Whether you run a quick service or fine dining establishment, if your restaurant still relies on outdated technology, chances are you aren’t getting the insights you need into your business performance. Legacy systems are often incompatible with modern intelligence tools, making it almost impossible for you to take advantage of the latest innovations. But by adopting a modern restaurant platform, you can easily get access to cloud-based AI-powered analytics that make it easier to view your data with clear, concise reports that help you make better, more informed decisions.
Why your restaurant or food service business needs intelligent analytics
Leon DeWet is a former restaurant CIO, and a strong believer in the power of analytics. DeWet was a CIO in restaurant chains the likes of Cracker Barrel and O’Charley’s for 28 years. During his time in the industry, he saw technology transform both the restaurant business and consumer behavior. He saw trends, short-lived fads, and at times, truly revolutionary technology. Analytics, in his opinion, belongs to the last category.
DeWet shared with us four tips for restaurant executives who want to make the most out of intelligent analytics and reporting:
1. Find the small drivers of benefits
For restaurants, DeWett says analytics is an important tool to identify any patterns or behaviors that could potentially benefit your business – no matter how small. He states:
Analytics can be a powerful tool to find the small changes in behavior, or in processes, that can drive huge benefits. While you still need to keep your eye on traditional big drivers, like the number of labor hours you're spending or the number of guests, you should dig deeper to find out what is driving those numbers.
Why those small changes can you see taking place? How do you influence them? How do you shift them? Looking at these details can have a big impact on the bottom line.
2. Adjust your metrics to a changed reality
It’s important not to hyper-focus on traditional metrics just because you think it’s what you have to do. DeWet says restaurants need to think about how you can apply each metric to your business, and prioritize what makes the most sense:
Don’t be blinded by what have historically been deemed ‘key metrics’ within the organization. Take, for example, table turns. How fast you can turn a table only matters if you have guests to fill that table. Perhaps, if there are few customers you should focus on selling more to who’s already at the table.
Look at what's happening in your business before you decide which metrics to focus on, keeping in mind some metrics might make sense in some parts of the day, but not at other times.
3. Use analytics to predict, not just describe
Don’t just use analytics to focus on the past – make sure you also use it to plan ahead. DeWet stresses that restaurants need to determine how trends and behaviors may affect the future:
Too many restaurants are still too focused on using analytics in a reactive way. They look at the historical data to try and understand what has happened.
Instead, I think that the true value of analytics lies in their ability to help prepare for the future. Where is the business going to go? How do I intersect it ahead of time?
It’s important to also include external data, to intercept external behaviors that may have an impact on your business down the line. For example, if you see that the average miles driven by guests is going down, you need to stop, and understand what that is going to do to your customer base, what may have caused it, and how you can mitigate against it. Or if you are heading into hot and muggy weather, you should look how your sales and presences were affected in the past and prepare. AI can help you notice these kinds of trends and link them to other factors, so you can plan ahead.
4. Think of technology as an investment in core infrastructure
Restaurant businesses shouldn’t wait to upgrade their technology. DeWet emphasizes that investing in technology is a key part of a restaurant’s operational success, and may determine the longevity of their business:
I think we need to change our mindsets. An investment in technology is no different than investing in the latest air conditioning systems, or the latest fry systems. You are investing in an infrastructure for your business that enables you to operate on an ongoing basis. You can’t wait until the demand is there before you make that investment. You need to be ready ahead of time.
“There’s a value in being prepared for the future. Even if a technology may not drive clear returns today, if it puts you in a position to be able to respond to changes, then it’s worth it.”
Leon DeWet
Former restaurant CIO
Becoming a business that operates on intelligence
Intelligence is necessary to restaurants – but it can’t simply be bolted on top of any software system as an afterthought.
To get the true value of intelligent analytics, the first step for restaurants is to get rid of their disjointed applications and move to a unified software solution that covers the entire business from kitchen, to purchasing, to the Point of Sale. When all the data is collected consistently within the same system, information can easily be delivered in a clear, concise way, providing restaurant businesses with the insights they need to measure performance and stay competitive.
If you need help adding intelligence to your restaurant, contact our experts to find out how.
