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The Restaurant: From Concept to Operation,
Chapter 13 Technology in the Restaurant Industry Courtesy of MICROS The Restaurant: From Concept to Operation, 7th edition
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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
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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
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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
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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
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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
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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
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Food Costing (cont’d.) Recipe and food management software
Integrate programs Recipe/menu costing Inventory control Nutritional analysis capabilities
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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
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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
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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
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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
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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
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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
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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
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Selecting a POS System Performance User-interface designs
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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.
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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
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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
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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
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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
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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
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Web Based
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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
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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
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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
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