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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Food Costing (cont’d.) Recipe and food management software
Integrate programs
Recipe/menu costing
Inventory control
Nutritional analysis capabilities

9. 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

10. 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

11. 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

12. 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

13. 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

16. 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

17. 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

18. Selecting a POS System
Performance
User-interface designs

19. 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.

20. 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

22. 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

23. 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

24. 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

25. 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

26. Web Based

27. 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

28. 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

29. 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