The Internet of Things (IoT) is rapidly transforming manufacturing and other asset-heavy industries. A report from Accenture found that using connected devices to predict when a machine needs servicing instead of waiting until it breaks down could reduce maintenance costs by 30 percent and lead to nearly 70 percent fewer breakdowns. The potential impact of the IoT, which is set to encompass a network of more than 75 billion smart devices by 2025, is just as significant for foodservice businesses.

There is no doubt that by adopting IoT, the food and beverage industry can run to its highest potential by achieving high levels of food safety, improving traceability, cutting down wastage, and reducing costs and risks across the different stages of food processing and packaging.

IoT Saves Money

In an industry with ever-tightening margins, the improved efficiencies offered by linking sensors and RFID (Radio frequency identification) tags on equipment and stock to cloud-based databases that can be accessed by staff members via mobile apps could even make the difference between success and failure. According to Gartner, smart appliances will be offering F&B companies 15 percent in annual cost savings.

“IoT has taken most sectors by storm. The food service industry has seen a huge turnaround with the involvement of IoT. From online ordering to contactless dining it’s huge. The next thing on the cards is drone delivery. There are concepts where the human interface has been taken over not just in front of the house but in the kitchen as well. The potential is massive and this is just the beginning,” shared Chef Om Nayak, owner, and founder of The Pasta Bowl Company.

Hygiene is at the Top

One of the ways IoT is already being used in food service is to improve food safety. In place of manual, paper-based processes more and more operators are investing in sensors that regularly monitor the status and temperature of refrigeration equipment. These devices can then send automated alerts to restaurant managers’ mobile phones – whether they’re on site or not – so they can take appropriate action to stop coolers’ contents from spoiling. IoT technologies such as temperature probes, barcode scanners, and RFID infrared readers are also being used before the ingredients even reach the restaurant kitchen to track shipments and trace changes in temperature, moisture, and other factors that can have an impact on food quality across the supply chain.

Smart Connected Equipment 

Cookers that can be controlled by sensors connected to the Internet are becoming more prevalent too largely thanks to the labor savings they bring. Real-time monitoring of connected equipment like refrigerators and ovens also enables granular measurement of energy consumption, which, over time, can be used to improve businesses’ energy efficiency, while fitting RFID tags to stock items back of house means they can be automatically replenished when required, reducing the complexity of purchasing. Although mobile devices are more complex than sensors and RFID tags, they are also set to become an important part of the connected restaurant of the future.

Mobile Devices and Apps also Play an Important Role

For example, smart engagement apps on employees’ mobile devices can tell operators whether they are in the building and clock them in and out. Operators can also use geo-location services to see if an employee is in the restaurant when they say they are not clocking in from home. And going one step further, mobile devices can be used, too, to recognize customers when they walk into or sit down at a restaurant and tailor their experience to their preferences.

The chef or the kitchen head can make appliances work even though they are not present in the kitchen. They can turn the oven on, get the HVAC report from the ice cream maker, turn the refrigerator off, or do so many other things remotely only. If there are any malfunctions with the appliances, the restaurant management will handle it immediately with the help of IoT technology.

Energy Savings

Appliances used by restaurants account for a large portion of the electricity bill and it gets quite difficult for restaurant owners to keep track of their energy usage or to reduce the associated costs. Many times, the root cause of this problem is the power consumed by older kitchen appliances. Additionally, the risk of unexpected breakdown is higher with such appliances, resulting in a jumbled maintenance schedule.

Recently, restaurant owners have started using Energy Management solutions (EMS) that rely on intelligent assets to collect, analyze, and share data on the power consumption of restaurants. According to American West Restaurant Group, “Pizza hut expects an 18 percent reduction in average monthly energy usage and save two million dollars in energy costs between 2018 to 2022, all because of IoT”.

Let’s take as an example the smart appliances that restaurants can use to manage energy consumption better. Fryers with smart sensors can maintain a predefined oil temperature and notify the cook when the fries are perfectly done. Through alert notifications, the managers or operators also get an idea of when oil should be filtered or changed, which helps to optimize food hygiene management.

Supply Chain Transparency

In general, consumers or customers want openness from the companies from whom they buy. Traceability and transparency at some point in the global delivery chain will help resource meal companies gain customer loyalty and confidence, which will help them approach commercial businesses. Transparency in the supply chain would also enable food authentication.

Abhishek, founder of eWards commented, “Implementing IoT devices across the food supply chain can help the industry monitor as well as efficiently reduce their cost by achieving a reduction of wastage and efficiently managing their inventory. IoT devices linked with apps can be used to automatically start conversations with merchant customers by sending them relevant messages at the right time to increase engagement with them. At eWards we build such apps which can be used with IoT devices to personalize marketing and content delivery, enable cashier-less payment systems, and map buyer behaviors.”

The restaurant business is never just about cooking and serving. There are so many other important things like keeping a check on customers’ tastes and providing them with the food they need etc. that needs to be taken care of. IoT will help you in understanding your customer's requirements by analyzing their tastes from time to time.