, resulting in improved consumer frequency due to the delivery of fresher, hotter pizzas.
Testing Technology
The “RAG model,” a method for testing technology in the real world, was also mentioned during FSTEC. Regarding the use of technology, R stands for Red, which means forgetting about the rollout. A means Amber and refers to investigating the technology further. G stands for Green and means go ahead and deploy.
Chick-fil-A is establishing guidelines and protections for using AI and other types of technology in their restaurants. The conference also highlighted the importance of preparing now for the unknown that is to come. The example used was Habit Burger & Grill, a brand that built a customer platform that is usable in multiple formats. When the pandemic hit, they immediately went curbside, enabling them to stay ahead of the curve when restaurants shut down.
The Latest Technology
From automated phone ordering to advanced delivery and order fulfillment, it’s a whole new world that’s rapidly changing. Another recent addition to the ResTech segment is Fourth iQ, an AI platform that optimizes inventory and workforce operations. Some of the restaurants that have implemented the technology note reduced labor costs and an increase in accurate sales forecasting. Early adopters include Chili’s, Noodles & Company, and Pizza Hut.
Other changes in this segment come from the ever-evolving voice AI category. Recently, Adora POS partnered with ConverseNow to provide automated phone ordering. This month, TouchBistro acquired Peachworks, enabling it to launch a new labor and inventory management BOH solution. This system is designed to help operators make better data-backed decisions that help reduce costs and improve sustainability.
Although the amount of technology aimed at the restaurant industry can be slightly overwhelming, keeping abreast of the latest changes supports decision-making that results in enhanced operations. Sometimes, the little things extended over a long period make the biggest difference to a restaurant’s success.
