I had heard somewhere that the Olive Garden or Applebee’s (doesn’t
really matter) revolutionized “fine dining” by obliterating the concept
of “seatings,” the time period that restaurateurs would plan to serve
the bulk of their customers. By turning tables over rapidly through
fast food service, such eateries replaced fine dining with “casual
dining.” In the process, they changed diners perceptions of what
service should be.
It doesn’t really matter if that story is true. The reality is that
the days when people would meet for a leisurely dinner that would last
an entire evening are long gone. The expectation is quick seating,
quick service and quick payment. Diners get annoyed (and you know who
you are) when their waiter, food or check isn’t immediately available
(actually, that’s me).
Integrated wireless systems have the potential to change that.
Handheld devices and table-side computing integrated with ordering
and payment systems are finally making their way into the mainstream
restaurant and hospitality business. The technology can make
restaurants more efficient, and also create a better dining experience
for customers and a competitive advantage for the eateries adopting the
systems.
Recently, Motorola rolled out the virtual red carpet for analysts
and press at City Winery, a trendy establishment in Manhattan’s Meat
Packing district. Over a luncheon of crafted salads and moderately
priced wine, the Motorola team talked about the channel opportunities
in the hospitality industry. The location was not random; City Winery
is a consumer of Motorola products and customer of a Motorola partner, Leebro Systems.
City Winery wait staff carried Motorola wireless handheld devices
that had quick reference menus. Diners’ orders were transparently
transferred to the kitchen for preparation. When the order was ready, a
signal was sent to the waiter to pickup and deliver food to the table.
And, when the meal was complete, the waiter could process a credit card
payment tableside.
The system eliminates the need for waiters to go to kiosks around
the restaurant to place orders and process payments, saving time – and
time equals money.
According to Motorola’s 2009 Enterprise Mobility Barometer report,
60 percent of hospitality businesses view wireless mobility technology
as a tool that could give them a competitive advantage. Hospitality and
restaurateurs see such systems as a means for increasing employee
productivity, customer satisfaction, revenue and general efficiency.
The potential of mobility in restaurants and hospitality is
boundless. The same system that took my order tableside is expandable,
in theory, to reservation systems, remote order placements, online
event planning, inventory tracking and automated supply chain
management. Imagine arriving at a crowded restaurant where you don’t
have a reservation. With a fully integrated, customer-facing wireless
system, you could do a couple of things: review the menu and place an
advance order through the wireless system so your food will be ready
when you’re seated. Or, you could search for a nearby restaurant that
has tables available.
Restaurants have started using tableside processing in marketing.
Consumer concerns about identity theft are driving chains such as Ruby
Tuesdays to promote tableside credit card processing as market
differentiator. Waiters swiping cards by the table have no chance to
steal carbon receipts (at the truly Luddite eateries) or copy credit
card information.
A similar system, Microsoft Surface, has different potential uses.
The touch-enabled tabletop computer could recognize individual drinks
on the table with RFID chips in glasses. At the end of a gathering,
people gathered at the table can more easily calculate and divide
costs. And payment could be rendered as simply as placing a credit card
on the unit and having the embedded chip charged for the individual’s
amount.
According to the Motorola survey, restaurants using such systems
report a 43 percent increase in customer satisfaction and 27 percent
increase in the average per-person sales.
Mobility and automation solutions have the potential for
revolutionizing the way restaurants and other service-oriented
businesses conduct their operations and interact with customers. More
than one-half of restaurateurs surveyed said they expect wireless
ordering and reservation systems will transform their businesses for
the better. Many restaurateurs already envision a day when tableside
ordering and payments extend to customer loyalty programs and social
networking communities.
The optimism and interest in mobile systems for hospitality is
particularly good news for solution providers—particularly on the local
level. Solution providers can partner with mobile platform vendors and
their application ISV ecosystems to create dynamic infrastructures that
enable the integrated, automated dining experience. Good technology
will translate into customer satisfaction as good food and service do
today. That’s the foundation of a competitive differentiator for a
restaurant.
This is an evolving market and channel opportunity. While
hospitality mobility systems have the potential of creating more
operational efficiencies, cost and ROI remain an inhibitor. City
Winery, for instance, is a 26,000-square-foot facility, but only has
four mobile units for its wait staff. The owner of Brooklyn Bowl, who
was also attending the Motorola luncheon, said that he hasn’t fully
equipped this staff because of costs and budget constraints. You could
make an argument that these units are worth the investment, but only 3
percent of the hospitality business surveyed by Motorola reported in
increase in revenue and sales as a result of the mobility systems.
This paradox of the promise of efficiency gains and higher revenues
vs. high cost of acquisition and implementation is true of any new
system or technology implementation. As adoption rates increase, costs
will come down and sales will grow exponentially. Alongside that
adoption curve will come support services that will make them as
indispensible as a line cook to a restaurant.
Lawrence M. Walsh is vice president and group publisher of Channel Insider. Read his research reports at [CI] Perspectives.
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