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'Technology on the Menu', The Restaurant of the future and the development of technology

1.0 Introduction to topic

The aim of the module was explained as ‘developing an appreciation of the key strategic issues facing the international hospitality industry and the changing nature of the industry and consumers’. At this point it was clear to the author as to what the objective of the subject was and as a result the author looked forward to understanding the changing nature of the hospitality industry and the paradigms that relate to the forces and impacts of change and the future of hospitality.

As part of assessment 1, it was explained that a research report relating to the topic of Strategic Hospitality Developments had to be completed. It was further explained that the report had to outline the strategic implications of that particular topic area over the next 5-10 years using published sources to support findings. After researching a few topic areas, the author decided to focus on the one topic of restaurants and what the future had in store for this type of hospitality establishment in accordance to the technological advances of food and beverage operations in the ‘front of house’ area of restaurants.

1.1 Topic Choice and Research

The author felt most comfortable choosing to focus on the restaurant industry because of her family background in the business. She felt that a topic such as this would not only be interesting to research upon in terms of what the future is holding, but also the fact that she could start to possibly think about some of the advances and how these may affect the family restaurant in the future. In regard to research, various peer reviewed resources (journal articles) were available on the topic, as well as hospitality magazine which had valid articles relating to technology and the future of the restaurant industry. The most appropriate and relevant in this case have been used.

1.2 Defining the Title

It is considered important by the author to define exactly what is meant by the title and what the report will focus on discussing. According to Prakash (2007), technology is the process by which humans modify nature to meet their needs and wants. Keegan (2004) has the view that technology is what controls the world and that people using technology, relates to people using knowledge, tools and systems to make their lives easier and more convenient. Prakash (2007) points outs that technology is closely associated with innovation and the transformation of ideas into new and useful products and processes. He also researches that the hospitality market is becoming saturated with technology and the Internet and more advanced computer systems are two factors which are specifically creating solution for establishments such as hotels and restaurants. The report will focus on discussing the strategic implications of technology, specific to the restaurant industry and how advances in technology may impact the restaurant business in five to ten years time, how and why.

It is also considered important to, clarify exactly the restaurant type that is being discussed in accordance to the technological advances. According to Davis, Lockwood and Stone (2004) the various types of restaurants include snack bars, cafes, coffee shops, take-aways, fast food, theme restaurants, ethnic restaurants and haute cuisine restaurants. This report will focus specifically on discussing the technological advances in ‘sit down’ restaurant types, concentrating on the area of food and beverage and how service for customers is improving via the advances in technology.

2.0 Analysis: The role of technology in the hospitality industry

Kogen (2007) highlights that the hospitality industry is continually changing and as a result, the restaurant industry is expected to keep in pace. According to Minnick (2006), during the past decade a technology revolution has taken place in the restaurant industry and technology has had and will continue to have a profound impact on the sector. On a practical level, high tech applications have already helped operators improve ordering functions, table turns, inventory controls and accuracy (Minnick 2006) and thus it can be said that there are already many new technology related products being used by restaurants, and in this way some restaurants have taken the ‘customer experience’ to another level (Mintel, 2003).

Traditionally the restaurant industry has failed to keep up with the advances in technology (Mintel, 2003). About 15 years ago, the main advancements consisted of the “upgrade” from cash registers to POS computer systems, from manual credit card authorizations to computerized authorizations via telephone lines (Restaurant Business, 2005). Riley (2005) highlights that technology is ‘exploding’, from telecommunications, Ë-commerce, Internet, Intranet and databases. Durocher (2001) highlights that although in the past restaurants have been one of the last to embrace technology, they have finally started responding, he believes that” by the time you finish reading this, the technology will be outdated”, which emphasises the rapid speed at which technology is changing.

Kogen (2007) has the opinion that it is imperative that restaurateurs keep abreast of technological changes and emphasises that the future aim of restaurants should be to emphasise on the delivery of products and services via computer based technology. However Kogen (2007) also puts across that although it is important for restaurateurs to recognise and use new technologies as much as possible for their food and beverage operation, the technology should not replace the human element involved in delivering quality service (Kogen, 2007). Clearly, technology is widely viewed as a means to enhance and facilitate service, but not as an alternative to providing quality service (Cline, 1996).

2.1 Analysis: Customer expectations

Technology can now recognise and respond to each customer and his or her preferences (Graham, 2004). Graham (2004) points out that, hospitality executives are using technology to enable:

• The business to understand better the profitable customers
• The business to operate efficiently, profitably, transparently and flexibly
• The customer to have an increasingly personal experience

Panitz (2000) highlights that consumers are becoming more educated and are expecting more when they dine out and in this way restaurants need to become more responsiveness in their service as well as in the kinds of products they offer to customers. Panitz (2000) researches that to thrive in the competitive restaurant field, restaurants will need to improve the total dining experience. Panitz (2000) describes how consumers will demand more of an entertainment value when eating out and as a result, restaurants will need to provide a multiple sensory experience in order to survive in the future.

Interestingly, Apfel (2001) signifies that speed is not always what a customer wants when dining out and restaurants need to give customers the option to linger over a meal and soak up the restaurant’s ambience and make use of other unique services. Apfel (2001) highlights that one way to enhance a restaurant’s atmosphere is through music and some music-providers have plugged into the Internet to offer a better experience to operators and their guests. Therefore it can be seen that various advances in technology are used and will increasingly be used in the future by restaurants to fulfill customer expectations, and further examples as to how will now be discussed.

2.2 Analysis: The current technology and advances in restaurants

Durcoher (2001) believes that if restaurateurs are not yet using technology to better serve their customers, they may be losing out on revenues and failing to provide optimal service. Various restaurants around the world have already advanced in using new technologies to better serve guests and make functions such as ordering more efficient (Christensen, 2006). Restaurants are using technology to introduce new concepts and customers are responding positively. New ideas, designs and concepts attract customers and if a restaurant has introduced something new, customers will want to try (Liddle, 1999). An example of such a restaurant is Kaiten-Zushi, where plates with the sushi are placed on a rotating conveyer belt which moves through the restaurant and moves past every table and counter seat. Customers can pick their selections from a steady stream of fresh meals moving along the conveyer belt (Perez, 2007). New concepts and ideas, using advanced technology such as this are what customers look to be demanding more of (Mintel, 2003).

Apfel (2001) highlights that technological breakthroughs in the restaurant industry are either happening today or are just a year or two down the road. Klara (2001) signifies that as a result of technological change, customer service will improve, sales for restaurants will increase and costs will lower. Interestingly, Apfel (2001:2) states:

…whether or not the new technology in restaurants will deliver on the premises remains to be seen, but one thing is certain, Tomorrow’s restaurant will look and act decidedly different from today’s….

Therefore the question arises as to how ‘tomorrow’s restaurants’ will differ and whether the technology used will deliver results for the sector. Thus it is considered important to analyse the technology which is being used at present and how it may advance in the future.

2.25 Analysis: Food ordering and the use of kiosks/touch screens

According to current research, two out of three US restaurant operators are implementing or testing self-service technology that allows customers to place orders through kiosks. Restaurants are said to be embracing self-service because of speed, customer satisfaction, accuracy and customer data capture capabilities (Christensen, 2006). Minnick (2006) highlights that self service technology has yet to take off in the restaurant industry, which is usually three to five years behind the retail segment when it comes to implementing new technology. Minnick (2006) points out that when self-service kiosk were tested in three restaurants, it was found that average checks increased by 25% and transactions speeds increased by 10 seconds. Perez (2007) also signifies the advantage of such technology and emphasises that a kiosk can be programmed to allow customers in a sit-down restaurant to pre-order their food and in this way, the staff can start preparing the food even before the guest is seated, which shortens the total time that customers spend at their tables.

The Bytes restaurant in Canterbury, England is a sit down restaurant where you order when you are ready on touch screen panels. Customers place orders on touch screens and the orders are routed through the restaurant (Perez, 2007) (See appendix 1). Interestingly Richardson (2003) points out that in the future, these kiosk will allow the restaurant menu to appear in hologram format, which will display the true look and size of each menu component, a ‘scent’ button will also be available to discharge the smell of each dish upon command, thus showing the extreme technology in the future looks to be enhancing to. Perez (2007) explains that after the customer has completed the menu selection, they can then watch movies on their panels or even play games and thus an entertainment factor is also added to the dining experience.

Interestingly Keegan (2004) researches that a restaurant in Manhattan is looking to completely swap menus with interactive video screens, as the director believes this will offer more convenience to guests. When a customer is seated, a series of video clips would roll on the screen with pictures of the food item and celebrities pitching food items, which would allow customers to look at the menu at their own pace and order at their own convenience. The owner of the Manhattan restaurant, said:

customers would also be able to vote for their favourite television shows via interactive video screens, there will be three kinds of TV screens, one that shows whats on TV now, a second will run old commercials, while a third will be a revolving TV camera that will scan the restaurant, people love to see themselves on TV
                        (Keegan, 2004:1)
This shows that restaurant owners are beginning to realise that customers are demanding more than just the average restaurant meal and as a result are using technology to introduce different dimensions to the dining experience.

2.26 Analysis: The entertainment factor

Perez (2000) highlights that a technological revolution is changing the way restaurant operators service, feed and bill their guests. Grimes (2000) notes that some restaurants are turning into high-tech fun houses once the customers table has been cleared. Restaurants are utilizing the most advanced, cutting edge games and other electronic divertissements to keep their customers on the premises for longer. Grimes (2000) highlights that in some restaurants around America, each tabletop has a five channel speaker, giving customers the ability to listen and watch a programme on one screen, while neighboring customers are tuned in to other channels. Thus it can be seen how restaurants are making the customer experience all the more convenient and enjoyable.  Perez (2000) supports this and signifies that the future of foodservice remains promising and high tech, with several projects already in the works.

Mendez (2006) points out that in a restaurant of the future, diners will be able to surf the web or watch television at their tables using portable plasma touch screens while listening to their iPods via individual speakers. Mendez (2006) explains it as the “dining experience of the future”. However Leff (2006) somewhat questions this and has the opinion that “Customers who care about food, don’t want to listen on headphones or type on computers or push screen buttons as they eat”, thus presenting debatable views. A survey by the Restaurant Association found that twenty seven percent of adults said they would use wireless Internet at their favourite restaurant and one in four said that they would watch a tableside television whilst eating at a restaurant, thus it can be seen that there is some demand for additional services such as Internet and a television being available to customers whilst they dine in a restaurant. It can however be questioned, whether this will become more of the norm in the future or whether as Leff (2006) signified, customers pay more attention to food than anything else when eating out. Therefore it can be said that although Mendez (2006) envisions that restaurants of the future will be places in which technology will subtly support the dining experience, other authors argue this and believe customers will continue to demand high quality food as opposed to additional services.

2.27 Analysis: Robotic technology

Liddle (1999) predicts that restaurateurs of the future will benefit from in-restaurant robots (see appendix 2). He explains that when customers will enter a restaurant in the future, a personal robot will await them and guide them to the table. Liddle (1999) explains that after a brief chat the robot will read out the specials of the day and take the customer’s order, which is then radioed back to the kitchen, where other robots start preparing the food. Food will be brought to the table by the robot and soft drinks which will be on board the robot will be readily available. Jones (2002) researches that one reason, consumers eat out in restaurants is to impress their guests by taking them to fashionable restaurants. In this way it appears as though restaurants in the future will almost become a ‘fashion statement’ in which customers are looking for change and not just the normal dining experience. Liddle (1999) highlights that customers will be impressed when a robot in the future accepts their credit card and guides them back to the door with a goodbye and thank you message, thus again meeting customers expectations of speed and convenience which are likely to increase in the future as pointed out by Riley (2005). However, although robots may make the whole dining experience more interesting and convenient in restaurants of the future, it appears as though the whole ‘human’ element will almost be taken away from the dining experience as employees will be replaced by robots.

Interestingly Hepworth (2006) puts across the issue that robotic waiters will not become reality in the near future as restaurants are notoriously slow to embrace change. He argues that the hospitality industry is based on providing personal service, and thus in this way, restaurant owners will be resistant to change the process. Panitz (2000) also agrees and in her article ‘A promising Future’ she signifies that although robotic waiters are in store for future restaurants, it might end up being part of science fiction rather than reality. Panitz (2000) however does point out that there is no question that advances in technology and other 21st century changes will greatly impact restaurants in years to come.

2.28 Analysis: Other technological advances

Caterer forecasted the industry's short-term future and according to its predictions, the restaurant sectors can look forward to a bright future (Krummert, 2000). This correlates to research in Restaurant Business (2005), which signifies how restaurants are rapidly improving by using wireless technology such as, pagers, security systems, phones, Internet and POS systems, all of which are forecasted to grow in use in the future (Restaurant Business, 2005). Johnson (2007) highlights that wireless headsets and table management systems improve table utilization and customer database systems allow some to better identify and take care of customers and enable service personnel to become familiar with their guests’ preferences, thus ensuring the customer leaves the restaurant satisfied. Warren and Russell (2007) further reiterate the importance of customer service in a restaurant and point out that everything a customer experiences from the moment he/she enters a restaurant, reflects on the service the restaurant offers, which will be of even more importance in the future. Warren and Russell also emphasise “it will be extremely difficult to compete in the future, without utilizing technology to some degree”, which further indicates the impact of technology in future restaurants.

Morgan and Rao (2000) highlight that in the future technology in restaurants will be so advanced, that customers will be recognised immediately by a scanning device as they enter the restaurant parking. A profile of each customer’s personal preferences will be relayed instantaneously to the wait staff to customize the dining experience. For example recipes might be adjusted to meet specific nutrient needs of each customer, taking into account allergies and seasoning preferences, all thorough a scanning device (Graham, 2004). Thus in this way as Hepworth (2006) highlights, the process and experience for the customer is made more convenient and personalised, by which customers are attracted and feel a sense of belonging. Hepworth (2006) describes that this is how today’s customers and future customers will define convenience and the more restaurateurs provide, the more revenue the business will make.

3.0 Critical Conclusion

To conclude, looking at the evidence, it can be said that there look to be many technologies in store for the future of the restaurant industry. The report has shown that the world of technology in the hospitality sector is ever changing and from the evidence it appears as though the future for the restaurant industry is very much technology based. It can be summarised that restaurants depend heavily on quality customer service to ensure a positive dining experience and it appears as though in the future, more and more restaurants will use technology to enhance the customer experience to an even better standard.

The report has shown how technologies, such as self-service kiosks, menu screens, robotics, scanning devices and entertainment systems will become even more important in the future, although it could be a while before the technologies are fully implemented due to the fact the restaurant industry is slow in terms of responding to new technology advances. Therefore it must be put across that although eventually these technologies will be implemented in restaurants, five to ten years in some cases seems a short time span and twenty years seems more realistic, especially in the case of technology such as robots which one day may look to replace the ‘human’ element when serving guests.

Some technologies which the report has analysed seem to have more of a realistic factor and are already being used in some restaurants. Wireless technology for example is being used increasingly by restaurant operators in the way that restaurants are now providing customers with Internet access. This sort of technology may well be on the increase in the near future as the research is suggesting, however advanced technologies such as robotic waiters, which are more expensive and complicated to deal with from the restaurant aspect, may not be seen in the near future, but the much more distant one.