With a few days to reflect on the conference sessions and my many conversations with restaurant operators and industry technology vendors at this year’s edition of MURTEC in Las Vegas, the disruptive effect of digital and mobile on the dining guest experience has shifted. No longer are the impacts of these technologies on the extended guest journey a point of competitive differentiation.
They are, in fact, 100% table stakes for not just success, but survival – pure and simple.
According BRP’s previous restaurant consumer research, and we feel was confirmed by the themes in Vegas at MURTEC, the dining spend of restaurant guests is being increasingly directed to those restaurants providing the most flexible and frictionless experience possible. We still expect that as much as 30% of total restaurant sales (or $300 billion if you are keeping track) could be generated via digital ordering methods as early as 2023.
And it’s not just the guest-facing, front-of-house improvements being driven by digital and mobile technologies, significant improvements in restaurant operations are also being delivered across areas like kitchen production, training, labor, and reporting and analytics.
Along with the strategic “call to action” themes we confirmed at MURTEC, we continue to see many areas of critical priority for restaurant chains and operators as we move through 2019, including:
Allowing the customer to order from you any way they want– This includes not only the methods by which customers order (traditional, phone, web, mobile) but also providing the same flexibility when fulfilling that order. Recognizing that a customer one day may want to order from their phone and eat-in when they arrive, while the next day they might want to order on the web and pick their order up in the drive-thru shows that you have the flexibility to adapt to any ordering scenario. And while we are thinking about flexibility, remember that different dining customers want to pay for their meals different ways so providing agile and secure payment systems are also key.
The Growth in Off-Premises Dining (OPD)– Operators are excited about the revenue growth opportunities presented by the dining consumer who wants to order food from their restaurant for either pick up or delivery. The ability to natively support the plethora of 3rdparty delivery companies is key, as is considering the value of providing your own branded OPD capabilities.
Guest Engagement Innovation is Coming to Restaurants– As certain advanced technologies mature and dining guest acceptance becomes more commonplace, don’t be surprised to see a more rapid adoption of technologies like voice-assisted ordering, ordering via auto infotainment systems, augmented reality (AR) for both guest and staff immersion, and the broad acceptance of restaurant-oriented Internet of Things (IoT) connectivity and insight that will help further improve the automation and efficiency of key components of the restaurant.
Capitalizing on Customer Data– Managing a guest journey is one thing, being able to provide a true personalized experience at each stage of the guest journey is another. While incenting guests to participate in your marketing and loyalty programs is important, the ability to effective leverage that customer insight during each stage of guest engagement (from reservation to arrival to ordering to pay) is what will create the right combination of customer satisfaction and financial value (through higher guest checks and increased frequency of visits).
The Shift to Next-Generation POS platforms – Many restaurants require increased flexibility and scale from their most important operational technology platform. Often this means looking at shifting to a cloud-based platform and in some cases includes more native mobile tools. In either case, continued reliance on a long-standing legacy POS system will make the shift to digital much more difficult.
Agile-oriented Thinking is an Imperative– With the rapid increase in guest expectations, restaurants need to adopt agile approaches to everything: strategy, development, processes, and system implementations.
We can’t stress enough how clear the message is from all parts of our industry – guests, vendors, and operators – that digital enablement is mission-critical to not just continued success in your restaurant operation, but to your survival. If you aren’t moving fast toward this revolution, then now is the time to step up.
As always, I appreciate your thoughts on this topic. Please share your comments and opinions below.