Technology has been an enabler for the restaurant industry to provide more convenience through digital ordering solutions, easier payments through UPI, an improvement in efficiencies and consistency through advanced POS and KDS systems, and insights through analytic platforms both on the financial and CRM side of the business. As per a recent report by Deloitte, 57 percent of customers prefer to use a digital app to order food for off-premises dining.

“We expect to see the convergence of these technologies to eventually create a single efficient and easy-to-use technology ecosystem for small and medium-size restaurateurs to be able to manage their restaurant businesses more effectively,” shared Karan Kapur, ED, K Hospitality Corp that who has seen delivery business grow from low teens to now in the 20-30 percent range.

Innovation is the Key

“While we have already launched digital ordering solutions across various brands, we have been building custom-built proprietary solutions on the CRM side of the business to understand our customer’s eating and spending habits better, along with investments in proprietary analytic solutions to help us manage and plan for our growth better. New investments on the HR tech side with the digitization of our training programs, and bringing in analytics,” added Kapur.

Restaurants across the globe have been innovating with technology whether it is at the front-end, back-end, or managing the operations. The Deloitte report also shared that 64 percent of customers these days prefer to order digitally on-premises at a QSR and technology is ruling their minds not just in the comfort of their home but also when they are visiting a restaurant.

“If we don’t upgrade as per the latest trends then it won’t take long for the consumer to forget us and move to our competitors. Technology is one parameter where it makes the task easy / quicker for the consumer so any tech which is going to get the consumer closer to you is something that has to be embraced with open arms,” pointed Mihir Desai of The Bar Stock Exchange that was one of the first tech-led bars in India started way back in 2015 on the concept of the stock exchange.

Delivery Changing the Whole Game v/s Third-Party Delivery Trap

Restaurants at times operate at slim profit margins, also barely managing a net profit margin of 6 to 8 percent. Given the math, it's true that the high per-order fee puts a dent in a restaurant's revenue, especially for QSRs and standalone restaurants. But then these are also the kind of establishments that can benefit from the reach of food aggregators. In the last five years, on average, most restaurants have seen a 20 percent jump in the revenue from food aggregators, with a 10 percent increase in food deliveries. Thus, being listed on these platforms is essential.

According to Xavs Norr, Chef & Restaurateur, Route66 Goa, “The customers stay loyal to aggregators as they have running discounts, payment options with discounts, consistent delivery, the App interface works brilliantly with minimum glitches, communication to the customer, updating the customer frequently about the movement of their delivery, all in all, the logistics is brilliant.” He also added that customers drawn to third-party food delivery services have a certain set of expectations that need to be met. They expect to be able to easily browse the menu, choose to make a reservation, and order a pick-up or delivery.  They want to be able to do all this as quickly and seamlessly as possible and they want instant help from a human in case they don't find what they were looking for.

“If your restaurant website is not able to provide an exceptional service; your customers will switch to third-party food delivery apps. A practical move here would be to figure these issues out and develop a more sophisticated channel to handle reservations, online ordering, and delivery,” he added.

Also, rules of engagement are an important factor when ordering online or getting food delivered. As per a report, 75 percent of customers feel that a delivery wait time of up to 30 minutes is acceptable. Also, 79 percent of customers are likely to order from a ghost kitchen which includes a 20 percent increase from last year.

“We are very much active on online ordering apps like Swiggy /Zomato and focus on packaging and serving size to accommodate different requirements of the consumer. Our aim is to be the first choice for the consumer if they plan to celebrate, meet up with friends/colleagues or work out of the office, we want to be their first choice for all such instances be it in the comfort of their home or at our outlet,” added Desai.

Trends in Tech to Look Forward to in Future

According to Kapur, below are 4 top trends we will see on the technology and delivery side respectively includes; the democratization of technologies that would enable small and medium restaurant businesses to plug and play through a simple easy to use SaaS model, through open APIs, the integration of technologies to create a single tech platform to manage the key aspects of your restaurant business, delivery businesses getting more efficient through technology and automation with a 20 min delivery standard becoming the new 30, and delivery only brands creating a blended strategy with high street locations as well.

Similarly, for Desai, the use of face recognition/fingerprint in customer profiling for building on experience, the use of AI in customizing the order as per past preferences of the consumer, and the use of Virtual reality is something that will change the whole ecosystem of the restaurant business.

And, there’s no denying that AI and virtual reality have become the new fad in the restaurant business, all thanks to the quick response and automation it gives to the business. Consumers always demand convenience that is driven by tech-led innovations. And, only these tech-savvy consumers demand digital engagement from restaurants and want cutting-edge restaurant technology options that recognize them and know their preferences.