Look Past Bells and Whistles When Choosing New Technology

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Operators are constantly challenged when it comes to technology investments. Is the timing right? Will it help my operations? How much time will it take to implement? Is it something I need, or simply something I want because everyone else has it?

Lawrence Eade, CEO of the Vancouver-based Wok Box franchise says with so many options coming to market so quickly, it’s challenging to figure out which technologies are worth the investment. He has a simple process for deciding what’s best. “There are two pillars behind any decisions we make — one is cost savings and efficiency; the other is how a technology investment can drive sales or create repeat business.”

For Wok Box, the money is best spent on its POS systems. “Because we’re quick-service, POS is the brain centre of each restaurant,” Eade says. “With almost 100 stores, it’s key to have the same technology everywhere to monitor sales and store performance.”

That’s not to say the operation hasn’t invested in innovation. Over the last 10 years Eade has given the okay to a number of software upgrades — from sales tracking and reporting to a move to a cloud-based model three years ago. “Before that, we had to go to every store and program the POS systems directly. Now we can do it with a click from our desk; and we can pull real-time data from our stores, track trends and see what employees are selling.”

Wok Box is now looking to introduce software that will tie store operator inventory to its distribution network so franchisees can ensure they have the right amount of inventory or be advised when they need replenishment. As far as mobile devices go, Eade says they have “tinkered” with the idea of taking orders in lineups, but it’s not at the top of the list.

However, new restaurants — or ones whose systems are due for an overhaul — are at a decided advantage in terms of exploring and using the latest in mobile technology, says Alex Barrotti, CEO of TouchBistro in Toronto, since “Building technology from scratch can be much more cost effective.”

One of the main reasons operators look to mobile is to facilitate order-taking at the table. The other is cost savings. “Moving to a tablet-based system can cost one-fifth or less versus replacing a conventional [system],” Barrotti claims.

Ultimately, the Holy Grail for operators is being able to combine the waiter experience and order-taking with mobile phones, Barrotti believes. “One day, customers will simply tap their phone to the waiter’s tablet and the transaction is done. That’s where it’s going.”

Handheld devices may be the way of the future, but you have to know what you’re doing, cautions John Lettieri, president, Hero Certified Burgers in Toronto. “There are so many new ways you can adapt to people’s lifestyles and habits. But you have to be engaged in the mobile experience in order to make it successful.”

Hero’s technology focus in 2016 will be on mobile apps — including payment, rewards and loyalty programs. Whatever the decision, it always boils down to what makes the most sense for the operation. “Finding the most effective, simplest to operate and easy to translate is the key,” says Lettieri.

Whether it’s POS systems, infrastructure changes or mobile devices, Joel Sisson, president and founder of Crush Strategy Inc. in Burlington, Ont. says the underlying driver behind a vast majority of technology decisions is labour costs. “Everyone is trying to solve the labour equation. It’s a massive issue and getting worse.”

One of the most common technology solutions for reducing labour needs is using mobile devices to order at the table, he says. “Whether guests order on the tablet or the server carries one, it allows staff to manage more tables in a section and use a runner to assist in delivering the food. Any technology that can reduce a server taking five extra steps at a time can save a great deal in a night. This is nitty-gritty stuff, but it matters when you have 10 servers in the evening.”

For quick-service restaurants boasting complex menus, tablet- and mobile-based self-ordering systems can speed up ordering and payment and potentially reduce the number of people required per shift, Sisson adds.

Even the least costly of technology decisions, however, can turn into a burden for those who don’t understand it. Social media is one of them, Sisson says. “Social media can be a dangerous world if you don’t do it right. But one area that is very interesting is using it for staff engagement. That generation loves engaging in competitions, games or online learning. If you do it right, it can put you well ahead of your peers.”

This cautionary approach can be applied to any technology investment, says Eade. “You have to pick and choose what will work well for your business and look at the cost benefits. Everyone is always fighting to strike the right technology balance.”

Story By: Denise Deveau

Volume 49, Number 1

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