Pain Points Drive Innovation in Hospitality

The hospitality industry has faced tremendous challenges over the past three years. The most significant pain point has to be staffing shortages and the slow return of migrants, which have made it difficult for operators to keep their businesses afloat. To mitigate these challenges, operators are looking for ways to save on costs while keeping their customers happy.

One strategy is shrinkflation, which refers to reducing portion sizes instead of raising menu prices. This practice has, in the past, usually been a strategy in high-end restaurants. Still, it is now popping up in establishments serving traditionally lower-cost items like pizzas, burgers, and chips.

In addition to shrinkflation, technology is another option operators are turning to ease costs and streamline their operations. Many front-of-house (FOH) and back-of-house (BOH) tech solutions can automate certain functions and allow staff to focus on providing personal service. For example, reservation software can automate the booking process, freeing up staff for other duties. Handheld point-of-sale (POS) systems can also remove the back-and-forth between the register and the tables, speeding up the payment process and giving customers a better dining experience.

In busy kitchens, mistakes can often happen. However, automating the order-taking process at the table can make the kitchen function much more efficiently. A kitchen display system is another time-saver. It calculates the cooking time and displays prompts for other meals on the menu. Some restaurants are also transforming how customers pick up their to-go orders, using delivery options or safe food lockers to ensure a safe and convenient experience.

Studies show that customer preferences regarding how they engage with restaurants have changed, with a desire for convenience, high-quality service, and a seamless experience from start to finish. Self-ordering kiosks have become commonplace at fast-food and fast-casual restaurants. Still, independent eateries have been more hesitant to adopt this self-serve technology. However, since the arrival of COVID-19, more independent businesses are reconsidering their options regarding self-ordering kiosks, which are now considered a cost-effective approach. Changes in customer behaviour are driving an increase in sales via kiosks, as customers increasingly expect the same degree of control, choice, and personalization when dining out.

Restaurant operators can improve dayto-day operations and manage workforce challenges by investing in more efficient and effective technological solutions. Automation can help operators streamline procedures and keep up with customer requests and market trends, putting them in a great position to stay ahead of the competition. With highly integrated systems likely to become more commonplace in the coming year, operators should prepare well to stay ahead of the game. The restaurant industry's future depends on automation, and embracing it can lead to success and growth for restaurants of all sizes.