White Paper Using Data to Transform the Fast-Casual Customer Experience Long Range Systems, LLC 800.437.4996
INTRODUCTION Fast casuals need new ways to keep up with the growing demand. Today, consumers are becoming increasingly responsive to high-quality foods and an improved dining experience. Fast-casual restaurants, or food service establishments that offer high-quality food without full table service, are meeting these demands and growing rapidly. The fast-casual segment is realizing double-digit growth because it's a quick and affordable option that offers higher quality menu items than provided by the segment s fast food counterpart (The Tork Better Business Center, 2012). According to a Quick Service Restaurant Magazine article, Assault on Casual, by Daniel Smith, the benefit of not having to dedicate time to waiting to be seated, placing your order with a server, or waiting for your bill plays a role in guest satisfaction [in the fast-casual industry. The fast-casual segment experiences double-digit growth, even as the company falters. Thanks to fast-casual restaurants, high-quality food and an inviting atmosphere are no longer associated solely with pricey menus and five-course meals. Fast-casual restaurants are unaware of their current delivery times. As fast-casual concepts increase in popularity, establishments face difficulty in understanding one of the most important factors of satisfied guests food delivery performance. Today, there are a few ways to accomplish food delivery research: Proprietary research through mystery shoppers Manually tracking delivery times vs. ticket times Surveying customers on perceptions of speed Technology-based solutions that automate tracking While all methods offer some benefit, each is flawed in some way. First, while research studies are often expensive and the observational nature of mystery shopping can lead to incomplete results. Second, manual clocking of delivery time can be tedious and time consuming and limits tracking to periods of time when an individual can measure performance. Finally, relying on consumer perception alone usually doesn t always tell the full story. Although most restaurants urge food runners to deliver orders within a designated amount of time, the majority of fast-casual concepts don t have the capabilities, additional marketing and research budget to commission an ongoing study, or manpower to accurately measure ticket times and staff performance. Without this data, management lacks the ability to address problems as they surface including lost orders, slow delivery times or missing orders, which could lead to bad reviews, lost customers and a decrease in revenue. MEASURING EFFICIENCY Implement a system of measurement to collect consistent and accurate data. 1
040513 Table-tracking technology provides an easy way for fast-casual restaurants to track and measure food delivery performance. Unlike traditional food delivery methods (e.g., plastic table cards, table tents or overhead paging), modern-day systems, like Table Tracker, incorporate advanced RFID communication technology to automatically provide the table location of restaurant guests. Data provided by the system gives food runners the ability to reference a prominently displayed computer screen, locate the order and the corresponding table, and deliver food quickly. In addition to providing faster service, many fast-casual restaurants are using RFID enabled tabletracking systems to track and record important data about the service cycle. From ordering, seating, food delivery, to table clearing, the devices are providing data to help restaurants optimize operations to meet growing consumer demands. No company understands the benefits of table tracking more than Jason s Deli, which, after 20 years of utilizing the same counter-to-table delivery process, decided to test a modern tabletracking system. Figure 6: What s Driving IT Projects in 2013 Business efficiency 35.7% Enhanced guest service 31.3% Employee productivity 30.4% Security/compliance (PCI and payments) 29.5% Cost saving measures 26.8% Revenue-generating opportunities 16.1% Increasing guest loyalty 16.1% Preserve existing technology investment(s) 15.2% Competitive pressure 8.7% Social responsibility (e.g. green initiatives) 4.5% Figure 1 - Restaurant Technology Study, 2013 HT Magazine This year, budget concerns were finally replaced with the challenge to keep up with guest expectations. Business at Jason's Deli was growing, but plastic table cards were posing too many problems. Food runners struggled to identify correct tables, particularly during high-traffic periods of time, and food delivery times were difficult to track, furthermore misperceived throughout the organization. After an internal study found that Jason's Deli food runners were delivering food significantly slower than once believed, automated table tracking was implemented at a test location. After just a few weeks of using Table Tracker, Jason's Deli reduced food delivery times by a full minute sooner than previously recorded. Use the data to increase your employee productivity and speed of service. In addition to assisting with food delivery, a table-tracking system can help service staff improve performance. Automated table tracking helps food runners provide an enhanced customer experience by helping employees deliver food faster and spend more time engaging with customers. Johnny Carrabba recently installed a table-tracking system in his new fast-casual concept, Mia s, and noted, Table Tracker definitely impacted staff retention in a good way because it makes their jobs easier. I know that providing better working conditions will help me keep staff. My 2
general manager actually thanked me for getting them the system, like I gave him a gift. Because related technologies are providing real benefits, the industry is taking notice. A recent Hospitality Technology study revealed that due to the industries similar audience and serviceoriented goals, it is likely [that] the same will happen in the restaurant industry as consumer technology continues to change at a rapid pace far faster than restaurants can keep up with. The study also finds, keeping pace with guest expectations is [now] a top challenge for 16.3% of restaurants in this study representing a total of 67,226 units, including 57,200 restaurants in the quick-service and fast-casual segments (Hospitality Technology Study, 2013). After years of budget constraints restaurants seem to be turning to technology to face the challenge of keeping up with guest expectations. DATA-TRACkING TEChNOLOGY With the implementation of table-location technology, a restaurant can realize several benefits, including late order notifications, increased speed of service, escalation notifications, detailed reporting and reduced labor costs. Using table-tracking technology to collect data transforms the customer experience by providing information that is: Accurate: it employs RFID technology to accurately identify a customer s exact location and send the data to a mounted screen for easy viewing Consistent and Complete: each step in the ordering, seating, food preparation, meal delivery and table clearing process is captured and maintained, providing a full view of the customer s visit Accessible: easily accessed insights provide real-time data centrally displayed on-site for employees and managers to understand order status and overall performance Maintenance Free: nothing to clean up, no wasted table space and no equipment to regularly maintain CONCLUSION Growing customer expectations have placed an increased emphasis on combining speed of service with high-quality food. To facilitate this experience, the combination of cutting-edge communication technology and modern tracking devices have made data collection, for both small and large restaurants not only possible, but simple. Table-tracking technology doesn t stop at delivery generated data allows managers to view staff performance and hold employees accountable, providing more opportunity to engage with customers, ensuring a positive guest experience. 3
References: Cohen, Suzanne. "Why Fast Casual Dining Means Fast Growth." Tork Better Business Center. Better Business Center - Foodservice, 7 May 2012. Web. 26 Mar. 2013. O'Meara, Lenore, comp. Restaurant Tech Goes Full Spectrum. Rep. Ed. Abigail A. Lorden and Dorothy Creamer. Hospitality Technology Managzine, 2013. Web. Feb. 2013. Smith, Daniel. "Assault on Casual." Casual Dining Customers New Target for Quick Serves QSR Magazine. QSR Magazine, n.d. Web. Sept. 2010. Web. 25 Mar. 2013. 4 040513