Jonathan Doughty is a global thought leader, consultant, speaker, moderator and C-suite executive in the foodservice and leisure sectors working around the world in retail, transit and leisure. In this issue, he takes a look at technology within the restaurant industry and the effect it has had on the sector.
I am often asked what the impact of technology on the hospitality industry is, with the expectation from many people that it is somehow a negative or a backward step. Given the huge rise of hospitality as both a ‘place maker’ and a ‘space taker’ in the property industry, I thought it would be good this month to provide some more background around this.
Technology has transformed nearly every industry and the restaurant sector is no exception. Over the past decade, technological advancements have significantly altered restaurant operations, customer experiences and efficiency. So, let’s have a look at what the top five major technological impacts on restaurants have been and how comfortably does that sit in the industry in general.
Robotics in Restaurant Operations
One of the most noticeable changes in the industry has been the introduction of robotics. Restaurants are increasingly using robotic chefs and automated kitchen assistants to speed up food preparation, reduce human error and cut labour costs. They don’t look like people and are quite commonplace. Robots are also being used for food delivery within restaurants and even outside, offering a futuristic and efficient service model. All very glamorous and high profile, but the reality is that they are mostly being used to remove humans from repetitive and mundane tasks like returning dirty plates to the dishwasher. Give the lack of workforce availability, robotics can only be seen as a positive, if not guest facing, support.
QR Code Ordering and Digital Menus
Traditional paper menus are being replaced by digital alternatives, with QR codes allowing customers to view menus and place orders directly from their smartphones. This innovation not only minimises physical contact, which became crucial during the COVID-19 pandemic, but also enables restaurants to update their menus in real-time, offering seasonal specials or adjusting prices without reprinting materials. More importantly, it allows guests to order without a staff member being present, in a no pressure, easy to use way. This is filtering down to even coffee shops so you can get a second cup, without getting up or losing your table. Nice and profitable too.
Self-Checkout and Contactless Payment Systems
Self-checkout kiosks and mobile payment options have revolutionised how customers pay for their meals. These systems speed up transaction times, reduce the need for cash handling and improve overall customer convenience. Contactless payment methods also enhance security by reducing the risks associated with handling cash or credit cards. How many times have you sat in a restaurant, had a fabulous meal and then got stuck trying to pay. 99 per cent of the hard work is done and it all goes south when you ask for the bill. This helps everyone.
Customer Order Terminals
Many fast-food and casual dining restaurants have implemented customer order terminals, allowing diners to customise their meals and place orders without interacting with staff. These touch-screen kiosks improve order accuracy and speed while reducing wait times, leading to higher customer satisfaction and increased efficiency. Honestly, in my view, these have been the saving of the fast food and QSR industry. Faced with massive staff shortages, these neat boxes have stepped in and made it easier, faster and better. I contest that almost nobody in the segment really wants human contact, they want their food fast. The surprising extra benefit is that guests spend more than they did before terminals. From a landlord perspective what is not to like?
AI-Powered Order Prediction and Inventory Management
Artificial intelligence (AI) is now playing a critical role in forecasting demand, optimising inventory and reducing food waste. AI-powered software analyses historical data and trends to predict customer preferences, helping restaurants plan better and ensure they have the right stock levels. This technology minimises food waste and improves cost efficiency, making restaurant operations more sustainable and profitable. From a landlord perspective this has got to be good. Restaurants that can have the right stock, the right staff and be ready at the right time are going to be much better at delivering for our guests than those that take a guess at it. The funny thing is that this application of technology has also brought a number of other benefits which allow operators to stay profitable, efficient, and solvent in an increasingly competitive environment. That means they can still pay the rent and deliver the service. Automation through robotics, AI and self-service kiosks significantly reduces labour costs and operational inefficiencies. By leveraging technology, restaurants can streamline kitchen workflows, improve order accuracy and minimise waste, all of which contribute to greater financial sustainability and profit.
Technology has also improved the dining experience by offering customers greater control and convenience. QR code ordering, self-checkout and AI-driven personalisation allow customers to interact with restaurants on their own terms. Shorter wait times, error-free orders and seamless payment options all contribute to higher customer satisfaction and brand loyalty.
In conclusion, technology has been good for the industry and landlords, developers and managers should help operators of foodservice grasp every opportunity to succeed using the tools at their disposal, especially if they want to keep the tills ringing and the rent coming in. I think we do…
