HT - Fall 2021 by ensembleiq

PLUS: Attribute-Based Selling for Hotels Contactless Transactions Are Here to Stay RTN’s Virtual Start-Up Alley

POWERING HOSPITALITY’S RECOVERY FALL 2021 VOL. 25.3 WWW.HOSPITALITYTECH.COM

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CONTENT This month on www.hospitalitytech.com

FEAT URES & CASE ST UDIES

• A Flexible POS Delivers Efficiency, Agility & Connection

• Hyphen Debuts Robotic Makeline for Restaurants

• Why Hotels Should Consider New Travel Booking Partners

• OTA Insight Furthers Growth with RMS Cloud Partnership

• HT Talk Podcast: Smokey Bones’ Digital Transformation

• 4 Trends Influencing Payment

C O V E R S T O R Y PAG E 10

Innovation in Hotels

CUS TO M E R E N GAG E M E N T T EC H N OLOGY STU DY:

POWERING HOSPITALITY’S RECOVERY What do hospitality customers really want from technology? After more than a year of disruption, the human touch — assisted and augmented by innovative solutions — is more in demand than ever. This annual report, now in its 10th year, gives an in-depth look at how consumers are redefining “value.”

EXCLUSIV E RESEA RCH

2021 Lodging Technology Study: Reimagining Hospitality

and Robert Firpo-Cappiello, Editor-in-Chief, Hospitality Technology

This study reflects adversity — most notably, the impact of COVID-19 and flat or shrinking IT budgets — but also opportunities to embrace emerging solutions. https://hospitalitytech.com/ lodging-technology-study-2021

DEPARTMENTS: 6 EDITOR’S NOTE 8 EVENTS 9 NEW HORIZONS 32 RTN TABLESIDE

2021 Restaurant Technology Study: Building the “Next Normal”

By Daniel J. Connolly, Ph.D., Professor of Management, College of Business and Public Administration, Drake University; Jungsun Kim, Ph.D., Associate Professor, William F. Harrah College of Hospitality, University of Nevada, Las Vegas;

According to HT’s exclusive research, restaurant IT budgets remain tight while strategic goals and investments acknowledge the need for innovation and meeting new customer expectations. Download at https://hospitalitytech. com/restaurant-technology-study-2021

22 HOTELS

28 RESTAURANTS

E-N E WS L E TTE R

Attribute-Based Selling: A Primer for Hotels

Contactless Transactions Are Here to Stay

What it is, what it isn’t, and why you should care about it.

From mobile ordering and kiosks to food lockers and digital signage, touchless technology has transformed hospitality. There’s no turning back.

The HT Alert is delivered every Tuesday and Thursday to your inbox, making it the most reliable source for IT news and trends. Manage your subscriptions at www.hospitalitytech.com

W W W.T W I T T E R .C O M / H T M A G A Z I N E

W W W. L I N K E D I N .C O M / I N / H O S P I TA L I T Y T E C H N O LO G Y

W W W. FA C E B O O K .C O M / H O S P I TA L I T Y T E C H N O LO G Y

YO U T U B E .C O M / H O S P I TA L I T Y T E C H M A G

HOSPITALITY TECHNOLOGY (USPS 0016-745, ISSN 1520-491X) is published 4x frequency per year March, June, September and December by EnsembleIQ, 8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631; (973) 607-1300. Periodicals postage paid at Chicago, Illinois and additional entries. Subscription rate in the United States: $50 one year; $92 two year; $14 single issue copy; Canada and Mexico: $60 one year; $106 two year; $16 single issue copy; Foreign: $62 one year; $118 two year; $16 single issue copy; ©2021 by EnsembleIQ. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without express written permission from the publisher. Reprints, permissions and licensing, please contact Wright’s Media at ensembleiq@ wrightsmedia.com or (877) 652-5295. POSTMASTER: Please send address changes to HOSPITALITY TECHNOLOGY, P.O. BOX 1842, LOWELL, MA 01853-1842. PRINTED IN THE U.S.A.

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The Power of People Sure, we sometimes spend our days obsessing over data, integrations, algorithms, and new implementations.That’s the gig. But what’s the goal? Our 2021 Customer Engagement Technology Study: Powering Hospitality’s Recovery (page 10) is a timely reminder that our goal, always, is serving people. Take a deep dive into our research or simply surf our colorful, user-friendly charts, and you will see that while customers still have a healthy appetite for tech innovation, it is the satisfying results of that innovation — quality of food, quality of service, and, you guessed it, free Wi-Fi — that remain paramount to the hospitality guest experience. Speaking of people, the rise of hyper-personalization in hospitality is, of course, a reflection of individual preferences and expectations. In this issue, we break down attribute-based selling (ABS) and some best practices for hotels seeking to deliver guest preferences efficiently (page 22). We also take a look at contactless transactions one year after the big pandemic-induced pivot — we believe touchless ordering and payments are here to stay, and that they present tremendous opportunities for data and analytics, especially for “transactional” dining brands such as QSRs and fast casual (page 28). We are looking forward to seeing many of you in December at HT-NEXT 2021: Navigating Together, in Scottsdale, Arizona. Turn to page 8 for a sneak peek at some of the lodging technology topics we will be presenting in partnership with our colleagues at HTNG and AHLA. Learn about the Restaurant Technology Network’s exciting new evergreen virtual Start-Up Alley initiative (page 32). And gain insights into the myth of the “toxic” female boss — and how to rethink this harmful stereotype (page 9). As always, my digital door is open (rfirpo-cappiello@ensembleiq.com) and I look forward to hearing what you think!

Robert Firpo-Cappiello EDITOR-IN-CHIEF

EDITORIAL ADVISORY BOARD

RESEARCH ADVISORY BOARD

Karen Bird CIO, HOA Brands

Mike Blake CEO, HTNG

Simon Eng VP of IT, CTF Development Nelson Garrido Senior VP Information Technology, Thayer Lodging, Brookfield Hotel Properties Michael Hassel Dir. IT, Momofuko Holdings Ted Hopcroft Vice President of Technology and Professional Services, Americas iT, Marriott

Corey Kline EVP of Technology, Noodles & Company Rocky Lucia Dir. IT, Fireman Hospitality Group Brian Pearson CIO, Mendocino Farms Sandwich Market R. P. Rama VP Technology, JHM Hotels Joe Tenczar VP, Information & Technology/CIO, Sonny’s BBQ Marcus Wasdin CIO, Atlanta Hawks & State Farm Arena

Natasa Christodoulidou Professor California State University Cihan Cobanoglu, PhD School of Hotel & Restaurant Management University of South Florida Daniel J. Connolly Ph.D. Professor of Business Administration Drake University Russell Dazzio Chairman, R&R Hospitality

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Mehmet Erdem Assistant Professor, UNLV Hotel College

VICE PRESIDENT & PUBLISHER Abigail A. Lorden alorden@ensembleiq.com EDITORIAL EDITOR-IN-CHIEF Robert Firpo-Cappiello, rfirpo-cappiello@ensembleiq.com SENIOR EDITOR, RESTAURANTS Anna Wolfe, awolfe@ensembleiq.com SENIOR EDITOR, HOTELS Michal Christine Escobar, mescobar@ensembleiq.com SALES SENIOR ACCOUNT EXECUTIVE Katherine Ware, kware@ensembleiq.com ACCOUNT EXECUTIVE Noell Dimmig, ndimmig@ensembleiq.com EVENTS EVP, EVENTS & CONFERENCES Ed Several, eseveral@ensembleiq.com VICE PRESIDENT, EVENTS & CONFERENCES Megan Judkins, mjudkins@ensembleiq.com MARKETING VICE PRESIDENT, MARKETING & BRAND ENGAGEMENT Darren Ursino, dursino@ensembleiq.com BRAND MARKETING MANAGER Molly McLoone, mmcloone@ensembleiq.com ONLINE MEDIA VICE PRESIDENT, DIGITAL PRODUCT DEVELOPMENT & AUDIENCE Jason Ward, jward@ensembleiq.com ART & PRODUCTION VICE PRESIDENT, PRODUCTION Derek Estey, destey@ensembleiq.com DIRECTOR, DIGITAL OPERATIONS Whitney Gregson, wgregson@ensembleiq.com CREATIVE DIRECTOR Colette Magliaro, cmagliaro@ensembleiq.com ART DIRECTOR Lauren DiMeo, ldimeo@ensembleiq.com DIGITAL OPERATIONS MANAGER Megan Aquino, maquino@ensembleiq.com SENIOR PRODUCTION MANAGER Pat Wisser, pwisser@ensembleiq.com AUDIENCE LIST RENTAL MeritDirect Marie Briganti 914-309-3378

SUBSCRIBER SERVICES/CUSTOMER CARE TOLL-FREE: 1-877-687-7321 FAX: 1-888-520-3608 contact@hospitalitytech.com

Lee Holman Lead Retail Analyst, IHL Consulting Jungsun (Sunny) Kim, PhD Assistant Professor, William F. Harrah College of Hotel Administration, UNLV Fred LeFranc President & CEO, Results thru Strategy Barry N. Shufeld Senior Managing Director – BNS Associates, LLC

8550 W. BRYN MAWR AVE. STE. 200 CHICAGO, IL 60631 PHONE: +1 773-992-4450 FAX: +1 773-992-4455

CORPORATE OFFICERS CHIEF EXECUTIVE OFFICER Jennifer Litterick CHIEF FINANCIAL OFFICER Jane Volland CHIEF INNOVATION OFFICER Tanner Van Dusen CHIEF HUMAN RESOURCES OFFICER Ann Jadown EXECUTIVE VICE PRESIDENT, EVENTS & CONFERENCES Ed Several SENIOR VICE PRESIDENT, CONTENT Joe Territo

OCTOBER 13 - 15, 2021 ROSEN SHINGLE CREEK • ORLANDO, FLORIDA

W H AT YOU WILL EX P E RI E NC E MURTEC Executive Summit sits at the intersection of business and technology. This is where restaurant leaders from across the organization unite to see their future through the lens of strategic technology. Technology enabled every transaction for restaurants. It kept the doors open and drove the business, and it’s not going back. Where can the possibilities take you?

K E Y NOTE S E S S I O NS ! Hot Now! Krispy Kreme’s Sweet Success Ben Hall, Chief Information Officer

Another Broken Egg Hatches Tech Initiatives to Fuel Brand Paul Macaluso, President & CEO

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PRESENTED BY

events HT-NEXT 2021: Learn How to Navigate the Return of Business Together Hospitality Technology (HT) and Hospitality Technology Next Generation (HTNG) are collaborating for the fifth year in a row to host HT-NEXT 2021, a unique conference for the hospitality technology industry. The event will take place Dec. 1316 at the Fairmont Princess Scottsdale in Scottsdale, Arizona, and is assembling an educational agenda tied to the theme “Navigating Together.” Whether it’s a family reunion, a corporate retreat, an industry event, or a political rally, hotels have always been where people come together. And after more than a year of being forced apart,

“We firmly believe that the right tech solutions actually enhance the human touch that defines hospitality.” ROBERT FIRPO-CAPPIELLO, HOSPITALITY TECHNOLOGY’S EDITOR-IN-CHIEF

2021 hotels have now become a symbol of freedom and venue to return to normalcy. But what is “normal” in a post-pandemic world when it comes to hotel operations? Join us at HT-NEXT 2021 to figure that out. “The lodging industry is indeed navigating uncharted territory as we seek new ways to deliver on our core mission: Meeting and exceeding evolving guest expectations,” says Robert Firpo-Cappiello, Hospitality Technology’s editorin-chief. “We firmly believe that the right tech solutions actually enhance the human touch that defines hospitality.” At HT-NEXT, industry leaders who were successful in navigating the return of business in 2020 and 2021 will come together to share their IT experiences. After hearing what they have to say, we invite you to be a part of rebuilding the hospitality industry by sharing your own experiences of what worked, and what didn’t, during our interactive networking sessions. Together, we will chart a new path to success and address topics such as hybrid meetings, workforce management, sustainability technologies, cybersecurity, attribute-based selling, hotel networks, cryptocurrency, and more. The HT-NEXT Awards program will also feature the Hotel Visionary Awards and HTNG’s TechOvation Award live during the event. HT

REGISTRATION IS NOW OPEN! HEAD ON OVER TO HTTP://WWW.HT-NEXT.COM TO RESERVE YOUR SPOT! 8 • FA L L 2 0 2 1 • W W W.H O S P I TA L I T Y T EC H.CO M

The Critical Female Boss Banishing the myth of the ‘toxic’ female boss is a key step to advancing women to leadership roles.

This year’s Fortune 500 list has again broken the record for more female CEOs than ever before. Yet women still only make up 8.1 percent of Fortune 500 CEOs, and one has to wonder what old biases might be continuing to contribute to this disparity. We’ve all heard common workplace myths or so called “truths” that are universally acknowledged about working in the corporate world. Based on feelings, not facts, they nest deeply into workplace cultures and can be very difficult to uproot. For example: Remote employees are less productive. Clearly disproven by research time and time again, put to the ultimate test last year, this myth has no basis in fact. But some companies still feel their employees can only be productive if they are working in an office. Another deeply-ingrained myth − that women make ‘toxic’ bosses − is also unfortunately still alive and well in the workplace. Banishing this myth is a key step to advancing women to leadership roles.

FIGHTING BIAS First, take your temperature on the feedback itself. Examine how you would feel about it if it came from a male co-worker at the same management level as the woman who offered it. How would you feel? Would it seem less harsh or ‘par for the course’? Of course, not all workplace behavior is appropriate. True toxicity is poison to any workplace, and it’s worth analyzing whether the workplace around you is toxic in itself. Self-reflection doesn’t mean you should let bad behavior go unchecked. It just means a gut check is in order. Your strong reaction to criticism could be rooted, if unconsciously, in old ideas about how women should use their voices. For us all to push the cause of women forward, we must look inward and let go of the preconceptions that limit the potential for women to shine as leaders. HT

THE MYTH OF THE FEMALE BOSS When critiqued by a woman in management, is your first reaction to view her through this problematic stereotype lens? It’s possible your boss may have poor management skills or may be unable to offer truly constructive criticism. Another possibility is that you expect a woman to manage in a softer way. According to a recent study by the IZA Institute of Labor Economics, both men and women react more negatively to criticism when it comes from a woman. Demolishing bias is more important than ever, especially now that we know how many women we lost from the workplace due to 2020’s ‘Shecession.’ Remember, bias can be insidious, affecting our opinions of others even when we think we’re doing everything we can to be a good and supportive ally, whether we are a man or a woman. Sarah Alter is president and CEO of the Network of Executive Women, a nonprofit learning, leadership and gender equality advocacy organization of 13,500 members (representing nearly 900 organizations), 300+ national and regional corporate partners, and 22 regional groups in the United States and Canada. NEW advances gender equality and diversity in the retail, consumer goods, financial services and technology industries.

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2021 CUSTOMER ENGAGEMENT TECHNOLOGY STUDY

POWERING HOSPITALITY’S RECOVERY Title Sponsors

Gold Sponsors

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Academic Partners

What do hospitality customers really want from technology? After more than a year of disruption, the human touch — assisted and augmented by innovative solutions — is more in demand than ever. We’ve crunched the numbers to reveal all the ways that guests are redefining “value.” HT’s 2021 Customer Engagement Technology Study, now in its tenth year, reflects current customer sentiments and preferences around travel, food, and lodging, and we cannot help but see this fresh data through the lens of 2020’s seismic shifts due to the pandemic and economic downturn. Here, we present a summary of our findings and what we believe are key takeaways — insights and interpretations that we believe will help power hospitality’s recovery in 2021 and beyond.

about hotel environments reflects a significant increase in hotel guests’ confidence compared with our 2020 study, in which rates of moderate or extreme concern were more than 70 percent for hotel areas such as kiosks and touchscreens, elevators, on-property restaurants, fitness centers, and spas. We attribute this increase in confidence to hotels’ efforts to mitigate COVID-19 risks and to clear communication of procedures and protocols. FACTORS THAT HELP GUESTS CHOOSE A HOTEL

ENTHUSIASM FOR TRAVEL REBOUNDS

Seventy-five percent of survey respondents have travel plans in the next 12 months. We’re seeing a modest return to travel among our survey respondents. Defining “travel plans” as a trip with at least one overnight stay with purchased lodging accommodations, a full three-quarters of respondents are planning to hit the proverbial road (compared with 63 percent in our 2020 survey) in the coming year, providing opportunities for hotels, resorts, and restaurants to welcome back guests and build — or rebuild, as the case may be — customer relationships. Significantly, 43 percent of respondents plan to travel by car in the next three months, while only 23 percent plan to fly during that time period. We believe these trends support the notion that travelers’ enthusiasm remains a bit tentative, with a desire to stay relatively close to home and perhaps to avoid the expense and perceived inconvenience of air travel. Business travel remains sluggish, with only 5 percent reporting travel plans that are strictly professional. CONFIDENCE IN HOTEL SAFETY IS UP

Customer data on their health and safety concerns

In general, the factors that are important to guests have remained consistent since our 2020 study, and consistent with the increase in customer confidence in hotels’ ability to keep them safe, the importance of clear communication around COVID-19 fell to 65 percent, down from 76 percent in 2020. Guests remain divided as to whether factors that are important to them — including communication, a flexible cancellation policy, and a demonstrated commitment to sustainability — are worth paying extra for. But with 40 percent responding that they are willing or probably willing to pay a premium suggests an opportunity for hotels to explore tiered pricing. NEW PERSPECTIVES ON HOUSEKEEPING

Survey respondents provided insight into a new area of concern: In light of pandemic health concerns, is regular housekeeping as valuable to hotel guests as it once was? We believe the following preferences — with 59 percent preferring either no housekeeping or limited housekeeping — reflect a sea change, and an opportunity for hotel operators to offer guests more customized housekeeping services.

Concerns About COVID-19 Exposure in Hotels We asked travelers which hotel environments cause them the most concern over exposure to COVID-19. These areas were of moderate or extreme concern:

40% 39% 39% Fitness center

Hotel spa

Public bathroom facility in hotel

36% 35% 35% 35% Hotel pool

Entertainment area inside a hotel

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Casino area inside a hotel

Hotel elevators

2021 CUSTOMER ENGAGEMENT TECHNOLOGY STUDY How important are these factors in your decision to select a specific hotel? These are the percentages of travelers who said the following factors were of moderate or extreme importance:

71%

The hotel provides confirmation of when your room was last cleaned.

69% 65% 58% 58% 52% 45% 43% 42% 41%

The hotel offers a flexible cancellation policy up to 48 hours before your arrival. The hotel has clearly communicated about procedures it is using to manage COVID-19 exposure.

The hotel has placed touchless hand sanitizer stations throughout all public areas of the hotel. The hotel has demonstrated its commitment to environmental sustainability.

The hotel has extended the time period required between guest stays in a specific room to allow for more “empty” time. You belong to the hotel’s loyalty program. The hotel has reduced its capacity (fewer guestrooms can be occupied).

The hotel requires reservations for use of facilities such as pool, fitness center, etc. The hotel uses plastic screens at the check-in counter.

TECHNOLOGY FEATURES THAT HOTEL GUESTS VALUE MOST

Free WiFi remains at the top of guests’ technology demands, reflecting the importance of robust networks and connectivity to the hotel experience. The importance of positive online reviews remains central as well — the well-known “halo” effect of positive reviews helps to reinforce a hotel’s overall messaging and ensure guest confidence. We continue to see a relatively lukewarm response to innovative contactless lodging technology such as voice-controlled devices and robotics. In fact, those features actually appear to be of less interest to guests in 2021 than they were in 2020, and 56 percent of study respondents report that

they are concerned with possible privacy/security issues associated with voice-controlled devices. It appears that guests have a strong desire for fundamentals such as value and efficiency rather than nice-to-have tech features that they perceive as still developing. In addition, hotel guests are overwhelmingly unwilling to pay extra for technology features that they value. CONFIDENCE IN RESTAURANT SAFETY IS UP

We see a significant increase in restaurant guest confidence compared with data from our 2020 study. For example, while restaurant restroom facilities rank as the area of top COVID-19 concern, re-

Are you willing to pay a premium if the hotel offers the factors you selected as important on the list above?

33% No or probably not

27% 40% Neutral

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Yes or probably

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2021 CUSTOMER ENGAGEMENT TECHNOLOGY STUDY New Housekeeping Preferences

16%

43%

40%

No housekeeping

Limited housekeeping

Other

(i.e., no one entering your guest room during your stay)

(i.e., someone enters the room to provide service only during a stay of 3 nights or longer)

Daily housekeeping service (i.e., daily check-in to make beds, refresh linens, etc.)

spondents expressing moderate or extreme concern over that environment have dropped from 56 percent in 2020 to 39 percent in 2021. As with the data on hotel concerns above, we believe this is a reflection of guests’ confidence in restaurants’ communications and protocols regarding health and safety. FACTORS THAT HELP GUESTS CHOOSE A RESTAURANT

Overall, the percentage of diners who consider these factors of moderate or extreme importance has declined over the past year. While levels of concern remain significant — for example, 60 percent still consider communication about COVID-19 management important (down from 73 percent in 2020) — this data further reinforces our hypothesis that the hospitality industry has taken effective steps to reassure guests. Diners, like hotel guests, remain divided on the issue of paying extra for factors that are important to them. We do believe that 33 percent of diners responding that they are willing or probably willing to pay a premium suggests a revenue-recovery

opportunity for some restaurants. TECHNOLOGY FEATURES THAT RESTAURANT GUESTS VALUE MOST

Favorable online reviews top the list of guests’ expectations, followed by digital ordering, menus, nutritional information, and reservations. It is noteworthy that most of the tech features in this question were rated of moderate or extreme importance by less than 50 percent of participants — cutting-edge tech such as voice ordering and facial recognition were considered important by an even smaller percentage. Although we firmly believe that innovative solutions — especially contactless, self-service options and the ability to engage with the restaurant via mobile — are vital to the success of a restaurant, it’s important to remember that the quality of the food remains paramount to diners. OFF-PREM SOLUTIONS THAT RESTAURANT GUESTS VALUE MOST

Positive reviews and ease of online ordering top this list of diners’ off-prem priorities, once again

Study Highlights

• Travelers are returning to the road, with a solid majority of respondents planning to travel in the next 12 months, mostly by car. • Confidence in hotels and restaurants is up, thanks to our industry’s efforts to deliver health and safety protocols and, just as importantly, to communicate and demonstrate those protocols on a daily basis.

• For both restaurant and hotel customers, quality of service (as reflected in positive online reviews) remains a higher priority than technology features, reinforcing that the “human touch” is still at the heart of our industry.

• Although hospitality guests value tech features such as mobile ordering and payments, previewing menus, and contactless transactions, they are ambivalent about paying a premium for them.

• Many hotel guests would prefer no housekeeping or limited housekeeping, demonstrating a sea change in response to the pandemic

• Free WiFi remains a top factor in selecting a hotel. • When ordering food for delivery, a significant majority of restaurant customers prefer ordering directly from the restaurant, citing factors such as quality of food and fewer mistakes when compared with third-party delivery. 1 4 • FA LL 2 0 2 1 • W W W.H O S P I TA L I T Y T EC H.CO M

EX ECU TI VE

I N SI G HT

L E A R N M O R E AT B U S I N E S S . C O M C A S T. C O M / R E S TA U R A N T S - F O O D SERVICES

Q &A:

A Strong Network Foundation Supports Customer Engagement MARYBETH PEARCE, QSR, FOOD & BEVERAGE TECHNOLOGY SOLUTIONS LEADER AT COMCAST BUSINESS

Our research suggests that off-prem solutions are here to stay. How can a strong network-foundation further facilitate drive-thru, pickup, and delivery?

A strong network foundation is critical to accurately and efficiently manage the orders that are coming in from off-prem solutions. With the number of options customers have to engage and place orders continuously increasing, the amount of data passing through a restaurant’s network is growing exponentially. Having a solid network foundation built to scale with the business is key to support the ever-increasing amount of data. Additionally, with the number of transactions coming from outside the restaurant now outpacing the number of transactions coming from inside the restaurant for many brands, reliability is key to ensure those transactions are communicated to the right points in the restaurant.

What are some critical considerations for restaurant operators expanding opportunities for guests to use mobile devices to digitally engage with a brand? There are a few key considerations for operators seeking to expand mobile ordering. First, it is critical that the online guest experience is the same as in-store in terms of ease of use, menu items, and customization options. Additionally, operators need to ensure the guest’s digital engagement is a seamless experience from start to finish. Easily accessing the mobile app for online ordering, reviewing the menu, and issuing payment means fast and reliable guest Wi-Fi is key. Additionally, network reliability is important so digital orders placed are captured and processed.

Once again, free Wi-Fi ranks at the top of guest expectations. How are solution providers responding to the demand? Industry leading solution providers have focused on providing fully managed Wi-Fi with highspeed Internet included to offer operators an end-to-end solution that meets guests’ demands without causing additional burden on the operators and restaurant managers. With full management and monitoring, solution providers can manage the health of the Wi-Fi network to keep guests connected and operators focused on serving their customers. With Gig speeds now available nationwide on the Comcast network and relationships with multiple industry-leading equipment manufacturers, Comcast Business is focused on meeting the continued demand for free Wi-Fi for guests while delivering value to our restaurant operators.

Many restaurants are gathering guest data. How can data help boost personalization and loyalty? With the number of avenues to capture data also increasing, brands should focus on the channels that will allow them to capture the most relevant data that allows them to drive a more personalized guest experience at every interaction, thus resulting in increased guest frequency or check size. Through the digital interactions, the data gathered can be used to drive customer-specific promotions, menu suggestions and rewards. By understanding the unique guest’s buying preferences, brands can now target the unique buyer rather than the general demographic. Sending promotions during a guest’s favorite sporting event for “game day eats” or “Friday family dinner” for a guest who orders for his or her family will be more impactful than general promotions. Additionally, leveraging the buying history to drive loyalty programs that encourage return guests can earn repeat visits.

S P O N S OR E D

2021 CUSTOMER ENGAGEMENT TECHNOLOGY STUDY How important are these technology features in your decision to select one hotel over another? The following features were rated of either moderate or extreme importance to travelers:

80% 70% 59% 55% 53% 47% 47% 44% 42% 42% 40%

28%

The hotel texts you important information about your reservation before your stay. Smart TVs/Content Streaming inside the guestroom.

Ability to make reservations from a mobile device. The hotel offers contactless payment for your stay. You are able to check-in/out via your personal mobile device. The hotel provides personalized service based on your purchase history.

The hotel has a mobile app. You are able to check-in/out via a kiosk. You are able to unlock your guest room using your mobile phone (i.e., no keycard is required).

You are able to “chat” or text with the hotel using your mobile phone.

36%

31%

The hotel has positive reviews and high ratings on third-party booking websites and/or social media.

Digital signage (property information, airline updates, etc.)

37%

34%

The hotel offers free WiFi to guests

You are able to control your guestroom (e.g., TV, lights, thermostat) using an app on your own mobile phone. The hotel guestroom has voice-controlled device that allows communication with the hotel during your stay. The hotel uses robots to provide contactless service (e.g., robot receptionists, delivery, and concierge).

reinforcing that quality of food and convenience — especially in the transactional world of drivethru and curbside pickup — are more important to diners than some of the more innovative tech, including ordering via social media, geofencing, and location-based marketing, which were considered important by less than 30 percent of respondents.

FRESH INSIGHTS: NATIVE DELIVERY VS. THIRD-PARTY

Well, this got our attention. Native delivery vs. thirdparty delivery has been a hot topic among restaurant operators — weighing the costs and benefits of collaborating with delivery services that can help increase your reach but at the same time eat into profits and keep customer data to themselves. But customers have a strong preference for native de-

Concerns About COVID-19 Exposure in Restaurants We asked diners which restaurant environments cause them the most concern over exposure to COVID-19. These areas were of moderate or extreme concern:

39% 32% 27% 24% 21% 18% 18% Restaurant restroom facility

Indoor dining

Hostess station/ waiting for a table

Counter service at a fast food/quick service restaurant

Outdoor dining

Curbside pickup experience

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Drive-thru

KC Hopps Creates New Guest Experiences with Paytronix Order & Delivery “We took advantage of Paytronix’s full suite of Order & Delivery capabilities, implementing features like curbside pickup, third-party delivery integration with DoorDash, and online ordering via the custom KC Hopps mobile app.”

Bethany Neal GUEST EXPERIENCE EXPERT KC Hopps, Stroud’s Express

VP of Sales, Marketing & Technology KC Hopps

Beyond simply adding online ordering, the technology spawned a new brand called Stroud’s Express. Express locations offer the traditional Stroud’s favorites but for curbside, carryout, and delivery only. Since opening in late 2020, the new concept has really taken off, with approximately 70% of orders generated online. That success led KC Hopps to open a second Stroud’s Express this past May!

| ALL-IN-ONE CUSTOMER EXPERIENCE PLATFORM For more information, visit www.paytronix.com or call 617-649-3300, ext. 5.

2021 CUSTOMER ENGAGEMENT TECHNOLOGY STUDY How important are these factors in your decision to select a specific restaurant? These are the percentages of diners who said the following factors were of moderate or extreme importance:

60% 59% 58% 54%

45% 33% 30%

The restaurant employs enhanced air circulation and filtration systems. The restaurant provides an automatic hand sanitizer station at the entrance. The restaurant provides hand sanitizer wipes to guests at tables before service.

54% 53%

The restaurant has clearly communicated about procedures it is using to manage COVID-19 exposure.

The restaurant has demonstrated its commitment to environmental sustainability. The restaurant has reduced the amount of guests that are allowed to dine at the property.

The restaurant doorways are all hands-free (including restrooms).

The restaurant uses plastic screens at the hostess station. You belong to the restaurant’s loyalty program.

Are you willing to pay a premium if the restaurant offers the factors you selected is important on the list above?

47%

20% 33%

No or probably not

Neutral

Yes or probably

When you order food delivery, which option do you prefer?

75%

13%

12%

I prefer to order directly from a restaurant

I prefer to order from third-parties (e.g., Uber Eats,

No preference

DoorDash, and GrubHub)

What are your preferred methods for requesting service or interacting with staff at hotels and restaurants? 37% 19% 12% 9%

In Person Phone Call Text Messaging Chatting via my mobile device 8% Self-Service Kiosks

7% 6%

E-mail Voice-Controlled Device (e.g., Alexa)

2% 1%

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Robots Other

L E A R N M O R E AT VERIZON.COM/BUSINESS

EX ECU TI VE

I N SI G HT

Q &A:

Digital Signage, Mobile Marketing, and Automated Retail Are Transforming Hotels How can technology help drive a personalized guest experience? As travel picks up from the historic low levels during the peak of COVID-19, hospitality brands are seeking ways to respond to new guest behaviors and preferences that shifted significantly during the pandemic. Guests increasingly expect more contactless, yet personalized and meaningful experiences from hotels. Hotels are leveraging artificial intelligence and machine learning to deliver real-time personalized recommendations for dining, excursions, and vacation packages based on guests’ personal profile and travel history. Imagine a guest’s delight when the hotel chain remembers their favorite cuisine and before their visit recommends restaurants that align with their tastes and when they enter their room, the thermostat is preset to their desired temperature. JERRI TRAFLET PRINCIPAL CONSULTANT, RETAIL INNOVATION, VERIZON

What are some opportunities for digital signage and mobile marketing to enhance both the guest experience and revenue? As loyal guests opt-in for enhanced marketing communications from hotel chains, it creates a plethora of opportunities to offer personalized messages to guests. When a guest approaches the hotel, geolocation technology can alert the hotel bellman to greet the guest by name as they arrive and assist with their luggage. As guests approach a digital display or kiosk, the message can be personalized and relevant based on their profile and preferences. Personalized promotions on mobile devices and digital displays around the hotel and in guest rooms can be more compelling – driving increased revenues for the hotel.

As hospitality operators learn to think more like retailers, how can automated retail play a role? For several years, retailers have embraced a mantra of “mobile first” with an emphasis on contactless experiences. A mobile, contactless strategy is becoming more common with hotel chains as they leverage enhanced mobile technology to enable guests to control room temperature, lights, shades, TV, and other inroom amenities. Using guests’ mobile phones as a room key is becoming common, as well as voice assistant technology to order room service and book other hotel activities and services through voice-recognition. And technologies like augmented reality can give hotels a range of tools to illustrate their services and convey information, while providing new interactive experiences.

Privacy and data security remain top of mind for guests. How is technology evolving to ensure secure transactions? Point-of-sale intrusions and crimeware (both forms of malware), stolen credentials and exploiting security gaps contribute to the majority of data breaches in the hospitality industry. Managed software-defined networking solutions can provide a secure, cloud-based environment that enables more visibility into and control over the devices and applications that connect to your network. Hospitality companies must also continuously improve security around payment card information with end-to-end data encryption, PCI security, nextgen firewalls and advanced intrusion-detection systems to guard against threats like malware. They should also include security for 5G and MEC capabilities, traffic-filtering and networkmonitoring tools for a more proactive defense.

S P O N S OR E D

2021 CUSTOMER ENGAGEMENT TECHNOLOGY STUDY

How important are these technology features to you in your decision to choose to dine at one restaurant over another? The following features were rated of either moderate or extreme importance to diners:

64% 55% 54% 53% 51% 45% 44% 41% 38%

Ability to make dining reservations online The restaurant offers free WiFi. Tables in the restaurant have call-buttons that you can press to get a server’s attention

Ability to track order status Cashless tipping options Ability to place food orders via technology at the table (a tablet/touchscreen)

38%

The restaurant has a mobile app. The restaurant does not have a paper/physical menu that the guest must touch.

37%

Digital signage is visible to display menu information.

37%

Ability to place food orders via your own mobile device

32%

27%

Ability to preview menus and nutritional information

Ability to pay for food via your mobile device (i.e., contactless payment)

35%

29%

Ease of online reservation process

38%

37%

31%

The restaurant has positive consumer reviews and high ratings on third-party reservation websites and/or social media (Yelp, Facebook, etc.)

QR codes are provided at the table to access menus via your mobile device. The restaurant provides personalized communication based on your purchase history. The restaurant provides voice ordering systems to provide personalized and contactless service. The restaurant sends messages to your mobile device based on your location. The restaurant provides face recognition technology to provide personalized and contactless service.

livery. When asked why they prefer to order directly from a restaurant, they cite “fewer mistakes” and “lower delivery fees.” GUESTS PREFERENCES FOR INTERACTING WITH STAFF

Guests still like to talk to people! And while “in

person” tops this list (actually ranking higher than it did in 2020) and robots are near the bottom, there’s an area in the middle that includes techassisted ways for customers to engage with real people: via text messaging, chatting via mobile device, and email. HT

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L E A R N M O R E AT A D VA N T E C H . C O M

EX ECU TI VE

I N SI G HT

Q &A:

How Self-Service Can Improve Customer Service and Back of House Operations

Our research suggests that hospitality guests expect access to selfservice options, not just in STONE SHIH, response to the pandemic PRODUCT MANAGER, ADVANTECH but because of evolving goals and intentions. How is technology responding to this new demand?

Technology like digital inventory tracking can let an automated purchasing system do the work for you. Having self-service kiosks to handle the transactions allows employees to focus their efforts on customer service and back-of-house operations. There is talk of developing these devices further to incorporate recognition technology, which will allow the system to suggest orders and payment types according to a customer’s visual and verbal signals. Until then, the current kiosks will continue to increase efficiency and profitability.

For hospitality brands looking to implement self-service technology, what options do you recommend? Can you speak to potential return on investment? Self-ordering technology brings a superior quality of work while minimizing errors. When the industry implements the new point-ofsale kiosk, customers are able to browse the menu, create customized orders, and pay for their meal entirely on their own. All this, along with suggestions for upsells and cross-sells, encourages diners to order more — which will be a huge return on investment. Self-ordering kiosks for the food & beverage industry, selfcheck-in/out kiosks for the hotel industry, and self-ticketing kiosks for the transportation and entertainment industry are the most common and helpful tools that we recommend for hospitality brands.

How can technology help hospitality brands to better manage their facilities and staff?

Technology is advancing at a faster pace than ever before, and this is changing both the expectations of patrons as well as the way in which hospitality brands conduct their business. Many brands manage their facilities using self-ordering to take over manual ordering. While others use Cloud services to provide real-time sales analysis, customers behavior analysis, monitor, and remote control their products without having to go onsite for troubleshooting. Hospitality brands are streamlining and automating the point of sale while redeploying staff to assist customers in answering questions, exploring products, and engaging with the store environment.

As we look to the future of hospitality tech, we see opportunities for more guest-facing touchpoints and everincreasing personalization. How will the overall guest experience evolve? Technology is the key ingredient for success in modern hospitality. Many brands have created multiple access points for their customers to purchase a product. Data collected are analyzed to help brand owners allocate their resources appropriately and optimize their touchpoints. These devices reduce errors, decrease congestion, improve customer service, and increase order capacity. The overall guest experience will continue to change as customers want faster and more accurate service or purchasing experience. Even though 86% of customers still want human interaction during their purchases, this number could go down soon as companies continue to create apps, virtual shopping experiences, and self-checkout systems.

S P O N S OR E D

HOTELS

By Michal Christine Escobar, Senior Editor - Hotels

Attribute-Based Selling:

A Primer for Hotels What it is, what it isn’t, and why you should care about it. Attribute Based Selling (ABS) is a term that has been mentioned in conversation, discussed at conferences, and debated seriously for the past five years. It seems though, that we are headed into a new era. With all of the major Western hotel chains beginning to experiment with ABS, it may only be a few years before this pricing model becomes

the norm. And really, it just makes sense. It offers guests the ability to easily personalize their hotel stay, it generates more money for the hotel, and it provides a better overall booking experience. But what is ABS, and how does it work? More importantly, how much more money could your hotel actually make with this new sales model?

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DECEMBER 13 - 16, 2021

2021

The Hotel Tech Industry Reunites, this December. Technology is more important to the hospitality industry than ever before. Reunite with your industry. Map your brand’s future. Find the technologies that will pave the way. HT-NEXT is welcoming you back to a powerful networking and immersive learning experience.

We’re Binging on Big Ideas for a Bold Future • Creating a Contactless Experience • Hospitality & the Gig Economy • Unraveling New Consumer Expectations • Beyond the Four Walls: New Hotel Business Models • Money Talks: Cryptocurrency, Payment Trends & More • Rethinking Guestroom Technology And much more!

STAY IN THE KNOW AT WWW.HTNEXT.COM

FA I R M O N T S C O T T S D A L E PRINCESS SCOTTSDALE, ARIZONA

HOTELS

THE PROBLEM WITH ROOM TYPES

ABS solves the issue of limiting guests to preset room types and rate plans. “Room type limits only exist because computer systems used to have 24 lines of text available on a DOS screen,” says Ian Saxton, Senior Vice President Strategist CRS & PMS at Amadeus. “If a hotel had more than 24 room types, they wouldn’t all be visible on a single screen, making reservations much more difficult.” But, what’s so wrong with preset room types? Unfortunately, they often lead to frustration on the part of the guest. In today’s hotel room distribution, the guest has to read through individual room category descriptions to more fully understand the combination of attributes of each, and then make a single purchasing decision, says Pierre Boettner, Head of Product and Co-Founder, ROOMDEX. Finding a hotel with rooms that suit the guest and priced within their range can require many individual site visits. “For that reason alone, it should be no surprise that even those guests that book directly, will often use meta search engines or an OTA site for their search,” Boettner adds. “We have often viewed and presented the many sites visited prior to a booking, as indicative of the guest being in the ‘dream’ phase. I think it is a premature conclusion and am

ABS IS NOT..... Some hoteliers have been led to think that ABS is a new way of upselling add-ons: Champagne in the room, late checkout, faster WiFi, etc. While hotels can add these upsells at the time of booking, they are not attributes that are specific to a room type or rate plan: they’re simply the same ancillaries that have been offered as upsell components for decades, and therefore are not part of the ABS model. This means that software that still uses room types and allows for the sale of add-ons is not ABS software.

A king-size bed, access to an outdoor courtyard, or a bathroom that features a hot tub are all considered room attributes. 24 • FA L L 2 0 2 1 • W W W.H O S P I TA L I T Y T EC H.CO M

HOTELS not sure how this was validated − and let’s not forget, dreams can also be nightmares.” But, it can get even worse for the guest. “Currently, in a world of room types and rate plans, hotels typically sell at the room-type or category level and staff at the hotel assign specific rooms the night before guests arrive,” explains Mike Chuma, Vice President, Marketing & Enablement and Engagement, IDeaS. “This is a one-time, static room assignment process that happens every day. Because the sale of attributes today is usually on an ‘as available’ basis, hotels don’t have to worry about whether they have enough rooms with the requested attributes to meet the demand. ‘As available’ means never having to say you’re sorry.” HOW ABS WORKS

Instead of offering guests room types to choose from, guests are given the opportunity to build their ideal room by starting with a basic room type and then adding on room attributes at varying price points. “In the traditional hotel booking process, room rates increase as the supply of specific rooms falls,” Chuma explains. “In an ABS model, attribute prices increase as the supply of specific attributes is reduced. Using ABS, it would be possible for a standard room rate to rise to that of a higher room type if a guest adds in more attributes.” For example, in our imaginary hotel, Jane Doe would begin by choosing between a queen room ($100), king room ($115), queen suite ($125) or king suite ($145). After choosing her room, she could be offered another attribute for purchase: a view of the courtyard (no upcharge), a view of the pool ($5) or a view of the ocean ($15). Additional attributes that she might be offered include floor level, proximity to the elevators/pool/gym, a shower vs. a soaking tub, etc. As she makes her selections, software automatically finds and assigns Jane to a specific room that contains her specified attributes. So far, the value of this type of software is that it “makes the buying process not just simpler and pricing more transparent, it avoids false choice paradoxes and instantly increases satisfaction,” Boettner notes. However, this is not the end of the process. It is just the beginning. “Just as dynamic pricing is used to optimize revenue, a ‘dynamic room assignment’ approach

PREDICTIVE BUNDLING: THE BEST OF BOTH WORLDS? As explained, the ABS model allows guests to pick and choose which room attributes they are willing to pay for in order to build their perfect room. However, some in the industry worry that consumers will view this as upselling. “I am annoyed when a brand constantly tries to upsell me,” says Markus Mueller, Managing Director of Gauvendi. To address this problem, Gauvendi created predictive bundling software that asks guests to select the room attributes that are most important to them, and it then returns to them a set of matches (or Room Feature Combinations) from which they can choose. The matches will tell the guest how close to a 100% match is available. On the backend, the hotel has prearranged the price for each attribute to help determine the optimal price for the room, but it doesn’t show those prices to the guest. Why? “We noticed with guest purchasing behavior that they don’t think about the value of just one feature, they think about the value of the whole room itself,” he notes. “Hotels shouldn’t be compared to airlines. We aren’t selling a commodity, we’re selling experiences.” By pricing each room differently, according to its room features, hotels can go from selling a few different price points to selling dozens or even hundreds of different price points each day. According to Gauvendi, more product price points lead to more sales and conversion. How much more? As much as 12 percent more room revenue per booking. Of course, consumers are not overwhelmed by all of these choices because its predictive bundling software only shows them the rooms that most closely match what they’re interested in. Additionally, this way of marketing allows the hotel to constantly change the way the room is marketed to guests. This allows the hotel to try “different baits.” For instance, the software may market the same room as a Nature-View Suite and as a Junior Suite. Even though it is the same room, the first moniker might appeal to a couple on a honeymoon while the second might appeal to a guest looking for additional space to spread out and work during a business trip.

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HOTELS

becomes necessary in an ABS pricing model,” Chuma notes. Let’s say the software assigns Jane to Room 100. As new bookings are made, the software is continually evaluating the attributes chosen against inventory. Perhaps Room 100 has some additional attributes that Jane was uninterested in paying for (distant from the elevators and an in-room hot tub). If another guest (Jack Smith) is willing to pay for one (or both) of these attributes, the system will automatically reassign Jane to a room that still contains her required attributes and will assign Jack to Room 100. This process can happen as many times as needed to ensure the hotel makes the most money possible per room and to ensure guests don’t feel they overpaid for a room with amenities they’re uninterested in or were stuck with a sub-par room that didn’t fulfill their desire. With ABS, room assignments happen dynamically during shopping rather than as a daily, manual process. Dynamic room assignment is the missing link for how hotels

will operationalize guaranteed room attributes. “Guest expectations are evolving, and the hotel of tomorrow needs to be prepared to meet them,” Chuma says. “The growing challenge facing the industry, on both sides of the front desk, is the lack of control guests have over many aspects of the hotel experience. ABS is the solution to this problem and the future of hotel booking. By embracing a booking strategy that offers room prices based on individual elements, guests are offered freedom of choice and hotels are awarded higher revenue.” But how much revenue will hotels really make via this new sales format? According to Saxton, hoteliers could increase room revenue 2 percent to 8 percent with most vendors, including Amadeus, quoting hoteliers at an average increase of 4 percent. And while it may not be an apples-to-apples comparison, Chuma recommends that hoteliers look to the airline industry for an idea of how this new sales method could improve revenue among hotels.

While a scenic view is an attribute, roses on the bed, champagne in the room, or chocolates on the pillow are not. 26 • FA LL 2 0 2 1 • W W W.H O S P I TA L I T Y T EC H.CO M

HOTELS “According to the Department of Transportation’s 2019 Airline Baggage Fee report, domestic air-travel carriers collected nearly $5 billion in baggage fees in 2018, up from $1.1 billion in 2008,” Chuma says. “And checked luggage is just one sellable attribute of a flight booking.” IS ABS THE FUTURE?

While ABS certainly seems to offer hoteliers some excellent opportunities for revenue generation, it is not a one-size-fits-all solution for the hotel industry. “We firmly believe that this is not appropriate for every hotel,” Saxton says. “An economy hotel at the side of the highway in Idaho with a ‘view’ of the highway or of the parking lot is not going to get a lot of value out of this. But luxury hotels, city center hotels, etc. will see real value, and they’re the ones who should be evaluating its potential.” With that being said, however, all of the major Western hotel chains have begun to experiment with ABS. “We expect to see ABS become more popular on brand.com websites and likely adopted into this sales channel within the next 18 months to 2-year timeframe,” he notes. “But for the industry as a whole to completely switch over to this way of selling things will likely take 4 to 5 years.” One reason for this is due to the amount of change that will be required among back-office systems. For example, hoteliers will first need to update the way their Central Reservation System (CRS) and Property Management System (PMS) work. Currently, most hotels store inventory in their PMS and send availability to the CRS, Chuma says. But for ABS to work, the CRS will need to hold an image of the inventory and it will need to be the place where the dynamic room assignments take place. “For some larger brands, a CRS with an attribute model will be a long development cycle,” Chuma adds. “Retrofitting an existing CRS to make it attribute aware is likely to be significantly more costly and time consuming than it seems. We believe the early adopter brands will use thirdparty systems that have already been built or are in the later stages of construction.” To further complicate things: Not all distribution systems between the CRS and the traveler will be able to handle an attribute model. So, the CRS will have to retain a measure of room-type and rate-plan inventory to feed to OTAs, wholesalers and others who like to cache their availability, Chuma states. HT

MOVING BEYOND ABS ABS has matured and here is why this version is the next-best thing for hoteliers. “Driven by the retailing industry, customers are increasingly seeking a more personalized travel experience that goes far beyond room-based attributes (such as view, size, high floor, away from the elevator etc). While it’s great to give guests choices, narrowing those choices to room-only attributes reduces guest satisfaction and limits revenue generation,” says Frank Trampert, SVP and Global Managing Director Commercial for Sabre Hospitality Solutions. “In the end, it’s just a room unit.” He proposes a different idea, one that Sabre calls “Intelligent Retailing.” By using predictive analytics to understand potential guest booking behaviors and patterns, hotels can return a unique offering or experience to the customer that is not tied to or limited to a room reservation. “This enables a transformation into an eCommerce model of inventory (or infinite number of SKUs) that sells living spaces, working spaces, services, policies, experiences, merchandise and more,” he explains. What are the benefits of this new way of thinking? Trampert points to higher guest satisfaction and retention, greater top-line revenue, and strategic differentiation from competitors. “Offering products, services, and experiences independent of the room provides hoteliers multiple opportunities to gain incremental revenue all along a traveller’s journey, from pre-stay to post-stay,” he explains. “In comparison, the benefits of attribute-based room sales are limited to generating some incremental revenue for hoteliers and a few additional choices for guests.” However, making this switch to intelligent retailing will not be easy. “A holistic retailing model goes well beyond the room and requires a fundamental change in the way hoteliers think about and approach how they do business,” Tampert adds. “It will also demand significant mindset (from room only to ecommerce everything) and technological changes.” The pandemic may have already begun to push hotels in this direction. With so many hoteliers inventing new revenue streams during the pandemic, this could be the next logical step forward in hotel retailing, distribution and fulfilment.

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RESTAURANTS

A R E

H E R E

By Robert Firpo-Cappiello, Editor-in-Chief

T O

S TAY

From mobile ordering and kiosks to food lockers and digital signage, touchless technology has transformed hospitality. There’s no turning back. IN THE SPRING OF 2020, pivoting to contactless transactions was essential for restaurants. As dining rooms closed and the public became educated about the transmission of the coronavirus, touchless solutions were a lifeline for struggling businesses. “The industry did an amazing job of adaptation in 2020, and hospitality technology companies added contactless order/pay capabilities at a speed that I’ve never seen in our industry,” says Giancarlo Fiorarancio, Vice President, IT & Hospitality Technology, at The Howard Hughes Corporation, which operates, among other properties, The Greens at Pier 17, a contactless full-service rooftop restaurant space at New York City’s South Street Seaport. “It proved that our customers are absolutely capable of adapting as well to digital ordering and payments and that there is very positive sentiment from customers when they are in

control of the cadence at which they view a digital menu, customize an order and reorder as opposed to the cadence set by the service team.” Now, as our industry moves ahead on the path to recovery, are contactless solutions still an essential tool? Top restaurant technology professionals say yes. “Technologies such as mobile ordering, selfserve kiosks, and digital menu boards not only reduce physical contact, but actually offer a rich personalized customer experience,” says Vadim Parizher, Vice President, Engineering and Analytics, at Taco Bell Corp., which continues to innovate on an ongoing basis, including its Go Mobile concept, which streamlines mobile ordering and pickup to the benefit of customers and staff. “But, of course, all of these systems have to be integrated, both on-premise and off-premise.” HT research suggests that restaurant opera-

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RESTAURANTS tors have a healthy appetite for investment in contactless and off-prem solutions. Forty-six percent plan to increase technology budgets in 2021, and 24 percent will implement new POS, according to HT’s 2021 Restaurant Technology Study: Building the “Next Normal.” W H AT WE G OT R IG H T “I think the severity of the economic climate in 2020 for operators and suppliers alike created a ‘perfect storm’ of collaboration that allowed suppliers to provide a business tool to sustain the operators,” says Toby Malbec, Managing Director, ConStrata Technology Consulting. As we look at contactless solutions and the benefits they offer to customers — and opportunities for ROI for restaurants — It’s useful to take a look at what the restaurant industry has done right over the past year, and, more importantly, what that suggests for future implementations. “Emphasis on drive-thru enabled many companies to continue serving their customers, even with dining rooms closed,” notes Parizher. “As volumes increased, the industry was successful in improving drive-thru efficiency. A lot of that efficiency came through use of technology, like increased mobile ordering, integration with third-party delivery providers, and employees using order-taking tablets.” In addition to drive-thru, many restaurants — from QSRs to fast casual to full-service — inaugu-

rated curbside pickup and, if they hadn’t already, implemented order-ahead/pay ahead services. “Many organizations upgraded their POS terminals to contactless card readers to allow guests to process their own transactions and mobile pay methods such as Apple Pay and Google Wallet,” notes Felicia White, VP, Global Operations Training and Development, at Church’s Chicken, which boasts a global, multilingual training program that leverages contactless technology. “While this was already in progress to promote PCI compliance, the pandemic sped up that process. And the industry quickly adapted to using technology such as QR codes for accessing menus — we even began using them at Church’s to facilitate training.” In addition to curbside pickup, many restaurants sought efficient and personalized service via food lockers, allowing customers a measure of control over their ordering, payment and pickup process from start to finish. A S HIF T TOWARD S ELF-S ERVIC E AND P ERS ONALIZATION Technology features such as online reservations, menu previewing, and free WiFi are important to more than 50 percent of diners when choosing a restaurant, according to HT’s 2020 Customer Engagement Technology Study: Powering Hospitality’s Recovery. “Contactless in 2021 becomes another channel

Taco Bell’s Go Mobile concept streamlines mobile ordering and pickup. 29 • FA L L 2 0 2 1 • W W W.H O S P I TA L I T Y T EC H.CO M

RESTAURANTS for the operator to provide to the customer and adds a dimension of flexibility to allow the customer to dictate the nature of the transaction,” says Malbec. More than half of diners surveyed said the ability to order online and the ability to preview menus and nutritional info influences their decision to select one restaurant over another when ordering delivery or takeout, according to HT’s 2021 Customer Engagement Technology Study. HT’s 2021 Restaurant Technology Study: Building the “Next Normal” suggests that a full 96 percent of restaurant operators have either adopted online ordering for pickup or plan to do so this year. “Giving the guest options for how they want to order, pay, and even receive service just helps to continue to define hospitality,” says White. “The end goal of our business is to build relationships between the service provider and guest. Service is specific to the individual guest and those organizations which flex to meet the guest needs vs. expecting the guest to flex to meet theirs are the ones who end up on top.” While self-service and personalization in the QSR and fast casual space was already on the rise pre-pandemic, Fiorarancio points out that they have accelerated across full-service dining as well. “If you asked me in January 2020 how long before self-service and personalization became mainstream, I would have predicted a few years. I believe the pandemic has sped up deployment ... and if anyone is opening a restaurant in 2021, I’d be shocked if they didn’t have some kind of strategy around digital ordering.” LOYALT Y & A N A LY T IC S In addition to self-service and personalization, contactless transactions have the potential to bolster restaurants’ efforts in loyalty and predictive analytics by leveraging data like never before. From offering perks and deals to frequent customers to drilling down on customers’ ordering habits and preferences in order to create streamlined menus and opportunities for upselling, all that data can be a goldmine. But challenges remain when tracking guest behavior — and in integrating various solutions so that they can speak to one another in a meaningful way. “Some contactless payment solutions require Top: Drive-thru, and the tech that keeps it efficient, was crucial to keeping restaurants open — and will remain a key source of revenue. Bottom: Utilizing mobile devices for browsing menus, ordering, and making payments — including digital wallet options such as Apple Pay — help restaurant guests drive the cadence of their dining experience. 3 0 • FA LL 2 0 2 1 • W W W.H O S P I TA L I T Y T EC H.CO M

RESTAURANTS

(or make it simple to provide) attainable guest identifiers that can be used to tie the guest to the transaction,” notes Joe Tenczar, Chief Strategy Officer, Sonny’s BBQ as well as Founder & CIO of Restaurant CIOs. “Transactions that do not require email address, phone number, or self-identification make this link very difficult otherwise. In many cases a loyalty program is in place only to have guests identify themselves and tie them to their purchases. If this can be done in other ways, there is generally more data and more success in understanding guest behavior. This behavior, at the micro level, will allow segmented/targeted marketing including programs that benefit from understanding the customer lifetime value.” The Open API Framework offered by the Restaurant Technology Network offers a breakthrough in integration. “The past year and the rise of contactless transactions have literally put the restaurant’s POS system into the hands of their guests via mobile order/pay,” says Fiorarancio. “There are now seemingly hundreds of contactless transaction solutions on the market ... The challenge of taking these solutions and integrating it into an existing tech stack is still a problem in our industry, and my hope is that initiatives such as RTN’s Open API Framework and additional competition in the space encourages providers to make their products easy to integrate with solutions so restaurants of all sizes can consider a ‘best of breed’ approach to technology that can be fully integrated with loyalty, analytics, CRM, etc.” W H AT ’ S N E X T Post-pandemic, off-prem and contactless solutions

will remain high on restaurant operators’ investment to-do list because those solutions not only offer customers the choices they crave, but also offer restaurants opportunities for efficiency and ROI. “Church’s Chicken is continuing to upgrade in restaurant technology through point-of-sale system upgrades and implementing technology to support order ahead/pay ahead and curbside service,” says White. Fiorarancio notes that, at the Howard Hughes Corporation, “We currently evaluate the technology from the viewpoint of the concept, the service style and the guest. There are many concepts where contactless transactions are not only a convenience for their guests but will reduce operational costs and complexity. However, contactless transactions in fine dining settings still need more elegant solutions to match the ambiance and experience. Technology should never distract from that experience; it should only enhance or aid in it.” Malbec advises, “Contactless needs to looked at in the entirety of the organization’s technology strategy and not simply as a ‘silver bullet.’ Those who implemented contactless as a response to the crisis should relook and assess whether it is operationally efficient and integrates well with the other systems. Those who didn’t get around to implementing should take the time afforded to them to make a proper requirements review and assessment.” As Taco Bell continues to expand its digital channels and streamline its mobile ordering and payments process, Parizher notes, “The preference for a contactless experience will likely persist for some time. Both customers and businesses have discovered that there are advantages to the digital experiences that accelerated in the past year.” HT

The Greens at Pier 17, a contactless rooftop restaurant at New York City’s South Street Seaport, uses digital ordering and payments. 3 1 • FA LL 2 0 2 1 • W W W.H O S P I TA L I T Y T EC H.CO M

By Angela Diffly, co-founder, RTN

RTN Launches Evergreen Virtual Start-Up Alley

RTN RECENTLY launched its Virtual Start-Up Alley, where some of the restaurant industry’s most innovative start-ups are featured on an evergreen section of the community’s website. RTN offers restaurant tech start-ups a place to shine, both by being featured on the Virtual Start-Up Alley directory and in-person at RTN’s annual Start-Up Alley at MURTEC (Multi-Unit Restaurant Technology Conference) in Las Vegas. In addition, the site features white-glove introductions for anyone looking to meet the start-up companies. RTN also hosts supplier-to-supplier networking events, whereby more established legacy companies can get to know the industry’s start-ups, discover complementary solutions and unique ways to partner. At the time of launch, RTN’s Virtual Start-Up Alley had 12 start-ups on the site (more to come!), including: Bite Ninja: A gig-economy focused platform allowing over 3.5M restaurants to outsource their drive-thru and front-counter shifts to trained freelancers working from home offices. Brizo FoodMetrics: Provides strategic data to empower restaurant vendors and restaurants with business intelligence, market research and competitive analysis. CheckPlease: A fintech service optimization software company that increases restaurant throughput and guest satisfaction with a refined checkout experience. Dyjit: Creators of knowyeapp, the industry’s first food-centric guest engagement platform, helps restaurants tell their story, learn about and connect with guests. Koala: Creates premium, customizable apps for restaurants to offer digital ordering. OneDine: Re-imagines the dining journey by enabling guests to safely and securely use their personal device to craft the experience they want.

Ovation: Allows restaurants to easily resolve guest concerns in real-time, get more 5-star reviews, discover insights to improve, and drive revenue. Pathspot: Hand Scanner that 1) validates employees are washing their hands and 2) tracks and validates SOPs at store level to help with training and employee safety at the corporate level. Pepper: Delivers ordering, loyalty and payment customer journeys for in-store and click & collect, generating actionable data and empowering merchants to improve marketing, products and service. Perfect Company: Enterprise platform helps restaurants become top performers through better visibility, more accurate measurements, and realtime notifications that reduce human error. Smart Screen: Enterprise-level personalization and decision artificial intelligence engine optimizes marketing initiatives, digital ordering channels, back office functions and food safety programs. Soulman Marketing: Helps restaurants build a customer database so they can retain and communicate with their most loyal customers. HT

TO CHECK OUT RTN’S START-UP ALLEY:

3 2 • FA L L 2 0 2 1 • W W W.H O S P I TA L I T Y T EC H.CO M

TO LEARN ABOUT RTN SUPPLIER MEMBERSHIP:

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1:41 PM

Brief team on tech updates for the week’s conference.

2:09 PM

Message lead engineer—could the mobile app include an AR map?

2:12 PM

Surprisingly frictionless call with Finance about frictionless payments.

2:24 PM

Time for lunch.

Every day in business is a big day. We’ll keep you ready for what’s next with fast, reliable WiFi for your guests and staff—plus advanced cybersecurity solutions and customer support, 24/7. Visit ComcastBusiness.com/Enterprise.

HT - Fall 2021

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