One of the easiest ways to raise awareness of your online ordering with your current customers is using in-store marketing materials, like promo cards and targeted signage. Data shows that diners spend 30% more (and tip more!) when ordering online versus ordering in person or on the phone–so it’s well worth encouraging your regulars to embrace your restaurant’s digital side.

Here are four in-store marketing options for your restaurant to make your online ordering more successful.

Table Tents on Every Top

Table tents are great for speaking to your best customers–the ones already dining at your restaurant. Like tiny billboards on your own real estate, these in-store marketing materials serve up your top-priority messages. Use them to promote your commission-free online ordering for easy pickup or delivery, or offer a discount or seasonal special.

QR codes help smooth your diners’ path from reading the table tents to taking action. Simple to set up and use, QR codes on table tents give your diners something to do with their phones—after taking pictures of their meals, that is!

Promo Cards to Take Home

Send diners home with a physical reminder of a better way to order when you add promo cards to their check presenters or takeout bags. Once out of the hustle and bustle of a restaurant, these take-home marketing materials will reach your diners at a calmer point when they have a moment to take action—such as looking up your commission-free online ordering or downloading your app.

For best results, attach promo cards to the outside of bags or boxes, or better yet, have a staff member actually hand them out with a quick explanation of what’s on offer. That personal touch will go a long way towards making the message stick!

Signs to Make an Impression

Repetition is key, so it helps to promote your commission-free online ordering in several places as diners move through your restaurant. If they missed your sign on the door, for instance, they’ll get another chance to see it at the checkout counter or host stand.

Once these in-store marketing signs are placed, walk through your restaurant with a customer’s perspective, noting where your display can have the most impact.

Stickers as a Finishing Touch

Make your takeout packaging do double duty by advertising your commission-free online ordering with stickers. Adding stickers as a last-minute touch to takeout bags is easier than rebranding your existing materials. They can even be switched up seasonally or monthly to keep up with your specials.

Just make sure not to put your marketing stickers anywhere they might be torn, especially if you’re adding vital information, like a QR code, to them.

Even in the world of digital dining options, using in-store marketing for your online ordering is a tried-and-true way to get the job done. ChowNow has the tools and expertise to expand your takeout business and market your online ordering to your diners. You’ll help your diners with a new and convenient way to get their favorite food, and you’ll boost your business by highlighting an additional way to order—a win-win for everyone.

After 16 years in hospitality operations, Geoff entered public service, serving as top regulator for Florida’s food and lodging industry at the Florida Department of Business and Professional Regulation (DBPR).

In 2006, Geoff joined the senior staff of the Florida Restaurant and Lodging Association (FRLA), where he leads the association’s Education and Training Department. This statewide team executes FRLA’s training mission in food safety, alcohol beverage compliance, workforce development, and high-performance training.

He serves on food safety advisory councils for DBPR and the Florida Department of Agriculture and Consumer Services and is active in the Conference for Food Protection and other national food safety stakeholder groups.

Geoff holds a degree in Economics from the Florida State University and lives in the Tallahassee neighborhood where he grew up.

 

Q: Are you seeing new products or trends that may be helpful in achieving food safety in Florida’s restaurants?

A: I’m seeing more automation of routine or record keeping food safety tasks that free up time for people to carry out food production and other tasks that need the human touch. For instance, remote temperature monitoring equipment can be connected to logging databases and populate temperature data that usually requires attention from and recording by a person. This type of automation can also alert key staff when refrigeration equipment is underperforming, even during non-operating periods. Integration of POS alerts for allergen ingredients is another automation that builds more reliability into communicating food allergy information among service and production staff, better protecting at-risk guests.

 

Q: Food safety took a backseat to the global COVID-19 pandemic; can you explain to readers how this occurred?

A: In two phases, first in dealing with the onset and immediate impacts of the pandemic, and secondly when emerging from it to a post-pandemic operating environment; each created unique challenges.

At the onset, operators were overwhelmed with new sanitizing procedures, constantly evolving best practices and guidance from public and environmental health officials and meeting guests’ sanitation and safety expectations – whether grounded in science or not. As the operating environment stabilized from constant evolution to one better understood, our industry was confronted with the realities of short staffing and increased turnover, each amplified an already difficult operating environment, and all this contributed to the opportunity immense distraction from core food safety mission.

Operators that already had a strong commitment to and operating system for food safety excellence were not distracted and maintained their standards.

 

Q: What trends could disrupt food safety in Florida?

A: Continued high turnover and operating short-staffed are two formidable challenges to maximizing positive food safety operational impacts. There is so much involved in preparing a new employee, even an industry veteran, that operations leaders must be extra vigilant that their focus on food safety is not diminished. It can be done, and done well, but it takes a conscious and intentional effort to do so.

To a lesser extent, margin pressures could tempt some operators to make decisions that compromise their effective execution of food safety best practices. Again, a strong commitment to a culture of food safety will safeguard the operation and ensure that shortcuts aren’t taken.

 

Q: What is the status of the hepatitis-A outbreak that was occurring in Florida prior to the pandemic.

A: While the multi-year spike in hepatitis-A appears to be relenting, operators’ constant vigilance for employee illness symptoms – every shift, every day – will go a long way to protecting guests, staff, and businesses. Ensuring food employees do not work sick and that proper and frequent handwashing are consistently executed are excellent front-line tools in reducing hep-A risk. The most recent hepatitis-A tracking data is available from the Florida Department of Health here, and its incidence appears to be diminishing.

 

Q: Are employee hygiene and handwashing still a huge part of keeping food safe?

A: These are two of the most effective food safety tools operators can use to reduce foodborne illness risk factors. An intentional system of adherence to regulatory requirements, Food Code standards, and operating best practices is the foundation of active managerial control. Managers that actively engage their teams – every shift, every day – will ensure proper and frequent handwashing and that ill employees do not enter the food preparation environment. These best practices coupled with highly engaged managers are proven effective interventions that reduce food safety risk.

 

Q: Florida has a strong food safety regulatory framework – can you briefly describe this?

A: In addition to being based on the latest nationally developed, science-based food safety standards, Florida’s food safety regulatory system is based on business type, rather than geography. This is a departure from the rest of the U.S., where the “health inspector” is typically a local government employee operating in certain city or county. These people may have responsibility for a broad array of environmental health inspections, from childcare facilities and hospitals or corrections facilities to well water and septic tanks to restaurants. Each of these is a complex system with its own best practices and regulatory standards. In Florida, our primary inspectors, from the Department of Business and Professional Regulation Division of Hotels and Restaurants, are responsible for inspecting only food service and lodging operations. This narrows the scope of laws, rules, and regulations inspectors must master, allowing them to become truly expert in observing and requiring correction for the sanitation and safety standards applied to our industry.

 

Q: How does training play a role in the food safety of Florida’s restaurants?

A: This is a great question, and the answer is rooted equally in industrial psychology and food science. In creating an operational culture of food safety, our holy grail is fostering behavior change. That is, getting our teams to do the right thing when no one is watching. One of the strongest influencers on this is arming our teams with the “WHY” of food safety, not just ordering them to do things a certain way because we said so. When a prep or line cook understands that their behavior coupled with food safety best practices can prevent putting a child in the hospital, they may be more apt to execute those best practices. Educating and rewarding our teams on food safety is the best defense for our guests.

 

Q: Can you describe what mandated food safety training in Florida is, and what the requirements for compliance are?

A: Mandatory food safety training simply means a food service licensee must provide approved food safety training to their employees, and Food Protection Manager Certification (FRLA uses ServSafe®) for managers. These are just the minimums, which a DBPR inspector will check for. There is actually a spectrum of food safety execution, from simple compliance to creating a “culture of food safety.” There is a minimum and a gold standard, and each operator gets to choose what they do. As an operator, imagine the conversation you would have with the family of someone you put in the hospital – or their attorney – and the choice is really easy.

 

Q: Do you have any food safety tips to share with readers?

A:  An excellent tool for owners or multi-unit leaders that may not be onsite daily is the operation’s DBPR inspection history. These are posted online immediately upon completion and are publicly available. It’s a good idea to know what your guests are seeing in your inspection reports, and it makes a great staff meeting or training tool. These are available on the DBPR website, and also accessible on mobile devices by downloading the DBPR Mobile app from Google Play Store for Android and the Apple App Store for iOS.

Highly effective operational food safety is not particularly complex but does require intentional, consistent commitment. Developing an active managerial control system and holding everyone in the operation from leadership to the newest prep cook or dishwasher accountable is the key to managing risk and safeguarding guests. I occasionally speak to operators that feel targeted or picked on by an inspector. I usually start those conversations with “Why was the inspector the first person to notice this?”

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by David Bishop

We live in a world of Imagery
Camera phones have created the closest thing to a national hobby in a new world where imagery reigns. Everyone’s a photographer so why not use this easy tech and save some marketing dollars? The answer’s simple. Lower image quality increases real costs, damages the brand and stunts potential revenues.

Mantra comes first
During shoots marketing managers discuss brand passionately like a mantra. One can renovate properties, build more fabulous ships, create new cuisine but once brand is damaged, results can be irreversible. I interpret that as no image will be published unless it represents the highest brand quality.

Is it safe? Is more better?
Top photographers aren’t cheap. Local talent may seem like an obvious answer. The problem is that streamlined imagery costs have produced a saturated environment of uninspiring food imagery that looks safe – safe like everyone else’s. In other words, no matter how innovative the chef’s creations, it all ends up looking pretty much the same. Chefs work night and day creating new and exciting culinary sensations. Content should mimic that same ultimate quality with an equivalent visual effect. It should always be about quality – not volume.

Please don’t swipe left
This is an inflection point. Now’s the time to make a pivot. Consumers of imagery anticipate beautiful F&B and when found they respond to it. We watch food competitions, attend cooking classes, entertain friends and family with our newest recipes and scour the net looking for the newest, sexiest and most fabulous. And if not found in a split second – swipe left!

Can one person really have a positive impact on the bottom line?
Hard to wrap your head around it but yes. Major food advertisers quantifiably increase revenues when successfully investing in top specialists gaining the most effective and lasting content. I do it by targeting cuisine’s most sensual hunger cues. That creates interest in order to capture consumer attention faster and hold it longer, translating to market share and adding to the bottom line.

Cuisine: One of the biggest influencers
Cuisine is consistently named one of the top reasons vacationers choose a destination.12345 Despite hospitality’s massive culinary investments, social media promotion and company websites often fail to visually reflect the spectacular quality of the chef’s constantly evolving creative cuisines. When food imagery is shot by less experienced shooters, it ends up all looking the same. Failing to visually define hunger cues misses some of the strongest most impactful motivators. Every image released to the public reflects on your brand ethos and potential sales.

All you need is love (and profits)
Food content is one of hospitalities’ most unique advocates and reliable friends to be counted on to always be there. Fine cuisine is meant to be savored. But it’s fine imagery that has the unique ability to create desire long before customers ever walk through the restaurant door or book a destination.

Time to swipe right yet?

David Bishop Marketing Content https://www.dbishop.net

1 https://blog.windstarcruises.com/why-people-like-cruising/
2 https://www.hospitalitynet.org/opinion/4037197.html
3 https://worldfoodtravel.org/what-is-food-tourism/
4 https://www.sciencedaily.com/releases/2019/04/190408114002.htm 5 top reasons tourists choose a destination

With many states legalizing medical and recreational marijuana sales and usage, employers are interested to know how it will impact their workers’ compensation claims. Zenith Insurance Company’s in-house legal team weighed in to answer some of the most common questions.

 

Question: With some state/local legalization of marijuana use, in what ways does this affect workers’ compensation for employees if they are injured on the job while under the influence of marijuana?

Answer: This is a state-specific question, depending on the statutes, regulations, and case law in each jurisdiction. But, in general, we should look at the intoxication, not the intoxicant. Alcohol is legal but drunk driving isn’t. In Florida, some or many take the position that a medical marijuana card allows a person to use marijuana as a medicine but does not allow them to be under the influence at work. So, an insurer can deny benefits if an employee who has a medical marijuana card tests positive for marijuana after an on-the-job accident. A constant confounding problem is that urine testing doesn’t test for the intoxicating substance (THC), it tests for the metabolite left over after the THC is metabolized. A positive urine test just shows that the person used marijuana at some time in the past. Most carriers today continue to focus on the issue of intoxication and safety on the job, not on whether marijuana is socially acceptable or legal. Some states don’t allow testing for marijuana in an employment context if marijuana is legal for adult recreational use. Currently, that’s not the case in Florida, though it could change because it’s a trend seen in other states as marijuana becomes legal.

 

Question: Are workers’ compensation statutes governed by federal law (which still rules marijuana use as illegal), and what does this mean to employers/employees?

Answer: The federal law (the Controlled Substances Act) does come into play regarding marijuana in the workplace, but more so in the employment law sense, rather than workers’ compensation.

Employers should be sure to consult with their employment attorneys when facing marijuana questions since there could be discrimination or Americans With Disability Act consequences to decisions made regarding marijuana in the workplace. If the federal government removes marijuana from Schedule 1 of the Controlled Substances Act, it may impact state workers’ compensation laws.

For example, in Florida, a recent case held that a workers’ compensation carrier doesn’t have to pay for a medical marijuana evaluation because marijuana is on Schedule 1 and, by definition, has no medicinal value. Thus, the court reasoned, marijuana could never be medically reasonable or necessary, therefore the evaluation is not necessary. If, however, marijuana comes off Schedule 1, an injured employee could or might argue that a carrier has to pay for the evaluation, medical marijuana card, and delivery device. Note – currently, the Florida Medical Marijuana law says marijuana “is not reimbursable” under workers’ compensation, so insurance carriers would not have to pay for the cannabis, but might have to pay for the evaluation, vape pen or rolling papers.

 

Question: What other issues are employers seeing due to the increased use of marijuana?

Answer: The biggest problem Florida employers face relates to the labor shortage coupled with the increase in marijuana use. Some employers are having a very difficult time finding employees who test negative for marijuana on applicant testing (Florida Drug-Free Workplace requirements include mandatory applicant testing). Employers have asked about removing marijuana from their testing panel. Many insurers (something, not “we”) discourage that, as it creates limitations in determining compensability after a positive post-accident test. As an alternative to not testing for marijuana, some carriers have taken the position that employers can hire applicants who test positive without affecting DFWP status. However, it’s good practice for employers to document that the applicant acknowledges that intoxication on the jobsite is not condoned, that there is no acquiescence to working while under the influence, and that benefits can be denied if there is a positive post-accident test.

A related issue is that employers are reporting very long delays in receiving the results of applicant testing due to the amount of COVID testing that labs are doing. Some employers have lost promising applicants to other employers while waiting on making a final hiring decision until the test results come back. Again, employers should consult with their HR professionals and/or employment attorneys regarding these hiring issues.

The information contained in this article is not to be construed as legal advice and is not meant to be a substitute for legal advice. Zenith Insurance Company (“Zenith”) makes no representations or warranties, express or implied, guarantees or conditions of compliance with applicable laws or regulations and such compliance is ultimately the responsibility of the employer.  The information presented is not applicable in all jurisdictions of the U.S.  The jurisdiction you are in, changes in the law or regulations, or the specific facts of an individual case may result in different interpretations of the law or process than those presented here.

 

By Topher Jensen

Understanding the factors that impact natural gas prices

In 2021, the U.S. commercial sector consumed 3,263,722 million cubic feet (MMcf) of natural gas, with about 2% of that in Florida alone. The hospitality market relies on natural gas for heating, cooking and drying. It’s been the steady choice for businesses because it’s reliable and effective. But recent price increases have made natural gas management more complex than ever before.

It’s no secret that natural gas prices have been exceptionally volatile in 2022. It’s normal for prices to fluctuate, but the natural gas market hadn’t seen prices reach such spectacular highs since 2008. From 2017-2021, natural gas prices averaged below $3—but in early 2022, prices hit $8.14/MMBtu (according to the U.S. Energy Information Administration).

Fortunately, prices are forecasted to drop in the coming year. Still, as we’ve come to experience, nothing is set in stone. So, what factors influence natural gas prices, and is there any way to prepare for future volatility?

Let’s take a look at the fundamentals. Like most things bought and sold in high volume, it all comes down to Economics 101—supply and demand.

With demand, the weather usually plays the most significant role. People buy more natural gas when it’s cold out to help heat their homes and businesses. Typically, demand for natural gas is lowest from April to October and highest during what we call heating season—November through March. But other factors such as economic activity (which slowed during the COVID-19 pandemic) and the cost of competing energy sources play roles, too.

With supply, considerations include production levels, storage amount and the country’s import/export activity. The United States produces most of the natural gas that it consumes. From 2005-2019, production generally increased, which led to lower prices and less volatility. In the first half of this year, the U.S. produced 3.1MMcf of natural gas monthly, higher than last year.

Any gas that isn’t immediately sent to market is injected into storage facilities. From storage, the gas is either delivered to the customer or reserved for supply management and backup inventory. Some companies can also move gas in and out of storage through futures trading.

Current storage levels are below the five-year average, and the gap won’t close without consistently strong injection rates. Because of record-high temperatures and a shift away from coal-fired generation, natural gas consumption may increase in the electric power sector during the summer months. That could mean fewer than normal injections, lower storage volumes for winter and higher prices.

Finally, natural gas import and export activity affects domestic supply. Over the past three years, export capacity has increased by more than 40%. In the first half of 2022, the U.S. became the world’s largest LNG exporter (LNG stands for liquified natural gas, the state in which natural gas can be stored and shipped). This new distinction could be due to the war in Ukraine and limitations on Russian imports. And although LNG exports decreased when the Freeport LNG plant shut down operations, the company recently announced that they’d resume activity in early October.

Of course, these are just the basics. To truly make the most out of your natural gas consumption, it always helps to have experts on your side.

At Gas South, we provide many customers with dedicated account managers who understand the natural gas market and your business needs. We’re committed to finding creative ways to keep your costs down and your business running smoothly. To provide customers with additional information and insights, we release a monthly update on the natural gas market and conduct interactive webinars to dive deeper into the market forecast.

If you’re interested in working with Gas South to manage your natural gas needs, reach out to Director of Commercial Acquisitions Topher Jensen at [email protected]

The Role of Artificial Intelligence in Restaurants

by Michael L. Kasavana, Ph.D., CHTP, CFTP MSU/NAMA Professor, Emeritus IFBTA Education

Executive Summary

As prolonged wait times, production mistakes, supply chain challenges, and labor shortages continue, restaurants are turning to artificial intelligence (AI) to alleviate and correct problem areas. While the popular thought of AI in restaurants congers up images of kitchens staffed by trained robots, this by no means captures the realities of the technology. The most common ways AI is changing restaurant operations is by reducing human errors, containing escalating costs, enhancing production accuracy, adherence to safety standards, and redefining the customer experience. Restaurant operators can benefit from AI processes designed to increase capacity, advance forecasting precision, and accelerate production, while enabling growth. Additionally, AI-enabled machines and virtual assistants can be assigned to effectively conduct customer communications, reservations, and recommendations while providing adapted ordering.

The International Data Corporation (IDC), a global provider of information technology and publisher of the report, ‘AI Strategies View 2021 Survey’ identified the primary business objectives of AI as accelerating innovation, improving operational efficiency, and enhancing customer experiences.

Survey results basically established AI as the key to sustainable competitive advantage. Lightspeed analytics’ 2021 Global State of the Hospitality Industry Report’, projected the growth of AI in US restaurants at a steady pace for the foreseeable future. The study noted that at least fifty percent of operators were planning to implement some form of AI technology in the near term and revealed forty- seven percent of full-service restaurant (FSR) operators and thirty-seven percent of quick service restaurant (QSR) operators credited AI with the ability to streamline operations and help survive the pandemic.

AI can be divided into three main disciplines: machine learning, computer vision, and natural language processing. Machine learning involves mathematical algorithms that are capable of drawing conclusions from processed data, over time. For example, the ability to accurately forecast sales volumes based on historical observations. Computer vision involves acquiring high-level understanding based on digital images or videos. For example, developing visual authentication using facial recognition. Natural language processing is concerned with the interactions between computers and human language. For example, the process of transcribing voicemail into text. Suffice it to say, the restaurant industry is finding credible ways to apply artificial intelligence though insights and expectations gained via data processing.

AI Life Cycle

In the phData guidebook ‘How to Implement a Successful AI strategy’, the authors point to the stages of an AI project life cycle. The four project stages being: discovery, modeling, deployment, and monitoring.

Stage 1: Discovery – collecting relevant information that can guide strategic decisions is critical to a successful AI solution. Discovery centers on use-case situations. Subcategories include gathering, exploring, and understanding.

Stage 2: Modeling – operationalizing AI solutions require identifying infrastructure components that support a restaurant application. Subcategories include experimenting, model training, and validating.

Stage 3: Deployment – selecting the most appropriate AI and ML applications can be difficult given the increasing number of suppliers in the space. It is important to identify workable and feasible solutions. Subcategories include serve modeling and integrating.

Stage 4: Monitoring – probably is no restaurant that is completely prepared to pursue an AI initiative without experiencing gaps and oversights prior to reaching a fully deployable solution. Subcategories include logging, visualizing, and alerting.

AI Benefits

Artificial Intelligence combines multiple concepts of mathematics, statistics, physics, and computer science in a way that formulates a feasible solution. AI enables a computerized device to mimic human behavior and perform tasks that normally require human intellect. AI captures data from a surrounding environment and reacts to it in a way that enables multi-tasking with minimal resource displacement. AI applications include learning, reasoning, and perceiving using machine learning, computer vision, and natural language processing. The objective of AI is to drive business processes with creativity and innovation.

AI technology applied in restaurants can interact with customers, take orders, interface with point of sale (POS) systems, cycle production to service, and perform many other functions. A few of the broad benefits of applying AI in restaurants, include cutting costs, reducing errors, customizing orders, improving customer service, and identifying new customers:

• Cost containment – AI technology can be used to automate repetitious tasks, such as taking reservations or entering orders into a POS terminal. Efficient order capture, forecasting, and job streamlining can result in less money being spent on operations, thereby leading to lower overall
• Error reduction – human error is attributable to many things that can go wrong in a foodservice business. For example, a server might misunderstand a customer’s order, resulting in production of an incorrect menu Given AI order capture and placement is digital, there are fewer errors.
• Customized orders – AI provides enhanced customer control during the ordering process thereby providing a platform for more personalized ordering.
• Improved customer service – by embracing AI’s ability to perform specific tasks, employees are free to focus on providing exceptional customer service.
• Identifying new customers – AI technology can improve marketing efforts that allow the development of customer profiles to identify new target markets. In addition, AI can help with retaining customers through remarketing efforts that incentivize repeat

AI Genres

AI can be divided into at least three distinct genres: 1- machine learning (ML), 2- computer vision (CV), and 3- natural language processing (NLP).

Machine learning takes AI to the next level. ML technology allows computers to not only retain   data but also to apply complex formulas to generate predictions about events or human behavior based on historical patterns. Machine learning is a field of inquiry devoted to understanding and building methods that leverage information to improve task performance. It is a part of artificial intelligence that is able to learn and adapt without following explicit instructions. ML relies on algorithms and statistical models to analyze and draw inferences from data patterns. Machine learning is used by platforms like YouTube TV, Netflix, and Spotify that suggest new content based on a user’s personal preferences. Similarly, restaurant AI applications can promote menu specials and upselling to candidate customers given ordering history.

Computer vision is an interdisciplinary scientific field that deals with how computers can gain understanding from digital images or video. Computer vision is a field of AI that enables systems to derive meaningful information from digital, visual inputs and, in turn, to take actions based on the information. Different types of computer vision include image segmentation, object detection, facial recognition, edge detection, pattern detection, image classification, and feature matching. The goal of CV is to enable computing devices to correctly identify an object or person and to take appropriate action.

Natural language processing (NLP) refers to the branch of AI that enables computers to understand text and spoken words in much the same way human beings do. NLP is concerned with programming computers to process and analyze large amounts of data. Apple’s Siri, Google’s Hey Google, Microsoft’s Cortana, and Amazon’s Alexa are examples of personal digital assistants (PDAs) capable of recognizing a user’s voice and applying AI in response to queries. Additionally, spell check, autocomplete, and spam filtering are examples of other NLP in action.

AI in Restaurants

With respect to restaurants, many AI solutions are intended to automate rote tasks or job functions. Equally important are related cost savings and marketing strategies. Note: the following twenty foodservice use cases are representative, but not assumed exhaustive.

Integrated Inventory and Purchasing–tracking historical inventory and purchasing data in search of trends leading to real-time recommendations

Demand Forecasting – menu item sales projections emanating from transactional data, bundling campaigns, digital marketing, cross-selling, and upselling.

Predictive Maintenance – embedded scheduling benchmarks enabling enhanced maintenance of operational and transactional procedures.

Task Automation – the reduction or elimination of repetitive tasks based on the redesign of functions through automated processes.

Virtual Assistant – customer use of smart device to search for restaurants, locate reviews, menus, and placing ordered and payment via a smart device.

Proactive Ordering – machine learning-based decision technology to predict what menu offerings are most likely to be preferred by customers.

Voice Recognition – phone answering technology capable of taking messages, booking reservations, building waitlists, and voice ordering with POS integration.

Facial Recognition — recognizes customer at the drive-thru, displays past orders, and allows for payment via face identification.

Order Clarity – AI platform capable of handling complex, multilingual, multi- accent, and multi-item conversational ordering.

Robotics – the role of robots performing hosting, production, and service processes in restaurants. Also, implementation of drone devices.

Loyalty Programming – monitoring and management of marketing strategies designed to encourage, reward, and incentivize business

Automated Marketing — AI tools available for digital marketing campaigns, emails and social media posts aimed at maximizing views and click-throughs.

Chatbots – similar to online chatbot adjustments can be made for restaurant assistance in handling guest queries and avoiding unanswered contacts.

Staff Scheduling — AI-enabled software can correlate staffing and sales data to determine trends and patterns in peak and slow time traffic requirements.

Self-Service Kiosks – devices that increase capacity and accelerate ordering, preparation, and payment while providing the power to control and customize.

Personalized Service – customer data collection from online ordering and digital marketing can lead to personalized services.

Waste Reduction — reducing food waste by fine tuning purchases to meet inventory needs and thereby avoiding expiration dates and excessive buying.

Customer-facing — conversational AI apps can greet customers, take orders, transfer orders to point of sale (POS) systems and perform related functions.

Optimized Delivery — AI can assist delivery drivers locate the most efficient routes, utilizing real- time map data, for multiple deliveries in a single trip

Delivery Tracking – enables awareness of progress by delivery services by allowing customers to view a tracking map with text message updates.

Industry Experiences

Briefly, Checkers & Rally’s found that an AI voice assistant had nearly one-hundred percent accuracy in taking drive-thru orders, all without staff intervention. Domino’s Pizza successfully uses drone delivery to deliver pizza orders, while Marco’s Pizza employed proprietary voice-to-text ordering using conversational AI. Cali-Burger employed Flippy the burger-flipping robot to prepare orders. The RoboBurger vending machine relies on a robo-chef platform to grill patties, toast buns, dispense condiments, plate the item, and deliver it piping hot in about six minutes. Chick-fil-A restaurants are testing AI-enabled self-driving autonomous vehicles for delivery. KFC and Wendy’s have both implemented smart kiosks to customize customer experiences and inter-activities.

In more detailed examples, the experiences of McDonalds, Sodexo, Coca-Cola, and Uber Eats represent important, and different, AI models for industry development.

McDonalds Example

McDonald’s created McD Tech Labs after its 2019 acquisition of Apprente, a voice technology firm, which in turn followed its earlier acquisition of Dynamic Yield, a firm that specialized in personalization and decision logic technology. In 2020, McDonald’s announced its Accelerating the Arches growth strategy, which included an emphasis on the 3 D’s: Digital, Delivery and Drive-Thru and integration with AI technologies. The Apprente technology, for example, uses AI to understand drive-thru orders in a way that would automate drive-thru lanes with the potential of replacing drive-thru staff members.

As of December 2021, McDonald’s offers drive-thru service in more than 25,000 locations, including 95% of all US operations, representing 70% of sales in top markets. In addition to implementing drive-thru innovations like express pick-up, express drive-thru, and smaller on-the-go locations, McDonald’s is also looking to improve ordering and payment functions. Apprente technology has been described as a voice-based platform for complex, multilingual, multi-accent, and multi-item conversational ordering. McDonald’s hopes that using the solution’s natural language processing and machine learning capabilities have created a faster, simpler, and more accurate drive-thru order-taking process. Reported results include reducing the time it takes to serve drive-thru customers by thirty seconds with increased customer satisfaction. Accompanying such success if the fact that automated order-taking scores an 85% accuracy rating with close to 20% of orders requiring human intervention.

McDonalds is also focused on order prediction based on digitization embedded into smart digital displays. As part of its Accelerating the Arches effort to make the drive thru as efficient and convenient,

McDonald’s purchased Dynamic Yield to leverage its decision technology to add personalization and modernize the customer experience. Dynamic Yield is a machine-learning solution that captures customer purchases and links them to presentations on digital ordering displays. In other words, the application digitized the point-of-sale process. Tracking such variables as time of day, order selections, traffic velocity, item popularity, and weather conditions. As a result, McDonald’s can offer digital displays that suggest popular items by weather or specific day part. Measuring traffic can also lead to the displays suggesting faster-to-prepare items to alleviate drive-thru slowdowns. In late 2021, McDonalds sold Dynamic Yield to Mastercard, which plans to continue to work with the fast-food company. McDonalds has stated a preference for investing in the 3D’s: digital, delivery, and drive thru.

Sodexo Example

Sodexo is one of the largest foodservice contractors in the US and continues to focus attention on increasing the convenience of its offerings. By leveraging digital and technological innovation, the company is striving to gain a competitive advantage over its competitors on college campuses. Digital engagement by younger consumers and density have made college campuses a target for delivery innovation. As a result, the company will add virtual brands, ramen vending machines, and checkout-free grocery stores at several campuses. It will deploy three delivery-only virtual brands in partnership with Virtual Dining Concepts, which offers brands like MrBeast Burger, Mariah’s Cookies, and Buddy V’s Cake Slice, on a mobile app. Virtual brand meals will be delivered via robot. In addition, the company recently announced a partnership to bring 1,000 delivery robots to college campuses. Perceiving its customers as having three important concerns (convenience, choice, and quality) making innovation, digital, and social media promotions take on a unique role. An autonomous vending machine manufacturer is partnering with Sodexo to deploy ramen and udon noodle machines to several campuses. These machines will offer meals after campus dining halls close, bridging a common gap in university foodservice offerings. In addition, the company will offer Eat>NOW autonomous campus grocery stores to its high-tech vending and virtual dining concepts with robot delivery services. Sodexo’s new offerings and partnerships with delivery and restaurant tech companies highlight the blurring lines between institutional foodservice and changing restaurant offerings.

Coca-Cola Freestyle Example

Throughout its value chain, Coca-Cola creates and collects a significant quantity of data, including sourcing, production, distribution, sales, and consumer feedback. As a result, Coca-Cola is continuously faced with the challenge of effectively leveraging aggregated data. Coca-Cola Freestyle is an innovative fountain drink dispenser (released in 2008) that allows customers to combine beverages and flavors via an interactive touch-screen display. These fountain drink dispensers are popular, with more than 50,000 units in operation, dispensing 14 million beverages per day.

In order to use the Coca-Cola Freestyle mobile app, consumers need to register using an established social media account. Coca-Cola then applies AI to analyze the social media content of its customers, generating insights on where, when, and how its products are consumed. Based on the consumer behavior and demographics analysis, Coca-Cola can identify which products are popular in which geographic areas. Coca-Cola’s ability to leverage such detailed and comprehensive data provides ways to better serve its customers.

Coca-Cola can use the network of Freestyle machines to acquire a knowledge of how tastes and beverage preferences differ among its customers thanks to AI algorithms in its machines. The data is critical in determining when, where, and how to manufacture and sell new products. For example, collected data from these self-service machines, enabled Coca-Cola to uncover valuable information on client preferences. This research resulted in the launch of at least two new products: Sprite Lymonade and Orange Vanilla Coke. Freestyle machines continue to provide on-demand access to more than 200 sparkling and still beverages, including more than 117 low- and no-calorie options, as well as more than 100 unique variations exclusively offered through these dispensers.

Uber Eats

Uber Eats’ picked up ordering at various stadiums, piloting test autonomous delivery, launching voice ordering and expanding its vouchers program to general consumers to use at events like weddings, food ordering, or rides. Uber Eats is currently testing and implementing voice ordering, starting with English-language capabilities before bringing additional languages online. The service integrates with Google, allowing customers to say a phrase like “OK Google, order food from Sweetgreen,” which would trigger the Uber Eats app. When the app pulls up, the customer can place an order with the requested restaurant via voice. Google Assistant will confirm the order details, and the customer can change or submit the order hands-free through the app. Initially, the Uber Eats’ voice ordering function will be available only on Android devices with other devices launching in the future.

Grubhub added voice ordering through Amazon Alexa in 2017, but it doesn’t appear to be an Alexa skill anymore, according to Amazon’s website. Diners were able to use various Amazon devices to ask about the past three orders and reorder from their favorite restaurants. While DoorDash doesn’t currently support voice ordering. Its products do work with screen readers and other assistive technology, however.

Uber Eats’ is offering in-venue mobile ordering to select stadiums, allowing guests to order and pick up food or merchandise without waiting in line. Additionally, the app will be able to identify the stadium and provide a list of specific foods available. Uber Eats will also identify the proximity of each concession to the individual.

AI Disadvantages

From a cost-benefit perspective, AI solutions are not without disadvantages. Such things as expense, inflexibility, intimidation, not-productivity, and inelastic decisions should be considered. Briefly, these five items deserve consideration:

• Expense – an application simulating intelligence can be complex and costly.
• Inflexibility – solution becomes fixed, without innovation or creativity iterations.
• Unemployment – potential loss of jobs can create a fear in workplace staffers.
• Non-productivity – solutions may lead to unmotivated staff member performance.
• Inelastic – AI algorithmic solutions lack ethics and morality capabilities.

Summary

Artificial intelligence has the potential to transform the restaurant business by unlocking powerful insights and predictions. It is important to note that without taking a strategic approach, most AI projects and initiatives are likely to fail to create value. While AI seems like a complex and inappropriate solution to many restaurants operating problems, it has been shown to present many beneficial outcomes. Industry practitioners foresee AI as having long-term applicability given its many characteristics and features. For example, AI predictive technology can be used to manage inventory, staffing, menu pricing, sales forecasting, and more. AI in restaurants is more than a trend; it’s likely the future of the industry as it can streamline operations, reduce costs, and improve profitability.

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