Article

Self-order technology helps fuel QSRs' growth

Restaurant tech experts at Omnivore, Rosnet, Givex and Kallpod tell QSR leaders what to watch when it comes to technology investment.

Image courtesy of iStock

April 4, 2019 by S.A. Whitehead — Food Editor, Net World Media Group

Editor's Note: An earlier version of this article ran on QSRWeb.com, a Kiosk Marketplace sister publication.

You need to look no further than the pages of QSRWeb.com to know that restaurant operation is dependent on technology. From self-order kiosks to search and ordering apps to delivery, loyalty and even AI, it's become nearly impossible to play in the QSR field in developed markets without also seriously playing with technology.

And there's a lot of money at stake, with the quick-service industry in the U.S. now estimated at nearly $199 billion annually, according to Statista. And a lot of that cash is flying through online ordering portals these days. In fact, the online ordering business grew 23 percent in the U.S. last year. 

A great deal of that restaurant ordering is also being delivered to QSR customers, whose numbers also grew last year over 2017, by 3 percent, NPD Group reported. Still, a healthy share of today's restaurant operators actually got into this business in the first place because they love food and hospitality, rather than technology. As a result of this deficit of overall tech expertise, leaders can easily get derailed along their paths toward the best systems for everything from online ordering and delivery, to all the other current and future tech-infused restaurant functions. 

Since this part of the restaurateur's job isn't going anywhere, it's essential that leaders learn about technology that might further their brands. Cousin's Subs CFO Jason Westhoff said in an interview with QSRWeb.

"As guest expectations and our industry continues to evolve, we view our investment in technology as vital to our brand's success," Westhoff said. "From a smoother checkout process to us being able to target what offers will better suit guest(s') needs, our new point-of-sale allows Cousins system to run more effectively. 

"By making these investments, we have standardized our technology infrastructure and put a system in place that can positively impact our business for years to come. Not only do these enhancements improve in-store operations and reporting, they deliver a more rewarding guest experience."

What technology QSR leaders should watch 

So how does a QSR get to a place of satisfaction that Westhoff has? We wondered what some of restaurant tech's experts might say to that question and where they would tell QSR leaders to watch and possibly even invest in restaurant tech in coming months.

At food and labor management system company, Rosnet, Director of Business Development Patrick Bobrukiewicz said a lot of the emphasis should revolve around restaurant-generated data and its implications for business in the future.

"Data is crucial in making marketing and strategic business decisions, specifically when you correlate data with your restaurant's bottom line," he said. "An operator is constantly looking for ways to make the best decision in their marketing efforts and showcasing items that are going to make them the most dollars. 

"This shouldn't be done looking plate by plate, but instead by using data to look at the item affinities. For example, you might see that you make $3 more per rib dinner, but when people order the burger they typically ring in an upsell and dessert. When the data shows that the burger might be more valuable to your bottom line, you can use this to make better marketing decisions, like swapping out the big photo of ribs for your burger.

The age of restaurant tech collaboration?

Meanwhile, at end-to-end data and insights solutions provider Omnivore, CEO Mike Wior said as tech options expand, QSR brands are realizing the increasing need for collaborative efforts around restaurant technology. The scope is vast and includes pay-at-the-table, social media ordering, augmented reality merchandising and staff-focused gamefication, among other options, he said.

While the tech options laid before QSR brands once seemed to all be working in different directions, this year he thinks things will start to unify. 
 
"Until recently, the ecosystem of digital restaurant commerce has been characterized by fragmentation and competition across the POS companies and different third-party technology companies, with restaurants in the crosshairs," he said. "But now, we are seeing the industry becoming more unified, with third-party apps and POS providers joining forces instead of competing against either other, so they can deliver a better product not only for the restaurant operator, but ultimately for the customer. Importantly, using a technology platform to connect to the POS enables agility and accessibility for restaurants to test and activate these third-party solutions quickly. 
 
"Bolstered by consumer demand, and the need for both third-party technologies and POS partners to unify at a quicker pace, companies at all points of the digital restaurant commerce ecosystem are now talking. Instead of fiercely protecting their businesses and creating division in the industry, they've realized that integration is synonymous with innovation, pointing to a much more collaborative industry for 2019. Whereas restaurants previously faced the fallout from a lack of unity, they now stand to reap the rewards of optimized technology.

Graham Campbell, COO of Givex, a cloud-based operations management solution company, said he, too, is seeing more partnerships around tech today, particularly with limited-service brands. 

"The challenges in the restaurant industry have multiplied: higher rents, labor costs, minimum wage, health care and (a) tight labor market, to name a few," he said in an interview. "Customer needs have also changed, with the popularity of delivery, mobile ordering, ordering ahead and other convenience-based initiatives. 

"Restaurants are asking providers for more functionality and data, at a lower price. In many cases, they're trying to get a better deal to get franchisee buy-in for a POS upgrade or to help the bottom line.

"As a core system, it typically falls on the POS to have resources to support these third-party partners to make the integration process easier for restaurants. As a POS company, sometimes clients come with desired partners they want us to integrate with or we intentionally form partnerships with best-of-breed providers (mobile app developers, delivery providers, and the like) to provide the latest functionality, with the end goal of helping restaurant operators stay in line with current technology and customer demand. "

Beginning the trip 'away from the counter' for ordering

Even customized tabletop communication provider Kallpod sees substantially brighter days coming for QSRs seeking new ways to make customers happy through a smooth and flawless dining experience. Tech is making that happen in the quick-service environment now more than ever, according to Kallpod's CEO, Gabriel Weisz.

"As QSR and fast casual menu offerings have improved and more customers are opting for quick meals, there is a major opportunity with these limited-service providers to take ordering outside of the counter. Restaurants in this segment of the industry will begin using technology to create an additional engagement opportunity and ordering occasion for the customer at the table, as well as increasing revenue per square foot of the entire (location's) space.

"It will still be a quick-serve environment, but customers will be able to make multiple orders to get the most out of their experience without having to go back to the counter, wait in line and start the whole process over again."

Photo: iStock

About S.A. Whitehead

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Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.