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Personal Appeal: Technology and Service

Restaurant chains adopt hotel-like technology that streamlines operations without sacrificing service.

By Lisa Bertagnoli, Contributing Editor -- Chain Leader, 7/1/2009

Morton's guests
Morton’s online reservation system lets guests reserve 24-7, and indeed, some do during the wee hours.
It's possible to navigate an entire hotel stay without a single involved interaction with an employee. Online reservations, check-in kiosks and automatic checkout systems make such a stay possible, as do television-powered requests for room service and amenities.

Is this the future for chain restaurants? Perhaps.

Restaurants already are experimenting with some hotel-like technology: In November, Ann Arbor, Mich.-based Domino's Pizza began offering TiVo's broadband customers TV-screen ordering. The order is routed to a nearby Domino's of the customer's choosing, and orders (not to exceed $100) are promised within a half-hour. Rather than pay ahead via credit card, customers pay cash for their pizza. Domino's did not respond to requests for more information.

Denver-based Einstein Noah Restaurant Group is testing a self-ordering kiosk at a single college campus location, says Paul Carolan, senior vice president of franchising and licensing. (He would not disclose the college's name or location.)

He predicts that preorder kiosks could work well at campus locations, where multiple foodservice operations share a central register system and where speed of service is crucial. But Carolan doesn't think self-ordering makes sense for the bagel chain's street locations.

“Our stores are 2,500 square feet, so by the time you get the kiosk in, you're 2 feet from the register,” Carolan points out. Plus, “our hospitality is pretty important to us,” he adds. “There is a downside if we go completely to no interface.”

Slow Going

Indeed, restaurant chains that have adopted customer-facing technology are finding that it's slow to catch on.

For example, Morton's The Steakhouse uses OpenTable.com for online reservations. Still, most patrons prefer to phone in reservations, says Patty Pleuss, vice president of marketing and sales for the 81-unit, Chicago-based restaurant chain. “There are guests who still want that personal interaction,” she says.

Morton's enters all guest information, no matter how they reserve, into OpenTable's guest database, its main benefit to the chain. The database captures and stores guest information. In May, the San Francisco-based software company announced an upgrade that will include more real-time reports and a greater depth of customer information.

Better Service

Cameron Mitchell guests
Younger patrons are more likely to use Cameron Mitchell Restaurants’ online reservation system.
A minority of Cameron Mitchell Restaurants' customers reserve tables using OpenTable.com. Reservations for the chain's nine full-service restaurants are available online two ways: via cameronmitchell.com, which links them to the OpenTable site, or directly from OpenTable.com.

About 30 percent of reservations come from OpenTable's Web site, and 50 percent come from Cameron Mitchell's, says Bret Danner, operating partner at the Columbus, Ohio-based company. The online crowd is different: younger (50 or under) and less likely to no-show than patrons who reserve via a phone call to the restaurant, Danner says.

Its relative underusage is OK, because the system's real benefit is the guest database, Danner says.

“I see it more as a system to capture information to give better service,” he says. “I know you have an allergy before you come in. I can hand you a gluten-free menu before you ask for it.” About 25 percent of the company's customers make a specific request on the reservation form, Danner says.

Franchisee Buy-In

Humgry Howie's promotion
Hungry Howie’s online ordering system lets patrons customize pizza and order a week in advance.
Online ordering has been slow to catch on at Hungry Howie's Pizza, a Madison Heights, Mich.-based chain of 575 pizza parlors. The chain began offering online ordering a year ago via two third-party providers: Onosys and Hunger Rush.

Even though Hungry Howie's markets the service aggressively with store banners, window clings, coupons, receipt tags and fliers affixed to pizza boxes, online orders account for only 6 percent to 7 percent of total orders.

The reason? Only 40 percent of franchisees offer online ordering, and the chain cannot effectively market online ordering until all locations are on board, says Al Newman, director of training.

Newman thinks he understands the reluctance of the other 60 percent. Franchisees are responsible for arranging setup, and fees run $50 to $60 a month. Online ordering is also complicated if the restaurant doesn't have Hungry Howie's current POS system.

Hungry Howie's frustration lies in communicating the advantages to franchisees: 20 percent higher average tickets with online orders, higher order accuracy and labor savings. “The order just appears,” Newman says. “I didn't have to pay an employee to take the order.”

Despite the slow start, he is hopeful. The number of online orders is “ever increasing,” Newman says. “100 percent would be the perfect world.”

MORE: Einstein Noah Restaurant Group's "line buster" remote order-taking device speeds service without sacrificing customer-staff interaction.

 

Steal These Ideas

Restaurants can adopt lots of hotel technology without sacrificing hospitality, says Robert Grimes, chairman of Accuvia Consulting, a Potomac, Md.-based hospitality and retail technology-consulting firm. Here are the technologies Grimes considers worth stealing from hotels:

Tableside touch screens. “They can serve all kinds of informational purposes, not just ordering and printing out your check,” Grimes says. Nutritional information and comment cards are two examples. “The ROI might come from better communication,” Grimes says.

On-demand movies. “If a restaurant wants you to stay awhile, they should let you download a movie,” Grimes says.

Room inspection services. Hotel floor managers use hand-held devices to inspect room cleanliness and grade maids. Restaurant mystery shoppers could also use hand-held devices, Grimes suggests.

Electronic device hubs. Hotel rooms have hubs where patrons can recharge cell phones, MP3 players and other personal devices. “That hub technology will end up in restaurants,” Grimes predicts.

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