So many of our industry conversations are around technology these days. It is becoming such an important factor in the business that, Nation’s Restaurant News (NRN) writes, many restaurants are moving away from common technology solutions into customized tech application. While previously, this might have seemed frivolous to business managers, it now indicates the high-level expectations customers have for technological integration, as well as how much technology improves the restaurant employee experience.
NRN shares, “During first quarter earnings calls, three companies detailed significant progress on their custom-built technology solutions: Yum Brands unveiled more details on its Nvidia partnership and the proprietary Byte by Yum platform, Wingstop announced that its built-in-house Smart Kitchen solution will roll out later this year, and Wendy’s provided an update on its custom AI solution partnership with Google.”
On the micro level, customized tech can benefit both in-house operations and customer-facing experiences; but custom technology also has macro-level benefits: “The push for software and hardware customization continues as the nation’s largest restaurant chains look to differentiate themselves in an increasingly tech-dependent industry.” Tech integrations are now becoming their own form of marketing and advertising, setting apart restaurants for their unique solutions and sleek customer interfaces.
For Yum Brands, this looks like adapting several customer touch points with AI-driven tech. “We’re focusing on three key areas of the business: voice, automated drive-thru, and call center operations … computer vision technology to enhance back-of-house and drive-thru efficiency through real-time analytics, and advanced restaurant intelligence,” Gibbs was quoted in the NRN article.
Though Wendy’s has been focused on similar tech improvements for two years now, integrating the collaboration with Google (linked above). “Wendy’s announced its Fresh AI drive-thru solution powered by Google Cloud in May 2023, and is now in the process of rolling out Fresh AI systemwide, with a goal of implementing the solution at more than 500 restaurants (14% of its global portfolio) by the end of 2025.” Wendy’s CEO Kirk Tanner says that this integration will increase check sizes at the drive-thru.
Wingstop, however, is honing in on back-of-house, keeping in mind that happy employees and efficient operations always positively impact customers in the end. “Wingstop is focused on perfecting back-of-house operations with the launch of the Wingstop Smart Kitchen, which has already been tested in 200 restaurants, and includes custom elements like a gamified kitchen display system.”
Whatever a restaurant’s plan for technology improvements, this full-steam-ahead approach into customizations is an indicator of tech’s place within the industry: permanent and necessary. Restaurants will likely come to be known and, in many segments of the industry, defined by the tech-driven experiences they create for both guests and their employees.
Richard Weil, principal and owner of National Restaurant Consultants, says, “The key is the customization component. Each operator needs to realize that customers’ basic needs, wants, and desires should always be the highest of priorities. Personal experience should be at the forefront when making tech improvements—and this includes both the external and internal staff as well.”
At NRC our consultants take the time to stay on top of these ever-evolving industry trends. Contact one of our consultants to find out additional ways NRC can help you make the best decisions for your business needs.