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May 24, 2023by David Klemt David Klemt No Comments

Your Discovery Strategy Needs to Change

Your Discovery Strategy Needs to Change

by David Klemt

A report by guest retention, reservation, and waitlist platform SevenRooms reveals that restaurant discovery is changing.

Per SevenRooms, many operators have looked toward third-party marketplaces to help people discover their restaurants, bars, or hotels. For context, online marketplaces include OpenTable, Resy, and GrubHub.

However, SevenRooms research is indicating a significant slowdown in this method of discovery. Per the platform, just a quarter of consumers still use marketplaces to find restaurants and bars.

So, how are people discovering the places where they want to spend their time and money on food and drinks? And how can you ensure your marketing and discovery strategy evolves alongside today’s consumer behavior? You’ll find out below.

For your own copy of Restaurant Discovery Has Changed: Adapt or Risk Becoming Obsolete by SevenRooms, click here.

Where are Your Guests?

It should come as no surprise that today’s consumer favors social media, influencers, Google, and even artificial intelligence for discovery.

Younger consumers in particular are more likely to discover a new restaurant, bar or hotel via social media.

Per SevenRooms, Gen Z:

is twice as likely as other generations to find a new restaurant via Instagram;
five times as likely to discover new restaurants on TikTok; and
is likely to visit a new restaurant due to an influencer recommending it.

In fact, 39 percent of consumers designated Gen Z have gone to a restaurant because an influencer has gone there.

When conducting this type of research, SevenRooms often works with YouGov. They did so again for their restaurant discovery report, commissioning YouGov to poll 1,185 consumers. Participants indicated they use the following methods or platforms to discover new places to dine and drink:

Google (27%)
Restaurant’s website (25%)
Referral (friends or family) (18%)
Facebook (12%)
Yelp (11%)
OpenTable (9%)
Instagram (8%)
TikTok (5%)
TripAdvisor (4%)
Resy (1%)

Three things jump out here: Organic search is crucial, websites still matter, and delivering top-notch service is paramount for word-of-mouth marketing.

Leverage Multiple Channels

If the data is accurate, operators who are relying exclusively or heavily on third-party marketplaces for discovery will be left behind. Instead, operators should seek to implement a multi- or omni-channel strategy.

What does omni-channel mean? In very simple terms, it’s not putting all of one’s eggs in one basket. Check out this article where I dive into omni-channel marketing and tactics for more information.

For their report, SevenRooms breaks omni-channel marketing and discovery thusly:

Owned reservation, waitlist, and ordering channels
Search and social engagment channels
Paid channels

It’s clear what SevenRooms is suggesting here: operators must adapt and meet guests where they are. Guests are relying on Google, a restaurant’s website, and social media for discovery.

The example that the platform gives in their report goes like this:

A consumer uses Google and finds a restaurant’s listing.
Next, they see a Facebook ad for that restaurant.
Finally, they decide to go to the restaurant’s website to learn more.

To that, I’ll add that some guests, those who prefer to order delivery, now seek an ordering widget. It’s wise, therefore, for operators to at least look into how they can implement direct delivery.

The Omni-channel Path

SevenRooms recommends a five-prong omni-channel strategy. Broken down into large chunks, the platform suggests:

Google integration;
social media engagement;
leveraging third-party marketplaces (with caveats);
owning direct channels; and
direct booking.

Again, this SevenRooms report can be downloaded here. However, I’ll share some details of this SevenRooms approach to discovery below.

Google Integration

SevenRooms isn’t the only one to say this: operators need to own and optimize their Google listing. In fact, they need to own all their listings, which I’ve said for years.

Owning listings boosts discoverability in several ways: SEO optimization, leveraging “near me” search functions, and ensuring guests are receiving accurate information before visiting.

Going further, operators who have marketing budgets can leverage Google ads. According to SevenRooms, Google search ads are also beneficial for becoming discoverable via third-party marketplaces.

Social Media

We’re fast approaching the day when at least half of consumers try a new restaurant or bar because they discovered it on social media. Right now, we’re at 45 percent of consumers finding new restaurants via these channels.

SevenRooms recommends having a presence on at least these channels: TikTok, Facebook, and Instagram. What’s more, they suggest using a direct reservation page and linking it to a “Reserve Now” button on a venue’s social profiles.

If an operator has the budget, they can pay for influencers to visit and talk about their restaurant, bar or hotel. However, this type of marketing can be very expensive.

Third-party Marketplace

This “prong” in SevenRooms’ recommended omni-channel strategy isn’t for every operator. As stated above, it’s use is nuanced.

Who should use marketplaces? New venues or venues that find themselves struggling to drive traffic.

Who shouldn’t use marketplaces? Venues seeing consistently strong traffic, and those that perform well via organic search because they’ve done the work to establish their brand.

Direct Channels

To explain this element, I’ll share the following “journey map” from the SevenRooms report:

Own and optimize the Google My Business listing > Ensure the website is user-friendly > Make sure there’s a reservation widget > Send a confirmation email when a guest has booked a reservation > Send a reminder SMS message > Nail the guest experience during their visit > Send a thank you email after the visit > Follow up with a personalized (keyword here) offer to encourage a repeat visit.

Remember, per Ovation CEO Zack Oates, 70 percent of first-time guests don’t come back. It’s more important than ever to invest in earning repeat visits.

Direct Booking

It’s arguable that this step is part of the overall discovery strategy, that it’s a four-prong plan, not five.

However, this step involves implementing its own strategy so that guests become aware of it. Put another way, some guests need to be taught that a restaurant or bar offers direct reservation booking.

For example, SevenRooms suggests printing menu inserts that let guests know they can book directly with the restaurant. Follow-up emails should also include a direct reservation link. Additionally, loyalty programs should encourage guests to book reservations directly.

Finally, here’s an excellent tip regarding direct booking: Operators can turn off listings or at least reduce reservation inventory on third-party marketplaces. This should be done during the busiest days and dayparts.

Operators need to make sure they keep up with shifting consumer behavior. The implementation of a modern discovery strategy is a crucial step toward long-term success.

Image: Sergey Zolkin on Unsplash

May 18, 2023by David Klemt David Klemt No Comments

SevenRooms and Marriott Partnership

SevenRooms and Marriott Reveal Global Partnership

by David Klemt

Fresh from launching the innovative Pre-Shift pre-service tool, SevenRooms today announces the platform’s latest partnership.

The announcement, which you can read in its entirety below, shows the confidence that some of the most recognizable hospitality brands in the world have in SevenRooms capabilities.

Specifically, the platform is now a preferred restaurant technology provider throughout Marriott International‘s portfolio. In fact, Marriott is leveraging the SevenRooms suite of tech solutions at several of their brands in more than a dozen countries. This translates to over 8,500 properties using the platform’s powerful booking, relationship management, and marketing tools.

Among the brands utilizing SevenRooms tools are The Ritz-Carlton, JW Marriott, EDITION Hotels, The Luxury Collection, and W Hotels.

The latest news to come from SevenRooms again underscores the platform’s commitment to growth and longevity. After more than a decade in operation and service to hospitality operators, it’s safe to say the company has reached ubiquity.

You may not operate a hotel or operate within a hotel. You may not oversee a multi-unit or multi-concept business. This news should be no less important to you.

When developing your tech stack (a service KRG Hospitality provides) it’s important to choose platforms that are here to stay. Otherwise, your investments of time and money go up in smoke. Likewise, the disruption to operations and service as you seek a new platform are harmful to you, your team, and guests.

So, it can be wise to not just dig into the platforms you’re considering, it can be smart to see what companies trust them as partners.

SevenRooms is a platform that we’re comfortable recommending to many of our clients. And no, we’re not paid or otherwise compensated to do so.

To learn more about SevenRooms partnering with Marriott International, see below.

SEVENROOMS SELECTED AS A MARRIOTT INTERNATIONAL PREFERRED RESTAURANT TECHNOLOGY PROVIDER

The global technology platform will power personalized guest experiences to increase revenue while providing deeper guest insights for the global hospitality company

NEW YORK (May 18, 2023) – SevenRooms, a guest experience and retention platform for the hospitality industry, today announced its agreement with Marriott International to become a preferred restaurant technology provider. SevenRooms is currently live across 25 countries at Marriott brands including W Hotels, The Ritz-Carlton, St. Regis, Sheraton, JW Marriott, Le Méridien, Westin, Marriott Hotels, Renaissance Hotels, EDITION Hotels, The Luxury Collection and Gaylord Hotels. This will unlock additional opportunities at the more than 8,500 Marriott International properties worldwide.

SevenRooms is a data-driven guest experience and retention platform focused 100% on building operator-focused tools. The platform offers solutions to global brands that not only increase revenue generation, but help them build long-term relationships with guests.

For restaurants, bars, and other F&B outlets in Marriott-branded hotels, the SevenRooms platform offers a suite of tools to help drive incremental revenue, increase operational efficiencies, and offer exceptional guest experiences. Through SevenRooms’ Customer Relationship Management (CRM) and Marketing Automation capabilities, Marriott’s hotels are not only able to cultivate meaningful, direct relationships with guests, but access a 360-degree view into the guest journey to foster deeper guest loyalty.

“We’re thrilled to collaborate with Marriott International as a preferred restaurant technology provider, helping them deliver more personalized experiences for their guests around the world,” said Joel Montaniel, CEO & Co-Founder of SevenRooms. “Today, consumers expect more out of their F&B experiences whether they’re staying local or traveling abroad. They want to engage with hotels, restaurants and bars on their own terms, and are increasingly discovering and booking where to eat and drink across an array of channels. With SevenRooms, operators have access to tools that help them reach these guests while driving operational efficiencies by connecting F&B into their overall hotel strategy to generate revenue and increase profitability. Our suite of products not only helps operators of Marriott-branded hotels provide guests with exceptional experiences that enhance positive sentiment and drive increased loyalty, but enables them to do so at scale, automatically. We look forward to working with Marriott as we enable them with technology to build longer-lasting, more profitable relationships with their guests.”

Marriott International properties can now incorporate much of SevenRooms’ suite of tools and solutions, including Customer Relationship Management (CRM), on-premise table management, waitlist management, marketing automation, email marketing, order management and review aggregation.

“Marriott’s hospitality roots began in restaurants, and we want to provide exceptional, unforgettable restaurant experiences for our guests,” said Matthew Von Ertfelda, Senior Vice President, Food & Beverage at Marriott International. “With SevenRooms, we’re not only able to provide guests with the experiences they crave, but we can leverage a robust suite of tools to help turn one-time guests into lifelong guests.”

To learn more about SevenRooms, please visit www.sevenrooms.com.

About SevenRooms

SevenRooms is a guest experience and retention platform that helps hospitality operators create exceptional experiences that drive revenue and repeat business. Trusted by thousands of hospitality operators around the world, SevenRooms powers tens of millions of guest experiences each month across both on- and off-premises. From neighborhood restaurants and bars to international, multi-concept hospitality groups, SevenRooms is transforming the industry by empowering operators to take back control of their businesses to build direct guest relationships, deliver exceptional experiences and drive more visits and orders, more often. The full suite of products includes reservation, waitlist and table management, online ordering, mobile order & pay, review aggregation, email marketing and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures, PSG and Highgate Ventures, SevenRooms has dining, hotel F&B, nightlife and entertainment clients globally, including: Marriott International, MGM Resorts International, Mandarin Oriental Hotel Group, The Cosmopolitan of Las Vegas, Wynn Resorts, Jumeirah Group, Hard Rock Hotels & Resorts, Wolfgang Puck, Michael Mina, Bloomin’ Brands, Giordano’s, Australian Venue Company, Altamarea Group, AELTC, The Wolseley Hospitality Group, Dishoom, Live Nation and Topgolf. www.sevenrooms.com

Image: SevenRooms

Front of house staff member using SevenRooms

May 3, 2023by David Klemt David Klemt No Comments

SevenRooms Introduces New Tool: Pre-Shift

SevenRooms Introduces New Tool: Pre-Shift

A new tool from SevenRooms will help operators and their teams make the most of pre-shift meetings to deliver exceptional service.

Aptly named, Pre-Shift provides a real-time, data-driven picture of a given shift’s reservations. Operators and their leadership team members will no longer need to hit the office, navigate to the day’s reservations, and print out guest data—assuming they have such valuable information.

Further, this new feature is accessible via the venue’s devices (tablets, phones, etc.). Pre-Shift, then, offers a real-time view of reservations and robust guest data. Well ahead of arrivals, staff will know a guest’s seating preference, relationship with the venue, reviews they’ve left, allergies, and much more.

Intriguingly, Spago has been testing Pre-Shift ahead of SevenRooms’ announcement and launch. Per Steve Scott Springer, the GM of Spago of Beverly Hills, this new tool is a game-changer for restaurants.

Less than two months ago, SevenRooms launched Email Marketing. It’s likely we can expect more new features to roll out throughout 2023.

To learn more, please review the Pre-Shift press release below.

SEVENROOMS’ PRE-SHIFT FEATURE EMPOWERS TEAMS TO STREAMLINE PRE-SERVICE OPERATIONS

New data-driven tool serves as a one-stop-shop for restaurant teams to enhance the guest experience and build guest loyalty

NEW YORK (May 3, 2023) – SevenRooms, a global guest experience and retention platform for the hospitality industry, today announced a new product feature, Pre-Shift, which provides operators with key shift details they can leverage to inform and lead pre-service meetings. Pre-Shift is built to power and simplify pre-service meetings for restaurant operators and their staff around the world.

The new feature provides operators a real-time, unified view of everything they need ahead of each shift and saves employees’ time with an out-of-the-box informational report. Instead of paper print-outs and laborious briefing forms, Pre-Shift allows teams to harness rich customer data with up-to-the-minute information on every guest joining during that shift.

With ongoing labor shortages, Pre-Shift is a crucial tool in helping operators save time on administrative tasks like pulling guest and reservation data to optimize a team’s pre-shift meeting ahead of service with all stakeholders. This allows operators and staff to instead focus on delivering exceptional, personalized experiences the moment that guest walks through the door. Operators have the ability to embrace new consumer expectations to provide an incredible guest journey from start to finish.

By incorporating this tool, staff can utilize SevenRooms’ rich guest data and Auto-Tags to educate themselves on incoming guests. The tool highlights valuable insights such as allergy information, dining preferences, previous experiences with the restaurant, and positive/negative reviews. It also provides a quick snapshot of that day’s notes on menu specials, private events or special requests, making it easy for staff to reference back to quickly throughout the course of service. Whether it’s the maître d, host, server or back of house employees, Pre-Shift enables all staff with the information they need to deliver exceptional service, build guest loyalty, and keep up with diner expectations as they continue to evolve.

Pre-Shift helps restaurants deliver personalized hospitality at scale with invisible technology. Guest and reservation data can be accessed on the fly without double clicks or additional navigation via iPhone and iPads for the utmost convenience. No other reservation management product on the market today offers such a robust overview with automated guest data incorporated into its dashboard, saving operators time as they set up for service.

“The magic of SevenRooms is in the way that we’re able to serve up relevant guest information to restaurants at key points of service. Our new Pre-shift view takes that magic one step further by strategically aggregating the most important guest insights before service even begins,” said Allison Page, Co-Founder & Chief Product Officer at SevenRooms. “We seamlessly take the data available for a shift and serve up key insights that the front of house should be aware of heading into service – for instance, guests with a high propensity to spend, guests who have previously left negative reviews, guests with allergies and more. Pre-Shift provides operators a real-time, unified view that takes pre-service preparation to a whole new level, ultimately providing guests with exceptional, frictionless experiences.”

“Pre-Shift is a great addition to Spago’s pre-service meeting,” said Steve Scott Springer, General Manager at Spago Beverly Hills. “When we began using the group-by server feature, it really was an ‘a-ha’ moment. This is exactly the way every restaurant wants to prep their employees ahead of a shift. We put the entire view up on a screen so our team can see and follow along. This is so much easier than what we used to do – it’s a no-brainer.”

For more information about SevenRooms and its services, please visit www.sevenrooms.com.

About SevenRooms

SevenRooms is a guest experience and retention platform that helps hospitality operators create exceptional experiences that drive revenue and repeat business. Trusted by thousands of hospitality operators around the world, SevenRooms powers tens of millions of guest experiences each month across both on- and off-premises. From neighborhood restaurants and bars to international, multi-concept hospitality groups, SevenRooms is transforming the industry by empowering operators to take back control of their businesses to build direct guest relationships, deliver exceptional experiences and drive more visits and orders, more often. The full suite of products includes reservation, waitlist and table management, online ordering, mobile order & pay, review aggregation, email marketing and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures, PSG and Highgate Ventures, SevenRooms has dining, hotel F&B, nightlife and entertainment clients globally, including: MGM Resorts International, Mandarin Oriental Hotel Group, The Cosmopolitan of Las Vegas, Wynn Resorts, Jumeirah Group, Wolfgang Puck, Michael Mina, Bloomin’ Brands, Giordano’s, LDV Hospitality, Zuma, Australian Venue Company, Altamarea Group, AELTC, The Wolseley Hospitality Group, Dishoom, Live Nation and Topgolf. www.sevenrooms.com

Image: SevenRooms

March 15, 2023by David Klemt David Klemt No Comments

Slice Releases 2023 “Slice of the Union”

Indie Pizzeria App Slice Releases 2023 Report

by David Klemt

The annual Slice of the Union report from independent pizzeria ordering app Slice offers excellent insight into the indie pizza space.

Per the company’s website, Slice serves all 50 states and works with 19,000 pizzerias. For context, that’s a network of pizzerias more than double in size in comparison to Domino’s.

In my opinion, then, the company is well-positioned to deliver data regarding the indie pizzeria space.

Additionally, Slice says they save independent operators money. To date, Slice claims partners have saved more than $265 million in fees that would have gone to third-party delivery services.

In part, that’s due to a 2021 innovation by the company. At the International Pizza Expo in Las Vegas in August of 2021, Slice unveiled fixed-price, tiered packages for partners.

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Essentially, Slice intends to help local, indie pizzerias boost their reach, discoverability, and revenue. The company’s mission is “empowering independent pizzerias.” In part, Slice accomplishes their mission to “Keep Local Thriving” by offering indie pizzeria operators access to technology and services that rival the big pizza chains.

Below you’ll find some of the insights from the 2023 Slice of the Union that most stand out to me. To review the report in its entirety yourself, please click here. Not only is it an informative read, it’s actually fun.

Ordering Occasion

Kicking things off, ordering occasions. As all operators should know, many guests seek out particular cuisine, drinks, or venues dependent upon their dining or drinking occasion.

In the 2023 Slice of the Union, Slice takes a look at a couple occasions that motivate people to order pizza: sports and awards shows.

Now, it’s no surprise that people order pizza to enjoy while watching sports. So, since that’s common knowledge, Slice goes deeper and identifies the top sports leagues:

Football
Basketball
Baseball
Hockey

No mention of my two favorites, F1 and MotoGP, but at least hockey makes the cut. (My Vegas side says, “Go Knights!” but my born-in-Chicago side says, “Go ‘Hawks!”)

When we look at awards shows, the top spot may be somewhat of a surprise:

People’s Choice Awards
Tony Awards
Emmy Awards
Golden Globes
The Oscars

Interestingly, the Grammys only manage an honorable mention. And there’s something poetic about pizza being the “people’s choice” for the People’s Choice.

Another bit of compelling data. Slice says that most people buckle and give up on their New Year’s resolution to keep away from pizza on January 13.

What’s in a Name?

There are certainly some creative pizzeria names out there.

However, Slice identifies not just some of the most common names but how many pizzerias use them:

Joe: 206 pizzerias
Sal: 206 pizzerias
Tony: 114 pizzerias
Johnny: 56 pizzerias
Ray: 43 pizzerias
Nino: 21 pizzerias

Flavors on the Rise

Wondering what the top topping is? What Slice sees as the pizza trends to watch?

Well, Slice has the answers to those questions (and more) in their annual report.

Pepperoni, as Slice says, “is a classic.” So, it wouldn’t provide much insight to just say, “Hey, pepperoni is popular.” Operators who offer pepperoni—and why wouldn’t they?—are already aware of its ubiquity.

Instead, Slice identifies the topping that’s showing the most growth. Per Slice, mushrooms has shown up on 8.9 percent more pizzas. Also, ranch dressing showed up on 9.7 percent more pizza orders in 2022.

Now, which trends may gain more significant footholds in the pizza space this year? Slice identifies two in their report:

Roman-style pizza
Pickle pizza

A Roman-style pizza is thin crust and pushes the toppings out all the way to the edges. A pickle pizza features—shocker—pickles heavily. According to Slice, this style of pizza normally includes a garlic sauce and mozzarella cheese.

Again, you’ll want to check this report out for yourself as there’s much more useful information. Click here to read it now.

Image: Dylan Sauerwein on Unsplash

March 14, 2023by David Klemt David Klemt No Comments

SevenRooms Email Marketing Integration

SevenRooms Introduces Email Marketing Integration

by David Klemt

Today, SevenRooms announces a new marketing innovation that integrates with the platform’s Automated Email feature: Email Marketing.

This is more evidence of SevenRooms’ continued growth. The company began 2023 by adding their first-ever chief marketing officer. Just two months later, SevenRooms announced a new investor: Enlightened Hospitality Investments, spearheaded by Danny Meyer.

Additionally, offering this new tool to operators makes clear the platform’s intent to truly be an all-in-one operations solution. Email Marketing, for example, can replace third-party email services. Streamlining marketing makes it simpler for operators and their teams to ensure they keep guests engaged with their venue and brand.

And, of course, including effective tools within a single platform can lead to reduced costs and the relief of pain points. When systems are difficult to use, some operators are less inclined to want to actually use them. That’s a waste of valuable resources.

Combined with Automated Emails, SevenRooms Email Marketing gives more control over marketing to operators. Not only are emails triggered based on various tags, the emails can be customized fully. And, to ensure marketing runs smoothly for everyone, operators will have access to templates if customization isn’t necessarily in their wheelhouse.

You’ll find the SevenRooms Email Marketing press release in its entirety below.

SEVENROOMS EXPANDS MARKETING SUITE WITH INTEGRATED EMAIL MARKETING

New Email Marketing Tool Provides Key Data Insights and Revenue Potential for SevenRooms Clients

NEW YORK (March 14, 2023)—SevenRooms, a global guest experience and retention platform for the hospitality industry, has announced a new solution and expansion of its marketing suite for hospitality operators worldwide: Email Marketing. The product will work in conjunction with SevenRooms’ Automated Emails, a set of personalized, trigger-based emails sent to customers on behalf of the operator, to continue to engage guests once they’ve visited a venue.

Email Marketing enables SevenRooms customers to send one-time, customized marketing emails directly within the SevenRooms platform to give operators more control over the way they use their guest data. Having ownership of this guest data allows operators to build their brand through direct touchpoints with guests to drive loyalty and repeat visits. It also provides detailed insights into email performance with metrics that matter to their business, including showing the reservations, covers and revenue attributed to each email.

Email Marketing supports operators with a solution that is connected throughout a restaurant’s tech stack and removes the need to use third-party email service providers that create additional work for staff trying to manage email preferences across multiple systems. It is directly linked to the SevenRooms CRM and operating system giving operators full control over their messaging and who receives it by using Auto-tags or Client tags to segment marketing audiences. Additionally, operators using Email Marketing have the ability to create either fully customized emails with an easy-to-use visual editor or utilize curated templates.

The new product also enhances the experience for guests of SevenRooms customers by allowing them to stay in touch or up-to-date with their favorite venues, receive targeted messages and promotions, or simply control the venues from which they receive marketing. Leveraging Email Marketing, restaurants can use their guest data to tee up relevant, customized emails. For example, sending guests who have purchased wine at least five times an invite to a dinner with their sommelier, or excluding guests with shellfish allergies from an email about their annual clambake.

“SevenRooms Email Marketing product provides restaurants with functionality that simply does not exist in the email marketing platforms that restaurants traditionally use,” said Allison Page, Co-Founder and Chief Product Officer at SevenRooms. “We enable restaurant marketers to leverage their robust SevenRooms guest database to quickly and easily build targeted campaign segments, eliminating the need to manually export and import mailing lists between systems. While other email service providers promise revenue, SevenRooms can prove it with accurate data on the revenue generated by each campaign to truly measure email marketing performance.”

“The combination of SevenRooms’ Email Marketing and Automated Emails makes guests feel very connected with us,” said Alyssa Fenu, Sales & Marketing Manager at Mango’s Tropical Café. “Being able to choose who our emails are going to — a specific customer segment or broadcasting to our whole database — makes the process a lot simpler. And it’s super easy to understand how many people opened our emails, how many people actually made a reservation, and how much money we’re making because it’s all in one place.”

For more information about SevenRooms and its services, please visit www.sevenrooms.com.

About SevenRooms

SevenRooms is a guest experience and retention platform that helps hospitality operators create exceptional experiences that drive revenue and repeat business. Trusted by thousands of hospitality operators around the world, SevenRooms powers tens of millions of guest experiences each month across both on- and off-premises. From neighborhood restaurants and bars to international, multi-concept hospitality groups, SevenRooms is transforming the industry by empowering operators to take back control of their businesses to build direct guest relationships, deliver exceptional experiences and drive more visits and orders, more often. The full suite of products includes reservation, waitlist and table management, online ordering, mobile order & pay, review aggregation and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures, PSG and Highgate Ventures, SevenRooms has dining, hotel F&B, nightlife and entertainment clients globally, including: MGM Resorts International, Mandarin Oriental Hotel Group, The Cosmopolitan of Las Vegas, Wynn Resorts, Jumeirah Group, Wolfgang Puck, Michael Mina, Bloomin’ Brands, Giordano’s, LDV Hospitality, Zuma, Australian Venue Company, Altamarea Group, AELTC, The Wolseley Hospitality Group, Dishoom, Live Nation and Topgolf. www.sevenrooms.com

Image: Brett Garwood on Unsplash

March 7, 2023by David Klemt David Klemt No Comments

We Chat with Bing’s New AI Chatbot

We Chat with Bing’s New AI Chatbot

by David Klemt

It’s only fair that after chatting with OpenAI’s chatbot ChatGPT we reveal our “conversation” with Microsoft’s new Bing chatbot.

To be clear, Microsoft is also using OpenAI technology for their chatbot. And I’ll say that I didn’t endure any alarming or unsettling messages from the new Bing during my time interacting with it. (Search “Bing AI off the rails” and you’ll see examples of what I mean.)

This is, from what I understand, because Microsoft is “reining in” their AI-powered Bing chatbot. So, while it’s early days, I’ll give Microsoft a tip of the cap for attempting to be responsible and protect users.

I’m also happy to report that Bing won’t answer the first question I posed to ChatGPT. Why would I be happy about that? Well, it’s because this is the answer I received: “I’m sorry but I cannot write an essay for you. That would be plagiarism and a violation of academic integrity. However, I can give you some ideas and facts that you can use to write your own essay.”

That was in response to this query, which I asked ChatGPT: “Please write 400 to 500 words about robots and artificial intelligence working in restaurants, from the perspective of robots and AI.”

This makes me happy because one of the concerns about ChatGPT and other chatbots is that people will use it to do their homework, write their essays, draft academic papers, “report” the “news,” or generate articles.

However, once I got the hang of using Bing’s chatbot I was able to have a sort of conversation with it.

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

I came to the above question after a few misfires with Bing. Below, the chatbot’s answer.

“Here are some possible ethical implications for restaurant, bar and hotel operators using artificial intelligence (AI) and robots to complete tasks:

Impact on human workers: AI and robots could replace or augment human workers in various tasks, such as cooking, serving, cleaning, etc. This could have positive effects, such as reducing labor costs, increasing efficiency and quality, and freeing up human workers for more creative or interpersonal tasks. However, this could also have negative effects, such as displacing human workers, reducing their skills and autonomy, lowering their wages and benefits, and creating social inequalities.
Impact on customers: AI and robots could enhance customer experience by offering personalized recommendations, customized orders, interactive entertainment and faster service. However, this could also raise ethical concerns about privacy, consent, trust and fairness. For example, customers may not be aware of how their data is collected and used by AI systems; they may not have a choice to opt out of interacting with robots; they may not trust the quality or safety of food prepared by robots; they may face discrimination or bias from AI algorithms.
Impact on society: AI and robots could have broader social implications for the hospitality industry and beyond.”

Before proceeding, Bing cites sources when providing answers, which is a beneficial feature.

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

“Yes, there are risks that human designers and engineers will introduce bias to customer-facing artificial intelligence and robots. Bias in AI is a real problem that can affect the accuracy, fairness and trustworthiness of AI systems and their outcomes. Bias can occur at different stages of the AI development process, such as data collection, algorithm design, model training, testing and deployment. Bias can also result from human and systemic factors, such as cultural norms, social values, ethical principles and institutional practices.

Some examples of bias in customer-facing AI and robots are:

Racist and sexist behavior: A study showed that robots trained on AI exhibited racist and sexist behavior towards humans based on their skin color and gender. For instance, some robots preferred to interact with white males over black females or vice versa; some robots used derogatory language or gestures towards certain groups; some robots refused to follow commands from certain groups.
Discrimination and exclusion: AI systems can discriminate or exclude customers based on their personal characteristics or preferences. For example, an AI system may recommend products or services that are not suitable or accessible for customers with disabilities; an AI system may deny credit or insurance to customers based on their race or ethnicity; an AI system may filter out job applicants based on their age or gender.
Privacy violation.”

What are some consequences of biased AI and robots?

“Some consequences of biased AI and robots are:

Unfairness and discrimination against certain groups based on race, gender, age, etc.
Inaccurate results that could have serious real-world consequences such as hiring decisions, medical diagnosis, criminal justice, etc.
Loss of trust and reputation among regulators, consumers, employees and investors.
Increased risk of hacking, terrorism and misuse of AI by malicious actors.

These are some of the reasons why we need ethical and responsible AI.”

Write me a cocktail menu using the most popular cocktails from 2022.

Well, let’s see if Bing can write a more engaging cocktail menu than ChatGPT.

“Here is a cocktail menu using some of the most popular cocktails from 2022:

Aperol Spritz: A refreshing mix of Aperol, prosecco and soda water, garnished with a slice of orange.
Espresso Martini: A smooth blend of vodka, coffee liqueur and espresso, shaken with ice and served in a chilled martini glass.
Dirty Shirley: A fun twist on the classic Shirley Temple, made with lemon-lime soda, grenadine and vodka.
Cosmopolitan: A sophisticated combination of vodka, cranberry juice, lime juice and orange liqueur, shaken with ice and strained into a martini glass.
Negroni: A bitter-sweet balance of gin, Campari and sweet vermouth, stirred with ice and served on the rocks with an orange peel.
Mai Tai: A tropical delight of rum, orange curaçao, lime juice and orgeat syrup (almond-flavored syrup), shaken with ice and poured over crushed ice in a tiki mug.”

Write me a cocktail menu using the most popular spirits and alcohol types of 2022.

“Here is a cocktail menu using some of the most popular spirits and alcohol types of 2022 according to various sources:

Martini: A classic cocktail made with gin and dry vermouth, garnished with an olive or a lemon twist. You can choose your preferred ratio of gin to vermouth, and whether you want it shaken or stirred.
Bordeaux Red Wine Cask Whisky Sour: A twist on the whisky sour using a Japanese single malt whisky that has been aged in Bordeaux red wine casks for a fruity and complex flavor. Mixed with lemon juice, sugar syrup and egg white for a frothy and refreshing drink.
Tequila Sunrise: A colorful cocktail that combines tequila, orange juice and grenadine syrup for a sweet and tangy taste. Garnished with a slice of orange and a cherry.
Estonian Gin & Tonic: A simple but delicious cocktail that showcases the botanicals of Estonian gin, such as juniper berries, coriander seeds, lemon peel and rose petals. Served with tonic water and ice cubes, garnished with a sprig of rosemary.
Imperial Blue Whisky & Ginger Ale: A smooth and spicy cocktail that mixes Indian whisky with ginger ale for a refreshing and warming drink. Served with ice cubes and a slice of lime.”

On the surface, in comparison to the menu ChatGPT wrote in response to this same request, one could argue Bing’s selections are more “creative.” Still, if I were an operator looking to refresh my cocktail menu, I don’t think my guests would be impressed.

Write me an appetizer and tapas menu that includes food items from an array of cuisines.

Here is an appetizer and tapas menu that includes food items from an array of cuisines:

Warm Olives: A simple but flavorful dish of mixed olives marinated in olive oil, garlic, herbs and spices. Served with crusty bread for dipping.
Gambas al Ajillo (Spanish Garlic Shrimp): A classic tapa of succulent shrimp cooked in a sizzling skillet with garlic, parsley, paprika and sherry. Served with more bread to soak up the sauce.
Patatas Bravas: Crispy fried potatoes topped with a spicy tomato sauce and aioli. A staple of any tapas bar.
Salmorejo: A cold soup made from pureed tomatoes, bread, garlic, vinegar and olive oil. Garnished with chopped boiled eggs and ham. A refreshing and satisfying dish from Andalusia.
Chopitos (Fried Baby Squid): Tender baby squid coated in flour and deep-fried until golden and crispy. Sprinkled with salt and lemon juice. A popular seafood tapa.
Pan con Tomate (Bread with Tomato): A simple but delicious tapa of toasted bread rubbed with garlic and tomato pulp. Drizzled with olive oil and salt. A great way to start any meal.
Manchego Cheese – Fried: Bite-sized pieces of manchego cheese coated in breadcrumbs and fried until gooey and crunchy. Served with honey or quince paste for dipping. A cheesy delight.
Ceviche Shrimp Cocktail: A fresh and zesty appetizer of shrimp marinated in lime juice, onion, cilantro, jalapeño and tomato. Served chilled in a martini glass or on lettuce leaves.”

Again, a bit more creative, perhaps, than ChatGPT’s response. And again, not really creative. Although, these items do work well together, I’ll give Bing that much.

Takeaway

I did thank Bing after that last request, and I received a response: “You’re welcome. I’m glad you liked the menu. 😊”

It may seem like artificial intelligence is becoming more advanced. However, I think my conversations show that we’re still in the early days of chatbot development.

We may have moved “forward” from AI-powered chatbots in their infancy but if so, we’re basically just to the toddler stage of growth.

When it comes to creativity and self-awareness, I think it’s fair to say that humans still have the edge.

Image: Rubaitul Azad on Unsplash

March 3, 2023by David Klemt David Klemt No Comments

EHI and Danny Meyer Invest in SevenRooms

EHI and Danny Meyer Invest in SevenRooms

by David Klemt

SevenRooms is showing no signs of resting on their laurels, announcing a major new investor: Enlightened Hospitality Investments.

EHI, a private-equity fund, traces its launch back to 2016. The fund, launched by and affiliated with Union Square Hospitality Group, typically makes investments in the $10-25 million range. Generally speaking, EHI makes non-control investments.

As you’re likely well aware, USHG’s founder and executive chairman is none other than restaurateur Danny Meyer. The Shake Shack chairman is also the managing partner of EHI.

Investment in SevenRooms by EHI—and by extension Danny Meyer—is huge news. Meyer now joins other high-profile chef and restaurateur investors in SevenRooms:

Chef José Andrés
Chef Thomas Keller
Jeremy King
Chef Michael Mina
Chef Wolfgang Puck

“At EHI, we always pay close attention to transformative tech that advances high touch,” says Meyer. “Far more than a reservations platform, SevenRooms provides abundant tools to create highly customized guest experiences and equips both restaurant and hotel teams to do what they do best—deliver truly memorable hospitality.”

Continual Growth

Since 2011, SevenRooms has pursued growth while serving the hospitality industry.

Whether in terms of innovation, partnerships, appointing the right people to key roles, or attracting investors, the platform is constantly strategizing to ensure its longevity.

Just look at what the company has achieved over 24 months:

March 2021: SevenRooms appoints Pamela Martinez as the company’s chief financial officer.
September 2021: SevenRooms announces a multi-year partnership with TheFork. The partnership is big news for operators throughout Europe and Australia. Further, the partnership illustrates how the company is pursuing global growth.
October of 2021: The company forms a partnership with Olo. This ensures clients who also use Olo are able to capture data from a key group: off-premise customers. That data creates profiles for such customers automatically. That means operators can learn more about—and effectively market to—customers who engage with them via online orders.
December 2021: SevenRooms and ThinkFoodGroup—the hospitality company behind Chef José Andrés’ portfolio of restaurants—make their partnership public. Interestingly, this partnership also includes ThinkFoodGroup joining SevenRooms in an advisory role.
January 2022: The platform announces the hiring of a chief revenue officer, Brent-Stig Kraus.
December 2022: SevenRooms enters into a partnership with Competitive Social Ventures.
January 2023: The company announces the appointment of their first-ever chief marketing officer.

As our industry rapidly attracts tech platforms and innovations, it can be difficult to know which companies are here to stay.

The growth of SevenRooms shows stability and longevity. Those are two key factors that should inform operator decisions when considering the tech stack.

Image: SevenRooms

February 17, 2023by David Klemt David Klemt No Comments

Infographic Shows Massive Tech Growth

Infographic Shows Massive Hospitality Industry Tech Growth

by David Klemt

An infographic from Brizo FoodMetrics puts the explosive growth of the hospitality industry technology landscape on display.

It appears that operators, once largely hesitant to embrace new technology, are seeking it out. So, too, it seems, are guests. Intriguingly, many guests expect restaurants, bars, and hotels to innovate technologically.

In a sign of this change, SpotOn is predicting 2023 to be the year when independent operators upgrade their POS systems.

And that’s just one area where tech companies are innovating for our industry. As their infographic shows, Brizo FoodMetrics identifies ten areas of innovation:

POS systems
Payment platforms
Online ordering solutions
Reservation and waitlist platforms
Inventory, accounting, and purchasing solutions
Human resources and staffing
Delivery, pickup, and drive-thru tech
Marketing, loyalty, and analytics platforms
Artificial intelligence, robotics, and automation
Ghost kitchen and virtual brand tech

Looking just at Brizo’s POS section, they list 48 platforms as part of their “2023 Restaurant Tech Landscape.” That’s four dozen POS systems, and that’s not even every platform available to operators.

Some will be familiar to operators—Toast, TouchBistro, Clover—as they’re basically synonymous with POS systems. Others, like Tillpoint and OVVI, may be less known. However, that doesn’t mean they’re not worthy of research and consideration.

Explosive Growth and Innovation

Again, the Brizo infographic doesn’t list every single available platform. For instance, I don’t see OpenSimSim under the HR/Staffing section. But the fact that there are still dozens of other platforms—more than in the POS section—shows that tech companies finally want their share of the hospitality pie.

This is, of course, beneficial for operators and their teams for several reasons. One such reason is innovation.

On one hand, the established platforms must innovate to fend off competitors. And on the other hand, upstarts must prove themselves to operators. In other words, new platforms must show they’re not vaporware; they have longevity and won’t abandon their own platform any time soon; they’ll update constantly; they’re simple to learn and use; they integrate with other systems; and that they’re worth an operator’s money and time.

We’re just two months into 2023. Imagine what the 2024 tech landscape is going to look like. And bear in mind, this is a restaurant-focused map—there are categories like property management systems for hotels that aren’t included.

If you’re in the market for a new POS system, want to upgrade scheduling, or are just curious about where the industry is heading, check out the infographic below. Select a few brands that are unfamiliar and look them up.

To view this infographic on the Brizo FoodMetrics website, click here.

Image: Possessed Photography on Unsplash

Guests enjoying an array of dishes at a restaurant

February 1, 2023by David Klemt David Klemt No Comments

4 Takeaways from Resy’s State of Dining

4 Takeaways from Resy’s State of Dining Report

by David Klemt

The State of Dining and What’s To Come in 2023 from Resy is an informative report that highlights several key developments to watch this year.

In fact, Resy’s report shines a light on ten trends and predictions for operators to consider. However, I’m going to address the four that stand out the most (to me).

For those who may be unfamiliar with Resy, the company is an online reservation platform. While Resy mostly serves major American cities, it does have a presence in Toronto, Canada, and London, UK.

Most importantly, the platform has a unique view of the industry. Resy looks at the industry through the lens of reservations, meaning they collect data concerning consumer behavior in real time.

So, let’s start with some compelling revelations based on reservation data. To view this report in its entirety, visit Resy via this link.

1. 5:00 PM

According to Resy, one reservation time is standing out from the rest. In comparison to 2019 and 2021, 5:00 PM reservations grew by two percent in 2022.

Now, two percent may seem like insignificant growth. However, given Resy’s reach and the platform’s number of active users, the opposite is true.

A two percent increase equates to hundreds of thousands of reservations.

Now, think about your restaurant or bar and consider your reservation distribution. Do you know which hour sees the most reservations? Not an assumption—do you have the data and therefore know the time?

If not, that’s information you need. Not only is this important for scheduling and controlling costs, it’s the benchmark you need to know if you have any chance of tracking change.

2. The Return of In-person Dining

This is one prediction that multiple industry (and even non-industry) publications are making for 2023. It’s the same for hospitality industry platforms: Companies see 2023 as the year restaurants and bars really come roaring back.

But when Resy makes this prediction, they’re using their reservation data to back it up.

First, last summer represents the single busiest season in the platform’s nine-year history. Second, a specific event, a dinner with chef-operator Massimo Bottura, sold out via Resy in a minute.

Third, October 2022. Why is this month worth pointing out in particular? By October, more Resy users had visited restaurants in 2022 than they had during the entirety of 2021.

Clearly, Resy expects this trend to continue and strengthen in 2023. Given their access to reservation data, this seems like a well-informed prediction.

3. Miami

In December of last year we checked out the best states in America for starting a business. Pennsylvania stood out to us for obvious reasons: our Northeastern office is in Philadelphia, with Kim Richardson at the helm.

Overall, Pennsylvania holds the number four spot on the Forbes list. For comparison, Florida slots in at number 45.

However, Miami appears to be an outlier for restaurant and bar entrepreneurs when it comes to Florida.

Per Resy, the restaurant footprint in Miami grew fourfold from 2017 to 2022. Moreover, Resy is seeing continuous growth in Miami. Going even further, this growth is coming from local and outside operators.

In fact, Resy describes South Florida as “white hot for high-profile sequels.” An operator has a top-tier concept? They’re likely to expand into Miami.

4. TikTok

Last week I addressed Datassential weighing in on photos versus videos. According to the F&B research firm, video is now dominating social media engagement.

And also last week, I explained the importance of discovery functionality. Operators who are considering adding a platform to their tech stack should consider whether it will help people discover their restaurant, bar, or hotel.

Resy is a platform that doesn’t just offer discoverability, it’s a core feature. So, when they say that TikTok appears to be a powerful discovery tool for restaurants and bars, that’s likely true.

Now, a poll Resy cites in their report reveals that traditional word of mouth is the top method of discovery. However, the same poll cites that TikTok is the top discovery platform for 43 percent of Gen Zers. Or, in other words, video, or digital word of mouth.

Should operators jump on TikTok? That’s something only individuals can determine is good for their business.

But if they’re courting Gen Z, well…they may need to add TikTok to their social media toolbox.

Image: Meredith Jenks for Resy

January 31, 2023by David Klemt David Klemt No Comments

Chief Marketing Officer Joins SevenRooms

Chief Marketing Officer Joins SevenRooms

by David Klemt

Just weeks after revealing a new partnership to start 2023, SevenRooms is now announcing their first-ever chief marketing officer.

Today, the guest retention platform takes another massive step in their march toward continuous growth. Josh Todd, former CMO of Mindbody, will serve as CMO of SevenRooms moving forward.

“Over the past year, I was able to get to know Joel and the SevenRooms team and see the differences they are making across the hospitality industry through data and insights,” says Todd. “Throughout my career, I have been passionate about deepening the human connections and experiences within the industries I’ve worked in, and I immediately recognized that SevenRooms truly embodies the operator-first mentality, making this a natural move for me. I’m honored to join the team and look forward to bringing my expertise and storytelling to the table.”

Todd’s appointment to CMO is yet another example of SevenRooms’ seemingly unstoppable growth. Each year, the platform strategizes, analyzes how their moves can benefit operators, and expands while streamlining.

It’s this growth that shows operators they’re here to serve the industry for the foreseeable future. And it’s this growth that should make operators confident about implementing SevenRooms in their tech stacks.

“As we head towards the next growth stage for SevenRooms, we are thrilled to welcome an experienced, proven leader in Josh to the team,” says Joel Montaniel, CEO and co-founder of SevenRooms. “Josh is a true full-stack marketer, highly analytical, and brings a strong point of view on what drives successful marketing organizations… With a background rooted in doing what’s best for operators and a true passion for bringing incredible experiences to life, we know his customer-centric approach will help propel us into the future.”

Continual Growth

In March 2021, SevenRooms appointed Pamela Martinez as the company’s chief financial officer.

By September of the same year, the platform had entered into a multi-year partnership with TheFork. This was significant news for operators throughout Europe and Australia. Additionally, this partnership illustrated how SevenRooms is pursuing global growth.

A month later, in October of 2021, the company formed a partnership with Olo. With this move, SevenRooms ensured clients who also use Olo were able to capture a key group’s data: off-premise customers. Using that information, profiles for those customers are created automatically. That means operators can learn more about—and effectively market to—customers who engage with them via online orders.

Then in December 2021, SevenRooms and ThinkFoodGroup—the hospitality company behind Chef José Andrés’ portfolio of restaurants—publicized their partnership. Interestingly, this partnership also saw ThinkFoodGroup joining SevenRooms in an advisory role.

To kick things off in 2022, the platform announced the hiring of a chief revenue officer, Brent-Stig Kraus.

Oh, and just weeks ago, to ring in 2023, SevenRooms entered into a partnership with Competitive Social Ventures.

Of course, not all of SevenRooms’ growth over the past few years involves crucial C-suite roles and entering into partnerships. While those moves benefit operators and our industry, there are other developments worth noting.

Along with hiring Martinez as CFO, the platform launched Direct Delivery in March 2021. This online ordering solution makes it easier for operators eliminate third-party fees; maintain control of the guest data they collect; and fulfill the guest desire to order from restaurants directly and effortlessly.

Image: Nick Fewings on Unsplash