Self-Ordering Technology May Solve Restaurants’ Greatest Challenges
In the 1990s, Steak ’n Shake released an ad campaign about the differences between restaurants and “workaurants”. On the cusp of the fast-casual explosion, it was a popular, tongue-in-cheek campaign to set apart Steak ’n Shake as a “sit-down” restaurant. But modern consumers, especially two generations of tech-savvy diners, are accustomed to putting in a little effort for their food—and this only became more true after the pandemic. Now, as restauranteurs face major challenges of inflation, labor shortage, and rising consumer demand, leaning on customers’ willingness to self-manage might save time and money.
In this GRUBBR-sponsored post, Nation’s Restaurant News makes the case that self-ordering technology could be the answer to these three demanding challenges. This year, “inflation in the United States reached a new 40-year high, with consumer prices jumping 7.9% from a year ago — rising at a pace not seen in four decades. To adapt, restaurants are altering menu items and increasing menu prices, passing on their macroeconomic cost pressures to their consumers to offset higher costs for food and labor,” the article states. But eventually, raising prices will begin driving customers away, and restaurants have to find new avenues for saving money.
Self-ordering machines reduce the need for laborers—good timing since the labor crisis in the United States has now been dubbed The Great Resignation. “According to the latest jobs report from the U.S. Bureau of Labor Statistics, the unemployment rate in the hospitality industry is 8.2%, more than double that of the general economy.” With a shortage of good workers, asking customers to place their own orders allows restaurant owner-operators can task fewer employees with different jobs.
Though there are fewer workers, there are more customers! And those consumers want the best of both worlds: full-service indoor dining, like pre-pandemic days, with the convenient digital options that emerged during quarantine. “Because today’s guests want to get their food in a multitude of ways, restaurants need technology that delivers a consistent consumer experience whether guests want to eat in on premises, order online and pick up in a restaurant or curbside, or have the food delivered.”
Richard Weil, principal and owner for National Restaurant Consultants, remarks, having recently attended the National Restaurant Association Government Affairs Conference in Washington, D.C. at the end of April. “The simple answer may be to allow time to cure the labor crunch. However, a longer-term solution relates to a formal ‘work force engagement’ program that addresses, not only employment opportunities that our industry provides, but also provides answers to immigration components as well”. Learn more here.
There is no turning back from the digital age, and restaurants must be willing to adjust and embrace technology to create the ideal experience, both for the customer and for a successful business plan. Our restaurant consultants can help budget and implement new technologies that serve to benefit your restaurant business in the long term.