Tech Dilemma: Challenging the Presumption That Eateries Can Prosper Devoid of Technology Integration
In the ever-changing restaurant game, a persistent myth lingers: that restaurants don't need technology or don't use it. Regardless of a restaurant's size or niche (QSR or fine dining), this idea fails to recognize technology's crucial role in boosting customer satisfaction and streamlining operations. My personal experiences with industry titans, such as Dave Thomas founder of Wendy's, Fred DeLuca of Subway, and George Biel of Houston's/Hillstone, have shown me how technology revolutionizes customer interactions and operational prowess.
The cloud has been the game-changer driving technology adoption in the industry. The cloud offers IT services on-demand over the internet, allowing brands to afford technologies they couldn't before and only pay for the value they receive. This flexibility enables brands to thrive with technology.
Dave Thomas: Wendy's Revolutionary Visionary
At 14, I got a job at a Wendy's near Dave Thomas' home in South Florida. Dave, the brainchild of Wendy's in 1969, built the brand around the core principle of "Quality is Our Recipe." This wasn't just about food quality; it also referred to the quality of service guests experienced. Ninety percent of my time with Dave was spent in the dining room, interacting with customers to ensure they felt his brand of hospitality. Dave was also a champion for using technology to improve the guest experience. Under his leadership, Wendy's became one of the first fast-food chains to adopt electronic Point-of-Sale (POS) systems. These systems transformed customer interactions and order processing. By embracing technology, Wendy's set a benchmark for efficiency and customer service in the fast-food sector, demonstrating that staying ahead required more than a tasty menu.
Fred DeLuca: Subway's Entrepreneurial Innovation
In the restaurant industry, assembly and customization of the "product" occur directly in front of the customer in real-time. It's no surprise that this can lead to operational complications. In 1965, Fred DeLuca opened the first Pete's Super Submarines and rebranded as Subway in 1968. When I worked with Fred, I was inspired by his visionary approach to "systemizing" operations and franchising, making it easy for entrepreneurs to join the "Subway System." He was passionate about the implementation of technology to enhance order accuracy, inventory management, and real-time reporting. Subway's utilization of technology empowered franchisees with tools to make informed decisions, cultivating a culture of accountability and success.
George Biel: Combining Hospitality and Technology at Houston's
In the upscale dining realm, George Biel, founder of Houston's, found success by blending hospitality with culinary excellence. George, mentored by Norman E. Brinker, the godfather of the American Restaurant Industry, opened the first Houston's in Nashville in 1977. During my five years with George, his relentless pursuit of "Silent and Unobtrusive Service" fueled delivering personalized service to ever-evolving tastes. George led Houston's to adopt technology, such as reservation systems, Customer Relationship Management (CRM), and staff training tools, to understand and exceed customer expectations.
Despite the successes of industry trailblazers like Dave, Fred, and George, the notion that restaurants can thrive without significant technological integration persists. Cynics claim that traditional methods are sufficient, ignoring the evolving landscape in which technology improves customer experiences, enhances operational efficiency, and drives business growth.
Breaking the Stereotype: The Indispensable Role of Cloud Technology in Restaurants
Ignoring technological progress has no place in any industry. Today, in a digital revolution reshaping sectors, restaurants must adopt technology to remain competitive. From contactless ordering, computer vision, voice automation, and AI, technology equips restaurateurs with tools to build the dining concepts customers crave. All these innovations have been fueled by the power of the cloud. Instead of owning and maintaining their own data centers and servers, restaurant brands and technology providers acquire compute power, storage, databases, and other services on an as-needed basis. The benefits include:
- The ability to grow or shrink on demand, only paying for what is used.
- Rapid agility, as resources can be quickly spun up as needed.
- Shifting large up-front capital expenses to small variable expenses.
- Becoming elastic, requiring only the right capacity without excess.
- Faster innovation, as resources can focus on developing differentiating applications.
- The ability to scale an experiment in one restaurant to an entire global brand, in minutes.
Consider the impact of self-order kiosks, a technology that has gained popularity in fast-food. These kiosks streamline ordering, accelerate service, and give customers more control over their dining experience. The integration of mobile ordering apps further extends convenience by letting guests place orders, customize meals, and pay without leaving their seats.
Machine Learning (ML), AI, and data analytics have become crucial for informed decision-making. Restaurants can leverage data to grasp customer preferences, track inventory, and predict demand, cutting waste and catering to customers' evolving tastes.
Closing the Gap: Overcoming Resistance and Embracing Changes
Skepticism towards technology integration in the restaurant industry often stems from a fear of the unknown. Traditionalists argue that a personal touch and culinary craftsmanship should be enough, underestimating technology's capacity to enhance, rather than replace, these human touchpoints.
To bridge this digital divide, it's important to remember that technology complements, rather than replace, human-centric aspects in the restaurant business. Automated processes free up staff to focus on delivering exceptional customer service, while digital interfaces improve communication between the kitchen and the front-of-house.
The stories of industry pioneers like Dave, Fred, and George demonstrate the importance of adapting to technological advancements. These leaders understood embracing change was a strategic move to stay relevant and exceed customer expectations. As the restaurant landscape evolves, those who resist technological integration risk being left behind.
Conclusion: The Future of Dining Relies on Tech-Savvy Innovation
The ever-changing restaurant landscape demands reevaluation of traditional viewpoints, pushing restaurateurs to embrace technology as an essential ally on their journey to success. As the digital era unfolds, the key to thriving in hospitality lies in transforming skepticism into an enthusiastic embrace of tech-savvy innovations that reshape the dining experience for guests, employees, franchisees, and restaurant owners alike.
I'm fortunate that my personal journey, which began alongside Dave and passed through Fred and George (and countless other mentors), has led me to Amazon Web Services (AWS). With a team of trusted advisors, I help Travel & Hospitality brands worldwide transform using the power of the AWS cloud. To learn more about how leading brands are innovating for the future on AWS, visit: AWS/Travel.
- In the face of industry pioneers like Dave Thomas, Fred DeLuca, and George Biel, who demonstrated the strategic importance of technology in transforming customer interactions and streamlining operations, it's surprising that some restaurants still cling to the notion that technology is unnecessary.
- Pioneers in food-and-drink establishments like Dave with Wendy's, Fred with Subway, and George with Houston's/Hillstone have shown that integrating technology, such as mobile ordering or cloud-based services, can revolutionize the customer experience and drive business growth, positioning food-and-drink brands in the forefront of the lifestyle industry.
