Chapter 14

Technology in the Restaurant Industry

Objectives• After reading and studying this chapter, you

should be able to:– Identify the main types of restaurant industry

technologies– List and describe the main types of software

programs– Identify factors to consider when choosing

technology for a restaurant

Technology in the Restaurant Industry

• Technology – Has come a long way from mom-and-pop

operators and their cigar box– Independent operators may not require (or be

able to afford) technology that chain operators are using

• It is hard to overlook the progress in making technology available and affordable for independent restaurants

Back-of-the-House Technology• Consists of product management systems

for: – Purchasing and managing inventories– Menu management– Controlling labor and other costs– Tip reporting– Food and beverage cost percentages– Human resources– Financial reporting

Purchasing and Inventory Control

• Purchasing: – Product management

• Tracks products through each inventory cycle• Automatically reorders when the item falls below par

stock• Ingredients for the cost of recipes are calculated for

total cost and selling prices

• Inventory control: – Systems quickly record inventory

• Easily allowing new stock to be added

Kitchen Display Systems• Manage and control kitchen efficiency

– Provide highly visible, real-time information– Installed in more upscale restaurants

• Than in fast-food and casual restaurants– Mounted in kitchen or food prep area

• Visible to the entire kitchen staff• Display food orders for preparation • Monitor timing of orders • Provide feedback about table status

Food Costing• Personal digital assistant (PDA)

– Used to enter inventory amounts into the system

• Laser bar code scanning– Speeds up inventory-taking process

• Makes it more accurate– Data is entered into the system, variance

report is generated, and any significant variances are investigated

Food Costing (cont’d.)• ChefTec & ChefTec Plus software

– Integrate programs • Recipe/menu costing• Inventory control • Nutritional analysis capabilities

Menu Management• MenuLink:

– Evaluates managers’ produce purchasing– Compares actual to expected food usage– Tests proposed recipes and pricing changes

• Menu management function: determines what offers work best, so coupon building may be directed toward those items

• Automated Raw Material Transfer: when one store needs to borrow material from another store, a transfer is generated

Labor Management• Interfaces back- and front-of-the-house

– Working hours – Human resources information

• Includes: – Application monitoring, recruitment, personnel

information, I-9 status, tax status, availability, vacation information, benefit information, and scheduling

• Examples: Windows-based labor schedulers and TimePro

Financial Reporting• Front- and back-of- the-house systems

– May interface by transferring data to and from the central server

• Information is provided in real time– Makes it easier to monitor:

• Service times• POS food costs• Labor costs • Guest counts

E-learning• Computer based training

– Delivered via the Internet or proprietary Internet sites

• The National Restaurant Association Educational Foundation – Several online courses

• Example: ServSafe Food Safety Training Program

Front-of-the-House Technology • Revolves around:

– Point-of-sale (POS) systems – Wireless handheld devices

• New technologies – Multimedia lobby displays – Self-service kiosks – Wireless payment-processing units – In-store dashboard displays

POS Systems • Standard component of operational costs• Selecting a POS system

– Focus areas:• Human Factors Engineering (HFE) • System usability• Equipment operations

– Examples: NCR’s Real POS and Aloha

POS Systems (cont’d.)• Suppliers:

– IBM: Linux servers and Sure POS 700 series – Sharp: UP-5900 system– NCR: 7454 POS Workstation, Real POS 70, and

Compris– Micros: Eclipse PC Workstation

Table Management• Table management software

– Meticulous control of restaurant efficiency, consistency, and accuracy

• Faster table turnover• Increases revenue and profit• Handles reservations and waiting times• Incorporates alert features

– Example: MICROS Systems, Inc.

Paying at the Table• Handheld device may be provided to guests

to:– Verify their bill– Swipe their card– Include any tip– Print the receipt

• Benefits to guests: – Peace of mind concerning security issues– Ability to leave the restaurant a little sooner

Web-based Enterprise Portals• Offer centralization of applications

– Sales reporting– Cash management– In-store profit and loss statements– Labor and food costs– Prep– Ordering– Task lists– POS data

Gift Card and Loyalty Programs• Customer relationship management

– Deliver a 360-degree view of the guest’s activities

• Tracked and controlled from a central database• Monitor guest spending patterns

– Gift cards are help increase revenue• Gives the ability to issue and activate cards with

fixed or preset values– Integration: the bottom line

Guest Services and Web Sites• Restaurant technology has evolved

– Restaurant can store and recall guests’ preferences

• Tables, menu items, wines, and servers – Additional advances include:

• Internet booking• Guest checks splitting and suggested tips• High-speed Internet access• User-friendly Web sites• Wireless surveys

Restaurant Management Alert Systems

• MICROS Alert Manager– Monitors conditions and compares them to

established standards• Exceptions are immediately identified• Alert or message is sent

– New integration with the RES products and the on-premise paging

– Communications solutions made available by JTECH