Tracking Guest Data through Ordering
The session on Ordering/Delivery covered a wide range of topics, but one of the most interesting was looking who is paying and who is ordering. As one of the participants noted, “often the person who is making the reservation isn’t the person who pays.” With a wealth of information available to restaurants, there still isn’t a clear method of creating accurate profiles of each person at the table. How do we gather data so that we can accurately determine who is at the table and what their spending habits are like? Maybe you make the reservation, don’t pay, but generally dine with guests who spend a lot of money and prefer certain service. As we try to create a more customized and tailored experience for the consumer in order to elevate their time at the restaurant the more important it becomes to make sure the restaurant is asking the right questions and integrating reservation data with POS data.
What environments are best suited for mobile ordering?
One of the most interesting parts of the discussion was in regards to where mobile ordering will work and where it will not. When analyzing the pros and cons of mobile ordering some of the most important considerations are what type of restaurant is being discussed. There is a big difference between someone ordering via mobile device to pick up a coffee or pizza versus using a table to order a meal at a full service restaurant. There were certainly some dissenting opinions about the best applications for mobile ordering among members of the roundtable. The first centered on if there were financial gains to be had by implementing a mobile ordering system, whether via an app or by tablets at the tables themselves. Wolfgang Lindbauer from Marriott voiced the opinion that it has yet to be proven that there is a good return on investment for mobile ordering, while Tim O’Connor from Deloitte pointed out that Darden quickly made their money back after the implementation of these systems. After further discussion, it became clear that all members agreed that mobile ordering had to be painted in the context of the customer, and that it would generally work well in more casual environments, whether this be full service or takeout. David Miller from Ziosk reinforced these points during his discussion of the success that Chili’s has had with these systems, and that the vast majority of guests are receptive to this style ordering. Some other examples of success in mobile ordering that were mentioned more than once were Starbucks, which now has over 14% of its ordering completed via mobile, and Domino’s, which has also revolutionized its ordering process through the implementation of a web-based system. In contrast, Brandon Barton from Resy brought up the interesting point that there will always be some customers who seek the personal contact and attention from the service staff, and in these cases mobile ordering will not be sufficient to meet their needs. One of the few points that raised no dissension was made by Mr. O’Connor, stating that there is no doubt that mobile ordering has already made a huge impact on the hospitality industry as a whole, and that it will certainly continue to do so as technology further evolves.
Are Mobile Applications Necessary?
It is almost impossible to discuss technology within the ordering and delivery space without talking about mobile applications. However, the roundtable participants acknowledged that while apps have been successful for some, they are not always the appropriate choice for everyone.
Applications are challenging endeavors because each app needs to offer a compelling amount of value and functionality to the customer. Yet, producing such an app with thorough integration into existing systems and convenient user interface is both difficult and expensive. Additionally, the average lifespan of an app on a mobile device is quite short. One alternative is relying on a platform such as Seamless to provide the service. However, many find that the drawback of a third party is that customers develop a loyalty to the platform and not to the restaurant itself, which is not ideal for building a customer base.
Starbucks proved to be an interesting case study within the Roundtable conversation about app building. There is a trend of hospitality CEOs trying to emulate Starbucks and requesting that apps be developed for their restaurants. These CEOs fail to realize that Starbucks’ success hinges on the fact that customers frequent the coffee shops multiple times per week and the app is also tied to their loyalty program. This is a stark contrast to customers who frequent a restaurant a couple of times a year. While these diners might be considered “regulars”, their dining frequency does not necessitate the design of a new app.
One suggested solution to the “to build an app dilemma” is to instead create “responsive websites”. These websites are a good alternative because they offer convenience, functionality, and brand consistency without making as large of an investment on an app that will only be deleted within six months.
Context of Customer in Relation to Ordering/Delivery
When it comes to ordering and delivery in the restaurant space, a theme mentioned over and over by the roundtable participants was that of context. Specifically, where is the customer when he/she is placing the order? With today’s technology (i.e. iBeacon and other location services), restauranteurs have the capability to know exactly where their customers are at any given moment when they’re using a mobile/web-based app to order. Therefore, there exists an opportunity to send direct marketing either when a customer is nearby; or, when specific buying behavior about a customer is known. For example, Dave Arthurs from Open Table mentioned that he orders the same salad every single day at approximately the same time from a local restaurant in New York City. The only days he does not order it are the days on which he’s too busy with work and forgets to eat lunch altogether. Therefore, he suggested that this restaurant has an opportunity to send him individualized advertising at lunchtime each day asking him if he’s hungry and would like to order his salad. This will create a distinct customer relationship which he believes will allow restaurants to grow their revenues significantly. The one thing he cautions though is to ensure the restaurant is tracking their customers’ locations closely. If, for example, he is traveling to San Francisco that week and he receives a reminder from this restaurant in NYC, he’s going to treat it as spam and may develop and negative impression of the restaurant. Therefore context is vital when it comes to ordering/delivery.
Knowing the Customer
During our discussion of the in-restaurant experience, there was no mighty solution to suit every segment of the restaurant industry. It is clear that the contemporary guest requires a solution and service that is customizable–different and adjusted per guest.
Depending on market and restaurant type, it is important to maximize efficiency while maintaining a high level of customer satisfaction. Fast casual settings such as Chile’s provide an appropriate setting for the use of mobile ordering; however, high-tech solutions are in no position to replace high-touch interaction in a luxury setting.
It is important to utilize high-tech solutions to apply what restaurants know of their customers to provide them what they want. After the in-store session, it was clear that the demands vary across the broad spectrum of the restaurant industry. Each location has a niche and target customer, and the utilization of technology is highly dependent on the needs and the needs of said customers.
Equally important in the experience is the seller, or the waiter. When speaking of Ziosk, Dave Miller reinforced the fact that his product is an enhancement to service, and not a means of server replacement. It seems these issues of “worker replacement” come to surface when mentioned in the breath of technology. After our discussion, it is clear that waiters will not be fully eliminated; rather, they will be utilized in a manner that makes most financial sense to each business.
In summation, the round table discussion passionately advocated for the assimilation of technology into the restaurant industry. That said, given the history and traditional aspect of the industry, it is unrealistic to think the industry will adopt technology as quickly as the millennial generation has brought it into everyday life.