Analyst predicts rise of guest-facing restaurant technology | Technology content from N... - 4 views
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A growing number of restaurant chains are turning to guest-facing technology to address such pressures. Casual-dining chains, such as Chili’s and Applebee’s, are rolling out the use of tabletop tablets for ordering and paying in their restaurants this year, for example. And BJ’s Restaurants Inc. revealed this week that guests will soon be able to order and pay using their own smart phones and other devices.
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O’Cull estimates that a mid-scale casual-dining chain that produces $2.5 million in sales could save 100 to 200 basis points in labor costs, or roughly 1 percent to 2 percent, by offering technology that will allow guests to order and pay.
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“We estimate that the restaurant could eliminate 30 percent to 40 percent of its total server hours and reduce labor costs by 100-200 basis points,” he wrote. “Obviously, the number of servers employed would fall, but the take-home pay of remaining servers would increase significantly.”
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The advances restaurants are making with technology are astounding. Because of the rise in minimum wage and health care recently, companies are forced to figure out a way to cut labor costs. With the addition of iPads and tablets, restaurants are now able to use technology to help with reducing the amount of labor needed. Some chain restaurants are providing guests with table-side tablets to order and pay for their meal, which will allow servers the opportunity to take on more tables and allow the customer to assist in the serving process. Managers will be able to evaluate their team based on speed and time it takes to turn the tables over, which could allow for either more customers served or allow managers to make the decision to reduce the amount of servers needed at their establishments. As this technology continues to become more available and user friendly, more establishments will be transitioning to computers/tablets instead of having face-to-face service.
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The use of tablets being used in casual dining chains is a great idea that will not only make things more convenient for the customer but will also drastically cut labor costs for restaurants. From a management perspective these tablets seem to be a great idea. Some may argue that part of the dining experience is being able to interact with ones server. However, how many times have you waited at your table hoping to pay the bill? Now guests are able to pay their bill when they are ready and the tablet even prompts the guest on how much to leave as a tip, which may help eliminate or at least cut down on the number of bad tippers. The only negative may be that since there is less interaction with guests and guests have the ability to pay the bill whenever they are ready to leave, could this increase the number of guests who walk out on the check? Nevertheless, many companies are starting to use this technology.
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The use of tablets can also cut down on error in the ordering process. Even if the wait staff remains, they can easily repeat everything ordered to the customer and there will be no mistakes for poor penmanship. Payment can be done at the table, also cutting down on potential identity theft using skimmers etc., under the bar or at the wait station.