Chapter 14 Technology in the Restaurant Industry

Objectives After reading and studying this chapter, you should be able to: –Identify the main types of restaurant industry technologies –List and describe the main types of software programs –Identify factors to consider when choosing technology for a restaurant

Technology in the Restaurant Industry Technology –Has come a long way from mom-and-pop operators and their cigar box –Independent operators may not require (or be able to afford) technology that chain operators are using It is hard to overlook the progress in making technology available and affordable for independent restaurants

Back-of-the-House Technology Consists of product management systems for: –Purchasing and managing inventories –Menu management –Controlling labor and other costs –Tip reporting –Food and beverage cost percentages –Human resources –Financial reporting

Purchasing and Inventory Control Purchasing: –Product management Tracks products through each inventory cycle Automatically reorders when the item falls below par stock Ingredients for the cost of recipes are calculated for total cost and selling prices Inventory control: –Systems quickly record inventory Easily allowing new stock to be added

Kitchen Display Systems Manage and control kitchen efficiency –Provide highly visible, real-time information –Installed in more upscale restaurants Than in fast-food and casual restaurants –Mounted in kitchen or food prep area Visible to the entire kitchen staff Display food orders for preparation Monitor timing of orders Provide feedback about table status

Food Costing Personal digital assistant (PDA) –Used to enter inventory amounts into the system Laser bar code scanning –Speeds up inventory-taking process Makes it more accurate –Data is entered into the system, variance report is generated, and any significant variances are investigated

Food Costing (cont’d.) ChefTec & ChefTec Plus software –Integrate programs Recipe/menu costing Inventory control Nutritional analysis capabilities

Menu Management MenuLink: –Evaluates managers’ produce purchasing –Compares actual to expected food usage –Tests proposed recipes and pricing changes Menu management function: determines what offers work best, so coupon building may be directed toward those items Automated Raw Material Transfer: when one store needs to borrow material from another store, a transfer is generated

Labor Management Interfaces back- and front-of-the-house –Working hours –Human resources information Includes: –Application monitoring, recruitment, personnel information, I-9 status, tax status, availability, vacation information, benefit information, and scheduling Examples: Windows-based labor schedulers and TimePro

Financial Reporting Front- and back-of- the-house systems –May interface by transferring data to and from the central server Information is provided in real time –Makes it easier to monitor: Service times POS food costs Labor costs Guest counts

E-learning Computer based training –Delivered via the Internet or proprietary Internet sites The National Restaurant Association Educational Foundation –Several online courses Example: ServSafe Food Safety Training Program

Front-of-the-House Technology Revolves around: –Point-of-sale (POS) systems –Wireless handheld devices New technologies –Multimedia lobby displays –Self-service kiosks –Wireless payment-processing units –In-store dashboard displays

POS Systems Standard component of operational costs Selecting a POS system –Focus areas: Human Factors Engineering (HFE) System usability Equipment operations –Examples: NCR’s Real POS and Aloha

POS Systems (cont’d.) Suppliers: –IBM: Linux servers and Sure POS 700 series –Sharp: UP-5900 system –NCR: 7454 POS Workstation, Real POS 70, and Compris –Micros: Eclipse PC Workstation

Table Management Table management software –Meticulous control of restaurant efficiency, consistency, and accuracy Faster table turnover Increases revenue and profit Handles reservations and waiting times Incorporates alert features –Example: MICROS Systems, Inc.

Paying at the Table Handheld device may be provided to guests to: –Verify their bill –Swipe their card –Include any tip –Print the receipt Benefits to guests: –Peace of mind concerning security issues –Ability to leave the restaurant a little sooner

Web-based Enterprise Portals Offer centralization of applications –Sales reporting –Cash management –In-store profit and loss statements –Labor and food costs –Prep –Ordering –Task lists –POS data

Gift Card and Loyalty Programs Customer relationship management –Deliver a 360-degree view of the guest’s activities Tracked and controlled from a central database Monitor guest spending patterns –Gift cards are help increase revenue Gives the ability to issue and activate cards with fixed or preset values –Integration: the bottom line

Guest Services and Web Sites Restaurant technology has evolved –Restaurant can store and recall guests’ preferences Tables, menu items, wines, and servers –Additional advances include: Internet booking Guest checks splitting and suggested tips High-speed Internet access User-friendly Web sites Wireless surveys

Restaurant Management Alert Systems MICROS Alert Manager –Monitors conditions and compares them to established standards Exceptions are immediately identified Alert or message is sent –New integration with the RES products and the on-premise paging –Communications solutions made available by JTECH