When measuring value, you in your restaurant business, what are you actually measuring? Traditionally, we attach value to a product: what the tangible item is worth in terms of customer demand and the ROI for the business. However, our society is moving value in many new directions, especially as technology and AI continue to infiltrate all business sectors, including the foodservice and hospitality industry.
Recently Jill Raff discusses value for Nation’s Restaurant News’s (NRN) Speakerbox. “ Value in the restaurant industry has traditionally been tied to the tangible product — mostly the quality of food, portion sizes, pricing, or deals like BOGO or $5 meal combos. Customers often equated value with getting the most for their money: fresh ingredients, generous servings, and consistent taste,” she writes after speaking with industry leadership about how this perception is changing. “However, as the industry evolves, thank goodness, value now encompasses more than just what’s on the plate. It has expanded to include the human experience, affecting both employees and customers.”
Though restaurant owners and operators must pay attention to the bottom line to sustain their business and be good business owners, what is shifting is the admission that different value measurements will all impact the bottom line anyway, because of how and where customers (and employees) place their value emphasis. A restaurant business is a symbiotic one, and each smaller part of the business impacts the whole.
For customers, Raff notes, customer value is driven by both an experiential value— “the ambiance, service quality, emotional connection, and personalization”—and the value found between convenience and connection. Here she adds, “While technology-driven conveniences (like mobile ordering and AI personalization) add to the perceived value, the human touch — genuine hospitality and engagement — remains irreplaceable.”
Raff also compares employees to customers, explaining that employees are a sort of “customer” to your restaurant business—and certainly an employee’s company culture affects their work and, thus, the actual customer experience. Employees place value in the workplace environment, which Raff moves to include “beyond competitive wages, value includes career growth opportunities, workplace culture, autonomy, recognition, and work-life balance,” along with a general sense of belonging. Employees also value technology and how it empowers them to complete tasks efficiently and effectively. “When technology is used to ease workloads and open pathways for development rather than replace roles, employees perceive greater value in their work,” Raff says.
Redefining “value” across the industry and for all audiences will be essential to building a successful business philosophy for the coming year. “I believe the restaurant industry is at a crossroads, with the fusion of cutting-edge technology, and evolving definitions of value, shape both employee and customer experiences,” says Raff. “While AI and technology streamline operations, the heart and soul of the restaurant — it’s people — remains the key to sustainable growth. Learning to balance innovation with a strong company culture is pivotal for enhancing productivity, fostering loyalty, and driving revenue. With the strong adoption of the ever swiftly evolving AI, redefining value from perspectives of both employees and customers, will define the future of the restaurant culture.”
“Leadership and open ears are two key components in further defining the value proposition for customers and staff alike,” notes Richard Weil, owner and principal for National Restaurant Consultants. “Owning this process by engaging all stakeholders within your four walls including guests will create greater customer retention and staff retention.”