The foodservice industry has traditionally been reluctant to adapt to new technology, especially compared to its retail counterparts, fearing the loss of personal contact that is so important in the hospitality industry. However, the challenge of being high tech while remaining high touch appears to be lessening as consumers themselves have gotten more used to being surrounded by electronic devices and apps.
The National Restaurant Association’s Restaurant Industry Forecast for 2013 featured some interesting analysis of the expectations of consumers in both full-service dining (family, casual, and fine) and limited-service dining (QSR and fast casual) vs. what the operators are providing.
Among full-service diners, more than half would use an electronic payment system at the table, but less than five percent of the operators offer this option. Customers would like to see menus and wine lists on iPads or similar tablets at their table as well as have the ability to electronically order their meals at the table. Less than ten percent of the operators allow customers these conveniences.
Among the limited-service diners, the emphasis is less on mobile devices and more on technology that speeds the whole process of getting fed and getting out. Smartphone apps that allow online ordering, wireless payment options such as Google Wallet, and self-service ordering kiosks within the restaurant are all high on the wish list of these customers. Perhaps not surprisingly, self-service ordering is the most desired option within the limited-service segment with forty-four percent of respondents viewing it favorably. However, only two percent of QSR and one percent of fast-casual operators are offering this technology for their customers.
The following table provides some of the highlights of the NRA study:
Technology Options |
All Adults |
Frequent Fullservice Customers |
Frequent QSR Customer |
Electronic payment system at the table |
52% |
55% |
57% |
Electronic ordering system at the table |
44% |
50% |
50% |
Menu on iPad or electronic tablet at the table |
42% |
47% |
46% |
Option to order using self-service terminal |
44% |
53% |
52% |
Source: National Restaurant Association, National Household Survey 2012
The NRA Restaurant Trends Survey 2012 also reveals that approximately half of operators in all segments are planning to target more of their resources to customer-facing technologies such as Wi-Fi, tablets, and apps in 2013.
In the Tampa FL area, the five-unit Carmel Café and Wine Bar chain has used iPads since its inception, allowing customers to view the menu and wine list at their leisure at their table. The MenuPad provides pictures and detailed descriptions of their choices, and when they’re ready to place an order, their selections are electronically sent to the kitchen. The tablets also allow Web browsing and have game apps for the kids. While paper menus are also available, diners seem to prefer the technology option. Among other companies piloting the use of mobile devices in their restaurants are McAlister’s Deli, Genghis Grill, Little Greek, Blazing Onion Burger Company, and Umami Burgers.
Last year, Chain Store Guide began collecting information from contacts in its Database of Chain Restaurant Operators regarding their use of mobile devices and their future plans for implementation. The questions were asked only of companies operating at least five locations and included both customer-facing devices and hand-helds used by staff and managers. For the next database update, all companies will be surveyed and results will be made available to CSG customers. The following charts reveal the results of the most recent surveys:
Mobile Device Currently In Use In At Least One Location |
Market Share |
Android Phone |
3.4% |
Android Tablet |
1.3% |
iPad |
7.8% |
iPhone |
10.4% |
iPod |
1.2% |
Other Tablet |
2.6% |
None |
73.3% |
Mobile Device Implementation Planned Within Next 12 Months |
Market Share |
Android Phone |
0.4% |
Android Tablet |
0.4% |
iPad |
2.2% |
iPhone |
1.0% |
iPod |
0.3% |
Other Tablet |
1.1% |
None |
94.5% |
Source: Chain Store Guide’s Database of Chain Restaurant Operators
What’s next in the foodservice technology world? Well, numerous sources note that NASA is providing a six-month grant to an engineer who is working to develop a working prototype of a 3-D food printer. A similar technology is being used at a sushi restaurant in California to print edible rice wafers, and NASA hopes to be able to print pizza for its astronauts in space, perhaps on their way to Mars.
If you are interested in additional information on this topic and would like to see which companies are using what technology, please contact your CSG sales representative by calling 800-778-9794.