Technology

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

June 8, 2022by David Klemt David Klemt No Comments

Here Come the NFT Restaurants…

Here Come the NFT Restaurants…

by David Klemt

It was inevitable, really, that after seeing cryptocurrency nightclubs we’d eventually see non-fungible-token-focused venues.

Not too long, in fact, a crypto nightclub set up shot in an ultra-lounge inside a Las Vegas casino. Members had access to a VIP section inside the venue provided they had minimum amounts of certain coins.

Bottles were popped, Instagram models made appearances, and the crypto contingent were given the VIP treatment.

Other such venues are in operation. However, the “new thing” leveraging the proliferation of the blockchain is the NFT restaurant.

Interestingly, two such restaurants are set to open in the US in two major markets. One is New York City, the other Los Angeles.

What’s an NFT?

Okay, bear with me here. I’m not an NFT expert, nor do I own an NFT. So, I’ll do my best to make this as simple as possible.

First off, the acronym NFT stands for “non-fungible token.”

Second, an NFT is a digital asset—quite often artwork—bought and sold online. Quite commonly, these assets are purchased with cryptocurrency. In fact, many sellers won’t accept any other form of payment for an NFT.

Their ownership is recorded, just like cryptocurrency, on the blockchain. It’s important to know that the purchase of an NFT doesn’t necessarily come with licensing rights, but that’s another issue entirely. So, yes, there are people who “own” an NFT but don’t actually own the rights to do much with it.

For now, what’s important to know is that NFTs are exclusive, unique digital assets. Oh, and the market (industry?), as of 2021, was worth a reported $41 billion. Not entirely surprising when one considers that a single NFT once sold for almost $92 million.

What’s an NFT Restaurant?

It is, perhaps, more accurate to refer to these hospitality venues as NFT clubs. Yes, there’s a restaurant component, but the main draw is a membership.

In New York City, for one example, the NFT is the membership. The planned venue is Flyfish Club by VCR Group, and it’s billed as “the world’s first member’s only private dining club.”

What does a Flyfish NFT membership get you? Well, the space isn’t open yet. However, the following benefits are expected:

Unlimited access to a 10,000-square-foot dining room.
Exclusive culinary, social, and cultural experiences.
An “iconic, New York City location” for the dining room, cocktail lounge, omakase room, and outdoor area.

It’s rumored that—dependent on crypto exchange rates, of course—the Flyfish membership will cost around $13,000.

On the other side of the country is another NFT membership. This concept comes from SHŌ Group and is slated to debut in 2023 on top of the Salesforce Transit Center.

Unfortunately, there isn’t any pricing information available (publicly) just yet for SHŌ Club. However, three tiers of membership have been revealed:

Earth: The lowest tier.
Water: The “core” membership.
Fire: Offers “ownership-like benefits.”

Per SHŌ, these memberships are not only verifiable via the blockchain, members will be able to sell or transfer their ownership of a membership.

If you’re curious about costs and a full breakdown of SHŌ Club benefits, you can sign up for notifications here.

Niche Concepts

Honestly, what else can we categorize these venues as besides “niche”? While both venues’ operations would likely be familiar to any hospitality professional, the NFT element certainly designates them as highly specialized.

Now, that’s not necessarily a bad thing. “Niche” isn’t inherently negative. In fact, identifying and servicing an underserved niche can be incredibly lucrative for any entrepreneur.

Indeed, the locations of Flyfish and SHŌ Club are telling. NYC is often labeled the finance capital of the world. And, of course, San Francisco is home to Silicon Valley, the tech capital of the world.

Obviously, many who work in finance and tech live in NYC and San Francisco. So, it makes sense that they’d be interested in these memberships and, as importantly, can afford them.

Clearly, VCR and SHŌ are targeting a group with a shared niche interest, and they’re doing so with upscale venues and experiences. Should these concepts come to life and their experiences live up to member expectations, they’ll have hit a homerun.

As an operator, you may not be interested in targeting the cryptocurrency or NFT crowd. However, the ubiquity of subscriptions in our lives may motivate you to consider a membership program.

If so, remember to offer value, avoid alienating non-members, and offer benefits authentic to the business.

Image: Riki32 from Pixabay

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

May 24, 2022by David Klemt David Klemt No Comments

Alright, Seriously—WTF, Grubhub?

Alright, Seriously—WTF, Grubhub?

by David Klemt

Or, more to the point, stop working with “partners” who exploit our industry rather than support it.

In spectacular and entirely predictable fashion, Grubhub’s “free lunch” further reveals that third-party delivery platforms don’t care about restaurants.

Of course, they all say they support restaurant owners and operators. And, of course, they’re quick to pat themselves on their backs for being a pandemic lifeline.

But…no. Time and time again, mainly through their exorbitant and exploitative fees, they prove the opposite is true.

Restaurants and bars aren’t third-party delivery partners. Rather, these relationships are adversarial and detrimental. So much so, in fact, that some states passed laws to limit third-party delivery fees.

In Nevada, for example, Clark County Commissioners passed an emergency ordinance in August 2020 capping those fees at 15 percent. Clearly, we need to stop enriching companies that prove they don’t support the hospitality industry but cause it significant harm.

Free Lunch?

They say there’s no such thing as a free lunch. Apparently, Grubhub really wants to prove that maxim true.

That’s one of the takeaways from their disastrous promotion. Last Tuesday, in what’s being reported as an attempt to claim the delivery throne in New York City, Grubhub offered “free” lunch to anyone who placed an order for delivery.

The requirements for this promotion? Place an order for delivery through Grubhub on May 17 between 11:00 AM and 2:00 PM and use the code “freelunch.”

Of course, customer orders weren’t entirely free. Rather, the code was good for a $15 discount. Still, a wildly attractive offer as the ensuing debacle reveals.

Unsurprisingly, the promotion made for some eye-grabbing and eye-rolling headlines. Buzzfeed News published the most attention-grabbing one: “GrubHub Was Getting 6000 Orders A Minute During Its Promo Today That Left Restaurant Workers Stressed And Customers Hangry.”

Six thousand orders per minute during a promotion with a three-hour window in a single market.

In addition, the outlet reported that one unsatisfied customer was number 3,630 in the Grubhub customer service queue. Apparently—and who can blame him—he hung up before he could speak with a Grubhub rep about his missing order.

Duh

Who could’ve seen this coming? Any of the restaurant owners, operators, or team members Grubhub “serves,” that’s who.

In fact, anyone who works in this industry with on-premise experience knew this was going to happen. So, too, any journalist who specializes in hospitality.

The fact that whoever came up with this promotion didn’t see this coming is revealing. Unless the creators of these apps and services have real-world restaurant experience, they don’t understand the business.

How can one effectively and properly serve an industry without an understanding of how it operates? Hospitality is about service. Shouldn’t the companies attempting to work within our industry work hard to serve alongside us?

Let’s be clear—this promotion was in no way designed to help struggling restaurants. It wasn’t intended to boost their traffic and revenue. Rather, it was solely created to serve Grubhub’s desire to be number one.

As we all know, we’re experiencing major staff shortages. There are also supply shortages making it difficult for operators to obtain product reliably. Grubhub made those problems exponentially worse.

Some restaurants stopped taking delivery orders. Others canceled orders. There were operators who closed in an effort to catch up with orders and prevent the situation from worsening.

According to news stories, some social media users posted that they planned to stop ordering through third-party platforms.

Negative Impact

If you’re new to KRG Hospitality, welcome. You’re likely realizing that we’re not fans of third-party delivery.

Those of you who are familiar with us have known for quite some time that we support direct delivery. That is, delivery controlled and executed by the restaurant itself.

It’s not that we’re against innovation. Rather, our dislike of these platforms, generally speaking, comes from our perception of their behavior.

In our opinion, they take control away from operators and cost them money. Again, speaking generally, they collect customer data that operators should control. Their fees are ridiculous in most cases. And when it comes to the customer experience, their inconsistencies and shortcomings reflect poorly on the operators far too often.

Studies show that customers who have issues with third-party deliveries often place the blame on the restaurant. Food the wrong temperature? Order arrive late? Packages in less-than-ideal condition? While those issues and others can be the fault of the driver, the restaurant often takes the brunt of a customer’s dissatisfaction.

Of course, there’s also the financial impact of third-party delivery on restaurants. A SevenRooms report from last year reveals how these platforms harm operators and their bottom lines.

The Solution

Look, we know operators have a ton on their plates. But protecting and boosting the bottom line is a non-negotiable element of this business.

Yes, it’ll take some time, effort, and money to set up direct delivery. However, it’s the best solution.

Direct delivery means the operator collects and control valuable data. Likewise, the operator can ensure consistency. Through direct delivery, the operator shapes and controls the experience.

Control. Inherently, third-party delivery takes some control away from operators. That’s not a good thing, and neither is their financial impact.

Look into setting up direct delivery, take control, and protect your revenue ASAP. Friend of KRG “Rev” Ciancio and SevenRooms CEO Joel Montaniel each address delivery on the Bar Hacks podcast. Listen to episode 13 with Rev and episode 24 with Joel to learn more about delivery.

We need to stop rewarding companies that exploit our industry and take advantage of our owners, operators, and hard-working staff members.

Direct delivery is the answer. Take steps to implement it today.

Image: Rosie Kerr on Unsplash

May 11, 2022by David Klemt David Klemt No Comments

What’s Next in the F&B Design Space?

What’s Next in the F&B Design Space?

by David Klemt

Design driven by a story and narrative, technological innovation, and people’s desire to socialize are what’s next in hospitality design.

The influences above are factoring into the current approach to design in the F&B space. Be it a hotel or restaurant, the F&B landscape is going to look different for several reasons.

Five leading industry experts addressed this topic during HD Expo 2022‘s “F&B Trends: What’s Next?” panel.

Well, let’s start with arguably the biggest “trend” in F&B. Our industry is finally making major advancements in the area of technology.

It may not seem like it to some, but speaking generally, hospitality hasn’t always found itself on tech’s bleeding edge. That’s changing.

In fact, some industry experts feel we may be moving too quickly. For example, an interesting prediction from Restaurant Leadership Conference 2022 is a more deliberate approach to developing and implementing hospitality-specific tech.

Now, that doesn’t mean we’ll see a significant slowdown in tech innovation. Rather, innovators may take a more calculated approach to truly relieve hospitality pain points.

For example, Adam Crocini, senior vice president and global head of food and beverage brands for Hilton, points to a few innovations now common throughout the industry. Digital order, digital pay, and the ability to deliver food essentially anywhere within a hotel, resort or casino property are tech solutions driving efficiency.

However, Crocini sees one segment in need of a specific solution. In the luxury segment, guests prefer in-person engagement with staff and tactile engagement with physical menus.

Ari Kastrati, chief hospitality officer for MGM Resorts International, seems to agree. Tech, says Kastrati, shouldn’t replace human connections. Rather, technology needs to enable and enhance.

The Experience

When it comes to design, much of the focus is on the impact it will have on the guest or consumer. However, the end user is hardly the starting point.

For Kastrati, a successful project begins with the development of a relationship. That relationship is between the designer, the operator, and the concept. If care isn’t taken to nurture that relationship, it will likely show in the final product.

In Crocini’s eyes, that relationship informs the development of the operator’s concept. How? Through the development of a story and narrative.

If the designer and operator can develop a story, the design can be grounded in said story. Further, every element of a design can be held up against that story to see if it “fits.” If it does, the design will deliver a holistic experience and engage the guest or consumer.

In terms of F&B, Kastrati and Crocini make similar points. Both feel knowing the guest and anticipating their needs is crucial.

Addressing design elements that impact the experience, Crocini believes design should start with lighting. A design without proper lighting, Crocini says, is like a Scorsese film without the score.

Alexis Readinger, founder of Preen, is focusing in part on unique floorplan design. In particular, Readinger likes features that encourage interaction between guests, such as communal loveseats. However, “protecting the introverts” is also important for some guests’ comfort levels.

It’s safe to say that Caroline Landry Farouki, partner at Farouki Farouki, agrees with Readinger and Crocini. Seating, says Landry Farouki, can create different levels of intimacy to engage extroverts and introverts, and lighting designers are crucial and can really tell the story.

F&B Trends

In terms of consumer trends, Kastrati points to something specific he’s seeing in Las Vegas. People are seeking out specialty restaurants and luxury retail. At least anecdotally, this confirms what many reports and experts have been saying for the past few years: Consumers are showing increased interest in luxury.

However, Kastrati’s focus in the F&B space isn’t solely on guests and consumers. Rather, he suggests that the next step is bringing people back to the workforce. As Kastrati says, there’s no hospitality without people. Kastrati believes all of us in the industry need to encourage people to pursue hospitality careers.

Switching gears, Jessica Gidari, director of design and concept development for Union Square Hospitality Group, points to an effective pivot as a possible industry trend.

At least one concept in the Union Square portfolio has pivoted from a restaurant to a cocktail bar. A menu with shareable plates leverages guest desire to socialize and share. Gidari also says doing away with some traditional two- and four-top tables and replacing them with communal seating can “rebrand” a space as a “convivial” lounge.

Landry Farouki thinks operators can count on two compelling trends in the F&B space. One is the return of the restaurant as “the bar.” As someone who lives and works in Las Vegas, I can attest to treating restaurants more as bars myself.

Another possible trend Landry Farouki predicts is “mature dining” replacing fine dining. Explaining mature dining, Landry Farouki says such a concept is chef-driven but doesn’t focus solely on the chef.

Trend predictions must be taken with a grain of salt. However, I only see upside for design that helps operators engage guests more from the start.

Image: LYCS Architecture on Unsplash

April 19, 2022by David Klemt David Klemt No Comments

Dining Room Tech on the Rise

Dining Room Tech on the Rise

by David Klemt

After years of restaurant technology adoption moving at a glacial pace, the industry now appears to be embracing innovations at light speed.

In fact, in just two short years some in the industry think it may be time to slow down. New tech can be exciting but jumping on every “innovation” is expensive, time consuming, and inefficient.

However, slowing down doesn’t equate to hitting the pause button.

Dining room tech was a topic of discussion at the 2022 Restaurant Leadership Conference in Scottsdale, Arizona. The two speakers agree that our industry needs to ease off the tech throttle a bit.

However, they also feel that tech innovations in the restaurant space will continue at a faster rate than they did pre-pandemic.

Session host Raymond Howard, a co-founder of Ziosk, interviewed Chris DeFrain and Hernan Mujica about dining room tech. DeFrain is a CPA at Lehigh Valley Restaurant Group, which operators 21 Red Robin franchises throughout Pennsylvania. Mujica is CIO for Texas Roadhouse.

Red Robin

Industry professionals and consumers alike should be familiar with Ziosk. After all, Red Robin has been a client with tech company since August, 2012.

Anyone who has visited a Red Robin has certainly interacted with a Ziosk terminal.

According to DeFrain, there are some interesting consumer behaviors taking place in Red Robin dining rooms. When it comes to tech, guests appear satisfied to place orders for appetizers and desserts via Ziosk terminals.

As DeFrain sees it, the guest would rather not wait for a server for ordering those types of food items. However, guests do seem to prefer ordering entrees from a server.

That’s a positive in DeFrain’s opinion, as he believes that ordering must remain the domain of servers. While he contends that the tech-based ordering process needs streamlining, DeFrain doesn’t appear interested in taking it out of servers’ hands completely.

This makes sense; the server as an integral element of the guest experience. How can a casual dining restaurant build guest loyalty and deliver a memorable guest experience without an engaging front-of-house team?

Of course, dining room tech should do more than accept orders, summon a server, and offer tableside payments. Today, data is king. Powerful platforms collect as much useful data as possible.

To that end, DeFrain appreciates that Ziosk provides data Red Robin leadership teams can share with staff. For example, a server can be shown how much they’re making in tips during their shift.

Finally, DeFrain says that guest usage of Ziosk terminals is improving feedback and comments.

Texas Roadhouse

In comparison to Red Robin, Texas Roadhouse took longer to sign on with Ziosk. In part, interestingly, this was due to the redesign of the terminal itself.

Turns out, Texas Roadhouse waited for a Ziosk terminal that took up less space and looked better on the chain’s tables.

Per Mujica (and any Texas Roadhouse guest), the in-person experience is core to the brand. Therefore, dining room tech must be an enhancement, not a detriment.

Like Red Robin, the chain has no interest in adopting tech that replaces FoH staff.

Another consideration regarding dining room tech should be important to all operators: The tech must be user friendly. According to Mujica, restaurant guests are happy to embrace tech innovations—if it’s easy to use.

So, operators must be careful and deliberate when choosing their tech stack. Generally speaking, native tech users (Gen Z) will likely be much quicker to learn how to use a particular technology than a Baby Boomer or even Gen X counterpart.

As such, operators must know their guests in order to adopt tech that enhances rather than alienates.

Another reason Texas Roadhouse chose Ziosk, per Mujica, comes down to mobile pay. In short, the chain didn’t like the mobile pay guest experience.

In terms of the future, Mujica predicts that handheld, tableside ordering is the future of dining room tech.

Takeaway

Like Mujica says, operators have now seen what tech innovations can do for them. In short, there’s no turning back.

And I agree with Mujica and DeFrain: it’s likely (and necessary) that tech development will slow a bit moving forward. Honestly, we all need room to breathe, consider the innovations available currently, and decide what works best for a particular business.

Likewise, I agree that tech can’t be allowed to alter the service model. Technology shouldn’t be seen as a replacement for staff.

Interestingly, restaurateur David Chang addressed this very subject during a 2022 RLC conversation. In his opinion, tech won’t replace restaurant roles, it will streamline them. At most, said Chang, tech will replace small, repetitive tasks, such as the physical flipping of a burger.

In closing, when deciding on the tech stack, operators should consider the following: ease of use for guests, ease of use for staff, streamlining of operations, and cost.

In this space, tech should never be embraced simply because it’s shiny and new. Not only is that costly in terms of investment, it can cost guest loyalty and visit frequency.

Image: Vishnu Mohanan on Unsplash

Close-up shot of person texting on phone in a restaurant

April 12, 2022by David Klemt David Klemt No Comments

Leadership Facepalm: Don’t Do This

Leadership Facepalm: Don’t Do This

by David Klemt

Here’s a hot take on the employer-employee dynamic: Don’t text staff at 3:00 in the morning demanding they come in on their day off.

In fact, let’s compress this piece of advice. Don’t text staff at 3:00 in the morning.

Really, I shouldn’t have to explain the myriad reasons that doing so isn’t acceptable. However, a post on Reddit shows that this topic needs addressing.

Are You Serious?

Yes, I’m using a Reddit post as an example of what not to do. And yes, I’m going to assume the post is legitimate for the purposes of education.

Owners, operators, and members of leadership teams need to lead. Micromanaging, assuming staff is at their beck and call, and domineering behavior only lead to high turnover.

A high staff churn rate is costly, and not just financially. Yes, it costs thousands of dollars to replace a single member of staff. However, immediate financial costs shouldn’t be the only concern.

Churning through staff also damages a restaurant, bar, hotel, or owner’s reputation. Should they become known as a bad employer—word gets around quickly in this industry—and eventually an operator won’t be able to hire rock star talent.

Over time, they’ll only draw in workers that chase away their guests. After that, the operator will be closing the doors.

“You Need to Be a Team Player”

Interestingly, the Reddit post that’s inspiring this article isn’t brand new. The post in question is about six months old.

But these days, with the shift in the employee-employer dynamic that’s taking place, stories of “epic” or “savage” quitting garner attention.

Again, there are myriad reasons people are drawn to these stories. Rather than read through those, let’s take a look at this quitting story.

A bartender took to Reddit (again, I’m assuming this is a fact) to share texts from his (former) manager. The timestamp on the first text? 2:59 in the morning.

“I need you to come in from 11a-10p today,” starts the text. The reason? Only one bartender is on the schedule for an event that day.

In response, the bartender says, “No thank you,” stating it’s their day off. And then the manager makes a demand using a term that gets thrown around far too much when some people in a position of authority don’t get the response they want (in my opinion).

The bartender is told they need to be a “team player,” and that “it isn’t all about you.” On a positive note, the manager does then say “please” and asks the bartender to come in.

Putting their cards on the table, the bartender says they’ve had a few drinks and don’t want to work an eleven-hour shift with a hangover. Personally, I don’t think the manager was due that explanation but okay.

This doesn’t sit well with the manager, who now attempts to police the bartender’s personal time. According to the texts, the bartender needs “to stay ready for work.” This is apparently because “getting too drunk is not a good look if you can’t stay prepared.”

“Fed Up with You”

After a few more texts back and forth, the manager fast-tracks this situation’s escalation. The bartender is told that they’re going to talk about the bartender’s “attitude” when they “come in Sunday.”

Well, it’s highly unlikely that conversation ever took place. According to screengrabs of the texts, the bartender replies, “No we’re not.” They then proceed to remind the manager that “dozens” of places are hiring bartenders. They’re happy to go work for one of those businesses.

Unsurprisingly, the manager attempts to backpedal. They say that the bartender is making a rash decision “because you’re drunk” and will regret it the next day. That approach doesn’t work.

Now, there’s one sentence that suggests to me, if this situation is real, that the owner needs to address this manager. Or, if this manager is the owner of the business, that they need to work on developing leadership skills.

That line? “I’m fed up with you.”

Sure, they could mean they’re fed up with them in this instance. However, the line follows the bartender saying that their are several other places they can find work instead.

My interpretation is that at a minimum, these two have a problem with one another. Worst case, this manager isn’t doing the owner (or themselves) any favors with their “leadership” style.

Just…Don’t Do This

Please, please, please, don’t text or call staff at 3:00 in the morning. There are perhaps a tiny handful of reasons to ignore this advice. As I see it, those reasons all involve emergencies.

And no, being short-staffed for an event the following morning is not an emergency worthy of texting or calling an employee to cover a shift so late at night/early in the morning.

There are several leadership and scheduling solutions that can prevent this type of situation. In this particular instance, since the bartender was “fed up with” this manager, they were going to quit sooner or later.

Which brings me to my first point: Operators need to know what their leaders are doing. How are they treating staff? How does the staff perceive the leadership teams?

Secondly, how do the operator and other leaders perceive one another? Is everything running smoothly or is one “leader” not really leading?

And finally, scheduling technology. These days, there’s really no excuse for many kinds of scheduling problems. Several scheduling apps integrate well with popular restaurant, bar, and hotel POS systems.

For example, HotSchedules gives staff the ability to give away, swap, and pick up shifts. Another example is OpenSimSim, which provides an open shift invite feature. Staff can also set their profiles to auto-accept shifts as they become available.

7shifts and Schedulefly can also help fill shifts. And like HotSchedules and OpenSimSim, leaders can message groups and individuals, and vice versa.

Perhaps the biggest takeaway here is this: The maxim, “People don’t leave jobs, they leave managers,” is accurate. Leaders need to respect their team members and their personal time.

Image: Alex Ware on Unsplash

Restaurant worker using SevenRooms on tablet

January 19, 2022by David Klemt David Klemt No Comments

SevenRooms Kicks Off 2022 with Growth

SevenRooms Kicks Off 2022 with Growth

by David Klemt

SevenRooms continues their growth by kicking off 2022 with the announcement of a new, crucial addition to the team.

Today, the hospitality technology company announces the hiring of Brent-Stig Kraus. Formerly the senior vice president of sales for ChowNow, Kraus will take on the role of chief revenue officer at SevenRooms.

As CRO, Kraus will play a crucial role in further accelerating SevenRooms’ impressive global growth. The company’s new CRO will accomplish this goal by identifying and pursuing partnership opportunities, targeting high-growth sales, and scaling sales globally.

Steady Growth

In March of last year, SevenRooms brought on Pamela Martinez as the company’s chief financial officer.

By September of 2021, the platform announced a multi-year partnership with TheFork. In particular, this was major news for operators throughout Europe and Australia. Additionally, this partnership illustrates how SevenRooms is pursuing long-term global growth.

A month later, in October of last year, the company entered into a partnership with Olo. In doing so, SevenRooms ensures clients who also use Olo can capture their off-premise customers’ information. That data then creates profiles for those customers automatically, meaning operators can learn more about and effectively market to customers who engage with them via online orders.

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

And it’s not just filling crucial C-suite roles and entering into partnerships that benefit operators and the industry that are examples of SevenRooms’ rapid growth.

Along with hiring Martinez as CFO, the platform launched Direct Delivery in March 2021. This online ordering solution helped operators eliminate third-party fees; retain control of guest data; and fulfill guest desire to order from restaurants directly and seamlessly.

Finally, the company ended 2021 by sharing their 2022 trend predictions.

Why this Matters

Tech innovations are crucial to the long-term future of the hospitality industry. Restaurateurs, bar owners, and hoteliers, were once wary of adopting new tech.

Now, they’re investing more to streamline operations; automate reservations, online ordering, and marketing campaigns; and improving customer and staff relationships.

However, without growth a platform eventually becomes outdated. When that happens, the investment made by an operator to include it in their tech stack becomes a burden and liability.

As SevenRooms continues their growth, they prove worthy of an operator’s support and investment. We continue to support SevenRooms—without receiving any compensation for doing so—in large part because of the platform’s growth.

In addition to their available tools, we’re always eager to see what they’ll release next to make life simpler for operators.

Image: SevenRooms

Unlit hotel sign against blue sky background

December 22, 2021by David Klemt David Klemt No Comments

Hotel Trends to Watch in 2022

Hotel Trends to Watch in 2022

by David Klemt

Partially driven by the pandemic, in part driven by the march of innovation, these are the hotel (and motel) trends to watch in 2022.

As is the case with restaurant and bar trends from the last two years, these trends are likely to quickly evolve into industry standards.

Once slower on the uptake in comparison to other industries, hospitality is now embracing tech innovations rapidly.

Of course, not every 2022 and beyond trend relies on tech. However, most of the big changes involve tech in some way.

Below are the trends (soon to be standards) to watch and adopt next year.

Digital Room Keys

We do everything on our phones. So, why shouldn’t we access hotel and motel room keys via the devices always in our hands or pockets?

Many tech-forward hotel properties have made it possible to unlock hotel rooms via phone apps. As consumers feel more comfortable that it’s safe, secure and reliable, we can expect physical room keys to become obsolete.

One can also make the argument that doing away with millions of plastic keycards is a more sustainable practice.

Your Face is Your Passport

Points* to anyone who gets the movie I just referenced. (*Points have no value and are not redeemable for anything. But we think you’re cool for racking them up regardless.)

Some properties will make it possible to access a hotel room via biometrics. CLEAR travelers will already be familiar with this tech process.

In short, a guest will be able to unlock their room with their face. In terms of personalization—a guest expectation that’s only growing—facial recognition tech can instantly deliver on a guest’s temp, lighting, and other preferences.

I can also see this technology permitting guests to access clubs; club levels; health centers; pool areas; and order and pay for everything from food and beverage to their entire visit.

Of course, this form of tech relies heavily on people’s comfort levels concerning privacy. So, operators will need to prove themselves responsible with guest data.

Touchless Everything

Convenience works both ways. Guests want frustration-free visits. Operators and managers want to eliminate pain points wherever possible.

Guests are becoming familiar and comfortable with checking in via their phones or kiosks. In some hotels, guests navigate the lobby without ever engaging with an employee.

With the proliferation of digital assistants in homes, guests are already comfortable with voice-based functionality. Ordering room service, turning on the TV and streaming, playing music, drawing automated shades, adjust room temperatures and lights… Digital assistants eliminate several more touchpoints.

AI tech also means hotels can operate with smaller teams effectively. So, hotel design is likely to keep evolving: lobbies will look different, as will rooms, restaurants, bars, and other amenities.

Virtual Room Selection

Speaking of AI, what about VR?

Tech-savvy guests will appreciate being able to “tour” different room options in the virtual space. Such a feature can start a guest’s visit off on the right foot before they ever step onto property.

They’ll know they’re getting the features and views they want, setting up a positive experience. It’s likely VR room tours and selection will also help hotels upsell guests on rooms and features.

Cryptocurrency

There are already hotels and resorts out there accepting crypto. There’s no reason to believe this will fall out of favor any time soon.

In fact, it’s likely guests who prefer to pay via digital currency will be able to pay for every element of their visit with crypto. For these guests, a tech-heavy experience will be appealing:

Check out room options via virtual reality before booking;
Book their room in the VR space.
Utilize digital check-in, then unlocking their room via phone or facial scan.
Paying for premium amenities and F&B via crypto ties to biometrics.
Contactless check-out.

Guest Who

Unsurprisingly, business travelers were the first to return to hotels during the pandemic. A percentage of these guests sought out hotels that could offer them a work-from-anywhere option.

For the most part, these guests simply needed a fast, reliable WiFI connection. Of course, many of them chose properties for more leisure-focused amenities. This led to the coining of a new industry term: bleisure, a portmanteau of “business” and “leisure” travelers.

It’s likely hotels, motels and resorts will see more traffic from bleisure, solo, and staycation guests in 2022 and beyond.

Many guests will also make property selections based on a brand or group’s sustainability efforts. So, operators will need to ensure they’re being provably sustainable and not just green-washing to attract these guests.

As we can see, technology will feature heavily in the changing hospitality landscape. Initial outlay may be pricy, but as innovations become more commonplace, costs will be driven down. But offering the features that will increase traffic and guest spend? A healthy bottom line is worth it.

Image: NeONBRAND on Unsplash

December 21, 2021by David Klemt David Klemt No Comments

Square: 2022 Threats & Opportunities

Square: 2022 Threats & Opportunities

by David Klemt

As all hospitality professionals know, the past nearly two years is imposing rapid change on the industry, necessitating rapid, strategic adaptation.

The key word in the above sentence isn’t “adaptation,” it’s “strategic.”

Of course, it’s hard to make strategic choices without as much information as possible.

To that end, we’ve reviewed Square‘s recently released “Future of Restaurants: 2022 Edition.” This is the company’s second annual Future of Restaurants report.

Square partnered with Wakefield Research, surveying 500 operators and 1,000 consumers to identify 2022 threats and opportunities.

Threat: Labor Shortage

Most operators aren’t going to want to read this prediction from Square. However, we can’t identify and adapt for opportunities if we don’t acknowledge threats.

Per Square’s report, the labor shortage may never see a correction. In other words, welcome to yet another new normal.

More than 70 percent of operators say they’re facing a labor shortage, per Square. Just over 20 percent of available positions were, at the time the survey was conducted, unfilled.

Instead, operators will likely, according to Square, need to make operational and work culture changes:

Improve working conditions. For example, encouraging and acting on team feedback. Another example? Modernizing scheduling.
Ensure workers are being mentored and not simply managed.
Hire, train, assign tasks, and schedule more strategically to operate with a smaller team.
Offering incentives that entice higher-quality candidates to work for you.

One participant quoted in the Square report claims that QR code ordering dropped their labor cost percentage by 150 percent.

Threat: Lack of Tech

As SevenRooms suggested when looking forward to 2022, technology solutions can lessen the burden of labor shortages. That leads us to another big threat: failing to embrace tech.

Some operators bristle at the word “automation.” For many, it conjures an image of robots in the kitchen and delivering food to tables.

Obviously, we’re opposed to replacing staff with any form of automation. However, we support automating tasks if that means team members are better utilized.

Why not automate inventory? Why not automate online order filling? If it improves operations and the guest experience, automation is less threatening.

According to Square’s report, 62 percent of operators think automation is appealing for managing online, delivery, and contactless orders. Ninety percent of operators say that back-of-house automation—if staff can focus on more important tasks—is a good idea.

More than 90 percent think automated inventory is an appealing solution.

It has taken a lot of time for hospitality to catch up to other industries in embracing tech. But Square reports that 36 percent of restaurants upgraded their business tech in 2021.

Of course, automation will become a threat if operators lean too heavily into it and stop paying attention to detail.

Phrased another way, be tech-savvy, not tech-reliant.

Opportunity: Omni-channel

Square see implementing an omni-channel strategy as the way forward. In fact, their general manager for Square Restaurants, Bryan Solar, said the following:

“We see the time of the dine-in only or takeout only as largely done forever.”

Going omni-channel (diversifying) in the restaurant space means making online ordering and delivery important elements within the overall business strategy. To that end, Solar posits kitchens will grow in size to better handle online orders.

Square’s survey reveals some intriguing numbers:

13 percent of consumers say they’ll avoid restaurants that don’t offer online ordering.
Among restaurants with online ordering, those channels generate 34 percent of their revenue.
Over the past year, 54 percent of restaurants either added or expanded online ordering channels.
Online ordering is likely here to stay: 69 percent of respondents plan to offer it post-Covid-19.
24 percent of operators are planning to allow guests to order alcohol from them online.

Another interesting set of numbers pertains to first- and third-party delivery. As we’ve stated several times, we much prefer operators offer first-party or direct delivery. According to Square, 49 percent of operators plan go direct delivery. More than half—62 percent—will pursue third-party delivery. That suggests that some operators will offer both.

Opportunity: Direct Ordering

When it comes to engaging online guests, operators need to control the experience. As I wrote for another publication years ago, a restaurant or bar’s website is still very important.

This statistic proves that statement true: Per Square, 68 percent of online guests want to order via a restaurant’s website or app, not a third-party.

More than likely, a significant portion of those guests want to know they’re supporting a restaurant and its staff directly. Hence the importance placed on ordering via the website or their own branded app.

So, operators would do well to ensure their websites feature an ordering widget. Or, they can opt to have an app built (or at least skinned) for their business.

Opportunity: Kiosks

According to Square’s survey results, 79 percent of consumers prefer ordering from kiosks over ordering from staff.

Most consumers and operators likely associate ordering kiosks with fast food restaurants. However, other categories can also benefit from these devices.

Close to half—45 percent—identified it as a preference when ordering at a casual-dining restaurant.

And fine dining isn’t immune to the convenience of tech. A little over 20 percent of consumers prefer to order via kiosk in the fine-dining space.

Overall, kiosks speak to the guest desires for convenience and safety. More than a third indicated that ordering via digital menu is appealing because they don’t have to touch a menu someone else has touched. And 37 percent like a digital option because they don’t have to wait for a server to bring them a physical menu.

Eleven percent of Square survey respondents will avoid a restaurant if they don’t offer digital menus.

Nearly half (45 percent) of restaurants are planning to offer QR code menus post-Covid-19. Another benefit of digital menus is dynamic pricing. As costs fluctuate, operators can increase or reduce prices easily without printing new menus.

Outlook

Representing a stark contrast from 2020 survey results, nearly 60 percent of operators say the survival of their restaurants is a concern in 2022.

That’s still a high number but vastly lower than how operators answered about 2021. Last year, 92 percent of operators surveyed said they were worried about survival.

According to Square’s report, operators are looking past surviving and making long-term plans. That’s a welcome sign that confidence is improving.

To review Square’s “Future of Restaurants: 2022 Edition” report in its entirety, click here.

Image: Patrick Tomasso on Unsplash