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If you have been to a food show recently then you will have noticed not only how many technology companies attend, but also how broad the range of technology is. Devices to measure each pour at the bar, systems to allow tableside ordering and payments that are hooked up to an in-kitchen display - complete with recipes and example food images - that then order supplies at the end of each day over the Internet are getting more common.
Hudson Riehle, senior vice president of research and services at the NRA has an incisive view of the role POS and other customer-facing systems play in the modern restaurant. "Technology is just another tool that can be utilized to increase operational effectiveness and free up staff to spend more time on customer service," he said, when asked about the current trend toward more automated service, even in high-end establishments.
I had started my interview with Hudson firmly believing that most baby boomers would be pretty resistant to turning an evening at a high-end restaurant into an analog of ordering fast food at a drive-thru donut store. On the other hand, I imagined that today's young "digital junkies" would take to it without even removing the iPod buds from their ears. Not so, apparently. "We have surveyed a large number of consumers about their use of technology in restaurants. There are indeed differences between the generations, but overall 46% of adults 18 and up would use a customer activated ordering and payment system at the table," he said. In the younger age groups up to 71% would be willing to use such a system. I of course, wonder who you give the tip to!
But, not everything leans in favor of bringing in more and more technology. "The challenge for the restaurant operator is to remain high-touch in a high-tech environment," said Hudson. Basically the technology has to blend in with the restaurant concept. This is uncannily like IBM's early sales of software. IBM claimed that their software would fit into your business and that you wouldn't have to change your business to fit in with the software. But hang on, if your staff is using hand-helds instead of order pads or memory, then haven't you just changed the way your staff interact with the customer? There's a great deal of difference between someone squinting at a hand-held while scribbling away with a stylus and a waitperson who looks you in the eye as you place your order. So what's driving this trend toward expensive technology tools?
"Productivity is a critical aspect of restaurant management. Productivity per full-time equivalent is around $58,000 a year. Grocery stores' employees are at around $200,000 per year. Other industries are even higher. So, operators are looking at technology to enhance and improve that productivity number," he explained, "and they also want to focus on making sure that their guests enjoy a smooth and memorable experience."
With POS systems running at around $10,000 per terminal they had better be able to offer an outstanding return on investment. I tried to talk to several POS vendors about their view of things, but was met with silence, probably because I had the temerity to question the value of their products in the hospitality industry, but more on that next month.
I don't doubt the effectiveness of POS systems, after all today's Generation X seems to struggle to both add up and make change, so at least POS systems help with accuracy. But I wondered why the various manufacturers of this stuff were shy.
"The increased utilization of technology in restaurants is a long term trend, it is definitely not a fad. It's an inevitable force that will continue to grow and develop, but the service component - from the guest's perspective - will also have to be maintained," Hudson concluded.
So the bottom line is clear. Organizations that want to stay competitive are looking to technology to improve their productivity per employee and beef up the bottom line. To survive, everyone has to adopt as many of these labor saving and productivity enhancing capabilities as they can. However, there is a big "but" here. You still have to deliver a human experience. Eating is one of life's most sensual and basic pleasures. Changing it into the kind of run-around with technology that involves the annoying inanities of an ATM and the universally frustrating experience that most people suffer with Microsoft's products, will alter the hospitality industry for the worse no matter how "productive" it is.
"The challenge for the restaurant operator is to remain high-touch in a high-tech environment." - Hudson Riehle
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General Business 
