Mini Project Report-II

On

“Emerging Technologies Transforming the

Restaurant Industry”

Submitted in partial fulfillment of the requirements for the

Two Year Full Time Master of Business Administration

(Affiliated To A.P.J. Abdul Kalam Technical University,

Lucknow)

(SESSION -2022- 2024)

By: Under the Guidance of

Student Name: Shruti kushwaha Academic Mentor’s
I.T.S Mohan Nagar Prof Parul Gupta
Roll No. 2200380700201
Batch: 2022-2024

INSTITUTE OF TECHNOLOGY & SCIENCE, GHAZIABAD

GT Road, Mohan Nagar, Ghaziabad-201007
www.its.edu.in

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 INSTITUTE OF TECHNOLOGY AND SCIENCE,
GHAZIABAD

(session 2022-2024)

CERTIFICATE OF ORIGINALITY

I hereby declare that this Mini Project-II Report is my own work and that, to the
best of my knowledge and belief, it reproduces no material previously published or
written that has been accepted for the award of any other degree or diploma, except
where due acknowledgment has been made in the text.

Student Name - Shruti kushwaha

Roll No. 2200380700201
Date:

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 INSTITUTE OF TECHNOLOGY AND SCIENCE,
GHAZIABAD
CERTIFICATE

This is to certify that MS. Shruti kushwaha MBA (2022-24 Batch) a student of the
Institute of Technology and Science has undertaken the Mini Project-II ( KMBN252)
on “A Project Report On Technologies In Restaurant Industry”.

The project has been carried out by the student in partial fulfillment of the
requirements for the award of MBA, under my guidance and supervision.

I am satisfied with the work of MS Shruti Kushwaha

Date:

Academic Mentor’s Name: Prof. Parul Gupta

Signature

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 ACKNOWLEDGEMENT
I acknowledge my deep sense of gratitude of I.T.S Ghaziabad and A.K.T.U for giving me
opportunity to make this mini project that is going to enhance my skills. Many people have
contributed to the success of this project. Although a single sentence hardly suffices, I
would like to thank Almighty God for blessing us with

Her Grace. I extend my sincere and heartfelt thanks to Prof.. Parul Gupta, my mentor for
providing us the right ambience for carrying out this work. and for innumerable acts of
timely advice, encouragement and I sincerely express my gratitude to her. Last but not the
least, I want to thank all others, especially my family, friends and classmates who in one
way or another helped me in the successful completion of this work.

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 TABLE OF CONTENTS

Page No.
INTRODUCTION 6

INDUSTRY SCOPE 7-8

CHALLENGES IN RESTAURANT 9-13

INDUSRTY

SOLUTIONS TO THE CHALLENGES 14-22

EMERGING TECHNOLOGIES IN 23
RESTAURANT INDUSTRY

RESTAURANT TECHNOLOGY 24-28

TRANSFORING THE INDUSTRY

Ways Restaurant Technology is 29-30

Transforming the Industry

Upcoming technological 31-37

advancements in the industry

Conclusion 38

References 39

Annexure 40

INTRODUCTION

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India’s extensive cuisine is an amalgamation of influences from various cultures and
traditions. Its popularity put the country on the global culinary map with some chefs
earning prestigious awards for their restaurants. Furthermore, restaurants and hotels
accounted for the highest consumption among food services market across the country
in financial year 2020. Increasing disposable incomes, urban lifestyles and an
expanding market allowed forgoing home cooked meals occasionally. A symbiotic
growth between the food industry and the growing middle class rendered the success of
Indian restaurants.

The impact of globalization in the 1990s on the food industry helped it in terms of
establishing business ventures with many food chains with non-Indian and fusion
influences, including cafes. However, this also posed a huge competition to the existing
local and regional establishments forcing diversification and innovation. This huge
surge in the previous decade paved way for more quick service restaurants, and
affordable fine dining that catered to niche consumers.

While the unorganized sector dominated the industry, much like others in the country,
authorities need to constantly monitor and regulate the numerous unregistered street
vendors who cater to the working middle class. Amidst the high food cost inflation in
such a highly fragmented market, the success of the restaurant was determined by their
profitability without compromising on quality and flavor. The latter also happened to be
the most important determining factor for loyalty in customers.

The food delivery industry had gathered pace in recent years, changing and digitizing
restaurants across the country. The convenience for customers came hand in hand with
the need to ensure food quality during transportation and adjust marketing. Employing
millions every year, the workforce in the sector partly shifted from waiters in sit-in
restaurants to drivers for delivery companies. By the beginning of 2020, two major
players, Swiggy and Zomato, had emerged top of the food delivery market, with a few
smaller and local operators in place as well, depending on the region in question.

With the outbreak of the coronavirus (COVID-19) and subsequent lockdown, it came as
no surprise that operational consequences weighed down heaviest on hospitality and
restaurants around the world. When delivery drivers were allowed to operate again after
initial disruptions, Indian restaurant owners and vendors became creative to cope with
the crisis. More and more restaurants joined food delivery platforms, delivery-only
ghost kitchens were opened, or adjusted their menu to the needs of their home-cooking-
tired customers. Nevertheless, high operational costs caused major challenges for
restaurants and prevented many from opening, although it was allowed in the later
months of 2020. This slow recovery was disturbed by the second wave of the pandemic
in early 2021, which hit India even harder than the first time. However, industry experts
were still optimistic that the newly established concepts would lead them through
troubled waters.

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 OBJECTIVES

The objective of emerging technologies transforming the restaurant industry is to

enhance operational efficiency, improve customer experience, and drive business
growth. These technologies aim to streamline various aspects of restaurant operations,
from ordering and payment systems to kitchen management and inventory control. Here
are some specific objectives:

1. Automation and Efficiency: Emerging technologies like robotic process automation

(RPA) and artificial intelligence (AI) can automate repetitive tasks, such as order
taking, food preparation, and inventory management. This reduces the workload on
staff, minimizes errors, and increases overall operational efficiency.

2. Enhanced Customer Experience: Technologies such as mobile apps, self-service

kiosks, and digital menus enable customers to place orders conveniently, customize
their meals, and make payments seamlessly. This improves the speed and accuracy of
service, reduces waiting times, and provides a more personalized experience.

3. Data-driven Decision Making: Advanced analytics and data mining tools allow
restaurant owners to gather insights from various sources, such as customer preferences,
sales trends, and social media feedback. By analyzing this data, restaurants can make
informed decisions regarding menu planning, pricing, marketing campaigns, and
customer engagement strategies.

4. Improved Communication and Collaboration: Communication platforms and

collaboration tools enable effective communication between staff members, reducing
errors and delays in order processing. These technologies also facilitate coordination
between front-of-house and back-of-house teams, ensuring smooth operations and
timely delivery of orders.

5. Online Presence and Delivery Services: Online ordering platforms, mobile apps, and
delivery management systems help restaurants expand their reach and cater to the
growing demand for delivery and takeout services. These technologies enable
restaurants to manage online menus, track orders, and optimize delivery routes,
resulting in increased sales and customer satisfaction.

6. Sustainability and Waste Reduction: Emerging technologies can help restaurants in

implementing sustainable practices, such as energy-efficient kitchen equipment, waste
management systems, and smart inventory tracking. By reducing food waste, energy
consumption, and environmental impact, restaurants can align with the growing
consumer preference for eco-friendly businesses.

7. Personalization and Loyalty Programs: Emerging technologies enable restaurants to

collect and analyze customer data, allowing them to create personalized offers, loyalty

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 programs, and targeted marketing campaigns. By understanding customer preferences
and behaviors, restaurants can enhance customer retention and drive repeat business.

Overall, the objective of emerging technologies in the restaurant industry is to leverage

innovative solutions to optimize operations, improve customer satisfaction, increase
profitability, and stay competitive in an evolving market.

INDUSTRY SCOPE

Restaurant companies are essentially retailers of prepared foods, and their operating
performance is influenced by many of the same factors that affect traditional retail
stores. For the most part, restaurants have business models that are relatively easy to
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understand, and the array on the Value Line page is the same as that of a standard
industrial company. Nonetheless, there are a number of unique factors to consider when
making investment decisions regarding this large and segmented industry.
Competition between restaurants is intense, since dining options abound. And, while
there are certainly dominant players in this industry (especially among fast-food
purveyors), no one company has the market cornered. Indeed, virtually every restaurant
location must compete not only against other publicly traded chains, but also a wide
array of small, local establishments. Competitors include everything from delis and
pizzerias to fine-dining restaurants. And, of course, it is relatively easy to forgo
prepared foods, altogether, in favor of home cooking, which is usually a less expensive
option. Thus, restaurant meals are discretionary purchases, and the industry tends to be
highly cyclical.

Top-line growth is typically generated in two ways, opening locations and boosting
samestore sales. Opening new doors is a straightforward strategy, and usually the main
driver of revenue when a company is in its early stages. As a chain grows in size,
however, it becomes increasingly difficult to capture benefits. The best, most profitable
locations are established first, and then managers must be careful not to place
restaurants too close together, lest they cannibalize each other's sales.
Comparable-store sales, or "comps", is a valuable metric to examine when analyzing
restaurants. Comps are particularly important once a company reaches maturity, since
they become the primary driver of growth. Product innovations and menu-price
increases are two of the most common ways to increase same-store sales. Remodeling
existing locations is another way to boost guest traffic. Furthermore, promotions and
limited-time offers are widely used to attract diners. Investors should also pay attention
to trends in the dollar value of the average guest check, as this can shed additional light
on what exactly is driving sales. Labor is another major cost for service-oriented
restaurants.

Typically, workers earn modest salaries, often at or just slightly above government-
mandated minimum wages. Employees that fall into this category are usually fast-food
workers, dishwashers and bus boys. Servers, who make the lion's share of their money
through tips, are usually paid even less. Consequently, changes to federal or state
minimum-wage laws can have a noticeable impact on a restaurant's costs and margins.

Restaurants can be loosely broken down into two broad categories: fast food and casual
sitdown establishments. The same general factors discussed above dictate the performance
of each group, but sit-down restaurants tend to be more expensive, making them even more
sensitive to consumer budgets and the health of the economy.

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Fast-food restaurants, being less dependent on macroeconomic conditions, are better
defensive investment plays. In a recessionary environment, their convenience and value
make them attractive options for diners seeking inexpensive meals or for those trading
down from casual-dining establishments.

Convenience is a major part of the fast-food business model, so a vast network of stores is
essential to success. In addition to expansive hamburger chains, there are a number of large
players that focus on niches, such as sandwiches and pizza.
Fast food is responsible for most of the industry's international sales. Foreign markets offer
vast growth potential for companies willing to take on the challenge of finding a successful
formula that appeals to a wide array of customs and tastes.

A well-known brand name provides a huge leg up when expanding overseas, which is one
reason why fast-food makers dominate the international arena. The convenience of these
restaurants and their typically inoffensive menus, which appeal to most diners, are other
pluses.

Restaurant stocks have a number of attractive attributes. Their business models are easy
to
understand, as are the factors that affect their
performance.

Most are cyclical, so broad economic conditions often play an outsized roll in the group's
overall performance. However, fast-food retailers can sometimes provide more shelter in a
down economy. Conservative investors might find the stocks of mature operators appealing
as growth-and-income holdings.

Conversely, fledgling companies, with new or unique formats, use most of their cash flow
for expansion, and their stocks may offer attractive 3- to 5-year appreciation potential to the
more venturesome.

CHALLENGES IN RESTAURANT INDUSTRY

Economic / Market Factor

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Rising Food Costs

Food price inflation is a key factor affecting the food services market in India, and is
impacted by delayed monsoons, the economic slowdown, and unfavorable demand-
supply conditions. It keeps fluctuating and reached a peak of 18% in 2010 (Exhibit
100). While it affects consumer indulgence across all formats, it also hits the margins
realized by players.

Across all food services formats, food costs (raw materials) account for ~30-35% of the
revenue. The perpetual rise in food costs narrows the players’ margins, compelling
them to increase menu prices. This in turn accentuates the challenge of retaining
customers who are already value-conscious and tend to evaluate all available eating out
options carefully.

Fragmented Market, Increasing Competition

The Indian food services market has many small and mid-size unorganized players
competing with large chain players. This fragmented market reflects a number of
challenges, including the unclear format segmentation, varied consumer options for
eating out, and the lack of best practices for food services outlets.

There are a number of players who offer products that are more or less similar, at
competitive prices. No single player leads the market; and also low consumer loyalty
exists. This makes it challenging for players to engage and retain consumers, and
heightens their performance-related uncertainty. Since a one-size-fits-all approach will
not pander to the variegated consumer palate, it is imperative that food services players
tailor their offerings from time to time be it the menu, the format, or the concept, in
order to establish a unique business proposition and attract diverse consumer segments.

Operational Factors

Manpower Issues: Shortage of Quality Staff and High Attrition

The Indian hospitality industry is highly labor-intensive, but the availability of trained
chefs, managerial staff and other support staff is low. According to a study by the
Ministry of Tourism, the current supply of skilled/ professionally trained manpower is
estimated to be ~9% of the total manpower requirement. Given this shortfall of quality
manpower and the industry’s high attrition rate of 20-25%, the cost of labor is high. To
bridge the demand and supply gap, currently players are hiring in huge numbers and
increasingly investing in in-house training programs.

Real Estate Issues

High real estate and labor costs impacting store profitability

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For over a decade, India has been experiencing an escalation in real estate prices
amplified by increasing demand and the availability of easy credit. For food services
outlets, real estate (rentals) is the second major cost component after raw materials and
accounts for ~12-15% and sometimes even 20% of total revenues. Further, labor costs
are also high in India. People get low salaries, productivity is low, and thus there is a
requirement for more employees. The high labor and real estate costs, couples with the
high services tax on property, are exerting pressure on store profitability and
consequently deterring the growth of food services outlets.

Land reforms impacting business operations

To add to the woes of exorbitant costs, the food services market is constantly buffeted
by reforms relating to land availability, land ceilings, and floor space index (FSI), and
also suffers delays in approvals. The permissible FSI in India varies across cities and,
on average, is in the range of 1 to 4. In comparison, the global FSI average is 10. This is
because of the constant discouragement of a high population density in urban areas,
which results in a higher density in slum area and also unauthorized constructions. For
example, in Mumbai, where space shortage is an issue, the FSI (including transfer of
development rights) is 2.

Fragmented Supply Chain

The industry’s supply chain is fragmented in nature and marked by the presence of
multiple intermediaries. The lack of appropriate infrastructure, inadequate technologies
and non-integration of the food value chain are the key factors leading to the nearly 30-
40% food wastage across to supply chain. It is most essential for food services players
to pin down existing supply chain issues and implement suitable counter measures.

Warehousing

There exists a shortage of quality warehousing space in India. Warehouse lack the
optimal size, design, and storage system. Further, the presently available warehousing
space is inadequate with respect to the growing demand. According to industry sources,
the total warehousing space in India is estimated at 80-100 million metric tons (MT),
whereas the demand is for a much larger space.

Logistics

The logistics market in India is highly unorganized- ~95%, with few national level
players. The infrastructure is grossly inadequate, with lack of proper roads, rail network

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and ports. Insufficient distribution channels, over-burdened ports, and poor quality of
services are just a few of the bottlenecks that impact players. This leads to high logistics
costs, which amount to over 13% of Indian’s GDP as against ~5% in developed
countries.

Cold Chain

Currently, cold chain facilities in India are inadequate to meet the prevailing demand. The
cold chain infrastructure is highly fragmented in India. An estimated 85% of the market by
value is dedicated for storage and the other 15% for transportation.

According to industry sources, there are ~5,300-5,400 cold storage in India with a total
installed capacity of ~23 million MT. Around 25% of these cold storage are multi-purpose,
with the rest for storage of potatoes (~55%), other fruits and vegetables, dairy products and
meat and fish. In terms of capacity, ~80% are utilized for potatoes alone and the rest
20%for other commodities.

Across the entire supply chain, the need for cold infrastructure and advanced solutions is
critical to minimize wastage of fresh produce, extend life of perishables, and enhance
quality of food.

The need of the hour is to establish an end-to-end supply chain, making use of modern
structures such as logistics parks, integrated cold chain solutions, and last mile
connectivity, and also adopting such technology as barcoding and RFID’s and assuring
government support through the incentivizing of private enterprises.

Liquor Sourcing
India is caught in a maze of archaic and complex regulations at both the central and state
level when it comes to sourcing liquor. Every player offering alcoholic beverages has to
obtain a series of licenses to sell alcohol, and also adhere to the prescribed permitted hours,
eligible age limit, etc. This situation is further intensified by the following challenges.

Long gestation period: It takes anywhere between 1 month to 1 year to get a liquor license,
with additional paperwork, and approvals from multiple departments, adding to the latency.

Anti-liquor mindset: Liquor procurement is discouraged in some states by applying

simulated restrictions such as high tax rates, monopolizing procurement and levying
charges on distribution.

Huge and recurring Licensing fees: An estimated INR 0.5-0.6 crore (USD 0.10-0.12
million) is required to fulfill all licensing requirements, which is a huge impediment for
growth when considering a restaurant’s finances. In addition, the annual license fee to sell
imported alcoholic beverage is as high as INR 10 lacs (USD 19,230) per year in New Delhi.
Processing charges are additional expenses.

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High tax burden: Many indirect taxes like customs duties, excise permits, and additional
fees like government education tax are levied on imports and especially on the import of
alcohol. In addition, interest is also payable. For example, a 150% tariff a levied on
imported wine upon which the federal government imposes an Extra Additional Duty
(EAD) of 4%. In addition, each of India’s 28 states levy their own taxes on alcohol that
range from 30% to over 100%.

Consumer Factors – Diverse & Unpredictable demand

India, with its diverse ethnic backgrounds, comprises a host of target consumers with varied
needs. The extant diversity and the ever-changing needs of the consumer make it difficult
for players to classify customers into segments and create offerings accordingly. It is thus
mandatory for players to constantly adopt newer tools like consumer analytics, and/or hire
market research agencies, to understand consumer behavior and innovate constantly for
effective business operations.

Government/ Regulatory Factors

Over- Licensing
In India, obtaining the requisite licenses, e.g. health license, food safety license, police
license, No Objection Certificate (NOC), from the fire department and the state pollution
control board, etc. is a major obstacle hindering the smooth operations of a restaurant.

The process is not centralized as yet and requires filing applications with individual
stakeholders, which involves a lot of paperwork and is a time-consuming activity.

The licenses required to start a restaurant are the same throughout India, expect in some
states like Maharashtra. A player needs approximately 12-15 licenses just to open a
restaurant each from a government department.

In India brands usually prefer to form a separate department or hire an external liaison
consultant to handle restaurant licensing and other legal compliances because of the
complex nature of the job and the time and effort demanded.

The laws are also not uniform, differing as they do from state to state, and further, are open
to interpretation. Exhibit 102 lists the licenses required for opening a restaurant in India.

The Process of obtaining these licenses is cumbersome, expensive; ad imposes a high and
avoidable ‘cost of compliance’ that benefits neither the industry nor the public.

The restaurant industry needs to ensure the implementation of a solution to the licensing
conundrum to achieve its full potential; which can perhaps be achieved by encouraging a
single window license clearance.

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High Tax Rates

The Indian restaurant industry is burdened with multiple taxes like Vat, excise, and services
tax, besides different state taxes, which add up to 17.5-25% of the bill value (Exhibit 103).
This tax is much higher in comparison to other sectors like apparel and footwear, where it
ranges from 10-15%.

Such Taxes are usually passed on by restaurant operators to consumers, who then curb
frequency of their visits to restaurants. Overall high taxation is a serious impediment to
market growth.

SOLUTIONS TO THE CHALLENGES IN RESTAURANT

INDUSTRY

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 1. Unique Selling Proposition

The problem:

One of the main factors affecting the restaurant business is the difficulty of coming up with
a unique selling point in an oversaturated industry. What will you be bringing new that your
competitors don’t already have? How will you stand out?

The solution:

Regardless of whether you want to open a casual dining or a fine dining restaurant, having
good food and excellent customer service is not enough. Many restaurants can pride
themselves on that

Think of some original ideas that you could be known for as a restaurant. A unique selling
point will help customers remember you and want to return.

Here are seven unique restaurant concepts to jumpstart your creative process:

• Dog cafe/cat cafe

• Pop culture theme (from classics like Star Wars and Harry Potter to more recent pop culture
phenomenon’s like Game of Thrones or Black Mirror)
• Build your own meal
• Dinner and a show in bed (instead of a chair)
• Swings as chairs
• No phones allowed
• Menu descriptions that read like a poem
Your something unique can also be an attention grabber on social media. An unusual dish,
crazy decor, or experiential dinner idea might prompt people to take photos and mention
you on social media.

2. Food Security Issues and Challenges

The problem:

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Food security is one of the main ethical issues in food service. Since food is at the center of
every restaurant, you should treat it with the utmost care. As a restauranteur, you can
encounter many food transportation issues such as the items not arriving on time, needing
temperature-controlled transportation, or being contaminated. These can lead to other poor
food safety problems like customers or staff getting sick.

The solution:

Restaurant problems that have to do with food have to be tackled one step at a time.
First, find a trustworthy food transportation company in your area. Take your time
researching a few to find one that won’t break the bank but also won’t compromise on
quality.

Next, train your staff on proper health and hygiene practices and make sure they abide by
them. Everyone who comes into contact with the food must wash their hands, wear gloves,
hairnets, clean clothing, and use the proper tools. The equipment and tools must be cleaned
and sterilized, and the surfaces sanitized.

When in doubt, always do the right thing by your customers – there’s no in-between. For
instance, if your fridge breaks down and you don’t know precisely when, you have to
throw away perishables even if it means it will cost you more. You don’t want to risk
getting anyone sick.

3. Restaurant Management Team

Structure The problem:

The truth is even if you know how to manage restaurant staff, you won’t have the time to
do that and also keep a close eye on day-to-day operations.

The solution:

You can’t do it all as a restaurant owner. You need a manager or a management team that
you can trust. They will keep things running smoothly and come up with much-needed
restaurant staff rules, while also helping the restaurant be profitable.

That is not to say you shouldn’t be involved. On the contrary, you should try to be there
every day, especially in the first year. To avoid chaos and money waste, schedule the
workforce carefully. You don’t need five servers when the restaurant is empty, nor can you
manage with two when the restaurant is bustling. Both instances will lose you money and
potentially prompt negative reviews.

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When you’ve found the perfect balance, train your staff on how to handle different
situations. Offer them materials and incentives if they do a good job and reach individually
established goals. You also need to inspire them, keep them motivated, and align them with
your restaurant’s philosophy and concept. Everyone should have a clear view of their
responsibilities, hierarchy, and team structure.

Problem solving for restaurant managers shouldn’t be the owner’s concern, but that
depends heavily on finding someone you feel comfortable letting take the reins. Any HR
issues in restaurants should be their responsibility, and they should have a strong work
ethic. Remember that even assigning shifts can be an ethical problem. They should be
allocated on skills, performance, and seniority, not based on whom the manager likes more.

4. Customer Service

The problem:

Plenty of restaurant problems and their solutions have to do with customer service. To turn
customers into return customers, you need to keep them happy and offer them a flawless
dining experience. This can be particularly challenging when they’re disrespectful or
disruptive, such as when they’re clearly inebriated and are asking for more alcohol.

The solution:

Customer problems in a restaurant can escalate quickly. Train your staff to be

accommodating but firm. If the customer is perfectly pleasant, treat every step of the dining
experience with the same care. It’s not just the food that matters.

Keep in mind that customers might leave you online reviews. If you get a lot of negative
ones, it can impact your popularity and trustworthiness online. That said, no number of
good reviews is worth anything if the customer is rude or even aggressive toward the wait
staff.

Over serving alcohol is another ethical issue restauranteurs encounter. What do you do
when a customer has had enough? Do you cut them off? When? How? As a restaurant
owner, you should empower your staff to make their own decisions when it comes to stop
serving alcohol. After doing so, they should inform the customer of their decision and offer
to call them a cab. You don’t want to sacrifice your guests’ and staff’s well-being over
getting more money.
5. Restaurant Marketing Challenges

The problem:

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When you think of restaurant problems and solutions, marketing is probably not in the top
three. Still, marketing is something you cannot go without as a restaurant owner. If you
don’t have a dedicated marketing budget, you don’t necessarily have to get one. You can
promote your restaurant for free and still get great results.

The solution: Bad reviews on websites like Yelp and TripAdvisor can damage your
online reputation. The trick is to learn from these reviews and use them to improve your
business. Always reply to them and do your best to solve the problem. To market your
restaurant online, you first need a restaurant website. The website should be optimized
and responsive to give the customers exactly what they’re looking for.

Get a Sales-Optimized, SEO-Ready Restaurant Website

Next, get on social media ASAP and interact with your customers. Organize contests and
giveaways to draw people in with discounts or freebies. Use email marketing to gather
customer data and send them personalized offers. Consider creating a customer loyalty
program to reward return customers.

Pay attention to smaller details as well, like having your brand graphics or logo printed on
materials like the menu, business cards, and even the servers’ uniforms.

You should work at marketing your restaurant every day. However, you don’t have to pay
for it. There are many things you can do for free, as we’ve shown you above. If you have a
marketing budget, you can pay for leads to get more people in your restaurant. However,
we wouldn’t recommend paying for something that won’t get you any new customers, such
as Facebook like.

6. Costs and Budget Management

The problem:

Out of all the things that can go wrong in a restaurant, running out of money is the worst
possible scenario. Not approximating costs adequately and not calculating your budget to
include unforeseen emergencies are problems that might bring your restaurant on the brink
of bankruptcy.

The solution:

The thing that will cost you most as a restaurant owner is the food. There are many
factors affecting food cost control, including the cost of raw materials, your menu, the
transport cost, seasonality, pricing, labor costs, storage, and more. But food is not the

19
only thing you’ll pay for. You have salaries to pay, equipment to buy and maintain, ads
to run (if you wish), rent and/or taxes to pay, and more.

So, how do you avoid running out of money? First, by creating a restaurant budget that
takes all these factors into account. Second, by hiring or at least consulting with an
accountant who knows what expenses to anticipate and how to divide the money
equally to avoid running out of it when you least expect it.

7.Employee Turnover The problem:

Among the challenges involved in managing a restaurant operation, losing key employees
is a big one. Restaurants are great places for teenagers to get hired, which also means they
probably won’t stay long. Turnover can lose you a lot of money because it costs more to
hire someone new than to keep an existing employee that you’ve already trained.

The solution:

You need to put a lot of thought into whom you hire – not just competence-wise. They
need to fit in with the team and have excellent soft skills. Your customer service will
improve tremendously with the right wait staff to avoid turnover as much as possible,
make sure you hire people who are willing to build a career at your establishment and not
quit after the first three months. Make them feel part of the team and tell them everything
they need to know about their job, opportunities for development, rewards, training, and
more. Even so, you can never avoid turnover altogether. Just be aware that it is a reality
and do your best to keep it in check. Another way to deal with turnover is to create a list
of potential employees willing to work with you. Contact them as soon as you need to
hire someone new. That means always being on the lookout for new talent. Recruit
passively and have training materials ready for new employees to learn how things are
done quickly.

8.Lack of Automation

The problem:

Operational challenges in restaurants have a lot to do with automation in this day and age.
This makes restaurant problems and their solutions more complicated for small businesses.
Most restaurants are taking online orders. You should, too, if you want to keep up with the
times. Otherwise, your competitors will reach customers you never could. Don’t just expect
customers to magically find you and walk in, go to where they are: online.

The solution:

Implement an online ordering system on your restaurant’s website. Make the ordering
button easy to spot and mobile-optimized. If you can’t afford to invest money in one, try

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 the free online ordering system for restaurants from GloriaFood Online payments and
modern POS should also be a priority. Customers find it much easier to pay online than
cash at delivery. You can automate the whole process with the right tool. For example,
GloriaFood offers online payments that support all major credit cards.

9. Online Reach The problem:

One of the main issues facing the restaurant industry is reaching more people online
without giving their money away to food delivery portals. These portals may pose as the
restaurants’ friends, but they take a lot of commissions and control every aspect of the
transaction. The question is: how can you get more visibility online without spending a
fortune?

The solution:

The solution is found on your restaurant website. Optimization is critical – your website
should be both sales-optimized and SEO-optimized. Search engine optimization can help
you get on the first page of Google, where many potential customers might click on your
website. Sales optimization puts as few steps as possible between the user and them
becoming a customer.

10. Crafting the Perfect Menu

The problem:

Among the many issues and challenges in the food service industry, menu design is one of
the greatest. How many items should your menu have? Too many might lead to choice
paralysis, while too few won’t be enough variety. How are you going to price them? The
questions are endless.

The solution:

Ideally, you should focus on one type of cuisine (Italian, Chinese, Vietnamese, and the
like). Restaurants that seem like they can do it all are not very trustworthy. Then, align your
menu to your unique selling point. If you have a high-end, classy Italian restaurant, use
good quality paper, spaced out fonts, and few pictures. If you own a fast food restaurant,
focus on bold colors, mouth-watering images, and glossy paper.

The menu layout is also essential. The menu has to be easy to read and comprehend. Don’t
use currency signs – this tactic will take the focus off the price point of your dishes. Place
your most popular items first and hire a copywriter to come up with unique menu
descriptions. You can give the whole menu a unique spin using text.

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 Menu Compatibility

Always keep the menu updated when something changes, from an entire dish to a price
point. Customers will be very disappointed if they end up paying more than they expected
on a meal or if they want to order something that is not on the menu anymore. Don’t be
afraid to update your menu and add new dishes up to 4 times a year to keep it fresh.

Your menu should be up to date on your website as well. Make it responsive so customers
can browse it from their mobile phones, and add mouth-watering images. Place it in a
visible spot on the website, so users don’t have to navigate a lot to find it.

11. Administrative Work Overload

The problem:

Some food industry problems have to do more with what’s behind the scenes than with
what customers see. Managing day-to-day restaurant administrative operations is a great
deal of work. Here are some examples of what you’ll need to be on top of:

How many customers to expect a day how many people order delivery; what items sell
more, what items are not profitable, your losses, your sales goals; what your profit margin
is.

The solution:

As we’ve already mentioned, the mark of an excellent restauranteur is knowing when to

admit they need help. If you don’t take some of the pressure off yourself, the sheer amount
of workload will overwhelm you. Here is the primary staff you should hire to divide
responsibilities and keep operations working smoothly:

• A manager to serve as your right hand. Look for experience in the industry, leadership
skills, and organizational skills.
• A chef is the main attraction. Bonus points if you can find one who has experience in the
cuisine you’re targeting.
• An accountant to keep track of your spending and advice how best to spend your budget to
get a high ROI.
• A cashier to take care of online orders and maintain the cash registers.

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12. Health and Hygiene
The problem:

Problems in restaurant kitchens start to get serious when you don’t meet health and hygiene
standards. Health and hygiene are challenging to maintain but extremely important. You’re
working with food, so messiness is inevitable. Additionally, pests are a real threat that can
affect your business.

The solution:

To avoid contaminating the food, train the personnel to wash their hands as medical
professionals do. They should use utensils instead of their hands or wear gloves. Their
clothes must be clean and their fingernails short. They should avoid wearing jewelry,
perfume, lotions, aftershave, or nail paint. Aprons, hairnets, and kitchen shoes are
mandatory, as is time off work in case of illness.

Make sure your kitchen, refrigerators, and food preparation areas are spotlessly clean and
safe to handle food. Sanitize all equipment and usable surfaces and store them properly.
Keep on top of pest control as well because they will send customers running. Keep all
dumpsters clean, and doors and windows closed as much as possible. Clean the storage
area, the food prep and dining area, floor drains, and trash cans.

13. Serving More Customers Daily

The problem:

What keeps restaurant owners up at night more than dreaming of an empty restaurant?
Not much. While other restaurant problems and their solutions may be less threatening,
this is a big one. Even if you have a decent number of customers every day, you can
always do better and serve more people a day. Out of the many challenges involved in
managing a restaurant operation, this has an easy solution.

The solution:

One of the fastest and easiest solutions to preventing downtime is to provide the
possibility of booking a table on your website. You can even allow customers to order
the food in advance. That way, when customers arrive at the restaurant, their meal will

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already be waiting for them. This means they’ll leave the premises faster, which in turn
will help you serve more people.

EMERGING TECHNOLOGY IN RESTAURANT

INDUSTRY
The restaurant industry has traditionally been slow to adopt technology and innovative
digital solutions. But in 2020, the COVID-19 pandemic changed that and forced food
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and beverage outlets to look beyond the traditional. Many restaurants have recently
turned to tech, even if reluctantly, to adapt to a new reality. One which includes less
dine-in guests, more offpremise and al fresco dining, or Plexiglas screens and table
dividers, masks and gloves, and lots of sanitizing.

Technology and innovation are what have helped, even saved, restaurants as they
transform how they operate to not just survive, but thrive, in this new connected and
contactless era. From online ordering, self-checkouts and touchless payments to
delivery and pick-up, the F&B industry can no longer afford to ignore the trends that
are helping businesses reinvent themselves to remain relevant and competitive.

As it’s predicted that growth in the restaurant industry will be entirely driven by off-
premise consumption, using technology is not just about improving operations and
service delivery, but also reimagining restaurants.

Restaurant technology is more than just a trend. You can sit, relax in any corner of the
globe and know what’s happening in your restaurant – be it dining, service
management, or even stocks!

As a general rule of thumb, thinking of a restaurant as just a business about eating is

straight out dumb. Here’s a quick list of stats that indicate the importance of technology
in restaurants or the food industry:
 63% of consumers believe that online ordering is more convenient in
comparison to dining out with their family.
 More than 80% of restaurants are adopting technology in their operations –
like reservations, online ordering, and restaurant analytics.
 68% of consumers admitted that the use of server tablets in restaurants
improved their dining experience gradually.

The stats are not about a brand-new refrigerator or dishwasher. Apart from the clean
plates and tidiness, the customer barely notices any changes in a restaurant (at least on a
conscious level). Before you learn how emerging restaurant technology is shaping the
industry, you need to know what it is in general.

What Is Restaurant Technology?

If we talk about Restaurant Technology in a layman’s words, then it can be portrayed as a
dedicated tech that helps commercial kitchens become more sustainable while saving time,
labor and money.

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In the past, the process of managing a restaurant involved using notebooks and a calendar
with each data written by hands. This means you needed to provide human efforts to
capture order data, sort transactions, and report about performance. The present day
structure however belongs to cloud computation and automation.
The culture of cloud computing and automation has been receiving constant attention for a
while. Across a variety of industries, the adoption of automation and cloud-based software
has been increased dramatically, and the restaurant business is no exception. Cloud-based
restaurant POS systems have become increasingly popular as they are easy to install,
remotely workable and one time investment for long.
Restaurant technology relies on a network of computers or remote servers that are hosted
on the World Wide Web to manage, store, and process data. It’s not only convenient but
secure and tamper-proof too.

So, what digital trends and tools should be top of mind in 2021 to stay up-to-date, and even
ahead of the competition?
1. Online ordering systems and delivery apps
As restaurants remain vulnerable to imposed restrictions, strict sanitary regulations and
even closure, online food orders and contactless home-deliveries have come to the
rescue. And this service is here to stay as diners grow accustomed to getting the food
they want when, where and how they want it.Third-party food delivery apps like
UberEats, Foodpanda, or Door Dash will continue to be an important solution for those
not able to offer in-house ordering and delivery services. But as many diners report a
preference for ordering directly from restaurants, we can expect to see restaurants
following the lead of larger fast-food chains and investing in developing their own
integrated online platforms and apps. Despite the ‘distance’, this digital proximity
enables the restaurant industry to stay closely connected with their customers.

2. Contactless payment
Contactless technology is going mainstream, and it’s not just about placing an order online,
but also about paying with a smartphone, smartwatch or smartcard via an app or touchless
device. New payment technologies have been slowly gaining momentum within the global
restaurant industry, but this trend has accelerated with the pandemic. It’s estimated that
contactless payments will triple from $2 trillion to $6 trillion worldwide by 2024, and
having such options are reportedly extremely important for 34% of customers. With no
cash hand, no human contact is required – more hygienic and safer – and it’s quick, instant
and convenient. From a cash flow point of view, it’s also more efficient. If restaurants don’t
want to be left behind in the coming year, those who haven’t yet done so better invest and
plan for a mobile and digital payment strategy.

3. Online table reservation system

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Booking a table via a phone call is becoming a thing of the past as online table reservation
technology takes on a new importance. Providers like Eat App, Table in or Open Table give
customers the freedom to see available slots and make their own booking on-the-go. In
turn, by using technology-enabled reservation systems, restaurants can manage seating,
waitlists, customer loyalty and dining preferences as well as collect vital client data be it for
contact tracing or market insights.

The concept has even been taken a step further. Via its initiative Experiences, Open Table
is offering restaurants the opportunity to propose unique culinary events and dining
experiences, beyond standard reservations. Whether it’s Ramen Nights in celebrity chef
Hugh Acheson’s dining room, a ‘side-dish’ of line dancing lessons or a fixed-price tasting
menu, guests can book their next special dining experience easily, directly and according to
what tickles their taste buds. Time to get creative!

4. Digital kitchen ‘boards’

No need to grab paper and pen, worry about smudged printed tickets or run back-and-forth
between the kitchen and front-of-house anymore. Kitchen Display Systems (KDS) are a
digital menu board for kitchen staff helping restaurants streamline back-of-house
operations. Directly linked to the restaurant’s point-of-sale (POS) system, the screen
displays orders automatically according to priority and flagging any special dietary
requests. Tracking meal delivery times and monitoring inventory to signal when a product
is out of stock, this technological solution ultimately ensures better communication,
accuracy, clearer workflows and – being 100% digital – promises a more sustainable
kitchen operation.

5. Automated inventory management software

Automating your inventory management means tracking food and beverage stocks,
anticipating quantities and even scheduling reorders no longer need to be time-consuming
tedious tasks. Very importantly, the implementation of such software in your working
process can also reduce food wastage, which is reportedly costing the hospitality industry
$100 billion annually. Through cutting-edge artificial intelligence (AI) technology,
companies like Winnow are helping restaurant owners and managers cut food waste and
costs and run their businesses more efficiently and sustainably. Partnerships with
innovative platforms like Too Good to Go also save restaurants from wasting their food
surplus, instead making it available to users looking for a meal-deal. Saving time and
money all while helping the planet – sounds like a no-brainer with sustainability being at
the forefront of the global agenda.

6. QR codes
Already a staple in mobile-first societies like China, QR codes are going global and
popping up at restaurants around the world. In this ‘no-touch’ era, auto-scanning barcodes
with smartphone cameras on posters, tables, coasters, doors or websites allows customers

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to access online menus, order and pay – without contact – keeping diners and employees
safe. This technology, which doesn’t require downloading an app, has also played an
essential role in helping restaurants with contact tracing now mandatory in many parts of
the world for their reopening during this pandemic. Offering a number of convenient
benefits at relatively low costs for restaurants, QR code technology is going to be a ‘must’
in 2021.

7. Air purification technology

As diners return to restaurants, it’s going to be critical to make them feel safe and
comfortable. Upgrading sanitization systems through various air purification technologies
to promote ‘clean air’ is a growing focal point for the restaurant industry.

Harmless-to-human technology like bipolar ionization, which purifies the air and surfaces
in indoor spaces by neutralizing contaminants, is already showing promising results and
finding a market for itself. As are systems which make use of ultraviolet light known as
effective methods of both air and surface sanitization. While these concepts and products
may not yet be mainstream yet, they are fast-becoming the most important restaurant
technology of all in in a virus-wary world.

8. Accelerating digitalization in the F&B industry

Every crisis has its silver lining. The COVID-19 pandemic may have disrupted ‘business as
usual’ and forced some drastic changes upon the restaurant industry, but this disruption has
also awoken many F&B professionals to an opportunity to accelerate tech trends, fast-track
change and re-imagine restaurants.

Technology presents unique solutions for restaurants to differentiate themselves and for
owners to run their businesses more efficiently. In turn, it leaves more time and energy to
focus on delighting guests with delicious food and new memorable dining experiences, be
they in-house or off-premise. A win-win solution, don’t you think?

9. Self-Order Kiosks

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Self-order kiosks are a growing trend and are becoming a major facet of quick service and
fast casual restaurants. In the 2019 Restaurant Success Report, 53% of guests marked
selfordering kiosks as either somewhat important or extremely important to their guest
experience.

Self-order kiosks are gaining popularity for a number of reasons. They allow restaurants to
meet diners' expectations with a top-notch digital experience and easy-to-use interfaces.
They also give guests more control over the ordering process, making it easier for them to
review the menu and customize their orders.

Beyond improving the guest experience, a thoughtfully-designed kiosk can help restaurants
increase average check size (utilizing upsell prompts) and order volume, as well as shorten
lines, all while helping your team avoid staffing and productivity constraints.

10. Kitchen Display Screens

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The restaurant kitchen can be a hectic place, so, depending on your restaurant’s needs,
printed tickets might not be your best option. Many restaurants today are instead using
kitchen display systems (KDS) to keep things moving efficiently in the kitchen and
throughout the entire restaurant.

KDS is becoming more common for a number of reasons. Compared to traditional ticket
printers, KDS is more environmentally friendly because it’s 100% digital. It also saves
restaurants on the small but added cost of ticket paper and eliminates the all-too-common
problem of paper tickets getting smudged by grease or falling to the ground.

Mounted to the wall (or on a counter stand), kitchen display systems allow kitchen staff to
view all open orders on one screen. This makes it easier for the kitchen to stay organized
and fulfill orders accurately and on time, all while keeping things moving according to plan
in the front-of-house, too. How? KDS receives POS orders in real time, improving ordering
speed and accuracy and, in turn, the guest experience.

11. Self-Ordering Tablets

After such long anticipation, the truly server-less restaurant experience is finally here. The
self-ordering tablets have proved that there’s no place for human servers in a
technologically modern restaurant. Brands like McDonalds and Panera Bread have
integrated self-ordering kiosks in many of their well-known locations.
This AI-based restaurant focused technology allows consumers to browse the food menu
and choose their favorite dish without involving any employee.

12. Bluetooth Temperature Sensors

If you’re a restaurant owner, you already know that following food safety guidelines by
HACCP is a task in itself. To make sure they abide by all rules, a lot of restaurants are
using Bluetooth temperature sensing to preserve a par level quality of their equipment and
food. Restaurants have the ability to measure the temperature of their important assets,
either manually or automatically, with the help of fixed probes and sensors.
13. Reordering With Facial Recognition

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There are a few restaurants that are conducting facial recognition trial experiments that’ll
allow consumers to reorder previous meals at self-service kiosks with the help of facial
recognition. The trial was specifically conducted on restaurants that offer a menu with
numerous optional customization layers. With such a great variety of choices, the simple
way to reorder encourages the customer to think about coming back.
This technology can also be integrated with facial recognition to help establish loyalty and
make business-customer relationships lasting by providing customers a way to reorder their
favorite meals quickly.

14. Handheld Entertainment

The tablets in restaurants are more than just a way to make quick orders and pay. There are
numerous companies like Buzz Time that provide tablets with entertaining trivia and games
to restaurants. It also allows consumers to join nationally conducted competitions 15 hours
a day and seven days a week.
These tablets can also be used to organize a live poker or trivia tournament in the
restaurant. With this technology, restaurants can attract a plethora of customers at their
place. Like every other industry, the impact of technology on the restaurant industry is
more than a tool for restaurants. Using technology in restaurants or the way you harness
this tool will determine whether it works for your benefit or loss. As of now, everything
seems to be on the positive side of the track

Ways Restaurant Technology is Transforming the Industry

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1.Supplier and Employee Onboarding

With the constant progress in virtual reality, AI, and augmented reality, the HR leaders
in restaurants have gained a lot of benefits through technology. It allows new joiners,
suppliers, and trainers to take a tour of the facility virtually with the help of software
and headset without any additional costs.

This also allows trainees to complete their training without visiting the restaurant
physically. They can even visit the employees in real-time and keep their learning going
without even smelling or touching the food.
With such great progress in employee and supplier onboarding, your restaurant business
can enjoy the freedom out of monotonous tasks. This also allows you to focus on
numerous other important aspects of your business such as customer engagement and
employee productivity.

2.Material Handling

If your business deals with a wide range of fresh and raw products, you might be aware
of the significance of maintaining their freshness without incurring any losses in
revenue. Several tech interventions offer material handling in the restaurant business.
These technologies use a variety of digital tools to reduce and prevent food wastage
in restaurants by more than half. They’re also very helpful in connecting commercial
kitchens with the cloud-kitchens and analyze the volume of food being wasted every
day. Moreover, with detailed real-time data, chefs can tweak their production process
and make required improvements for reduced food wastage and make their kitchen
even more profitable. They can also be integrated into POS to keep a regular track of
the inventory.

3.Reservation Management

When it comes to the most long-lasting category of restaurant technology trends,

nothing can beat the competency of reservation management tools. Several restaurant
app development services allow people to book a reservation for dining on vacation and
special occasions through your restaurant.

With the help of the solution you’ll find it easier to fill the empty seats of your
restaurant at any point in time. Talking about efficiency, the technology in food service
industry is lightyears ahead of the traditional practice of waiting for the reserved seats
to fill without a proper plan for it.

4.Food and Beverages

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To make sure your restaurant maintains a healthy bottom line, you need to keep a keen
eye on the volume of your food and beverages. There is a large variety of food
management systems that make the complete process easier by providing automated
inventory counts and invoices.

They can also connect with your POS system and suppliers to view sales data and track
orders. This allows you to prevent your food inventory from getting empty and keep
your operations running around the clock.

5.Quality Control

After the outbreak of coronavirus, the quality of food has become a serious concern for
restaurant businesses. It’s not only about maintaining the proper safety of your food
supply chain but also about the assurance of quality that goes along with the
transparency throughout the premises.
A survey revealed that 94% of restaurant food consumers are likely to be more loyal to
businesses that provide complete transparency with their processes. Even though it’s
pretty easy to say, implementation takes years.

Digital transformation in restaurant industry and technological interventions such as IoT

sensors are a great way to detect and solve issues in food warehouses before they
become a significant concern. They’re also necessary to monitor the temperature
fluctuations in the warehouse.

6. Innovation in Food Industry

It turns out that the technology trends in restaurant industry was silent progress that
came into existence after consumers changed their behavior because of economic and
social factors. Now, it’s more of an experience-based model than a hospitality business.
Future of restaurant technology trends can be seen in the restaurant industry that is
using robots in their setup to take orders from customers and serve them. People are
making use of restaurant mobile app development services to build apps that provide
innovation strategies in restaurant business.

Upcoming technological advancements in the industry

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Over the years, the use of cloud applications has witnessed a surge, and now, the
technology has become popular across the F&B sector. Many restaurateurs are realizing the
potential of leveraging technology and looking for ways to utilize its full potential. The
need to innovate is driven by changing consumer preferences and the entry of disruptive
new business models into the restaurant industry. Technology represents a new opportunity
for restaurants to reinvent themselves post-COVID-19 with the introduction of contactless
dining, contactless payments, etc. So, what do you think will be the key restaurant
technology trends in the new year and beyond? Here’s what we found out.

5 Restaurant Technology Trends Ready To Usher In 2022

Technology has been a key saviour for the restaurant industry throughout the pandemic and
it continues to drive business recovery across verticals. So restaurant operators can’t afford
to miss out on the restaurant technology trends. Let us look at some of the tech trends
expected to reshape the F&B industry in the upcoming year.

1. Addition Of Off-Premise Revenue Streams

Post COVID-19, restaurants were forced to find an alternative income stream to traditional
dine-in services. Home delivery and takeaway services, initiated by the restaurants since
then, have proven to be quite successful in maximizing revenues. Technology has
significantly contributed to facilitating these streams.
For instance, integration with food aggregators, payment apps, etc, has made it quite easy
for operators to start off-premise services like food delivery and takeaway. Deployment of
a robust POS, Kitchen Display Systems (KDS), and an efficiently integrated kitchen
keeps orders flowing smoothly and simplifies food delivery and other off-premise
services. In the coming year, this is one of the most popular restaurant technology trends
that is likely to flourish.

2. Rise Of Cloud Kitchens

A key sub-set of off-premise revenue streams is the cloud kitchen. Many restaurant
operators have started cloud kitchens out of their existing premises, especially post-
pandemic. The success of these businesses highly depends on the food quality and
consistency as food is the only way they connect with their customers. Automation can
assist in simplifying cloud kitchen operations. Furthermore, the low operational and
rental costs and ease of experimentation of cloud kitchens are also attractive factors for
restaurants. Since cloud kitchens bring so much to the table, they are likely to gain more
popularity in the upcoming years.

2. Leveraging Marketing Automation To Build Customer Loyalty

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Over the years, delivering customer satisfaction has become an essential part of
growing a restaurant business. This has compelled restaurants to automate their CRM
operations. Robust CRM tools can help businesses gather insights and feedback
from customers and make them feel valued.

With the power of automation, enhancing customer experience is easier as it helps them
collect customer information centrally. In turn, this allows the restaurant operators
to segment their customers, and cater to them in a personalized manner. All of this
collectively works towards building loyalty with customers.

4. Voice-Enabled Technology For Customers & Staff

Virtual assistants are no more a thing of the future now. In fact, they are now
increasingly being used by popular brands like KFC and Pizza Hut. Voice technology
will thus be one of the key trends to watch out for in 2022. To enhance customer
experience, restaurants are integrating with virtual assistants like Alexa or Google
Assistant, allowing customers to place orders and give feedback via voice command.

Voice-enabled technology will further help simplify the back of the house operations.
AI and voice technology could also assist chefs in order preparation by observing when
a burger needs to be flipped and conveying this to the staff via speakers.

5. Moving From Automation To Robotics

After automation, the restaurant industry is now moving forward to introducing robots to
their operations. In the upcoming year, more operators are expected to adopt the
technology and replace their human staff with robots to eliminate the worries of
hiring, manual errors, and high employee turnover rates.

35
Many brands are already testing robotic delivery services. For instance, Chick-fil-A, in
partnership with a robotics company, Kiwibot, is testing a delivery robot in the Santa
Monica area of California. In addition, many restaurants have also started deploying robots
to carry out food preparation procedures, from flipping burgers to making cocktails. Robots
are surely set to grow more popular in the years to come.
As a restaurant owner, investing in the latest technology can transform your restaurant
operations. Capitalize on these trends and utilize the technological solutions to drive your
restaurant’s growth in 2022.

AUGUMENTED REALITY FOOD MENU

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The AR food menu is a key marketing tool for any type of restaurant, from high-
end fine dining outfits to popular fast-food chains. Customers depend on menus to
help them evaluate, compare and choose dishes. Space considerations prevent
restaurants from adding too much information or too many pictures to their
menus. As a result, restaurants rely heavily on reviews, word of mouth and in-house
staff to supplement food menus, attract customers and sell dishes.

Augmented reality restaurant: The latest trend in restaurant marketing, AR

restaurant menus, and food apps supplement existing menus with digital content
designed to improve customer experience and drive sales.

Juego Studios is one of the top augmented reality app development company has
worked on AR restaurant menu apps which allow customers to point their
smartphone devices at any menu item to view additional interactive content.
Augmented reality restaurant menus provide easy access to essential information
about dishes to improve the food selection process for customers, and help
restaurants sell more items. An effective marketing tool for restaurant owners, AR
food menus can also be designed with a range of other features to enhance
customer experience.

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Bon Appétit! Robotic Restaurants Are The Future

Robots have seen a wide array and continuous applications in various

industries since their inception. The global robotics market is expected to
attain a value of USD 147.26 billion with a CAGR of 17.24% at the end of
the forecasted period from 2017-2025. Organizations worldwide have
realized the potential and are investing heavily in robotics. Thus, robots
are now not restricted to major industries but are making inroads into
other businesses such as restaurants and local retail stores.

The decreasing costs of hardware such as sensors and circuit boards, and
the simultaneous advancements in AI software have contributed to the
increase in robotic applications in various fields such as a robot
restaurant. Robot restaurants can be fully automated, providing each
service through an AI-enabled robot. Robots can provide many benefits
for businesses as well as consumers and improve the overall experience
for diners. Major restaurants and food chains all over the world have
already implemented robots for the benefits they bring, and the adoption
is only going to increase with advancements in technology.

38
Cobots, the first step towards a robot restaurant
Cobots are advanced robots that can work alongside humans. Restaurants
using cobots were called automats and have been in use since the 1970s.
Cobots can be used primarily to perform simple tasks such as serving or
vending food items. They can automate various repetitive and mundane
tasks in a restaurant or over-the-counter tasks. A soda vending machine
can be considered a cobot as the process is fully automated. The vending
machine can accept the payment and provide the user with the required
item. With advancements in the field of robotics, the capabilities of cobots
have increased tremendously. Restaurants are already leveraging cobots
for simplifying food ordering and payment processes. With just a few
clicks, customers can order their favorite meals and pay for them quickly.

Yellow House Robot- Noida's first robotic restaurant

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At Yellow House Robot Restaurant, Sector 104, robots appear in desi avatars.

Some decades ago, robots were a thing of the future. However, slowly, these mechanised
individuals have taken over many sectors. Still, their presence in Indian restaurants is new.
At Yellow House Robot Restaurant, in sector 104 Noida, robots named Ruby and Diva
appear in desi avatars in a Rajasthani themed restaurant.

The Yellow House Robot Restaurant is the first robot-assisted restaurant in Delhi NCR which
was started on April 16, 2022. It is a multi-cuisine vegetarian restaurant in Noida and a part of
the chain of The Yellow House which already has three restaurants in
Jaipur.

40
CitySpidey found that the restaurant had a confused theme and average food. Although the
menu offers multiple options, the food was not much to talk about. Robots and the ethnic theme
achieved with the help of Rajasthani artefacts did not go together. The robots can be a curiosity
for first-time visitors. However, it does not offer much to make them come back.

Conclusion
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The restaurant business requires a high degree of dependable performance and
adherence to the highest standards of quality possible. Digital technology
provides the ideal support for such systems, which have a low tolerance for error
and also need to address interactive and effective customer engagement. With
consistency and quality at a premium, the restaurant industry is ideally suited for
the enhancements that digital transformation can enable.

References

https://pos.toasttab.com/blog/types-of-restaurant-technology
42
https://www.posist.com/restaurant-times/features/restaurant-
technology-trends-2020.html

https://pos.toasttab.com/blog/on-the-line/robots-in-
restaurants
www.cityspidey.com/news/17704/yellow-house-robot-noida-s-
first-robotic-restaurant

www.juegostudio.com/ar-based-food-menu-case-study

https://www.revfine.com/restaurant-technology/

43
Annexure

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