How Restaurants Are Improving Customer Experiences With Technology

I have spent much time recently discussing innovations in the food service sector, like mobile ordering, robotics & automation, and ghost kitchens. This innovation is being driven by customer demand for more convenient food options. Therefore, I was interested to read Heather Haddon’s article “Drones and ‘Game Film’: Inside Chick-fil-A’s Quest to Make Fast Food Faster” in the The Wall Street Journal. For years, Chick-fil-A Restaurants' popularity has resulted in long lines of cars, causing major congestion at some locations, frustrating customers and nearby residents, businesses and municipal leaders. Heather provided an overview of how Chick-fil-A is using data analytics and video analyses, like professional sports teams, dispatching specialist teams from its headquarters to its more than 3,000 restaurants to study the minutiae of parking-lot traffic patterns and how employees hand off orders. By integrating data from security cameras in the kitchen and drones outside the restaurant, Chick-fil-A was able to see that more workers were needed to reduce the burden on existing employees working the drive-through and the Wi-Fi used by parking-lot order-takers needed to be extended further from the store. By using visual data, Chick-fil-A was able to identify bottlenecks, as well as test and analyze different solutions, enabling the company to be at the forefront of fast-food drive-through science, and adjust to changing consumer patterns. One of the biggest takeaways from this work is that Chick-fil-A realized it had underestimated how many different challenges it faced. Chick-fil-A is the same company that in 2024 opened a multi-story, drive-through only restaurant in Georgia. This new restaurant design can handle three times as many drive-through cars as its other restaurants and includes lanes just for customers who order through the chain's app. The kitchen is two times larger than a typical Chick-fil-A restaurant kitchen and utilizes a food conveyor system to deliver a meal every six seconds, according to Chick-fil-A. This food conveyor system is an example of how the use of automation & robotics is changing the FoodTech sector. With an almost unlimited amount of data available from security cameras, sensors and other devices throughout the facilities and the growing power of AI and machine learning (ML), we should expect that other quick service restaurants will follow a similar strategy to optimize operations, to reduce costs and improve the consumer experience. https://lnkd.in/gsF6YeyH #ai; #robotics; #automation; #innovation; #technology; #restaurants; #foodtech; #food EcoTech Capital Cy Obert

I think a very visible observation at this year's Restaurant Show was logical tech instead of theoretical. There was less "glimpses into the future" and more "proof of concept." Here's one of those in action: For two and a half years, Wingstop has worked on a new Smart Kitchen that forecasts demand in 15-minute increments, telling the store how many wings to drop. The system takes into account more than 300 variables tailored to each unit, like weather, sales trends, and sports. It also features digital touch-screen displays at every work station instead of paper chits and an order-ready screen at the front so consumers can keep up with their order. Another feature: there are now sticker print outs that identify what flavors are in each package. At restaurants where the technology has been installed, wait times have been cut in half to about 10 minutes, and there have been notable improvements in guest satisfaction, accuracy, consistency, and employee turnover. In the delivery channel, Wingstop has been able to show up in under 30 minutes. Why is this important? Shorter wait times allow the brand to become a greater consideration. Instead of serving as a destination—with an average frequency of just three times per quarter and once a month—the quicker service could entice guests to visit more often, especially during on-the-go periods like the afternoon daypart. The Wingstop Smart Kitchen is in 400 restaurants and the chain hopes to complete the rollout by the end of the year. Again, real-time innovation in the back of the house. That seems to be the battleground right now. More here: https://lnkd.in/eMHMUkmZ

It’s a big day for SevenRooms – we’re launching our first-ever global restaurant industry trends report and sharing it so we can all get smarter, together! With insights from restaurant operators, SevenRooms platform data, and consumers worldwide, this report shares the latest market research on diner expectations and trending topics like AI, automation, marketing and loyalty. Here’s my perspective on the most impactful insights: 🧠 74% of operators are already using AI in some way to run their business. They’re primarily using it to process reservations, manage inventory and analyze data. Hospitality/Restaurants are early entrants to AI when historically we've been tech laggards. 📧 Personalized email marketing campaigns are driving outsized results for restaurants. Targeted emails see a 23% higher open rate and drive 2X more revenue than full-list sends. 💬 Text marketing is effective in reaching Gen Z Text marketing has a 98% open rate, and the majority of Gen Zers (41%) prefer to receive restaurant promotions via text. 💰 Reservations with prepaid upgrades and experiences average a 35% higher spend than those without. Guests willing to pay more for elevated experiences in advance spend more, and operators are cashing in. In 2023, SevenRooms operators generated significant revenue from upgrades: >$30M in the U.S., >£6M in the U.K. and >$20M in Australia.  This number has grown significantly already in 2024. 🥰 Restaurant-goers will go to great lengths to dine with the brands they love. If a guest in the U.S., U.K. and Australia can’t get a reservation at a particular spot, 31% look for a different date and time, while 32% will look for a different restaurant within the same hospitality group. The data shows that in this age of AI and automation, diners want greater connection and access to the brands they choose to patronize. To meet these needs, operators must leverage the right technology and data to execute strategies that enhance guest experiences, drive deeper connections, and foster loyalty. Take a look at the report, I’d love to hear what you think of the findings: https://lnkd.in/eRqdVjMU

I can't be the only one who's noticed... Kiosks have seemingly popped up in every restaurant. From local chains to roadside rest stops I'm ordering via touch screens as often as I'm speaking to someone. With restaurants reevaluating ways to enhance the customer experience and boost efficiency, kiosks offer a way to blend tech with a personal touch. Here’s why more brands will be taking a fresh look at kiosks for 2024 Adoption & Results: - Shake Shack: Over half of in-restaurant sales now happen via kiosks - El Pollo Loco: Testing shows reduced labor hrs and high consumer adoption - Yum Brands: Kiosks in 40% of KFCs, all Taco Bell US locations, and 70% of Habit restaurants Benefits: - Higher avg tickets and improved margins - Labor redeployment reduces the need for FOH order-taking - More opps to leverage customer data for personalized experiences Consumer Preferences: - 42% of diners have used kiosks; reasons include no rush to order (44%), ease of menu exploration (41%), and full menu visibility (40%) - Guests spend more time ordering with less stress leading to higher order values Investment & Expansion: - Shake Shack: Adding more kiosks + upsell features - El Pollo Loco: Accelerated rollout planned for mid-2024 - Yum Brands: Targeting a 20-pt increase in KFC kiosk penetration by 2026 #kiosk #restaurant

In China, the traditional cafeteria is undergoing a transformation that's setting a new standard for innovation in the food service industry. Using technologies, some cafeterias have integrated AI to autonomously calculate the cost of meals. This method leverages object detection algorithms, allowing the tech to identify and price meal components efficiently without human intervention. 𝐇𝐨𝐰 𝐈𝐭 𝐖𝐨𝐫𝐤𝐬 The system captures images of the trays as they pass through the checkout area. Each item on the tray is recognized and evaluated by the AI, which then calculates the total cost based on current menu prices in the system. This technology not only speeds up the checkout process but also reduces errors associated with manual billing. 💡 Such advancements are set to redefine the dining experience by minimizing wait times and streamlining operations, potentially setting a benchmark for cafeterias worldwide. Additionally, the data collected by these systems can provide valuable insights into consumer behavior and preferences, enabling businesses to optimize their offerings and improve service. 🔗 What do you think about the integration of AI in daily operations like cafeteria services? Could this be the future of the dining industry? #innovation #technology #future #management #startups

Chick-fil-A has automated the task of squeezing lemons🍋 This used to take 10,000 hours of staff time every day! 😮 Now, robots manage the process at a facility in California. The result? Less waste: Nearly all parts of the lemons are used. Efficiency: Staff can focus more on food prep and serving customers. Innovation: Even the lemon oil is sold to the fragrance industry, creating new revenue. Chick-fil-A Restaurants isn’t the only one turning to automation: Chipotle Mexican Grill is testing machines that cut, core, and peel avocados for guacamole. The Wendy's Company’s and Taco Bell are testing AI to handle drive-thru orders. CAVA is using cameras and AI to track ingredient use and improve efficiency. What could this all mean for food service? Efficiency: Automation helps restaurants handle labor shortages and scale faster. Workforce Shifts: Frees up employees to focus more on customers instead of repetitive, physically demanding tasks. Customer Experience: Faster service and consistent quality are becoming the norm. This automation represents a fundamental change in how we should think about modernizing food service. It shows the value of addressing bottlenecks that create the most friction, even if they’re not the most visible tasks. It’s intriguing to see how technology is making operations smoother, but it also raises questions: How do we balance innovation with creating fulfilling jobs? And what’s next for automation in food prep? Great piece by Daniela Sirtori at Bloomberg! Thank you Deena Shanker for sharing this article 🔻 https://lnkd.in/e_kVhX8f

Today’s thought: Innovation never stops—it evolves! I love seeing stories from companies I chose to highlight in my book The Experience Mindset continue to unfold. I highlighted Chipotle for its forward-thinking approach to using technology to improve both employee and customer experiences. At the time, Chipotle launched the "Cultivate Next" fund and opened an innovation center where it developed a robot named Chippy to help make their tortilla chips more efficiently to keep up with demand. When launched this showcased how automation can be used to reduce repetitive tasks and free up employees to focus on more meaningful work. Well, they are at it again. This time, they’ve unveiled “Autocado,” a robot designed to halve, core, and prep avocados for guacamole. With Autocado, Chipotle is pushing the boundaries of innovation even further, cutting down the time it takes to prepare guacamole from 50 minutes to just seconds. By reducing the manual effort required to prepare avocados, Chipotle empowers its employees while simultaneously speeding up the preparation process for customers and improving CX. It’s a perfect example of how constant improvement and innovation can push the envelope on what is possible. As discussed in the book, enhancing both EX and CX simultaneously is the key to sustained growth, and Chipotle continues to invest to find ways to do that even more. How is your company using technology to support both your employees and customers in new and innovative ways? #customerexperience #employeeexperience #CX #Growthmindset #innovation Chipotle Mexican Grill #technologyforgood

Latest from me and Belle L. in today's print edition of The Wall Street Journal: McDonald's’s is giving its 43,000 restaurants a technology makeover, starting with internet-connected kitchen equipment, artificial intelligence-enabled drive-throughs and AI-powered tools for managers. The goal? To drive better experiences for its customers and workers who today contend with issues ranging from broken machines to wrong orders, according to Brian Rice, the Chicago-based burger giant’s CIO. “Our restaurants, frankly, can be very stressful. We have customers at the counter, we have customers at our drive-through, couriers coming in for delivery, delivery at curbside. That’s a lot to deal with for our crew,” Rice said in an interview. “Technology solutions will alleviate the stress.” The investments are coming at a key time for McDonald’s, whose U.S. sales were sluggish in January—reflective of a broader slump in the fast-food industry. The restaurant is hoping that a better tech-enabled experience will help it deliver on its goal of growing its loyalty patrons from 175 million to 250 million by 2027. What are your thoughts? Does McDonald's have room to improve from a customer experience point of view? Can tech help? Read the full story here: https://lnkd.in/eGWSK-A7