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Morgan Pastner Jaffe

Fox School of Business

July 13, 2022 By Morgan Pastner Jaffe Leave a Comment

Restaurant Industry Innovation Shift

With the Covid-19 pandemic, restaurants have had to make radical changes to shift to the customer’s needs and to follow safety protocols. Not only that but during this time, many chefs and wait staff have decided to quit their jobs to move to a more stable industry leaving the restaurant industry understaffed and facing a problem with the shift in digital innovation.

30% of people still do not feel safe dining inside and PYMNTS research found that 36% of customers are using apps to order head and 28% percent are using food delivery apps like Grubhub and DoorDash. This digital shift, especially seen in the younger generation who want speed and faster services when it comes to ordering their food. Even at a physical location more than 64% of customers prefer to order their food digital instead of having staff wait on them.

According to Mastercard’s Recovery Insights: Commerce E-volution, roughly 20 to 30% of the Covid related shift to digital globally is expected to be permanent. The demand for digital experiences continues to be the customers priority. Technology continues to be a digital innovator and restaurants are adapting to have more automated systems.  54% of respondents in a Deloitte survey claim they prefer to order from a partially or fully automated kitchen. Technology and mobile apps also gather valuable data for the restaurants when it comes to marketing. This information can provide restaurants useful insight so they can try to be more personalized as Starbucks or Dunkin Donuts has done with their app over the years

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With the increase in digital ordering and the demand for faster service, restaurants have been turned upside down with their operations to keep their customers happy and maintain their loyalty. As the pandemic continues, restaurants continuously must stay on their feet to adapt to the new normal and to the new technology innovators that are being used in the restaurant industry.

It is very beneficial for restaurants to collect data with using apps for on-the-go ordering or in person orders. The information and data obtained from the technology can be used for marketing purposes alongside obtaining information for making smarter purchasing choices for materials and providing the customer with what products/foods they enjoy the most.

It is uncertain with the current shifting environment if people will still enjoy seeing their favorite waitress or bartender when they go out to eat, or if they still want to have that human contact to be waited on or if the restaurant industry will shift to completely digital and we will be ordering from IPad’s or other electronic devices from the comfort of our table.

Sources:

“Deloitte: The Restaurant of the Future Should Evolve to Serve Consumers in New Ways.” Deloitte United States, Deloitte, 6 Dec. 2021, https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-the-restaurant-of-the-future-should-evolve-to-serve-consumers-in-new-ways.html.

Kiel, Aaron. “New Tool Offers Operators an End-to-End Solution for Diner Engagement.” Bar & Restaurant, Questex, 20 Apr. 2021, https://www.barandrestaurant.com/technology/new-tool-offers-operators-end-end-solution-diner-engagement.

PYMNTS.com. “Digital Ordering Changes Restaurant Industry.” PYMNTS.com, What’s Next Media and Analytics, 14 June 2022, https://www.pymnts.com/restaurant-innovation/2022/pymnts-intelligence-how-digital-ordering-demands-are-changing-the-face-of-the-restaurant-industry/.

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