Using Technology To Safeguard Restaurant Workers and Inventory During High-Heat Conditions

Restaurant Tech Editors
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Using Technology To Safeguard Restaurant Workers and Inventory During High-Heat Conditions

Anyone who’s ever worked in a restaurant kitchen knows that they’re not exactly designed for comfort. High heat and humidity can make the work environment nearly unbearable, threatening the health and safety of workers while also putting your food inventories at risk.

These challenges, though, become especially formidable when you’re facing a weather-related heat emergency, such as those endured throughout the United States in the summer of 2022. The good news, however, is that innovations in restaurant technology are helping restaurateurs safeguard both their workers and their food inventories in extreme heat conditions.

The Dangers of High-heat Restaurant Environments

If you’ve been in a kitchen when temperatures are soaring, then it’s not difficult to understand the risks such conditions can pose for workers. Prolonged exposure to extreme heat can take a profound physical, emotional, and cognitive toll.

High heat conditions can leave you feeling fatigued, irritable, and unable to concentrate —  all of which can be quite dangerous in the frenetic and often hazardous environment of the kitchen. In addition to the elevated risk of accidents and injuries, from falls to cuts to burns, heat distress can quickly devolve into heat stroke, a potentially life-threatening medical emergency.

It’s not only your kitchen workers who are vulnerable to extreme heat. High heat can increase the rate of food spoilage, contributing significantly to food waste and, consequently, to lost revenues.

Safeguarding Workers and Inventory Through Tech

As significant as the threat of high-heat environments can be for your workers and inventories, restaurateurs are by no means without resources. Innovations in technologies are equipping operators with more and better tools than ever before to safeguard their staff and their products.

For example, smart sensors connected to the Internet of Things (IoT) can continuously monitor ambient temperatures everywhere prepared meals or ingredients are stored or shipped. Best of all, these sensors can send automated alerts in real time to stakeholders who can intervene quickly to ensure food products remain in the safe zone.

In addition, as 5G networks continue to expand across the country and around the world, the capacity of IoT sensors to monitor inventories across all stages of the supply chain is growing. This means that temperature and humidity levels can be monitored while food shipments are en route, issuing automated alerts when human intervention is necessary during shipping.

IoT sensors can also be used to identify potential disruptions in the supply chain, such as port closures or traffic delays, and can find the most efficient alternate routes. This provides restaurant operators with the peace of mind of knowing that their products arrive fresh and safe to their stores — even during hot weather conditions. Continuous environmental monitoring and efficient shipping through the use of IoT reduces the amount of inventory that must be discarded due to potential spoilage concerns.

Technology can also be instrumental in safeguarding workers in high-heat conditions. For instance, new robotics systems are being introduced to take the place of human workers in the hottest areas of the kitchen, such as the fry lines. This helps workers reduce or even eliminate their exposure to the worst heat conditions.

Likewise, smart technologies can be used both to regulate the kitchen environment and to monitor workers’ physical status while in a hot kitchen. For instance, smart thermostats can automatically adjust not only freezer and storage temperatures but also the kitchen’s cooling settings to maintain a healthier temperature environment. Similarly, wearable health monitors can track workers’ body temperature, heart rate, respiration, perspiration, and other vital signs, alerting them to even the earliest signs of heat stress.

The Risk of Heat Waves

The hot weather season is rapidly approaching in the northern hemisphere and, with it, the risk of heat waves. If 2022 is any indication, it promises to be a long, hot summer. For restaurant workers, the challenges of staying safe during a heat wave can be especially great, as workers may not be able to limit their exposure to heat sources. Even the most effective heating and cooling systems can be insufficient to manage kitchen temperatures during a heat wave.

For this reason, it is incumbent on restaurateurs to make provisions for protecting workers and inventories during extreme weather conditions. Brownouts and blackouts, for instance, are common during a severe heatwave. That means that if you want to be able to continue operating while also protecting your workers and your inventories, you’re going to need a backup power plan. Investing in a generator can ensure that your team and your inventories are safe throughout the heatwave.

The Takeaway

High-heat conditions may seem to be part and parcel of working in the restaurant industry. However, prolonged exposure to high temperatures can pose a serious risk to the health and safety of your workers. In addition, heat can dramatically accelerate food spoilage, resulting in immense inventory losses. The good news, however, is that a host of new and emerging technologies is making it possible to safeguard your workers and your inventories in high-heat conditions. This includes smart technologies, IoT devices, and backup power sources to promise safe and seamless operations — no matter what the weather may bring.

Published By: Restaurant Technology News

QSR Brands Can Leverage Technology to Overcome a Recession

Restaurant Tech Editors
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QSR Brands Can Leverage Technology to Overcome a Recession

With a looming recession, the QSR industry has been brainstorming ways to soften the expected blow to business. Many brands have been experimenting with new technology to help reduce the demand for labor and combat recent price inflation. However, technology is not yet advanced enough to supplant the human element in QSR locations, and with a recent push to increase minimum wage policies across the country, that labor is becoming increasingly expensive. 

Brands will need to adapt in other ways than simply replacing workers with new tech to weather an economic recession. We’ve been tracking how a recession would affect the QSR industry and looking at what role technology can play in lowering the cost of employment. Here are some of the most important takeaways on how QSR brands can adjust their operations to recession-proof their business:

Finding a New Balance of Labor and Volume

Although the industry added back many of the jobs lost during the pandemic, most restaurants remain understaffed. According to the National Restaurant Association, 62 percent of operators say their restaurant needs more employees to support customer demand. With the increased volume, assets like self-order kiosks and app-based delivery allow workers to focus their time and energy on fulfilling orders instead of interacting with certain customers or performing tedious tasks. Smart kitchen equipment, such as automated stove tops and automatic recycling oil fryers, make order fulfillment easier, faster, and more consistent. An owner of 31 franchised KFCs and Taco Bell locations claims that by automating his cooking oil system, he not only saves labor on lugging 35-pound jugs across the floor but also receives data that he uses to improve operations.     

Using technology that drives volume and throughput will allow QSR managers greater flexibility over how and where to focus human resources. As minimum wage policies continue to gain momentum, the key will be to balance the increase in revenue with the increased labor cost to find a new bottom line. There may need to be the same amount or more human workers on site, but the tasks they perform will be different or supported by new technology and aimed at meeting the increased volume of orders. 

Improving Communication with Customers

With inflation increasing at record levels, it will be critical for QSR brands to easily relate the costs of materials, sourcing, and labor to customers clearly and concisely. Smart menus and app-based ordering are examples of platforms that allow brands to relay information to customers in real-time, saving time and resources in communicating or justifying a price change. 

During the pandemic, menu prices frequently changed, and products were often out-of-stock due to supply chain shortages. Updating each price change and physically adding an “unavailable” sticker to traditional signage was time-consuming and inefficient. Thus, automation of product updates was essential. Using a combination of data and AI, digital signage can suggest available or lower-cost menu items, considering factors such as a recession or supply chain disruptions.

Historically, whenever difficult economic times hit the country, there has been an increase in the frequency of “value” or “deal” meals offered by QSRs. It is certain that as a recession becomes more apparent that many brands will increase their efforts accentuating deals and certain value items to maintain a competitive edge. Using platforms that can quickly notify or entice customers to these value-centric items will help maintain the brand’s bottom line and ensure that value is associated with the brand. 

Consolidating to Eliminate Waste

A strategic move to help drive average check size and bottom-line profitability has been to combine brands into one consolidated location. The KFC-Taco Bell collaboration is likely to ring a bell. Combining two different consumer bases under one roof can make bringing products to consumers more accessible and cost-effective, help eliminate waste in supply chains, and drive more people to a location with a more extensive, diverse menu. 

With increasing prices of goods, inflation, and supply chain disruptions, managers that oversee a consolidated QSR location have greater security that goods will be delivered on time and save money sourcing products to the restaurant. Technology, such as AI software, is now being used to help identify where improvements can be made to make the sourcing process even more efficient and cost effective. 

As the QSR industry braces for a potential recession, it is apparent that technology will be used in many new ways to boost profitability. However, it is not through fully automating kitchens and customer service positions. A greater focus must be placed on adjusting operations using supportive technology. That is what will truly make the difference. Identifying where human resources are best utilized, improving communication with customers, and eliminating waste and unnecessary costs are examples of operational changes that have already proven successful. With the addition of smart technologies and expanding AI, improvements will be made with even greater efficiency.

Published By: Modern Restaurant Management

How Technology is Shaping the Future of Restaurant Loyalty Programs

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How Technology is Shaping the Future of Restaurant Loyalty Programs

The restaurant industry has boomed over the last few years as creativity, culture and new experiences are desired by the masses. However, despite a market size that exceeds $25 billion, and 2.3% growth in 2023, the financial crisis has been hitting the industry hard as customers are increasingly being more careful about how and where they spend their money.

As inflation has pushed many to reassess their costs and ways to spend, customer loyalty is fast becoming the lifeline to see restaurant owners through yet another difficult period. Our 2022 Global Customer Loyalty report found that nearly 90% of respondents trusted customer loyalty programs to help them overcome the inflation crisis and potential recession.

While customer loyalty in the restaurant industry has been around for a while with the humble stamp card, the sector has evolved substantially as technology has enabled more innovation and higher rates of engagement. This is what we see as the upcoming trends and what to expect in customer loyalty for restaurants.

Gamification

Since smartphones have become the standard mobile device for most, more restaurants have designed and created their own app helping them to become a mobile-first business and brand. This has not only helped with a seamless ordering and collection experience and easier tracking of loyalty points and rewards, but it’s enabled an entirely new way to engage with customers thanks to virtual gaming built in-app.

Arcade-style gamification elements sees customers play to win new rewards and points in their existing loyalty program in a fun and alternate world. Rewards Arcade, the loyalty program of KFC UK & Ireland does this  by inviting customers who spend over a certain amount in-app or on their website to play mini games while they wait for their food to arrive. Their games are simple and have mystery prizes awarded to those who win, including free menu items.

Starbucks however has taken gamification into an entirely new realm by introducing NFTs in Starbucks Odyssey, an extension of its existing loyalty program. Here, members can earn NFT art by completing different activities and coffee-related challenges, which also provide bonus points and, depending on the art, unlock exclusive perks.

Greater brand experience

Strong customer loyalty programs enhance and reinforce great experiences for their customers, and offer restaurants the opportunity to play to their brand and what their unique audience enjoys.

One example is Canadian sports bar chain, La Cage, which includes a tiered membership with levels called ‘Pro’ and ‘Elite’ and much like a sports league table, the customer works their way up the ranks. A standout feature though is La Cage’s free wings deal, a long-standing promotion that sees members receive 8 free wings with every $15 purchase, whenever the Montreal Canadiens score 5 goals.

Such rewards and features increases the longevity of the loyalty program and enables a business to take full advantage of their image and brand while keeping their customers engaged and the brand front of mind, both in and outside of the buying cycle.

Better loyalty tech

To create a truly exciting and engaging loyalty program requires a restaurant business to have the right tech behind them. Not only does the implementation need to be simple but a program that doesn’t gather data intelligently and easily will only hinder the success of the program and customer loyalty rates.

More restaurants today are relying on innovative tech to help them be more efficient and competitive, while driving better ROI and revenue – loyalty is no different. No-code loyalty platforms are on the rise in many aspects of the restaurant business. They allow for faster time to implementation and deployment, more personalized functionality to suit existing process flows and flexibility for marketing campaigns, all without the need for developers.

Crucially too, loyalty programs are one of the best ways to better understand your customer, on an individual basis and as an audience as a whole. Loyalty tech platforms have incentivized the data collection process through gamified surveys and polls with rewards. With better insight management, this allows for more personalized customer experiences, recommendations and rewards.

Loyalty as an investment

As the climate continues to challenge the restaurant sector, more businesses are focusing their efforts on retention as opposed to new customer acquisition. Restaurants are wanting to prioritize their most valuable customers and are doing this through more investment in their loyalty program. Our report found that facing the inflation crisis and a possible recession, 8 out of 10 of respondents plan to increase their investment in customer retention and that eight out of ten companies plan to revamp their existing programs.

With limited spending available by the majority of today’s population, thoughtful customer loyalty programs with motivating and inventive interactive features give customers the opportunity to engage with their favorite brands for fun while elevating the relationship from purely a transactional one. According to our report, of those that did revamp their loyalty program in the last two years, over 70% were satisfied with it showing that the investment was the right decision and delivered on their goals.

Published By: Restaurant Technology News

3 Key Menu Trends Noted by Unilever

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3 Key Menu Trends Noted by Unilever

While countless food industry entities have released brief “trends” reports in recent weeks, Unilever used a different approach, drawing on insights from over 1,600 global chefs to offer in-depth insights and predictions.

The consumer goods and food company’s newly released Future Menu Trends report for 2023 identified several key factors driving today’s market. Among the trends that could truly impact the food industry this year are low-waste menus, mindful proteins, and modern comfort food, to name just a few.

“Identifying the hottest global trends is critical in our quest to provide solutions for chefs who are contending with challenges ranging from labor shortages to tackling sustainability issues like food waste,” said Hanneke Faber, president of Nutrition Unilever, in a press release. Faber added that Unilever sought to help chefs “feel prepared for the future.”

The menu trends – which were identified in part by analyzing global data and social media – were also intended to provide tangible solutions for food operators.

Wild & Pure
The “wild and pure” trend highlights seasonal dishes inspired by the variety found in nature, Unilever noted – think pork belly with pine oil, or gnocchi with warrigal greens.

Dishes featuring edible flowers, berries, or seaweed can provide diners with a connection to their local and often diverse environments. Unilever said this fad is “about moving away from mainstream fare and leaning into what nature provides” to create sustainable dishes with locally sourced ingredients.

Low-Waste Menus
Chefs are increasingly finding unique uses of ingredients to help reduce food waste as well as costs. Unilever’s report suggested a rather simple, slow-cooked pork belly with a cauliflower puree, for example.

Time-honored techniques like fermenting, pickling, and curing not only extend the life of ingredients but can also create complexity of flavors, the report noted. Efficiently planning the workflow in the back of the house can also considerably reduce food waste.

Modern Comfort Food
While today’s consumers seek familiarity in dishes that inspire nostalgia, they also want reimagined combinations. That can be accomplished by combining multiple classical concepts to create something new or by applying techniques that highlight textures of the dish. Giusseppe Buscicchio, an executive chef from Italy, has earned acclaim for his vegetable charcoal and saffron tortellini, which features hearty, slow-cooked beef, with mortadella Bolognese and Parma ham.

“Diners love to rediscover those dishes they know well in a guise [reminiscent] of the past but with the reinterpretation of possible ingredient combinations, cooking methods and, above all, presentation,” Buscicchio told Unilever.

Published By: The Food Institute

Delivery Demand Keeps Driving Growth in Restaurant Industry

Restaurant Tech Editors
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Delivery Demand Keeps Driving Growth in Restaurant Industry

The food delivery segment is projected to reach $231.3 billion in 2023.

The restaurant industry has experienced a great deal of turbulence over the last few years. Undoubtedly, the pandemic created significant challenges across the sector, but while many businesses were forced to close their doors, the period also led to a significant increase in off-premises dining and delivery demand, with restaurants endeavoring to capitalize on new opportunities. 

As we move through Q1 of 2023, and with the pandemic dust having firmly settled, it is fantastic to see a degree of normality returning to the restaurant sector. Certainly, the ecosystem has changed, but while the food delivery channel will have benefitted from sustained increases in both consumer and restaurant penetration, the dynamics have shifted considerably and the bar for restaurant success has been raised.

Cost increases across the board have put enormous pressure on restaurant operators, not least in terms of the delivery channel where the prices of fuel, insurance and labor have risen sharply. The delivery fees charged by marketplace delivery apps offer little respite and the impact on the bigger restaurant brands is limited, as they have the scale to negotiate. Larger chains are also quicker to embrace technology that automates the management of their in-house drivers and can redirect excess delivery volume to the marketplace alternatives. This ensures costs are minimized, while fulfillment issues are eradicated. The smaller brands, unfortunately, lack the same ability to negotiate but it is encouraging to see that more and more are beginning to adopt technology to achieve a similar outcome.

Of course, we never know what is coming around the corner and despite the pandemic fading into the background, we must also focus on the economic outlook. It’s not all bad news though. As the gray clouds of recession gather and consumer spend tightens, there is a cautious sentiment in the industry as a whole, but the outlook for the delivery channel remains positive. Delivery is the ultimate in restaurant convenience and consumer demand for convenience rarely recedes. This is evident when we take into account that 60 percent of Americans order restaurant takeout at least once a week. In addition, we have seen the price of groceries in the US rise by 14 percent  while the price of restaurant food has increased by only 8 percent, making it more competitive as a meal solution. Moreover, there is strong evidence to suggest that in recessionary times, consumers will opt to eat at home more to avoid the ancillary costs of eating out – costs such as taxis, babysitters and inflated alcohol prices.

The long-term outlook for the food delivery ecosystem is exciting and I think we can expect to see more change in the next two years than we have in the past five. Some of the developments we have been speculating about for a while now are very much in play and beginning to gain traction. We are seeing, for instance, how restaurant brands are turning to robotics to automate certain elements of food prep and despite some skepticism, we are seeing robots being trialed for last mile delivery—in highly controlled environments—thanks to brands such as Pizza Hut and Chick-fil-A. It is becoming increasingly obvious, too, that drone delivery is not far behind and will move towards commercialisation in a couple of years once the regulatory issues are ironed out.

Similarly, in the midst of a whitewash of coverage about ChatGPT, we are getting our first glimpse of the power of AI and how it will revolutionize everything from voice ordering to content creation. Dark kitchens are still somewhat in vogue. This is in contrast to the ghost truck kitchens where cracks are starting to appear, with a number of brands winding up operations or pivoting to a different model. 

Sustainability and its significance, in terms of guiding consumer choices, will continue to influence many elements of the food delivery chain across the United States, and indeed globally. Plant based foods, packaging and transport will all be positively affected, but only as long as the cost impact is negligible. The reality remains—restaurant margins are tight and that’s not going to change any time soon.

Legislation, of course, is more complicated to predict and indeed more fragmented too, as rules differ from state to state. Taxes, subsidies, minimum wage levels, immigration, and laws governing the treatment of gig economy workers, will collectively have huge implications on the future of the restaurant delivery, but predominantly on restaurant brands and marketplace delivery platforms.

We are also sure to see more consolidation as companies supplying technology to restaurants will seek to increase the value they offer by introducing complementary products. We have already seen marketplace delivery apps acquiring POS, POS companies acquiring loyalty software, and online ordering apps launching order aggregation. It’s reasonable to expect a lot more of this type of consolidation, as tech suppliers look for ways to bring more value to restaurant brands. 

Market conditions mean valuations have taken a hair cut, venture capital is harder to come by so M&A will inevitably pick up, and with a smaller number of players offering similar services, there’s likely to be some really great value there for restaurant brands.

Separately, the influence of technology on restaurant success has moved from important to critical in light of current economic conditions. Most restaurant brands are struggling with both labor shortages and cost increases, and technology is providing a crucial lifeline. Automating food prep, QR codes for both mobile menus and payments, AI for voice ordering and inventory control are just some of the technologies that are becoming mainstream in an effort to find efficiencies and reduce dependence on employees.

We are seeing huge demand for automated dispatch and smart driver selection. Some restaurants use their own delivery drivers but need a system to manage them efficiently, and ideally overflow excess orders to a third party fleet. Many restaurants are still only using third party fleets, unaware that there are far better rates available, including for marketplace fleets, once they have a system that can dispatch deliveries as appropriate. These systems can also provide service level reporting on third party fleet performance, enabling businesses to monitor and manage customer experience even when the delivery is outsourced.

Similarly, driver tracking is something restaurants should expect from a delivery management system and once this is in place, customers no longer need to call restaurants with delivery enquiries and restaurants don’t need extra staff on the roster to take these calls.

Significantly reduced delivery costs, better fulfillment, less reliance on restaurant staff to manage dispatch or take calls, faster deliveries, and better consumer experience, are all achievable with the right technology in place. Longer term, we might look to drones or 3D printing to solve our delivery challenges but in the meantime, the technology to make delivery profitable is readily available.

There’s no doubt that the food delivery industry is essential to the economy in the US, with revenue in the market projected to reach $231.30 billion in 2023. Further figures show that revenue is expected to experience an annual growth rate of 13.56 percent, resulting in a projected market volume of $384.7 billion by 2027. In comparison, the US online food delivery market size reached $26.1 billion in 2022—a consequence of the evolving behavior of customers during the pandemic. 

Overall, in order for the industry to continue its growth trajectory, efficient technology and delivery streams are essential for restaurants. Despite the setback of COVID, the industry is finding its feet once again, and the online market size is every bit as valuable as the traditional restaurant model. As well as the financial stability for individual restaurants, the industry as a whole is currently the third largest employer in the US, with over one million restaurants, and 11.2 million employees. Evolving technology, and an ever-increasing reliance on food delivery systems, will ensure the industry across the US continues to experience growth throughout 2023 and beyond.

Published By: QSR

Industry Insider Discounts Can Lead To Great Word-Of-Mouth Endorsements And Recommendations

Restaurant Tech Editors
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Industry Insider Discounts Can Lead To Great Word-Of-Mouth Endorsements And Recommendations

I was at the Dallas/Fort Worth (DFW) airport and wanted to get dinner. I saw a friendly TSA agent and asked, “In your opinion, what’s the best restaurant for dinner in the airport?” He made a suggestion, and I asked what he liked there. He was very specific, and I couldn’t wait to go there to eat. After dinner, as I was walking toward my gate, I saw the TSA agent and thanked him for the recommendation.

We talked for a while and I learned that as an employee at the airport, he receives a big discount at various restaurants. It’s more than just offering a break to the people who work there, and it gets them to experience the restaurants and hopefully talk about them to passengers like me.

It’s common practice in the retail world to offer employee discounts. I have known some people to work one evening a week at a store just to get the discount. Lululemon is one of the most generous retailers when it comes to employee discounts. A full-time employee can get 60% off regular priced merchandise and even more off anything marked down. Why do they do this? First, they care about the employees and want to offer this generous perk. Second, they know the employees will wear the clothing and evangelize the brand by sharing positive comments about the clothes.

The point of these examples is that it’s common practice to offer perks to employees to get them talking about the brand. That leads us to this next example, which is unique because it offers perks to people in an industry, rather than just to the employees of a company.

There’s a high-end restaurant group in New York, JF Restaurants, run by Michelin star award-winning chef John Fraser. He came up with an idea that’s not too far from the above examples and he calls it The Industry Table. The idea is that Fraser will reserve one table at each of his restaurants every night for anyone in the restaurant industry to enjoy a VIP dining experience … at his food cost! This means anyone in the industry can make a reservation to experience the culinary expertise of these fine dining restaurants at a substantial discount. There’s just one limitation to that. Fraser says, “You cover the booze (because it’s the law), help spread the word about our program, and provide valuable feedback on your experience. That’s all we ask.”

Why would he do this? Not only does Fraser want others outside of his restaurant group to enjoy the JF experience and tell their friends, but he also hopes to reignite the spirit and camaraderie that brought these hard-working people into hospitality in the first place. Fraser says, “I want to make sure that the people who join us get a sense of who we are and meet the team. All managers and at least one chef should greet the table and make them feel at home and at ease. We can send bar teams over to talk about their work, and even the cooks if it is appropriate.”

Executive Chef Warren from The Terrace and Outdoor Gardens, one of Fraser’s signature restaurants, responded to the program saying, “I love the message behind The Industry Table. I look forward to touching the tables and meeting some of our fellows in the biz. We will ask if they would be willing to let us guide their experience a bit. That makes it a real VIP experience, beyond just a discount.”

What better way to get word-of-mouth referrals and general “buzz” from people in the restaurant industry? Fraser and his team are building a program that gets industry people, servers, managers, cooks, etc., to come to his restaurants, enjoy a meal at a steeply discounted price, and then talk about it to others.

Fraser says, “We want to use this as an opportunity to get to know them (other industry folks) and for them to get to know us. It’s good vibes for future dinners with us and a way of meeting people who might want to work for us in the future. I consider these discounts as a deposit for future sales and a chance to do something good for our communities.”

Published By: Forbes

How Restaurants Can Develop a Recession-Proof Recruitment Strategy

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How Restaurants Can Develop a Recession-Proof Recruitment Strategy

It’s never been harder to hire and retain employees, leaving companies wondering how to attract candidates quickly in such a mismatched market.

Fierce competition means fast-casual restaurants must stay staffed at capacity and establish a pipeline that acts as a safety net—steadily streaming your job candidates. Retention can only be solved by keeping the top of funnel filled with candidates, but the way to thrive is by creating an overflowing pipeline relative to your competitors.

This includes understanding what is top of mind this year: how can quick-service restaurant industries develop a recession-proof recruitment strategy? As a result of the economic downturn, it’s never been harder to hire and retain employees, leaving companies wondering how to attract candidates quickly in such a mismatched market.

Organizations are looking for new ways to address inflation by understanding how much it really costs to hire each fast causal worker based on the latest stats. And what are the best ways to boost employee satisfaction to improve retention? Let alone, when your company sees a sudden spike in turnover—what should be analyzed first?

The answers to these questions will help you build better hiring and retention processes.

Invest in your pipeline

A pipeline is very important insofar as it is always available to you. In a tight and fluctuating labor market such as we have this year, you tap into your pipeline to leverage flexibility in your recruitment initiatives. This allows you to be strategic in your candidate relationship management by ensuring that talent is at your fingertips. But it is equally vital to invest and check your metrics so that you’re not overinvesting in populating your pipeline. That said, be aware that if you stop investing and allow your pipeline to dry up, it’s incredibly difficult to replenish on a dime when you’re ready to scale hiring.

Secondly, many hiring managers hire job boards to fill their pipeline—but the reality of the matter is, these enterprise companies are too large to develop a relationship with you; they only operate on a transactional basis.

If you miss a candidate in the pipeline, they’ll submit it to your competitor. Instead, consider ensuring that you find relational companies that listen to and support your needs. Also, invest in a personal pipeline—one that doesn’t bleed into your competition and remains in your pipeline pool alone.

Analyze and make data-backed decisions

Recruiting is a relationship-oriented science, making it far more humanized. But look at recruiting through a data lens; dig into the metrics to take more of a quantitative approach to transform a recruiting function and become more effective when there is budget pressure leading into a recession.  

In many cases, data tells all. The greatest leverage it allows is for you to “catch the fish where the fish are” particularly when looking for fast casual workers.

Not only will you find those who already exist in fast food service, but you will also attract people into that field. These talent analytics are key identifying factors when understanding where to advertise your jobs in addition to geo marketing. Then, allow your sales team to use that data to infer who they should target based on these analytics.

After determining who to target, focus on leveraging key words for ideal candidates to find your open positions. Ultimately, job titles are what turn heads and spark intrigue, landing that initial click for candidates to read your description. But how can you buy their attention long enough to get them to read the first page and decide if you’re a good fit? Utilize smart bob titles.

These are groundbreaking in the talent marketplace, allowing you to use recruitment analytics to check your job’s reach along with the best-performing job titles and descriptions. You also have the power to track your job posting progress, edit the description and manage its budget. These titles give you the ability to vet and select candidates from the beginning and ensure you reach top talent fast.

Determine the Cost of Vacancy versus Cost of Hiring

When short-staffed and under stress, hiring for fast casual can come at a high price—let’s break down the costs.

To better understand ROI when hiring and determining salary, compare these 3 metrics:

Cost of vacancy

While it varies by industry, the cost of vacancy (COV) can be estimated by dividing company revenue per employee by number of annual workdays. This gives you the average revenue produced by an employee daily.

Just note that it’s difficult to measure the negative impact open roles have on productivity. It adds to burnout by disintegrating team morale, which makes it even harder to tie a monetary value to these metrics.

Cost of a bad hire

The U.S. Department of Labor puts the cost of a bad hire at up to 30 percent of the employee’s first year wages. That means, if you hire an employee, such as a fast casual manager, for $70,000 a year, the employer expense could be as high as $21,000. These factors include lost productivity and damage to your reputation as a quality care provider.

Cost to hire

According to the Brandon Hall Group, “the average cost to hire an essential worker is $340, and for organizations with 1,000 employees or less, the cost is $670.”

How to gain and retain fast-casual workers

When you see a sudden spike in turnover at one or more of your restaurant locations, you need to know what to analyze in order to address retention. Start with collecting surveys and documentation for reasons as to why people have left.

If you begin there, you’ll start seeing the overarching patterns and pain points among your employees. Then you’ll be able to diagnose not only the work, but your work culture. There could be a department or manager pattern, etc. – but from then on, it’s up to you to decide how you’d like to solve the problem. That may be through policy, support or other actions that can help you turn the ship in the right direction.

Be as transparent as possible about your environment, pay, and how you’re different. One strategy is to create “battle cards” to show how your fast casual products stand against your competitors and your unique value proposition. Create these to showcase your brand and what you have to offer.

In addition, pay and flexibility tend to be at the forefront of the modern worker’s mind, so make sure to advertise these policies as well as a glimpse inside your organization.

Lastly, be transparent about base salaries. For fast casual jobs, you need to target ambitious candidates who are willing to work on their feet. Showing them what they could earn if they challenge themselves to excel is often a huge motivator for these employees, particularly in a recession.

Think of what your ideal candidate would be motivated or challenged by in your position and ADVERTISE it.

Applicants want to discover what the average employee in their position takes home at your restaurant as well as the highest earner. Put “easter eggs” in your job ad that indicate the type of salary, culture, and healthy competition they will experience in order to exceed their goals. The worst thing you can do is come across stale or stagnant, this will only repel candidates or disinterest those with a vision for lead growth.

Show up for your candidates and employees

Consider necessary culture shifts. For years, workers have been led to disregard self-care for work. Insisting upon work that disregards your candidates’ values, time, and needs not only damages employee morale, but damages the success of your restaurant. The hustle culture of “working no matter the cost” is a dying stigma and staff need to know that setting boundaries isn’t a luxury but a necessity. Not doing so will negatively impact retention and career trajectories by creating a “pull the lever” culture.

This type of culture hyper focuses on patching holes in the business rather than relying on innovation to build the business. Thus, it’s vital that your fast casual employees feel supported and have the freedom to voice their concerns—because the days of hustle culture are behind us. Show job applicants that your quick-service restaurant embraces individuality and growth because no job is worth sacrificing your well-being.

Published By: QSR

The Latest, But Not The First: Five Ways AI Altered The Food Industry Before ChatGPT

Restaurant Tech Editors
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The Latest, But Not The First: Five Ways AI Altered The Food Industry Before ChatGPT

Generative AI has shaken the tech industry to its foundations. For the first time, Google’s search dominance looks vulnerable, while ChatGPT has elevated Microsoft’s Bing from second banana to sexy beta. Meanwhile, hundreds of new startups are creating vertically-focused SaaS offerings powered by OpenAI, and tech corporations, big and small, are evaluating how to jump on the generative AI bullet train.

In the food world, we have some early arrivers in spaces like restaurant tech software such as ClearCOGS and Lunchbox leveraging OpenAI to add additional functionality. On the content creator and influencer side, we’re already seeing recipe creators and culinary pros tap into the power of generative AI.

But if you think the arrival of ChatGPT is the first AI with the potential to have a big impact on the world of food, you’d be wrong. In fact, over the past decade, we’ve watched as artificial intelligence has started to transform significant portions of the food world. Here are five ways AI has changed food over the past decade:

AI-Generated Recipes

Over the past decade, one of the most significant milestones for artificial intelligence in the world of food is the application of IBM Watson’s general AI to recipe creation. About ten years ago, the Watson team figured it needed to do something besides beat human contestants on Jeopardy to demonstrate its AI’s powers. Before long, Watson had its own cookbook of what IBM called ‘cognitive recipes’. Eventually, CPG brands like McCormick partnered up with IBM to see how they could apply Big Blue’s AI to their business.

Novel Food Discovery and Creation

Over the past few years, a new cohort of startups using AI to accelerate the discovery of novel food ingredients or plant-based recipes have emerged, causing ripples through the consumer packaged food market as they present a direct challenge to the more conventional – and slow – way in which food companies traditionally discover new food products. Over five years ago, companies like Gastrograph started to use AI to create predictive modeling around how different consumer cohorts may react to new food products, and more recently, we’ve seen a new generation of food companies like NotCo base its entire roadmap around AI-generated recipes for its plant-forward product lineup. On the novel ingredient discovery side, companies like Shiru and Kingdom Supercultures are using machine learning to find new ingredients that can help replicate the functional and taste properties of more traditional animal-based inputs.

Alexa’s Personalized Meal Planning and Recipes

When Amazon showed off Alexa almost a decade ago, in late 2014, most thought it was a cool home-based voice interface for weather forecasts and kitchen timers. But Amazon’s AI-powered virtual assistant helped launch a new way for consumers to do everyday things, including buying food and checking on that roast in the oven. But it wasn’t long before Amazon started to help me automate and personalize our shopping lists, and eventually started to create personalized recipes based on our past behavior.

Computer Vision Is Everywhere

A little over two years after Amazon debuted Alexa, it opened its first Amazon Go store featuring its Just Walk Out technology. Powered by sensors and computer vision, the new storefront lets shoppers pick up things off the store shelves and walk out without going through checkout. Soon, a whole bevy of human-less retail startups emerged to offer grocery and convenience store operators platforms to create more friction-free shopping powered by computer vision. We also saw computer vision-powered home appliances enabling consumers to identify their food in the fridge or the oven. Computer vision has also taken off in the restaurant back-of-house for solutions that help reduce food waste and help optimize food inventory.

Food Robots

While robotics and AI are not always synonymous, many robots are deploying some form of AI to help feed us. Whether it’s Google Mineral’s farm robot modeling plant traits and phenotyping crop varieties or server robots dynamically mapping the layout of a restaurant dining room, we are seeing a proliferation of AI-assisted food robots up and down the food value chain.

As far as generative AI goes, we’ve only begun to see how it could change the food industry. Initial applications are more likely to be in restaurant marketing (like the image created for this post using DALL-E), operations, and customer service systems. But as the technology becomes more powerful and creative programmers figure out ways to integrate generative AI technology into their platforms, the impact of ChatGPT and similar AI systems holds massive transformative potential for the food industry.

Published By: The Spoon

We Asked AI How to Properly Open a Ghost Kitchen. Here’s What It Said

Restaurant Tech Editors
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We Asked AI How to Properly Open a Ghost Kitchen. Here’s What It Said

Artificial intelligence is no longer just subject matter for unobtainable science-fiction movies. These systems have become increasingly intertwined in our everyday lives, the restaurant industry included. 

Whether it’s predictive real estate analytics, suggestive selling on websites and apps, or automated voices through drive-thru, food and beverage concepts have spent years innovating with AI to better operations, reduce labor constraints, and improve customer service. 

With the advent of ChatGPT, a program that allows users to submit information and receive an AI-generated response on any topic, a bigger microscope has been put on how society should approach these technological advancements. That includes us here at QSR, and our sister publication, FSR.

As we strategize ways to best use these new tools, we want to take readers behind the curtain of what AI is really capable of. 

We are launching a brief online series called “QSR Magazine Asks AI …” in which our editorial team turns to AI for answers to the restaurant industry’s biggest questions. 

For the first edition, we instructed ChatGPT to “write a story on how to properly open a ghost kitchen.” 

*The above summary was written by a human. 

Ghost kitchens, also known as virtual kitchens or cloud kitchens, have become increasingly popular in recent years. These facilities allow restaurants to offer delivery-only services without the high overhead costs associated with traditional brick-and-mortar restaurants. As more consumers opt for the convenience of online ordering and food delivery, the demand for ghost kitchens is expected to grow. Here are some tips on how to properly open a ghost kitchen:

Develop a solid business plan: Like any business, a ghost kitchen needs a well-thought-out business plan to be successful. It should include a clear mission statement, a detailed analysis of the market, financial projections, and a marketing plan. You should also decide on the type of cuisine you want to offer, the target market, and the location of the kitchen.

Choose the right location: One of the main advantages of a ghost kitchen is that it can be located in areas with lower rent and overhead costs. However, the location should still be convenient for delivery drivers and close to a densely populated area. It should also have easy access to major highways to facilitate the delivery process.

Invest in the right equipment: A ghost kitchen requires specialized equipment, including ovens, fryers, refrigerators, and other appliances. You should invest in high-quality equipment that can handle the volume of orders and ensure that the food is prepared to the same quality as in a traditional restaurant. Additionally, you may need to invest in software and technology to manage orders, track inventory, and handle payments.

Hire the right staff: While a ghost kitchen may not require as many employees as a traditional restaurant, you still need to hire the right staff to ensure the quality of the food and the efficiency of the operation. You should hire experienced chefs and kitchen staff who can prepare high-quality meals quickly. You may also need delivery drivers, customer service representatives, and other support staff.

Develop a strong online presence: Since a ghost kitchen relies solely on delivery orders, it is crucial to have a strong online presence to attract customers. This includes having a user-friendly website, a mobile app, and a presence on popular food delivery platforms such as Grubhub and Uber Eats. You should also invest in online advertising and social media marketing to reach potential customers.

Create a streamlined ordering process: A key advantage of a ghost kitchen is the ability to streamline the ordering process. You should create a simple and efficient online ordering system that allows customers to easily select their food, customize their orders, and pay online. The system should also be integrated with your inventory management system to ensure that you can keep track of ingredients and avoid running out of stock.

Focus on food quality: While a ghost kitchen may not have the ambiance and atmosphere of a traditional restaurant, the quality of the food is just as important. You should focus on using high-quality ingredients and preparing the food to the same standard as you would in a traditional restaurant. You should also offer a variety of options, including vegetarian, vegan, and gluten-free options, to cater to a wider range of customers.

Manage inventory and food waste: Since a ghost kitchen operates solely on delivery orders, it is important to manage inventory and minimize food waste. You should keep track of inventory levels and ensure that you have enough ingredients on hand to fulfill orders. You should also have a plan in place to manage any excess food and minimize waste.

Monitor and adapt to customer feedback: One advantage of a ghost kitchen is the ability to quickly adapt to customer feedback. You should regularly monitor customer reviews and feedback and use this information to improve the quality of the food, the ordering process, and the overall customer experience.

Published By: QSR

How QR Code Menus and Other Tech Solutions Help Restaurants Future-Proof Their Businesses

Restaurant Tech Editors
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How QR Code Menus and Other Tech Solutions Help Restaurants Future-Proof Their Businesses

We’re not getting ahead of ourselves when we say this is the start of a post-pandemic renaissance for the hospitality industry. More businesses are now seeing the benefits of investing in technology, reinventing themselves with out-of-the-box innovations to stay resilient. 

Sixty-nine percent of restaurants are willing to continue online ordering, and 36% more owners are investing in restaurant software. It’s all about selling convenience to remain competitive. So now it’s just a matter of finding which technologies are actually worth investing in. It pays to ask: what do you need for your restaurant? And how much are you willing to spend on software, so you’re able to run your operations better? 

1. QR Code Menu 

Six out of ten millennial diners prefer to use technology to make ordering and payments easier.  But offering a menu QR code has initially left a bad taste with customers, and understandably so. A lot of restaurants started with a static PDF QR code menu just to get by. 

Thankfully, that limited beta stage didn’t last long. The smart QR code menu quickly evolved to provide a wide range of easy online menu curation, with no coding needed. A smart menu QR code allows operators to drag and drop their high-quality photos, modifications, and other food options. It’s one of the best ways to serve customers amid erratic price changes due to inflation and staff shortages. 

One of its best features allows customers to easily toggle between specialized menus, especially those with allergies or specific restrictions. These could include halal, vegan, and gluten-free selections. For different times of the day, online menu QR codes also provide automatic menu changes within a set time for lunch, dinner, and even happy hour selections. 

According to recent research, “about half of aggregator users say they believe restaurant technology, such as ordering kiosks and QR code menus, lead to better customer experiences.”

2. Mobile order-ahead and delivery 

Order-ahead involves calling the restaurant or setting an online reservation around an hour or 30 minutes in advance. This makes it easier for customers to just pick up their order or sit down and start eating their warm food, pronto.

It cuts through the need to use a third-party app just to order. Restaurants then have more control over the quality of their food and the time it’s served. Because of this, businesses have been partnering with software providers to eliminate third-party app costs, and make online ordering and deliveries more efficient.  70% of customers actually support ordering directly from a restaurant. It’s no secret that some third-party delivery apps rip off restaurants with up to 30% of their revenue due to questionable practices. 

Businesses with the capability to provide order-ahead option will definitely see an increase in their revenue this year not just because of customer preference, but also because these businesses will be able to access the goldmine of customer data. These valuable information will allow them to personalize their customers’ order experience, create targeted campaigns, and even reward returning customers.

3. Pay-at-table technology 

Sure, mobile payments have always been around, but pay-at-table technology is now on the rise because of how much it benefits customers and businesses alike. 58% of customers claim they are more likely to use their phones to access a QR code menu, according to a survey conducted by the National Restaurant Association in 2022. 

It’s more convenient for these customers to use the QR code menu as a payment option after ordering their meals. Tabit POS users also found an 8-15% increase in spending per customer, and that tips are usually higher when customers pay at the table. 

Pay-at-table technology makes it a lot easier for hospitality employees to focus on more important tasks instead of running around waiting for orders and payments. It also eliminates a lot of ordering errors, and makes the dining experience more seamless for customers.

4. Ghost kitchens and virtual restaurants 

One of the best things to happen during the pandemic was the chance for ghost kitchens and virtual restaurants to thrive. Who knew you didn’t even need to have a physical restaurant to make it big in the food industry? You only need to have a functional kitchen, be able to deliver good food, and stay consistent with your service. 

That’s still a lot, but you just eliminated the restaurant part of it, which makes up the biggest cost in maintenance and staff management. You’ll easily find these ghost kitchens on your favorite food order apps. Most likely, you won’t be able to tell if they have a physical restaurant or not, until you actually Google them. No need for cash registers, and there’s definitely shorter wait times and lower labor costs. There’s no need to hire any more staff than what’s needed in kitchen operations. It’s one of the best ways to get started in the food business.

5. More AI and cloud-based automation systems 

Flexibility and scalability is the name of the game this year and beyond. Front and back-of-house operations will need automated tools to stay efficient. The likes of adapting Kitchen Display Systems (KDS) have been making the rounds as more restaurants look for a better ordering system. All order tickets are digital, allowing restaurants to easily organize and change orders as needed. Orders are then easily routed and queued to different stations. This type of centralized source of information greatly avoids errors. 

A KDS can also display the recipe and how long a dish can be served, which can easily help any newbie get oriented with the job. So, what could be stopping more chain restaurants from implementing automation? As staff shortages continue to rise, these technologies could be a great investment for every restaurant that want to stay more resilient. 

A rundown from Eater shows that 79% of customers actually prefer ordering at online kiosks, with 78% of them enjoy QR Code ordering. As it gets busy with online orders, two out of three restaurant owners believe automation would help them “fill critical gaps” in their operations. Other forward-thinking technology includes food waste reduction and more service and delivery drones and robots.

As with a lot of technologies that emerged in the last three years, these big shifts aren’t simply for convenience. It shows how technology evolves fast to help the hospitality industry stand the test of changing regulations and growing customer demands. Automation gives customers and business owners more options to streamline their order and payments. 

QR code menus are not here to replace physical menus. Instead, they’re an option for the more tech-savvy customers who enjoy looking at high-definition images and updated bestsellers on the restaurant or bar’s online menu. 

Self-ordering kiosks were never aimed at getting rid of employees. Instead, it helps the staff focus more on the hospitality side of their job instead of being tied to taking orders and going back and forth when processing payments. It’s all about creating a better world for everyone after all the challenges and limitations of the last few years.

Published By: Restaurant Technology News

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