Restaurants, Technology, and Data KPI’s: How They Work Together
Restaurants and technology have forged an unbreakable bond over the last decade. If we look into the past 3 to 4 years this relationship and its market niche have grown faster than ever with a variety of technological innovations transforming the way restaurants operate and interact with customers. From the rise of online ordering and delivery platforms to the integration of AI and data analytics, technology has become integral to the restaurant industry.
Key Technological Trends in the Restaurant Industry
1. Online Ordering and Delivery Platforms:
As you know the pandemic boosted the adoption of online ordering and delivery services. Companies like Deliveroo, Uber Eats, Bolt Food, and Glovo have seen significant growth, providing restaurants with new revenue streams and customers with convenient dining options.
2. Contactless Payments:
The need for hygiene and safety has driven the widespread adoption of contactless payments.. Solutions like Apple Pay, Google Wallet, and QR code payments (we also ticked this box in the beginning of our mission) have become standard in many restaurants, enhancing the customer experience and making transactions easier and safer.
3. AI and Data Analytics:
Restaurants are leveraging AI and data analytics to gain insights into customer preferences and buying habits, optimise menu offerings, build a dynamic pricing strategy, and manage inventory.
4. Self-Service Kiosks:
Fast-food chains and quick-service restaurants (QSRs) are increasingly using self-service kiosks to reduce wait times and labour costs. These kiosks enhance the speed and accuracy of their service.
5. Cloud Kitchens:
Also known as ghost kitchens or virtual kitchens, and only focused on delivery or takeout, these businesses enable restaurants to expand their reach without the overhead costs of a traditional dine-in establishment.
Market Growth and Future Prospects
It is common knowledge that the relationship between the restaurant’s market and technology has been experiencing a non-stop rapid growth, driven by consumer demand for convenience, safety, and personalised experiences. According to industry reports, the global restaurant management software market is expected to continue growing, with a compound annual growth rate (CAGR) of 16.3% from 2023 to 2030.
In the future years, restaurants will likely see further integration of advanced technologies such as AI-driven personalisation, robotic automation in kitchens, and enhanced data security measures. Sustainability will also be a key focus, with technology playing a crucial role in reducing food waste and energy consumption.
All in all, the synergy between restaurants and technology has reshaped the industry, providing numerous benefits for both businesses and consumers. As technological advancements continue, restaurants that embrace innovation will be well-positioned to thrive in an increasingly competitive market. But it’s not all rainbows and butterflies… running a restaurant is already challenging with all the customers demands, shrinking profit margins with the prices increasing, competitors, and now, all these elements also within the dliverie’s platforms market, where you can find even more competitors.
However, throughout this blog we’ll talk strategy and data-based actions that will help you ‘fight’ the market and be one step ahead of the competition (and emerging competitors).
💡 Menu Optimisation is Key
You should review regularly your menu - physical and on Delivery Platforms -, by using data from sales and consumer buying habits to identify which dishes sell more and which do not, in order to remove underperforming items and boost bestsellers.
👀 For example (tip): You can add a promo on a specific product or menu for the “This Month’s Bestseller”, share it on social media to reach a wider audience and boost your visibility and visits, hence, your sales.
A smaller, well-curated menu can improve efficiency both in the kitchen and for the customer. Fewer menu items mean less inventory to manage and less waste. It also helps customers make decisions faster, improving their overall experience.
⭐️ Enhance the Overall Experience (Value for Money)
You should always pay attention to the quality and the service you are providing. While the prices keep on increasing, customers expect great value: ensure your meals are high-quality and your service is impeccable. Customers who feel they receive value for their money are more likely to leave positive reviews and return.
Furthermore, by investing in value for money, this will help build a loyal customer base.
🫱🏻🫲🏼Loyal Customer Base
Establishing a loyal customer base begins with what we just talked about above. Also, by leveraging data, you can personalise customer experience, and give tailored menu suggestions and targeted promotions - enhancing customer satisfaction and loyalty.
Analyse dining habits and preferences to create promotions that are aligned with your customers needs/ordering habits. For example, if a customer frequently orders a particular dish, offer a discount on that item to encourage repeat visits. Tailored offers can make customers feel special and more inclined to return.
📊 Leveraging Data for Performance
Access to real-time data is crucial for making informed decisions. In addition to having access to real-time data, you should also be looking into key performance indicators (KPIs) that will provide an overview of your restaurant’s performance.
FYI, spreadsheets will not cover for you anymore… With this fast-paced market environment where there’s only demands and technological developments, using this ‘stone age’ method will only make you lose time and make you stay behind.
Create dashboards that track essential metrics like sales, competitors, promotions, overall market performance, pricing, among other - providing valuable insights for informed decision-making.
Comparing these metrics over different periods helps you identify patterns and make strategic adjustments. Furthermore, you should be comparing sales data with previous periods (last week, last year) to evaluate growth trends and identify seasonal patterns.
✅ Sales Week-To-Date vs. Last Week-To-Date: Tracks sales trends.
✅ Sales vs. Costs by Day: Ensures financial targets are met.
✅ Transactions Present Months vs. Last Year: Identifies growth patterns.
✅ ATV Present Months vs. Last Year: Measures spending changes.
👀 For example (tip): Personalised suggestions based on customer preferences can enhance the dining experience and boost sales. Upselling is one way of doing this, and it can significantly increase revenue - recommend additional items that complement the customer’s meal.
Conclusion
Running a successful restaurant in today’s competitive market requires a strategic approach. By focusing on building a loyal customer base, offering exceptional value, implementing effective sales strategies, optimising your menu, and controlling costs, you can create a thriving restaurant. However, by doing this and combining it with real-time data and KPI dashboards to make informed decisions and continuously improve your operations, your restaurant will sky-rocket.
By integrating these practices, you can build a restaurant that not only survives but thrives, attracting loyal customers, maximising revenue, and minimising costs. Start implementing these strategies today and watch your business grow non-stop (or have someone doing them for you).