Hotel technology | KRG Hospitality

January 13, 2023by David Klemt David Klemt No Comments

We Ask ChatGPT About Robots and AI

We Ask ChatGPT About Robots and AI in Restaurants

by David Klemt

Earlier this week we had “a conversation” with ChatGPT, the now (in)famous chatbot from artificial intelligence research and development company OpenAI.

For my first time interacting with this type of tool, I keep things simple. I attempt to phrase my questions correctly, focusing on the topic of AI and robots in hospitality.

Initially, I receive a response that probably isn’t much of a surprise. But as you’ll see, the chatbot highlights an item or two that aren’t always top of mind with this topic.

Below you’ll find ChatGPT’s responses to one request and two questions.

Please write 400 to 500 words about robots and artificial intelligence working in restaurants, from the perspective of robots and AI.

“Robots and artificial intelligence (AI) are becoming increasingly prevalent in the restaurant industry. This is in part due to the many benefits that these technologies can offer, such as increased efficiency, improved safety, and reduced labor costs. However, it is also important to consider the perspective of the robots and AI systems themselves, and how they are integrated into the restaurant workforce.

One of the main ways that robots and AI are used in restaurants is through automation of tasks that would otherwise be performed by human workers. For example, robots can be programmed to cook food, mix drinks, and serve customers. This can help to improve the efficiency of the restaurant, as robots are able to work faster and more accurately than humans. Additionally, robots can be designed to perform tasks that are dangerous or difficult for humans, such as handling hot oil or sharp knives. This can help to improve safety in the kitchen and other areas of the restaurant.

However, the use of robots and AI in restaurants also raises some important ethical and social issues. Some people may worry that robots will take jobs away from human workers, especially in an industry that already has high turnover rates. Additionally, there may be concerns about the social and emotional impact of having robots as a major presence in the workplace. For example, some people may find it uncomfortable or strange to interact with robots in a social setting, such as a restaurant.

The robots and AI perspective, they are programed to perform their task efficiently without any error. They don’t have any emotions or preferences hence they are not impacted by the same issues that human employees may face like fatigue, stress or burnout. They can work in any environment without needing breaks or vacation days, this can help reduce labor costs, as restaurants can operate with fewer employees. However, it also means that human workers may need to be trained in new skills that allow them to work alongside robots and AI systems.

In conclusion, the integration of robots and AI in the restaurant industry can provide many benefits, including increased efficiency and improved safety. However, it is important to consider the ethical and social implications of these technologies, and to ensure that they are implemented in a way that benefits both the restaurant and its employees. With proper planning and training, robots and AI can be an [sic] valuable asset to restaurant workforce.”

Can you explain to me, in 300 to 400 words, what the ethical implications are for restaurant, bar, and hotel operators using artificial intelligence and robots to complete tasks?

For the most part, ChatGPT repeats talking points from our first interaction. This is likely due to the phrasing of my question. Also, this chatbot is still in its “infancy.”

However, ChatGPT brings up a few new points, and expands on others.

“The use of artificial intelligence (AI) and robots in restaurants, bars, and hotels raises a number of ethical implications that should be considered by operators. One of the main concerns is the potential for these technologies to displace human workers. In an industry that already has high turnover rates and relatively low wages, the use of robots and AI could make it even more difficult for human workers to find and keep jobs. This could lead to increased unemployment, reduced income and work-life imbalance among the impacted employees.

Another ethical concern is the impact that these technologies may have on the customer experience. For example, some customers may find it unsettling or uncomfortable to interact with robots in a social setting, such as a restaurant or hotel. Additionally, customers may feel that the use of robots and AI detracts from the human element of the service experience, and could harm the overall reputation of the business. There may also be concerns about how the data collected by these systems is used and protected, raising question about data privacy and security.

Additionally, some concerns about the way these AI and robots are designed and how they make their decisions, there could be potential for bias, especially when the systems are provided with data that is not representative of the whole population. This could lead to unfair treatment of customers, employees and other stakeholders.

There are also concerns about how the maintenance and repair of these technologies are managed and who is responsible for any accidents or malfunctions that may occur. This is particularly important for safety critical tasks, such as cooking or cleaning. Operators need to ensure that the AI and robots are designed and maintained to the highest standards to prevent any harm to employees or customers.”

Are there risks that human designers and engineers will introduce bias to customer-facing artificial intelligence and robots?

Since ChatGPT mentions bias in response to my first question, I run with that train of thought.

Below is what the chatbot has to say about that topic as it relates to AI and robots.

“Yes, there is a risk that human designers and engineers may introduce bias into customer-facing artificial intelligence (AI) and robots. This can happen in a number of ways, including:

Data bias: If the AI system is trained on a dataset that is not representative of the population it will be serving, it may make decisions or predictions that are biased towards certain groups of people. For example, if an AI system used in a hotel is trained on data from primarily white and wealthy guests, it may have difficulty understanding and serving guests from other backgrounds.
Algorithm bias: The way an AI system is designed and the algorithms it uses can also introduce bias. For example, if an algorithm is designed to prioritize certain inputs over others, it may make decisions that are biased towards certain groups of people.
Human bias: Human bias can be introduced into AI systems through the decisions made by designers and engineers about what the system should do, how it should work and how it should interact with people. For example, if a designer and engineers decide that the robot should be more polite to older customers, it may be less polite to younger customers, or if the system is designed to recognize only certain languages, it may not be able to understand and serve customers who speak other languages.

It is important for human designers and engineers to be aware of the potential for bias in AI systems, and to take steps to minimize it. This can be done by using diverse and representative data when training the AI system, being mindful of the potential for bias in the algorithms used, and involving stakeholders from diverse backgrounds in the design and testing process. Additionally, monitoring and audit the system performance regularly, and providing ways for users to provide feedback on the performance and make adjustments accordingly.

It is important to remember that this is an ongoing process and it requires continuous monitoring and adjustment as the data and environment changes. There is also a need for more research in the field of explainable AI, which would allow human designers and engineers to understand why the AI system is making certain decisions, which can help to identify and mitigate any biases that may have been introduced.”

Takeaways

Obviously, I don’t think ChatGPT “speaks” for the machines. And I don’t think the chatbot was attempting to convince me of anything. There’s nothing overtly nefarious afoot here—this was mainly an entertaining exercise with a newsworthy tool.

That said, I’m not entirely certain how I feel about my interaction with ChatGPT. On one hand, the answers in favor of AI and robots are what one expects: efficiency, speed, consistency, cost reductions, improvements to safety.

But what about what ChatGPT says about biases, programming, representation, and human interactions with tech? To alter a phrase, “Who watches the programmers?”

Hospitality is about the human element. It’s about service and the guest experience. Personally, I don’t think the world will be in a better place if we reduce human interaction.

Dropping baskets into hot oil? Slicing and dicing? Sure, send in the robots…maybe. Reducing the human element in the name of efficiency and profits? I don’t see a benefit worth the risks.

Image: Rock’n Roll Monkey on Unsplash

Tortilla with beans, cotija cheese and egg

January 10, 2023by David Klemt David Klemt No Comments

Canadian Trends 2023: Technomic

Canadian Trends 2023: Technomic

by David Klemt

Restaurant, bar, and hotel operators will find this year’s data-driven trend predictions from Technomic for 2023 insightful.

Interestingly but perhaps not surprisingly, some operators may be looking beyond North America for inspiration.

Per Technomic, Central and South American cuisines could influence menus in Canada this year. Other food trends that might take hold are “retro” health items, and all manner of pickled foods.

Of course, not every Canadian trend prediction involves F&B. According to Technomic, tech and the guest experience will play important roles.

To review last year’s Technomic predictions, click here. Now, let’s jump into Technomic’s 2023 predictions.

Guest Experience

Certainly, the guest experience should always be top of mind for operators, their leadership teams, and their staff.

In this instance, Technomic isn’t suggesting that the guest experience in general will be a trend. Obviously, with as important as it is to the success of any business, it’s a cornerstone.

Rather, Technomic predicts that guests will continue to feel the need to rein in their spending due to ricing costs and prices. However, the foodservice research firm also believes there’s still heavy desire for social interaction.

So, both those financial and social influences translate to the following: overdelivery.

Operators and their teams must ensure they position their brands well; make guests feel special every visit; and really dial in the guest experience. Specifically, Technomic suggests focusing on younger generations and menus with at least a couple specialty items that aren’t easy for a guest to replicate at home.

In other words, do whatever it takes to entice guests with memorable experience and quality menu items, and keep them coming back for more.

Technology

Multiple industry sources believe that 2023 is the Year of Tech for the hospitality industry. In particular, some sources believe that POS systems will receive significant attention from operators looking to upgrade.

Compellingly, Technomic sees the situation a bit differently. In particular, they’re suggesting that QR code menus may find themselves on the sidelines. Traditional menu, according to Technomic, will make their comeback this year.

Also making a (possible) resurgence? Per Technomic, in-person ordering for carryout and in-person dining.

As far as tech innovations that Technomic expects to take off this year, they see the following as standouts:

loyalty programs;
enhanced/upgraded cooking equipment;
automated inventory software/platforms; and
digital menu boards for back of house.

Culinary

As hinted at above, Central and South American cuisines are expected to take off in Canada, per Technomic.

The research firm provides specific—and delicious—examples:

Honduras: Baleadas tacos
Dominican Republic: Wasakaka sauce
El Salvador: Curtido slaw or relish
Peru: Aji amarillo and rocoto peppers
Bolivia: Saltenas, similar to empanadas

Another culinary trend Technomic predicts will perform well in Canada? Pickled everything.

Okay, maybe not everything. However, Technomic expects “pickling, fermenting, dehydrating and freeze-drying” to “increasingly pop up on menus.” The firm expects that operators will offer a wide range of “unusually pickled items outside of the typical veggies, including proteins and seeds.”

So, if you’re an operator reading this, it may be time to motivate your back-of-house staff to get creative with their pickling ideas.

Finally, pandemic-driven, health-based trend foods like turmeric and ginger may start to fade in popularity. Instead, predicts Technomic, items with “classic” health descriptors such as “natural,” “real,” “free,” “reduced,” and “lower” will get attention from guests looking to eat and drink healthier.

For your own copy of this Technomic report in its entirety, click here.

Image: Roman Odintsov on Pexels

January 6, 2023by krghospitality krghospitality No Comments

Dynamic Pricing or Dynamic Menus?

Dynamic Pricing or Dynamic Menus?

by Doug Radkey

A key phrase used throughout 2022 was “the new normal.” In 2023, a key term you will likely hear a lot is “dynamic pricing.”

What is dynamic pricing? It can get quite complex, but the global consulting company, McKinsey, defines dynamic pricing as “the (fully or partially) automated adjustment of prices.”

The term is not entirely new to hospitality. Hotels and the overall travel industry have used modules of the pricing model for years. But for restaurants and even bars, yes, it is something new.

It is also a model getting a lot of attention of late, which begs the following question: Why?

As the bar and restaurant industry recovers from the effects of the pandemic, a dynamic pricing model that optimizes revenue opportunities may seem quite attractive. After all, our industry is looking to rejuvenate its sales to pre-pandemic levels.

Essentially, a dynamic pricing model within this industry would work like this: increase prices when demand is up (peak periods), decrease prices to draw guests in when demand is down (off-peak times).

But should this be a model that disrupts the industry in 2023 and into 2024?

While I am all for a little disruption, the industry needs to tread carefully through this potential transition to dynamic pricing (or perhaps just around the phrase itself) that’s based on demand levels.

Guest Experiences

We all know (or should know) that we do not sell a product. What we sell is an experience.

If we can create a positive, memorable guest experience first and foremost, the revenue will follow.

While hotels and travel, as examples, have boasted “positive financial results” over the years through their different approaches to dynamic pricing (while still trying to focus on the end-user guest experience), independent bar and restaurant brands must be careful not to create a hostile brand perception.

Why? Because many consumers view changing prices based solely on levels of demand as being unfair.

Being unfair will certainly create a negative guest experience and/or brand perception. The hotel and airline industries have been able to navigate this perception successfully by offering alternatives. For example, different rooms and amenities or less convenient flight times at different price points. Essentially, companies in lodging and travel provide options and flexibility before customers make the choice to spend.

What about rideshare and surge pricing as another example? Many of you reading this have likely been burned by surge pricing as a consumer, which can be by definition a form of dynamic pricing.

Have you ever tried to book a rideshare during peak periods in a major market? What would normally be a $20 ride is suddenly $40 to $60 (or more) because of their dynamic pricing model.

What did I do in this situation during a recent business trip? I walked another 25 feet up to the cab staging area of the airport and got my ride for $25.

The end results? I had a negative customer experience with the rideshare company, first and foremost. Additionally, that negative experience drove me to the competition. The key here is I was given a choice.

Now let’s switch that scenario to a restaurant.

The Restaurant Scenario

You book a table at your favorite restaurant and order that incredible steak dinner you always enjoy. But instead of it being $50 like you have grown accustomed to, it is now $75 or more. How are you as a consumer going to feel about this new price just because you visited your favorite spot during a “peak period” on a Saturday night? Were you given a choice before the spend?

Of course, this can work in the opposite direction: ordering a meal during a non-peak time and getting it for a cheaper price, thereby getting a discount.

But should we be confusing our customers based on their chosen, convenient time to visit your restaurant or bar? Should you also focus on “discounting” to drive people to your business?

I have even seen recommendations for offering an increased price for peak period but using what was the previous regular price during the non-peak times, labeling the normal price a “discount.”

Should we be framing our regular priced menu options as a discount just so we can charge and make more during a peak period? Is this being fair and ethical to your loyal customers? Should we be going down this road?

With this model (and the phrase “dynamic pricing”), which is based on demand, it is very easy to see how you can quickly confuse or alienate your loyal guests. Unless the industry in its entirety migrates over to this demand-driven model, a similar scenario as outlined above can play out for you and your guests.

Without extremely strong but transparent communication systems in place (which will be a challenge in itself), it is safe to assume that they will likely visit another restaurant up the street and/or provide negative feedback because they feel your pricing model is confusing or unfair.

Dynamic Menus

The phrase that is much more simplified and will be more easily embraced by both operators and guests is “dynamic menu.”

So, what’s the difference?

While it is still by definition “the (fully or partially) automated adjustment of prices,” it is not based on demand throughout the day. Rather, pricing is based on simple supply chain and operational cost adjustments.

According to the National Restaurant Association:

95 percent of restaurants have recently had significant supply delays or shortages of key food items; and
75 percent of restaurants have had to change their menu because of supply chain issues.

With a more dynamic menu, you can adjust pricing to suit those changes accordingly, through the lens of real-time ingredient cost, labor costs, productivity levels, and even the availability of certain menu items.

This simply means that the incredible steak dinner a guest has always enjoyed at your place is perhaps now $53 instead of $50 because the price of beef went up the past week or month. This ensures that as an operator, you will have a minimal gap between your theoretical and actual food costs.

Again, this should work both ways, meaning if the price of beef has gone down, so too should the price.

This means that your guests are paying an accurate value for each item, based on your intended sales mix and contributions, without a loss in margin on your end or negative experience on the guest end.

This means that everything on your menu is “market price” or MP. Where have we seen that before…?

Market Price

We all know restaurant menus will commonly deduct a price and replace it with the term “market price” (often abbreviated to “MP”). This means the price of the menu item depends on the market price of the ingredients, and the price is available upon request. It has been used for years for seafood in particular—most notably lobsters and oysters—in many restaurants.

Therefore, this pricing model is not entirely new. So, why should it stop at just high-priced seafood?

The reason many operators would use the abbreviated MP was because they did not want to reprint menus every single day as the prices fluctuated greatly.

As we move towards digitally savvy restaurant operations, implementing integrated technology and menus, we can begin to find alternatives and ensure that we are actively pricing our menus accordingly based on the market (and overhead costs) to strengthen top- and bottom-line results.

Knowledge is Power

To make a dynamic menu work, whether you’re a QSR, sports bar, casual-dining or fine-dining concept, or any other category of bar or restaurant, you need to know your target customers, provide a targeted menu, and know your numbers (the data).

Curating and engineering a menu should be a simplified process. To be honest, this should have been streamlined prior to the pandemic.

Your menu should be developed based on data, consumer sentiment, regional ingredients, regional suppliers, and local talent within the confines of the overall concept. Food and beverage programs should be developed with thought, care, speed, precision, execution, and last-but-not-least: consistent profits in mind.

Keeping menus “small” (10 to 12 or even 15 items at maximum) will be the new threshold of a successful, more profitable operation. This size of menu will allow bars and kitchens to operate more efficiently; keep inventory costs both low and controlled; control training and labor costs; and provide guests with the most flavorful and exciting items that they truly want.

Be Nimble

You also want to provide menu flexibility by continually reviewing your supply chain. Maintaining a strong personal relationship with your suppliers is imperative. You must also review your costs and inventory on a daily and weekly basis to make dynamic menus work.

To keep inventory, purchase orders, and potential waste to a minimum, it will be crucial that you to ensure your menu is small but innovative. The only way to accomplish this is through effective data management.

However, the new challenge for many independent brands is making data timely, relevant, digestible, and actionable for operators and their leadership teams. The ability to collect, interpret, and effectively react to key datapoints is going to be crucial for anyone who wants to implement a dynamic menu, and for moving forward in general.

At the end of the day, profiting from a dynamic menu is all about making decisions based on accurate cost and productivity data. Of course, there’s only one way to obtain data: embrace technology and create strategic clarity around it.

The Tech Stack

The key to successfully implementing a dynamic menu is integrating a stack of technology that provides real-time data and trend reports.

From point-of-sale software and reports to accounting software, inventory and recipe management software, and invoice management software or a suite that includes all of the above that’s integrated and working together, you can obtain real-time data to adjust your pricing based on real-time ingredient and productivity costs on a daily or weekly basis.

You want seamless movement of data from front- to back-of-house that will position you to make decisions and have a more complete picture of inventory stock levels, costs, and ordering needs, plus itemized sales, contribution margins, and productivity levels.

In Summary

While we must find ways to be innovative, potentially price-gouging our guests during peak periods and discounting during slow periods is not the way for this industry to recuperate and build loyal customers.

Building a strong brand through the creation of memorable experiences and by building connection with your community along with strategic planning, effective marketing, the elements of culture, and efficient operations, you can build sustainable revenue and profit channels.

By following a more dynamic menu approach within your operations, you can still maintain transparency with your guests with less challenging communication methods, remain a fair and well-respected brand within your community, and improve your margins by three to five percent or more with the right people and systems in place.

That sounds like a pretty good deal to me. The question here remains: Are you Team Dynamic Pricing or Team Dynamic Menus?

Image: Joe Neric on Unsplash

December 6, 2022by David Klemt David Klemt No Comments

SevenRooms and CSV form Partnership

SevenRooms and Competitive Social Ventures form Partnership

by David Klemt

Guest experience and retention platform SevenRooms will kick off 2023 with a partnership with Competitive Social Ventures.

This new partnership is yet another example of SevenRooms’ continuous growth. For technology in general and our industry in particular, this is excellent news.

Consider how long it has taken, up until recently, for hospitality to embrace tech innovations. Navigating tech solutions can be daunting. Equally intimidating can be the cost of implementing new tech in a restaurant, bar, or hotel.

Watching a tech platform continue to innovate and grow, therefore, is good news for operators and their teams.

SevenRooms traces their founding to 2011. In comparison, many “solutions” never escape the vaporware stage, existing only on paper. With more than a decade of operation under its belt, SevenRooms is established and positioned for longevity.

In other words, the platform is worthy of operator consideration and investment. We make no secret of our preference for SevenRooms at KRG Hospitality. Unless they prove we should think otherwise, the platform is our favorite tech-based guest retention solution.

Beyond functionality, ease of use, and effectiveness, the company’s continuous growth motivates our support. Look at how SevenRooms grew in 2021 alone:

The platform also started 2022 with the hiring of a chief revenue officer, Brent-Stig Kraus.

Social Entertainment

With its headquarters in Alpharetta, Georgia, Competitive Social Ventures blends sports, socializing, and entertainment.

In fact, the company refers to the brands it has brought to market as “competitive socializing entertainment concepts.”

Last year, CSV brought Fairway Social Alpharetta and Roaring Social Alpharetta to market. The former focuses on sports simulators. Roaring Social, on the other hand, delivers a speakeasy experience combined with bowling.

Arriving in 2023, the real estate holding company plans to launch Pickle & Social concepts throughout the Metro Atlanta. As the name suggests, the concept features indoor and outdoor pickleball courts. Guests will also have access to table tennis. And like Fairway Social and Roaring Social, Pickle & Social will feature live music and an elevated F&B experience.

CSV already makes use of SevenRooms’ reservation and guest data management tools. Going into 2023, this partnership will evolve into review aggregation, marketing automation, and table waitlist management. The latter makes it easier for any concept to handle walk-ins as painlessly as possible.

Most importantly, the partnership with SevenRooms empowers CSV to pursue their growth plans. While the growth of SevenRooms is impressive and confidence-inspiring, their commitment to client growth is the real story here.

When choosing their tech stack, operators need to know the relationship is mutually beneficial. In fact, they need to be confident that each platform is here for long-term success.

In fact, operators should look at every relationship through this lens: Is every partner working to help you grow?

Image: Ben Hershey on Unsplash

October 18, 2022by David Klemt David Klemt No Comments

Your Guests are Likely Ready for More Tech

Your Guests are Likely Ready for More Tech

by David Klemt

After the past few years of innovation and implementation in our industry, guests are probably ready to use even more technology.

Driven in large part by operator adaptation to ever-changing restrictions in 2020 and 2021, guest-facing tech is far more prevalent than ever. This is particularly true in the quick-service restaurant space.

Of course, tech has certainly become a crucial operational component in the full-service space as well. However, operators many FSR operators find themselves walking a fine between tech innovation and providing personalized service.

Restaurants Canada addresses QSR and FSR tech implementation in their 2022 Foodservice Facts report. Click here for your own copy of the report.

QSR vs FSR Implementation

One benefit of updating a given operation’s tech stack is automation. After all, more tasks handled automatically via tech solutions means a reduction in labor costs.

In theory, removing mundane tasks from front-of-house team members should equate to guests receiving more personalized service. Equally as impactful: Many guests would rather have more control over their visit in the names of convenience and speed.

A couple of examples are placing orders and paying via tablet or other table-side device. For some guests, this is more convenient than the traditional method.

As stated above, QSRs have been quick to embrace and implement tech innovations. And according to a Restaurants Canada survey, nearly three-quarters of QSR operators will wade deeper into tech waters within the next two years. Almost half—49 percent—of QSR survey respondents “probably will” increase their usage of technology by April 2024; a quarter “definitely will.”

On the FSR side, operators are a bit more cautious in their approach to their tech stacks. Of these survey respondents, 37 percent will probably adopt more tech within the next two years, while 15 percent say they “definitely will” do so.

Per Restaurants Canada, the three main concerns of operators relating to implementing more tech are:

cost;
guest acceptance; and
people being able to relate to the equipment (which to me seems directly tied to guest acceptance).

However, FSR operators have also indicated another concern: the perception from guests that tech innovations are leading to a loss of personalized service. So, individual operators must decide not just what tech solutions to embrace but how they may impact the guest experience in negative ways.

Guest Expectations

When Restaurants Canada looked into tech in the restaurant space, they didn’t just focus on operators. The restaurant industry advocacy organization also surveyed consumers.

Perhaps unsurprisingly, the 18 to 34 age group appears to be the most eager to embrace new tech in restaurants. However, they’re not that far ahead of the 35 to 54 group. Interestingly, the 55-plus demographic is less tech-resistant in at least one area than one may assume.

Let’s take a look at Restaurant Canada’s survey results, broken down by tech solution.

Order and pay via tablet at FSR: 18 to 34 (55%), 35 to 54 (54%), 55+ (41%)
Place an order for food that’s prepared by automated method, either robots or other systems: 18 to 34 (27%), 35 to 54 (17%), 55+ (11%)
Order food that’s delivered on-premises by an automated system or a robot: 18 to 34 (32%), 35 to 54 (28%), 55+ (18%)
Place an order through a ghost or virtual kitchen: 18 to 34 (34%), 35 to 54 (26%), 55+ (13%)
Order food that’s then delivered off-premises via robot or self-driving car: 18 to 34 (36%), 35 to 54 (29%), 55+ (19%)

Considerations

Looking at the above data, most guests are already comfortable placing orders and paying through a tablet. Interestingly, the age group people think of as most tech-averse seem to be open to the idea of robots preparing and delivering their orders.

The keys to implementing tech solutions are deceptively simple: initial costs, subscription costs, maintenance fees, ease of use by staff, and ease of use by guests.

With inflation driving costs up, operators are likely most concerned with what it will cost to add to or upgrade their tech stacks. However, there may be a significant reduction in labor costs that justifies the initial costs. Additionally, some solutions can be leased rather than purchased up front.

But the comfort levels of guests must also receive careful consideration. If a solution is going to alienate or drive away a significant portion of guests, it’s likely not worth the time and cost of implementing it.

Your guests likely want more tech in your restaurant, but it has to be the right tech. Solutions need to deliver convenience and speed without failing to deliver on hospitality.

Image: Harrison Broadbent on Unsplash

August 25, 2022by David Klemt David Klemt No Comments

Date Night Desires and Dealbreakers

Date Night Desires and Dealbreakers

by David Klemt

Focusing on date night, guest experience and retention tech platform SevenRooms is sharing their latest data-driven report.

Their “Date Night Diner Report” is another successful collaboration with YouGov. Previous reports from this partnership include:

One of the reasons we at KRG Hospitality appreciate and recommend SevenRooms is their dedication to data. The platform’s commitment to sharing the data they collect to the benefit of operators is impressive.

“A resurgence of the American date night is here, and these date night diners are flipping the script on what that experience should look and feel like,” says Allison Page, co-founder and chief product officer at SevenRooms.

So, operators who want to succeed with date night should review this new report. In fact, all operators would be wise to read this report. After all, it addresses reservations, waitlists, walk-ins, and much more.

Released today, this brand-new report can be downloaded here. Read the press release here.

Date Night Details

A lot has changed over the past two-plus years. What hasn’t changed are the two most popular date nights in the US: Friday and Saturday.

Both Friday and Saturday night are preferred by 26 percent of the 763 survey respondents who go on dates. In total, SevenRooms and YouGov surveyed 1,153 individuals.

Generally speaking, these dates are return visits. People who go on dates tend to make reservations at restaurants they’ve dined at previously.

However, 46 percent of such guests are open to reserving a table at a restaurant they haven’t visited before. And speaking of those tables reservations, 53 percent are for two people.

Looking at two major populations, tables for two are the most popular reservations. In New York, they account for 50 percent of reservations. That number increases to 56 percent in Los Angeles.

Interestingly, however, is this bit of date: 53 percent of Americans don’t make reservations for date night. Rather, they’re walk-in guests, meaning they’ll likely become waitlist guests.

Date Night Desires

So, now operators know that the majority of today’s date-night reservations are for two. That doesn’t mean setting aside two-tops and side-by-side seats at the bar is enough for success.

No, there are also guest expectations to consider. SevenRooms identifies the following as the top date-night desires:

A complimentary cocktail or dessert. (33 percent)
Ability to earn extra rewards (24 percent), highlighting the value of loyalty programs.
Incentives that encourage repeat date-night visits. (23 percent)

Furthermore, personalization continues to be a key factor in the dining decision. One-third of guests consider the ability to personalize their dining experience more important than factors such as menu variety or receiving their order quickly.

Date Night Dealbreakers

Of course, if there are desires there are also dealbreakers.

According to SevenRooms, the following are the dealbreakers operators must avoid:

People on a date receiving their meals at different times. In this case, more than ten to 15 minutes apart. (45 percent)
The restaurant being so loud the guests on their date can’t hold a conversation. (43 percent)
A restaurant not having the menu items the guests were looking forward to ordering. (31 percent)
Being sat too close to another table. (31 percent)
Sitting next to a table speaking “too loudly.” (26 percent)
The restaurant being so crowded that a guest can’t find their date. (24 percent)

How important is it to avoid these dealbreakers? Well, the survey respondents say they won’t return to a restaurant if they experience any of them.

To read the full report, click here. And to learn more about SevenRooms, listen to Bar Hacks episode 24, featuring SevenRooms CEO Joel Montaniel.

Image: Dmitri Nesteruk on Unsplash

August 22, 2022by David Klemt David Klemt No Comments

iPourIt Releases Fourth Annual Pour Report

iPourIt Releases Fourth Annual Pour Report

by David Klemt

Self-serve beverage platform iPourIt’s informative fourth annual Pour Report identifies their top beer and wine pours from 2021.

iPourIt is a pioneer in the self-serve space, enhancing the guest experience and boosting revenue. However, their annual reports are another key reason operators should consider this platform.

Unlike other industry platforms, iPourIt doesn’t limit their resources to clients. Nor do they place resources like their annual Pour Report behind a pay wall. So, this is a transparent company that clearly views their relationships with clients as partnerships.

You can check out their resources for yourself by following this link. To download a copy of the 2021 Annual Pour Report, click here.

Below you’ll find key datapoints from the latest iPourIt report. I encourage you to download and review the report in its entirety.

Key Demographic Information

When it comes to men and women using iPourIt self-serve systems, men are respsonsible for 64 percent of total ounces poured.

On average, men served themselves 6.4 ounces per pour and spent $14.21 on iPourIt per visit. For men, the top pours were IPA, Lager, Cider, Hefeweizen, and Sour.

Conversely, women served themselves nearly 11 million ounces via iPourIt systems. That’s 36 percent of total ounces poured.

On average, women served themselves 5.3 ounces per pour and spent $11.95 per visit. For women, the top pours were Cider, IPA, Sour, Lager, and Hefeweizen.

Interestingly, the top pour for both men and women was Michelob Ultra.

Key Beer Takeaways

The 2021 Pour Report analyzes data from more than 300 iPourIt systems, over 8,800 taps, and 49 million total ounces of beer and wine poured.

In total, patrons consumed nearly 14,600 total products. Further, the data above represents 1.9 million guests served 3.1 million pints. Compellingly, that’s $26.2 million in revenue generated by iPourIt systems.

In terms of iPourIt systems and patrons, cider claimed the number two slot for the top 15 poured beer styles. Perhaps unsurprisingly, IPA claims the top spot. In fact, iPourIt systems served more than 10 million ounces of IPA.

As far as beer styles that are growing in popularity, three styles are on the rise. These climbers are Belgian, Cream Ale, and fruit beer. Conversely, Lager, Red Ale, and Witbier slipped down the list. Interestingly, Witbier slid four slots on iPourIt’s top 15 beer styles list. For the first time since iPourIt has been releasing reports, Seltzer made it onto the list, claiming the 11 spot.

Another interesting bit of data concerns consumer preferences. IPA may be the beer style seeing the most pours but domestic Lagers and light Ales are the top-selling products across iPourIt systems. The platforms interprets this as consumers trying small samples of IPA but going with Lagers and Ales for full serves.

Top Beer Pours by Category

Helpfully, iPourIt breaks down their Pour Report into several categories. So, let’s take a look at the top five from several of their lists.

As for the top products poured overall, Michelob Ultra claims the top spot. In descending order, it’s followed by Bud Light, Golden Road Mango Cart, Ace Pineapple Cider, and Modelo Especial.

For domestic pours, numbers one and two are the same as above. However, Coors Light, Miller Lite, and Pabst Blue Ribbon. The top five import products are Modelo Especial, Delirium Tremens, Rekorderlig Strawberry-Lime, Stella Artois, and Dos Equis Lager Especial.

Switching gears to craft and microbrew, Mango Cart claims the number one spot. Numbers two through five are Space Dust, 805, Kona Big Wave, and Big Storm Oak & Stone Snowbird Pilsner.

Of course, the report goes much deeper than just those four categories. There’s also the top 25 IPAs, and the top 15 Lagers, Ciders, Hefeweizens, Sours, Stouts, Blonde Ales, Pilsners, and Pale Ales.

New for the annual Pour Report are the top 15 fruit beers and Seltzers.

Key Wine Takeaways

Before we proceed, iPourIt systems aren’t limited to beer and wine. If it’s a beverage without pulp or sediment intended to be poured cold, iPourIt can handle it.

So, cold brew coffee, kombucha, sodas…these are all revenue-generating serves to pour alongside beer and wine.

Now, onto the 2021 report. The key wine takeaway focuses on sparkling wine. In short, sparking wines have proven popular with iPourIt patrons. So, the platform suggests using their systems to offer guests build-your-own Mimosas, as well as promoting self-serve as an enhancement to brunch.

Addressing the top-performing wines for iPourIt systems, the top five overall in descending order are:

Boca Barrel Boca Frizzante
Starborough Sauvignon Blanc
Carletto Prosecco (up two spots)
Stemmari Pinot Grigio
Archer Roose Bubbly

Boca Frizzante is a “Prosecco-style” white wine sparkler. Archer Roose Bubbly is also a Prosecco-style white. An actual Prosecco climbed the top 10 to reach spot number three. Essentially, three Proseccos are among the top five most-poured wine products for iPourIt patrons.

Interestingly, the top five are all white wines. In fact, there are only two reds among the top ten, both of them Cabernet Sauvignons.

Image: Josh Olalde on Unsplash

August 16, 2022by David Klemt David Klemt No Comments

5 Self-serve Beverage Brands to Know

5 Self-serve Beverage Brands to Know

by David Klemt

If you’re an operator who wants to leverage the popularity of self-serve beverages, these are the brands you should consider.

There are several reasons to invest in self-serve beverage solutions:

Reducing costs
Reduction in waste
Guest convenience
Guest experience
System customization
Real-time system management and reports
Security

Truthfully, had I been told ten years ago that guests would want to serve themselves beer, wine, and other drinks, I would have raised an eyebrow. It’s possible, sure, but I would’ve been skeptical.

Well, it turns out that I would’ve been wrong. Indeed, today’s guest seems to enjoy pouring their own drinks from self-serve systems.

From convenience to control over their experience, these platforms are proving popular with consumers. An appealing factor appears to be the ability to sample a range of beverages to discover new favorites. And, of course, they can do so without having to purchase full drinks or asking a bartender or server for a sample.

So, below are some of the brands in the self-serve beverage world that operators need to know and consider.

Operator Benefits

In terms of P&L, your bottom line will thank you for embracing self-serve solutions.

First, the popularity of these systems increases sales. Guests can sample an array of drinks easily, choose a favorite or two, and serve themselves at their convenience. Additionally, guests tend to view self-serve systems in a positive light due to perceived value.

Second, an impressive self-serve beverage wall can be a sight to behold. There are venues with 100 self-serve taps and screens, which is an impressive sight. There are also all manner of designs not dependent on a wall. One great example is the rotating self-serve beer system at the Famous Foods Center Bar inside Resort World Las Vegas.

In other words, self-serve beverage systems help concepts stand out among competitors.

Third, self-serve systems allow operators to streamline operations and reduce costs. For example, labor costs can be reduced, as can waste.

And fourth, these solutions can lead to improvements in the guest experience. Not having to wait in line and being able to engage more with front-of-house staff aids in guest perception.

iPourIt

According to the brand itself, iPourIt installed the world’s very first beer wall. Since then, the platform has worked tirelessly to improve their solutions.

One way they’ve improved involves the security and usability of their system. As you’ll see with most self-serve brands that pour alcohol, guests are locked out of these systems without RFID access.

IPourIt offers several types of RFID solutions, from bracelets to fobs. Of course, other systems use similar tech. However, iPourIt prides themselves in offering touch-free RFID access and eschewing the need to leave cards in slots when pouring.

Another benefit is that as long as the beverage isn’t meant to be poured hot or doesn’t have pulp/sediment, iPourIt can handle it.

PourMyBeer

This company is iPourIt’s main rival. When you review how they can improve an operators’s bottom line, it’s not hard to see why.

PourMyBeer claims some impressive stats:

45 percent sales increase
50 percent increase in profits
20 percent reduction to labor costs
Less than three percent waste

Like other systems, PourMyBeer can help operators leverage wall space. In addition, a single PourMyBeer screen can control four taps, so a wall doesn’t haven’t to be overloaded with screens.

Impressively, this platform also boasts the most POS integrations among the self-serve systems. Obviously, this is beneficial to the vast array of operators.

Table Tap

For operators looking for both a pioneer in the self-serve space, Table Tap may be the perfect partner. In particular, the use of “underage cards” by underage guests to access non-alcohol drinks is a nice feature. So, children up to early college-age students can get in on the fun.

Standing out from other platforms, Table Tap offers wall systems and table-mounted systems. Truly, offering a self-serve wall and a number of tables with the same tech is impressive.

In fact, if I were to install both solutions I would consider the tables a self-service take on VIP seating. And, I’d charge accordingly. Just something operators may want to consider.

Another cool feature relates to Table Tap’s software. While not the most mind-blowing functionality, guests can control an operator’s sound system via the TableTab ordering platform. Better yet, if an operator charges fees to select songs on their jukebox, TabelTab adds them to guest tabs.

To learn more about Table Tap, give episode 22 of Bar Hacks a listen.

Drink Command

“We do everything self pour, and more,” proclaims the Drink Command website.

Is an operator looking for a killer self-pour wall? Done. Table-mounted taps? Check. What about a self-serve tower, self-serve mobile kegerator, or a heavy-duty, mobile, self-serve counter? Drink Command has all three.

In other words, Drink Command makes it easy for operators to get creative and implement a range of self-pour solutions. Additionally, with mobile solutions, operators who want to expand into catering, pop-ups, and special events can do so easily.

For a list of other benefits—including foam-free beer pours, advertising interstitials, and consumption limits—click here.

Napa Technology

Makers of the TapStation, Napa Technology promises a boost to the guest experience. In part, this is because guests don’t have to wait in long lines at the bar.

Additionally, as stated prior, today’s guest enjoys using self-serve beverage systems.

Unlike other platforms, the Napa Technology TapStation doesn’t rely on wall installations. Instead, TapStation dispensers are available in two- and four-keg systems. These stations can be placed anywhere on the floor rather than a wall.

The TapStation can serve beer, wine, kombucha, and cold-brew coffee, ensuring it’s as versatile as the systems above.

Image: Brad on Unsplash

July 8, 2022by David Klemt David Klemt No Comments

Hotels, Guest Data and Guest Expectations

Hotels, Guest Data and Guest Expectations: A Chat with SevenRooms

We sit down with Austen Asadorian, vice president of sales at SevenRooms, to chat about pent-up demand for travel.

People are eager to get back out there and hotels, of course, play a crucial role in their travel plans. However, we’re not engaging with the same guests we were pre-pandemic.

No, today’s guest demands more from the hotels and resorts they select. And a key to delivering on guest demands is collecting guest data.

But while operators know they’re supposed to be collecting guest data, there’s some uncertainty about what to actually do with it. Enter: SevenRooms.

More accurately, meet Austen Asadorian of SevenRooms. Not only can he address meeting guest demands through tech, he can address how to use guest data responsibly and effectively.

Hi Austen, thank you for taking the time to speak with us. Can you tell us a little about yourself and your role at SevenRooms?

Thanks, David! My name is Austen Asadorian and I’m the Vice President of Sales at SevenRooms. I first started my career in hospitality early in high school, getting a job at a local restaurant in New Jersey, learning everything from protein fabrication to catering and dealing with daily customers, even managing events. I continued working in hospitality through college, while going to the Culinary Institute of America for a degree in hospitality management, and ultimately, landed at Hillstone Restaurant Group where I ran back of house operations as well as the company’s Manager Training Program. Before joining SevenRooms, I worked as Peloton’s Director of Sales, leading their go-to-market strategy for retail growth and expansion from 2014-2017.

Today, I support SevenRooms’ global expansion efforts to accelerate our goal of being the best-in-class solution for hospitality operators around the world. Having previous experience in the hospitality industry, I joined SevenRooms because I was hyper aware of the pain points in the industry surrounding technology and the need for better guest management after having lived it day-to-day for several years. More importantly, I believe in SevenRooms’ vision and have a true passion for helping hospitality businesses, big and small, drive revenue, and create loyal guests for life.

Let’s talk hotels. What does the hotel industry look like two years after (or into) the Coronavirus pandemic?

When the pandemic struck, travel came to a complete halt and hotel occupancy in the US fell from 70% in March 2019 to less than 25% in March 2020—rooms were empty. Now, as the world is back to what we can consider a new “normal,” we’re seeing an extreme surge in travel and hotels are busier than ever.

However, what guests expect from hotels experience-wise has changed and they demand more. They’re making up for lost time and they want to make it count. Coming out of the pandemic, hotel operators are taking a harder look at their entire tech stack. It’s no longer optional to have a tech stack that is fully integrated from top to bottom across their operations—it’s a must-have—and technology providers are adapting to meet those needs. Additionally, operators have put a strong emphasis on the importance of ownership over their guest data. Both trends have positioned SevenRooms incredibly well within the hotel sector, as this has been our business philosophy from day one.

How can hotel operators and managers live up to these high expectations?

The simple answer is by taking advantage of technology solutions into their everyday practices and processes. These tech solutions can be anything from a QR code for mobile order and pay, allowing guests to order food and drink from anywhere on the property without ever needing a server to approach them, to an integrated customer relationship management (CRM) platform that speaks to and pulls data from their F&B CRM, easily sharing that information across teams at the hotel. For example, passing information along to a guest services team to ensure that in-room amenities don’t include nuts if a guest has a peanut allergy.

Operators and managers should also make sure they’re utilizing loyalty programs. According to a recent SevenRooms survey of American consumers, 44% say that loyalty programs play a part in their hotel choice and there are certain incentives that will bring them back.

For example, some want loyalty points to enjoy on property restaurants and bars, whereas others want a personal greeting when they check in, or a complimentary glass of champagne waiting for them when they get to their room.

Technology and loyalty programs both play into an exceptional experience and it’s important for operators to use both to create the total package.

You mentioned collecting guest data. Can you tell us a little bit more about why that is so important?

When we talk about data and hotels, we’re talking about using it to power a one-of-a-kind unique experience. We don’t mean taking or selling personal information, and that’s an important distinction.

The data we’re collecting for operators centers around a guest’s profile—who they are and what they like. This can be anything from their dietary preferences to their favorite table in the hotel restaurant’s dining room, to what dessert they order most often when they visit.

By having this data, operators can build a direct relationship with these guests and, in turn, build an incredible experience that keeps them coming back. For example, if a guest stays at a specific hotel on their vacation and takes full advantage of the pool cabanas, the data collected on those visits can then be used to retarget them with a special marketing promotion or offer to visit their local hotel property for a staycation, complete with a discount on a cabana day rental.

Creating these unique, personalized experiences not only increases revenue for operators, but also drives loyalty, as a loyal guest is more important than a one-time guest.

About Austen

Austen Asadorian is the Vice President of Sales at SevenRooms, where he is tasked with supporting SevenRooms’ global expansion efforts and accelerating the company’s goal of being the best-in-class solution for hospitality operators globally. Prior to joining SevenRooms, Austen was Peloton’s Director of Sales, leading the company’s go-to-market strategy for retail growth and expansion. He started his career at Hillstone Restaurant Group where he cut his teeth learning how to run efficient and profitable restaurants at scale. Austen was ultimately promoted into an executive role where he oversaw the company’s Manager in Training Program and Back of House Operations. Austen graduated from the Culinary Institute of America (CIA).

Image: Antonio Janeski

May 31, 2022by David Klemt David Klemt No Comments

Tech Shows Up in a Big Way at NRA Show

Tech Shows Up in a Big Way at 2022 National Restaurant Association Show

by David Klemt

The number of tech platforms and solutions at the 2022 National Restaurant Association Show in Chicago was a sight to behold.

Once seemingly technology averse, our industry is awash in platform integrations, apps, and smart devices.

Drive-thru signs are reading license plates and collecting data. Digital menu signs are implementing facial recognition software. Automation is taking on more and more tasks.

Amazingly, the digital paint on the innovations we’re seeing isn’t even dry yet. While some developments may have taken years to come to market, it feels like they’re only one or two years “old.”

Here to Stay

People are still talking about a “return to normal” when it comes to the Covid-19 pandemic. To some, that means going back to their 2019 habits and lifestyles.

Well, that’s not going to happen in the restaurant, bar, or lodging spaces.

Delivery? Here to stay. Contactless payment? Not going anywhere. QR and digital menus? Commonplace at this point.

And contactless pickup? NRA Show 2022 attendees exploring the North Building encountered multiple pickup platforms.

To state the obvious, delivery is expensive. Combine inflation and rising gas prices with third-party delivery platform fuel surcharges and it’s only getting pricier.

Clearly, contactless pickup is becoming a more appealing solution for operators and their customers.

On the one hand, operators who invest in smart, contactless pickup lockers can avoid the exorbitant costs they incur from third-delivery companies. And on the other hand, customers know they can save money by picking up their orders themselves. Moreover, they know they can do so safely with contactless pickup.

Operators can now choose from an array of smart locker setups to leverage customer demand for safe, convenient takeout.

Your New Marketing Partner

Remember when people were blown away by QR code menus? Well, those are already old news.

As an aside, the fine-dining and luxury categories have been over QR codes for quite some time. However, they’re probably not going to be interested in the latest menu innovation. No, they’re much more eager to return to traditional, tactile, luxurious physical menus.

Other categories, though, will likely be interested in smart digital menus. As this tech gets smarter—perhaps terrifyingly so—your menu will be a supercharged sales associate.

There are digital menus coming to market that can recognize an operators guests…and then attempt to upsell them. The more a guest visits a venue with smart signs, the more the platform learns about them and their preferences. From there, the signs can attempt to sell them on a promotion like an LTO item.

Not long ago at all we learned that texting a consumer is a powerful way to market to them. Well, now we’re going to have the opportunity to sell them in a direct, interactive way straight from our menus.

Oh, and if this isn’t impressive enough, there are digital sign platforms capable of displaying surge prices. In the blink of an eye an operator will be able to leverage this type of pricing and revenue generation.

More Powerful POS

There were no shortage of powerful POS systems at the 2022 NRA Show. If anything, there are almost too many options out there for operators to consider.

However, we don’t think this is a bad problem to have. In fact, tech stack selection is one of KRG Hospitality’s key services.

Now, I’m not saying operators need to chase the newest, shiniest POS on the market. If what an operator has is working smoothly and they’re getting the most of their POS every day, there’s no reason to invest in a completely new platform.

But along with POS developments come powerful integrations. Case in point, Lunchbox. In simple terms, Lunchbox is an online ordering, marketing, loyalty, and guest subscription platform.

Recently revamped, this fun brand (one of the coolest booths at the show, if not the coolest) boasts an average increase in same-store sales of 52 percent. Additionally, Lunchbox customers (per the company) experience an average of 42 percent month-over-month revenue growth.

As impressive is the fact that this platform integrates with several top POS systems, including Toast, Oracle’s Micros, NCR’s Aloha, and Revel.

What a time, eh?

Photos taken by and property of author