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Tools of the Trade: Technology in the Restaurant
Restaurants USA, September 1997
From point-of-sales systems and table-management software to wireless
headsets and silent pagers, technology has become fundamental to the
restaurant and hospitality industry.
By David Belman
Walk in the door at Kinkead’s, an award-winning restaurant on
Pennsylvania Avenue in northwest Washington DC, and you will quickly
understand the importance of technology to the foodservice bottom line.
The restaurant, spread out over three floors, is a technology-enhanced
operation.
"When guests first walk in the restaurant, they are greeted by the host,
who calls upstairs on one of the 18 extensions we have in place," says
Mimi Schneider, general manager of the operation. Guests are then
greeted by a manager on the second floor, who seats them at their table.
When the waiter opens the table on the computer system, it has already
been flagged on the point-of-sale (POS) terminal as a group of first
timers or regulars. That information is displayed on the kitchen’s POS
terminal, as well. If it’s a birthday or an anniversary, personalized
menus will be waiting for the diners.
"All the ordering and commands are issued by the waitstaff, through the
computer," says Schneider. "The system automatically routes orders to
the raw-bar printer, the bar printer and the kitchen printer. The only
place the entire order is printed is at the expediter or chef’s printer
in the open kitchen. He is the one who is responsible for coordinating
the timing of the entire meal."
Like many restaurants today, Kinkead’s open kitchen sits visibly in the
center of the dining room. To ensure communication in the kitchen, the
entire line is connected by wireless headsets. The expediter is the only
member of the kitchen staff who sees the order. Everyone else — saute
one, saute two, broiler, cold station and grill — needs to listen.
"The wireless headsets are crucial. Without them, service wouldn’t
happen. It’s that simple. In fact, this restaurant couldn’t do half the
volume we do without the systems we have in place," says Schneider. "Our
aim is to keep a personal involvement with each and every customer, so
we try to keep technology as far away from the guest as possible. At the
same time, we use a lot of technology. We could not function without the
systems. We’re too large, too high volume. Without the computers and the
communications systems, we wouldn’t be able to process the people."
Undeniable efficiencies
For years, many restaurateurs attempted to ignore the onslaught of
technology and its impact on the restaurant industry. Many thought the
cold, impersonal nature of technology was at odds with the purpose of
the industry itself — hospitality. Others were simply too busy with the
day-to-day operations of their restaurants to invest the time to
research new technology or to lay out the capital to purchase the
equipment.
As recently as 1990, well into the "information age," only 60 percent of
tableservice operators used computers, according to National Restaurant
Association research. By 1996, the most recent year for which numbers
are available, 80 percent of tableservice operations were using
computers.
"The move to sophisticated POS systems has been logical and beneficial
to restaurant operators," says Peter J. Rogers Jr., vice president of
business development and investor relations for Beltsville,
Maryland–based MICROS Systems, Inc., a leading supplier of POS
technology. "Fast-food restaurants automated very early. Tableservice
operations started moving to more sophisticated systems in the mid-’80s.
And today, technology has become fundamental to the restaurant and
hospitality industry. No matter what your size — whether you’re a small
independent or a large chain — you really can’t compete without
investing in some sort of technology."
The importance of technology to the restaurant industry cannot be
understated. In an industry that has boasted steady but unspectacular
growth of 1 to 3 percent annually since 1991, technology offers one of
the few opportunities for cutting costs, improving efficiency and
affecting the bottom line.
"Technology has become very important for a number of reasons," says
Alan Hayman, vice president of sales and marketing for Hayman Systems,
headquartered in Laurel, Maryland, one of the leading POS solutions
providers in the mid-Atlantic region.
"The biggest controllables in the restaurant industry are labor and food
cost, and the right computer system can help operators lower costs in
both those areas," says Hayman. "Just as important, computer systems
automate a lot of the paperwork that managers have been expected to do.
By reducing that paperwork, you allow your managers to focus on the most
important aspect of their job — managing people."
"I can’t count the number of ways technology has revolutionized my
business," says Mike Pappas, owner of the Pappas Sweet Shop Restaurant
in Raton, New Mexico, and the author of Eat Food, Not Profits! How
Computers Can Save Your Restaurant.
"We started using a POS system about 15 years ago, and it had an
immediate impact," says Pappas. "Before, we had a waitstaff of five, and
two to three cocktail waitresses. With the computer system, we were able
to eliminate one waitperson, and we eliminated the cocktail people
completely. That’s a 30 percent savings in waitstaff payroll."
Reduction in labor costs wasn’t the only improvement that Pappas
enjoyed. There were other quantifiable improvements. "First off, service
speed picked up 20 to 30 percent," he says. "With POS systems, the
orders are easier to read, they’re transmitted faster, and the waitstaff
doesn’t need to leave the floor. You eliminate mistakes and
miscommunication. In short, it improves both speed and service, two
crucial commodities in the restaurant industry."
The fully automated operation
Today, computers and technology can track a guest from the reservation
through the entire meal, and back home again. Consider the following
scenario, which is possible with technologies that already exist.
A guest calls the restaurant for a reservation, and even before the host
answers the phone, Caller ID has identified that the guest is Mr. Smith,
and the database tells the host the last time Mr. Smith dined at the
restaurant, what he ate, where he likes to sit, even his favorite server
or his wife’s birthday.
When Mr. Smith and his party arrive, their favorite table is reserved.
The host seats the party and enters the new table into the computer. The
table-management system — a piece of software integrated into the POS
system — notifies the server on an alphanumeric wristwatch pager that
she has a new party, the Smith party.
The waitress greets the party by name, and begins to enter their orders
on a hand-held POS keypad. As the server enters the orders, the system
returns real-time information about Mr. Smith’s favorite dishes, the
best wines to accompany the dishes being ordered, even nutritional
information about the dishes. All of this information allows for
suggestive selling and a wide range of information that enhances the
guest experience.
After the order has been transmitted to the kitchen printer, a timing
system monitors the progress of the meal. If the appetizers are not
served to the Smith table within seven minutes (or any other
predetermined length of time), the system alerts the floor manager.
During the meal, the Smith party realizes they need ketchup, or they
want another glass of water. By using a pager placed in the middle of
the table, they can summon their server. If the waitress doesn’t respond
promptly, the table-management software alerts the host or the floor
manager that table 38 needs to be serviced.
After dinner, Mr. Smith asks for his check. As the server prints out the
check, the system recognizes that this is the 10th visit to the
restaurant for the Smiths. The computer recommends discounting the
current meal or printing a coupon for the next visit. Credit-card
authorization is handled by the POS system as well. And a few days
later, the system prints out a thank-you note, addressed to the Smith
household.
While these systems enhance the guest experience and the floor staff’s
ability to work more efficiently, the restaurant is also warehousing and
analyzing tremendously valuable information. At any time during the
course of a shift, floor managers can log into any POS terminal and get
a real-time graphical display of the activity on the floor for that
shift. They can retrieve information about each waiter’s average check,
dessert checks, even how fast tables are turning. Instead of analyzing
the information after the shift is over, managers have the ability to
affect events while they are happening.
The price of power
The range of technological solutions for the restaurant industry is
broad, and ever growing. Today, computers and technology can schedule
production, expedite product, process transactions, track information,
automate online ordering and cut down on the mountains of paperwork that
have been known to bury restaurateurs. But not every solution is right
for every type of operation.
"My restaurant is only 84 seats, and I can stand behind the line and see
all the tables in the restaurant," says Marc Cohen, chef/owner of 230
Forest Avenue in Laguna Beach, California. "I can see how quickly we’re
turning an eight, or if someone has been sitting too long without
service, so I don’t need table-management software. It’s a great tool if
you have three floors and 200 seats and you can’t see everything. But
for me, those fancy systems are too expensive, and they just don’t make
sense for my operation."
Alan Hayman agrees that it is important to match the system to the
situation. "The full range of technological solutions isn’t going to be
right for every operation," says Hayman. "Giving pagers to guests in an
enclosed mall setting makes sense. But pagers are only good for a
certain distance, and if your guests are going to wander the city for an
hour, it simply doesn’t make sense to employ the technology."
Cost is, of course, a factor in implementing solutions. And while prices
vary, there are some general guidelines. "It’s not unusual to spend 3 to
6 percent of your expected gross on technology," says Hayman.
"If it costs you $750,000 to open a restaurant, computer technology
could run anywhere from $25,000 to $50,000, depending on the depth of
software," says Mike Pappas. "And while it may be hard to quantify the
return on investment, you can’t compete without these systems.
Restaurant operators use tools. Computer hardware and software are now
tools of necessity, just as much as a grill, a broiler, or tables and
chairs. It’s not cheap, but you can’t afford not to invest. It’s part of
the business."
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