The Restaurant: From Concept to Operation, Chapter 13 Technology in the Restaurant Industry   Courtesy of MICROS The Restaurant: From Concept to Operation, 7th edition

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 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, Financial reporting Controlling labor and other costs Tip reporting Food and beverage cost percentages Human resources

Purchasing and Inventory Control 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) Bar code scanning Used to enter inventory amounts into the system 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.) Recipe and food management software Integrate programs Recipe/menu costing Inventory control Nutritional analysis capabilities

Menu Management Link between food costing and menu management Menu management systems are food service programs used to manage front-of- house and back-of-house operations 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 Includes: 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 Combination of hardware and software, where transactions occur Purposes include: Input of food and beverage orders Electronic cashier transactions Tracking of sales and payroll

POS Systems (cont’d.) POS system is a standard component of operational costs Advantages of POS systems include: Elimination of arithmetic errors Improved guest check control Increased average guest check Faster reaction to trends Reduced labor cost Reduced late charges

Selecting a POS System Performance User-interface designs

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

PCI DSS Payment Card Industry Data Security: Standard established in order to reduce the risk of payment card fraud and prevent misuse of cardholder information

POS Systems Suppliers IBM: Linux servers and Sure POS 700 series Sharp: UP-5900 system NCR: 7454 POS Workstation, Real POS 70, and Comprise Micros: Eclipse PC Workstation

Mobile Phone Technology It is essential to own a smartphone device of some type The various elements of a business’s life cycle are continuously being influenced by mobile phone technology Mobile payment Text messaging is used to communicate throughout the hospitality industry  Advertising and awareness Brand recognition and purchasing decisions Post-purchase behavior Loyalty Eventually dictates the entire consumer purchase process

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

Web Based

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 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