RTN’s Labor & Technology Strategies for Restaurants
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RTN’S LABOR & TECHNOLOGY STRATEGIES FOR RESTAURANTS
www.restauranttechnologynetwork.com
Introduction According to the National Restaurant Association’s 2022 State of the Restaurant Industry report, roughly half of restaurant operators expect recruiting and retaining workers will be their biggest challenge this year, and during the 6-month period between October 2021 and March 2022, unfilled job openings in the hospitality sector exceeded total hires by an average of 500,000 each month. Unprecedented labor shortages are putting immense pressure on restaurant operators to rethink ways to minimize overhead, while still delivering exceptional experiences. This work offers technology-enhanced operational categories and solutions for restaurant operators to consider when confronting challenges related to labor sourcing, retention and overall operational efficiencies.
Staff
ABBY LORDEN
KATHERINE WARE
VP and Brand Director, HT Co-Founder, RTN 973.607.1358 alorden@ensembleiq.com
Senior Account Executive, HT & RTN 785.424.7392 kware@ensembleiq.com
NOELL DIMMIG
ANGELA DIFFLY Co-Founder, RTN 404.550.7789 angela@restauranttechnologynetwork.com
Account Executive, HT & RTN 973.607.1370 ndimmig@ensembleiq.com
PATRICK DUNPHY
MOLLY MCLOONE
CIO, HTNG & RTN 312.690.5039 patrick@restauranttechnologynetwork.com
ROBERT FIRPO-CAPPIELLO Editor in Chief, HT 917.208.7393 rfirpo-cappiello@ensembleiq.com
Brand Marketing Manager, HT & RTN 908.433.2796 mmcloone@ensembleiq.com
TAMMY HANSON Membership Manager, RTN 314.570.4798 tammy@restauranttechnologynetwork.com
ANNA WOLFE
CODY CZMYR
Senior Editor, HT 207.773.1154 awolfe@ensembleiq.com
Director of Marketing, Communications and Membership, RTN cczmyr@ensembleiq.com
Copyright 2022 Restaurant Technology Network (RTN). All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or information storage and retrieval systems, without express written permission from the publisher. RTN is a wholly owned subsidiary of EnsembleIQ, with principal headquarters at 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631.
RESTAURANT TECHNOLOGY NETWORK
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Table of Contents Introduction..................................................................................................................................... 2 Key Contributors ........................................................................................................................... 3 Key Findings Across Restaurant Segments........................................................................ 4 Concepts Operations & Technology Enhancements Full Service ........................................................................................................................8 Fine Dining ......................................................................................................................10 Fast Casual....................................................................................................................... 12
RTN Mission The Restaurant Technology Network (RTN) is a membership community solely dedicated to the restaurant technology industry. Through access to valuable benefits and powerful connections, our members shape industry standards and share technical guidance to help restaurateurs run successful businesses and better serve their customers.
Key Contributors
DR. CERVANTES LEE
TIM GUERRIERO
GEORGE HUTTO
SKIP KIMPEL
Assistant Professor UNLV Hospitality College
Information Security Program Manager P.F. Chang’s
Sr. BI Developer MOD Super Fast Pizza
Principal of Independent & SMB Consulting ConStrata Consulting
TIM LOCKHART
ERIC SOLL
TIM TANG
Director Of Business Development Mad Mobile
CEO Soulman Marketing
Director, Enterprise Solutions Hughes
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RTN’S LABOR & TECHNOLOGY STRATEGIES FOR RESTAURANTS
Key Findings Across Restaurant Segments TARGETS OPERATIONAL CATEGORY
NOTES
5
Employee Motivation & Incentives, Benefits
Restaurant-based incentives, individualized, based upon the restaurant’s program.
5
Employee Onboarding Automation
• Reduce onboarding time • Automate onboarding and provide necessary resources to minimize your current staff’s involvement in training
5
Employment Marketing Automation
Ability to reduce man hours behind the process of find and onboarding individuals
4
Improving Public Image of Restaurant Jobs
Properly educate the public in regards to unskilled work force and the expectations from industry in regards to that.
4
Dynamic Compensation Channels
4
Virtual Training
Allow for self-serve training options, training based upon the employee's individual comfort level.
4
Food Preparation
• Ability to improve efficiencies for employees to make sure customers are getting food based on current order status and future order status • Enforcing food quality in delivery and in-house dining • Ingredient management for accounting/inventory/food safety/recalls
4
Delivery Services Management
• Ensure proper delivery integration to the POS • Smart enough to see current production schedule • Delivery estimates are not reliable
VALUE / ROI (1-5, with 5 being most valuable)
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OPPORTUNITIES FOR IMPROVEMENT • Gamification of tasks & objectives, continuous feedback • Social media brand ambassadors for employment • Social media incentives • Personalized employee satisfaction surveys • Performance evaluations • Bonuses
• • • • • •
• • • • • •
• Gather preferred vendors to provide for franchisees • Manage and track onboarding success over time (30, 60, 90 days) • Apply in 2 mins, scheduled in 3 mins, hired within 2 days • Be mindful of CCPA, CPRA, BIPA other regulations
HR Software Processes Documentation Automated, recorded videos Learning management systems Systematized processing from potential candidate to full, up to speed employee
New benefit types Healthcare Tuition 401K Stocks Corporate social responsibility • Dynamic compensation • Paw-ternity leave
Market open positions to customers
• Show successful examples of career path progression by existing employees, • Corporate social responsibility initiatives • • • •
Individual employee payment options Pay advance Daily/weekly payments Alternatives to direct deposit Different currencies Tip credit/tip pooling
Tablets, VR/AR, be careful about training and remote access with hourly employees
Location-based service triggers for food prep (e.g 2 mins prior to arrival, drop the fries)
• LBS tracking for delivery • Curbside alert to staff for customer ETA • Delivery driver ETA
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RTN’S LABOR & TECHNOLOGY STRATEGIES FOR RESTAURANTS
Key Findings Across Restaurant Segments (cont’d) TARGETS OPERATIONAL CATEGORY
NOTES
4
Packaging for ChannelBased Delivery
• Ensure food is packaged in temperature/ environmentally controlled to maximize customer satisfaction and uphold restaurant standards • Ancillary product positioning (utensils in bags already etc) • Sticker printer to match orders with product to make it easier to manage an order
4
Order Process: Counter, Kiosk, Curbside, Mobile App (staff, thirdparty, and customer), Drive-Thru, Voice Ordering, Call Center
• Counter - highest operational impact • Third-Party Orders - velocity and a result of staffing and kitchen capacity, staging for pickup
3
Employee Self- Service Capabilities
Ensure that employees are able to handle certain situations on their own without further interaction from management.
3
Multi-Unit Employee Sharing
More common in corporate rather than franchisee space.
3
Customer Feedback
Written or manual feedback processes should be removed
2
Machine Management & Maintenance
• Keep machines and production up to ensure operational efficiency • Cybersecurity management for IOT / systems
2
Analytics for Operations Tracking
Track and capture human error in orders and Back-ofHouse (BOH)
1
Automated Clock-In / Clock-Out
Ability for employees to clock in / clock out & deal with “breaks” based upon state regulations
VALUE / ROI (1-5, with 5 being most valuable)
RESTAURANT TECHNOLOGY NETWORK
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OPPORTUNITIES FOR IMPROVEMENT
Better research and sourcing for packaging.
• • • • • • • •
Throttling/staging Optimization Forecasting Technology Integration Customer Experience Management Forcing All Orders through Kiosks AI ordering systems Opportunities for improvement include: Integrated menu, Order, Customer Systems to reduce frustration and increase profitability
USEFUL QUESTIONS: • How do you use a mobile app to set customer expectations? • How do you manage a user interface to reduce steps and minimize customer frustration in the order process? • Can you utilize technology and time management in the order process to accurately predict delivery/availability times? • How do you push customers to the fastest, cheapest cost per order system?
• Scheduling • HR portals • Payroll company • Integration • Pay rate and employee ID tracking across multiple units (esp with dynamic pay) • Clock-in capability in multiple units • Share across companies, but same concept or across franchisees • Online or automated customer feedback collection and analysis automation • Automated store unit scorecard analysis • IOT sensors for preventative maintenance • Repair/replacement • Production monitoring • Aggregate operations data for process improvement considerations • Computer vision & employee tracking for optimization • Real-time feedback for employees related to critical tasks powered by computer vision • Location-based tracking • Employee device usage for scanning QR codes, NFC • ID usage |7|
RTN’S LABOR & TECHNOLOGY STRATEGIES FOR RESTAURANTS
Full Service
CONCEPTS OPERATIONS & TECHNOLOGY ENHANCEMENTS
OPERATIONAL CATEGORY
NOTES
OPPORTUNITIES FOR IMPROVEMENT
Analytics for Operations Tracking
Automate the process, customer survey • Beginning of the transaction • End of the transaction
• 80-85% of the time utilizing automation • Send feedback and customer surveys after the meal
Employee Onboarding Automation
N/A
• Use visualization of the tickets based on camera • Ability and technology to turn the table at a higher rate
Payroll
N/A
• Automated scheduling into payroll • POS duplicating as a clock-in/clock-out (labor data)
Tips
N/A
• Pay at the table device adds tip and closes out POS • Print server check without the need to add tips • Remove manual errors of fat fingers of tips • Save transaction costs utilizing single settlement credit card processing
Employment Marketing Automation
N/A
• Sign-on bonus • Advertising to increase pay • Utilize workforce management solutions
Order Process: • Curbside • Mobile App (staff, thirdparty, and customer) • Voice Ordering • Online Ordering * counter pickup in separate location * curbside * drive through Food Preparation (Beverage/Food) Beverage Automation
Packaging for ChannelBased Delivery
RESTAURANT TECHNOLOGY NETWORK
Third-Party Orders: • Velocity and a result of staffing and kitchen capacity • Staging for pickup
• • • • • •
Throttling/staging Optimization Forecasting Technology Integration Customer Experience Management Technology for prepayment for pick-up orders
Food prep, shift management, last-mile delivery
Robotic Automation
Third-party integration
• Technology can help alleviate chargebacks • Verify every third-party package via camera • Brand image / logo on all packaging • Place QR code for first-party ordering
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OPERATIONAL CATEGORY
NOTES
OPPORTUNITIES FOR IMPROVEMENT
Labor Management: • Scheduling • Host • Curbside runners Busboys • Bartenders • Valet • Kitchen Staff • Dishwashers • Order Verification/Validation • Extra staff for Covid-related cleaning/sanitizing
Help with movement of staff, reduce no-shows for hiring
• Reminders for no-shows • Integrated surveillance system • Hiring this out helps COVID-friendly cleaning/sanitizing
Order Process/Payment Options for table-side & bar seating
Seperate the two between paying
• Use lights to let customers and staff know where the customer is with the paying journey. (paid, receipt, cash) • Pay at the table using your own device
Waitlist Management, Reservations
Various applications for automating
• Other third-party table management solutions • Waitlist management technology
Customer Journey: • Customer to table • Optimize table service (turnover) • Table to exit
N/A
• Guest self-ordering through app, website, text • Server-based devices for direct-tosystem ordering without paper tickets • Robotics as host / seating customers at tables • Robotic food delivery
At-table Ordering: Off-premise, near-premise, on-premise (counter or tableside)
Wait staff taking the order
• Mobile tablet/pad entering order in immediately • Omnichannel POS
Catering Services *venue operations
Typically done through POS
Catering software
N/A
• Use lights to let customers and staff know where the customer is with the paying journey. (paid, receipt, cash) • Robotics
Equipment Maintenance
N/A
• AI-enabled predictive maintenance • Determine in-house or outsourcing • Approach my vary, based on need (preventative maintenance vs. repair)
Guest Engagement/Loyalty
Drive brand affinity, capture guest contact info
• Guest Sign-Up/Check-In • Accrue points/rewards
Table Clearing / Bussing
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RTN’S LABOR & TECHNOLOGY STRATEGIES FOR RESTAURANTS
CONCEPTS OPERATIONS & TECHNOLOGY ENHANCEMENTS
Fine Dining
OPERATIONAL CATEGORY
NOTES
Equipment/Materials
• Reduce costs of materials, such as linens and tablecloths • Menu Costs
Employee Onboarding Automation
Reduce onboarding time, automate onboarding & provide necessary resources to minimize staff involvement in training
Asset Management (Preventive Maintenance Automation for Restaurant Assets
Reduce risk for assets Receive automated reports, receive alerts for potential risks
Employee Retention
• • • • •
Labor Management New Cleaning Procedures
Runners, bus boys, kitchen staff, dishwashers
Order Process/Payment Options
• • • • •
Host(ess) Stations
• Simplicity • Defined Processes • Avoid Crowds
RESTAURANT TECHNOLOGY NETWORK
Highly skilled/trained employees Not easy to replace without significant onboarding Employee satisfaction Training Systems reliability
Table Turnover Reduce Dwell Time Optimize Experience Reduce Check Out Times Increases Time for Waiters to do Other Tasks
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OPPORTUNITIES FOR IMPROVEMENT
• Digital menus (tablets) • Modern, nice surfaces (such as bamboo or wood) with nice/fancy decor without the need for linens
• HR Software • Processes • Documentation
• • • •
iOT Edge Compute as Infrastructure Preventive Maintenance Software for Inventory Management Scheduling/Tracking PMs
• • • • •
Learning Management Systems (LMS) Surveys & feedback opportunities Predictive people forecasting systems Modern devices, software support, dedicated devices for training Incremental, short form, gamified training
New Machines
• • • •
Pay-at-the-Table tech Use own mobile devices (no hardware or apps) Sentiment-driven AI to identify poor customer experiences Pay for takeout orders before getting to the restaurant via own system (no need for a third-party such as UberEats or DoorDash)
• Waitlist Tech • Table is Ready Tech • Table Reservation Tech
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RTN’S LABOR & TECHNOLOGY STRATEGIES FOR RESTAURANTS
CONCEPTS OPERATIONS & TECHNOLOGY ENHANCEMENTS
Fast Casual
OPERATIONAL CATEGORY
NOTES
OPPORTUNITIES FOR IMPROVEMENT
Employee Onboarding Automation
• Find ways to streamline processes, tap technology to overcome manual labor when onboarding new employees. • Tedious tasks with onboarding, how can tech reduce time to on-board? • Gig economy implications How can we onboard in hours, instead of days/weeks? • With high turnover, onboard efficiencies become a competitive differentiator • Reducing onboarding time • Increase restaurant ops efficiency • Increase employee satisfaction • Reduce turnover
• Several existing solutions exist, making them known to the group will greatly help the decision-making process for executives looking to make changes. • Systems should be fully integrated into the entire HR tech stack to reduce redundancy.
Order Process: • Counter • Kiosk • Curbside • Mobile App (staff, thirdparty & customer) • Drive-Thru • Voice Ordering • Call Center
• Counter - highest operational impact • Third-Party Orders: velocity and a result of staffing and kitchen capacity, staging for pickup • Mobile UX • NLP on call center • Multi-language support
• Throttling/staging & Optimization • Forecasting • Technology Integration • Customer Experience Management
Analytics for Operations Tracking
Role-based KPIs (order transaction, customer satisfactions) • Chefs - ingredient/waste management, response time order-to-availability • Servers - satisfaction, turn times, loyalty signups • Store Managers - employee satisfaction survey, labor efficiency/cost (overtime), guest satisfaction/sentiment (star ranking, NLP on social media, reviews) • Restaurant - (ave ticket increase % YoY, conversion, Time of first drink order), Visible Dashboard (leaderboards, restaurant-specific/system-wide), Gamifying roles
• Food prep projection management • Over-serve management & tracking by employee • Server transaction time management through the POS
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OPERATIONAL CATEGORY
NOTES
OPPORTUNITIES FOR IMPROVEMENT
Employment Marketing Automation
• Outreach to new markets to help promote and find candidates should be automated via technology programs • Automate the identification of quality candidates for fit and function (scanning hiring boards, find example of services)
As stated previously, several opportunities already exist in this category.
Food Preparation/ Assembly
Food preparation and assembly is traditionally a labor intensive process
• Order accuracy verification (computer vision) • Robotic (hamburgers, fries, pizzas, etc.) • Computer vision to validate order accuracy • Infrared validation of how to prep • Infrared validation of food delivery Analytics to correlate customer satisfaction with food temp • Real-time alerting to waitstaff on food availability • Dashboard: Timing of notification, feed performance into scheduling • AI verification of food prep process
Labor Management by Unit Managers
Management by Machines • How to gauge/maximize employee satisfaction Video surveillance • Employees prep, how efficient are they at doing the job? • Should there be two people? • Where are employees spending the most time?
• Diversity, equity and inclusion initiatives are important, and there may be technical capabilities to manage this at a store, region, or brand level • Training, learning and development will promote retention and efficient staff. • Utilizing new learning delivery methods (such as short form video or sms) may be useful
Host(ess) Stations
How to gauge / maximize employee satisfaction
• Use lights to let customers and staff know where the customer is with the paying journey. (paid, receipt, cash) • Robotics
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RTN’S LABOR & TECHNOLOGY STRATEGIES FOR RESTAURANTS
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