NTN- UNLV Presentation A perspective on Restaurant technologies

Agenda What constitutes technology in hospitality? Do technology and Hospitality mesh? Why has the hospitality industry been slow to adopt technology? How are the technologies distributed? What technologies are available? What barriers may still exist to any technology? What might you consider when selecting a technology? I may answer more than I have listed…

Why hospitality technologies? Creative industry – almost artistic Entrepreneurial - many passionate people Experimental – restaurant owners are always willing to try something new My job is safe - Restaurants will always need help with technology

Past Cash register mentality –5-10 years behind the real business world First technologies provided simple solutions (late 1980s – early 1990s) Hospitality technology got its biggest push when Point-of-sale solutions (POS) were introduced The Barriers to adoptions were significant

Barriers to Adoption Technology was a burden, not an opportunity The restaurant was an art first, business second Restaurants viewed technologies as intrusive –Technology detracted from, rather than enhanced the customer experience –Technology was impersonal Restaurants feared the complexity of implementing and managing technologies Technology was costly There are obviously exceptions –Marriott, McDonalds created POS companies

Examples Hand held terminals Liquor control systems Self order kiosks Reservations solutions Result –If the technology impacted the customer experience, it was left behind –Logical business decisions did not pass the ambiance test

Distribution as a Barrier POS companies came first –Cash and basic process control was first Solutions were proprietary (firmware) –Expensive to purchase, implement, and maintain –Development mentalities were insular A highly organic and fragmented market was difficult to approach Distribution was costly –A market dominated by independents / small chains Result: The reseller model evolved

Business Problems Solved (POS) Cash and Cost control – theft and abuse Data collection, aggregation, processing, reporting, and connectivity to additional solutions (Reporting) Automation and consistency - replaced manual processes –Added systems where there were none –Replaced manual transactions and processes

Types of Technologies Cash control –POS, PMS Process control –POS, PMS, Kitchen solutions, bar solutions Cost control –Inventory, Labor control Services –Internet solutions, reservations Revenue Generating –Loyalty and frequency solutions Local and enterprise level for all solutions

Balancing Act Can technology enhance without being intrusive? –If the technology provides a direct/indirect benefit to the client it has a chance Direct – Internet reservations Indirect – Technologies that improve work environment for employees –The higher the price that the customer pays for the service, the less likely the technology will succeed It cannot detract from the customer experience How apparent is the technology?

Desired goal Technology should tell us the following –What works and what does not –Where money is made and lost –Where the problems are and why –Who our customers are and how to treat them Where do decision makers most need to invest their time, and why This is still a difficult goal to attain

Solutions Characteristics Basic evaluation criteria –Scalability – single unit or enterprise –Supportability – requirements and services –Choice and flexibility – Migration path –Function - Ability to meet current and future requirements –Cost – short and long-term (cost of ownership) –Impact – On the business and the customer –Distribution – Direct or indirect, integrated or vertically integrated

The Future… Technology is already driving changes (Internet) Reduce costs or increase revenues? –In general, restaurants adopted the first already Increase, decrease the footprint of technology? –Generalization: The less expensive and quicker the food, experience is, the more welcome technology is Collect more data or interpret what you have? Catch up with the real world, or stay an artist? –Can you do both? Specific technologies to watch (ASPs) –What is the basic value proposition required?

Solutions Gaining Momentum ASP models –Enterprise solutions –Reservations and guest solutions Kitchen video CRM tools of any kind (as long as they are not intrusive) – few will succeed Basic Business Intelligence – Alerts and centralized reporting –BI does not exist in this industry yet