The Tech Pavilion was a popular spot, as always. | Photo: Joe Guszkowski
Three days spent on the grounds of the National Restaurant Show in Chicago this week revealed a lot of information about the state of restaurant technology. Here are his nine lessons learned from this momentous event.
Technology is the hottest thing since free samples
This isn't news, or necessarily surprising, but it's worth taking a step back and marveling at how central technology has become to the show.
Traffic from the booths was so overwhelming that it was difficult to pass through the aisles in the tech pavilion at some points. (And there were some great booth designs this year.)
You might think the vendors are handing out hot dogs or something, but that's not the case. It just provides a demo of the software and the occasional new hardware to admire. This was proof of the growing interest in restaurant technology.
Everyone wants to do it all…
The most noticeable trend while touring the technology booths was the number of suppliers claiming to be the only technology platform restaurants need.
Vendors have been moving in this direction for years, in part because restaurants are looking for greater simplicity from their technology.
That's how Square entered the kiosk industry. The POS company has worked with other kiosk providers for years, but launched its own kiosk provider this year.
“Sellers on Square's platform were always asking, 'When are we going to build our own kiosks?'” said Ming Tai Hsu, Square's head of food and beverage. “They no longer want him to manage in one integration.”
This was a common phrase on the show floor.
…but there are also benefits to a patchwork approach
On the other hand, some operators believe that it is better to use a combination of vendors than to rely entirely on one vendor.
Diversification gives restaurants more flexibility if they decide to make changes, said Grant Krueger, owner of Tucson, Ariz.-based Union Hospitality Group.
“It's better to have a technology stack with different players than to put all your eggs in one basket,” he said, noting that overhauling POS can be a painful process.
Small businesses are looking for an exit
The move to all-in-one platforms is impacting smaller, more specialized vendors, some of whom hope to be absorbed by larger companies. “We would love to be acquired,” said a representative from a small and medium-sized company, speaking on condition of anonymity.
There are certainly buyers: back-office technology supplier Restaurant365 has just acquired training specialist ExpandShare and raised $175 million, some of which it plans to use for further acquisitions and more.
A technical community is forming
There's a real movement underway among vendors and restaurants to build more community within the fragmented tech industry.
That was evident on the show through the proliferation of podcasts recorded on the floor. Restaurateur and podcast veteran Shawn Walsh said the format is a great way for operators to learn from each other. “We started podcasting so we could connect with people all over the world,” he said.
Some suppliers are trying to foster similar connections for their customers. For example, SpotOn has started hosting monthly online meetups where restaurants can talk about work. Toast is also distributing a pamphlet inviting operators to join her Toast Community, a free online forum. “Connect with your industry peers whenever it's convenient for you,” the brochure says.
Shawn Walsheff (right) will be the podcast host for Saturday's show.
Keep an eye on Otter
CloudKitchens CEO Travis Kalanick's digital ordering company quietly launched a point-of-sale system this year, and operators are taking notice.
Rafael Alves, CEO of New Jersey-based Snack Mania, is a longtime Toast customer and enthusiast (we spotted him taking photos in front of the booth), and he said that Otter was the only system he saw at the show that came close to what Toast is offering.
What can't AI do?
Does your restaurant need something done? If AI can't do it now, it probably will soon.
The show featured cameras that monitor the quality of burgers, software that automates invoicing and a system that spits out how to add avocado to a menu, to name just a few of the applications on display.
While AI has officially achieved buzzword status, there seemed to be a lot of genuine enthusiasm for it among attendees.
“We're really excited about the right use cases,” said Patrick Knapp, vice president of operations at Bobby Flay's Bobby's Burgers. “AI today can take data, leverage that information, and present it in a way that is useful to us.”
Mexico's Avocados was showing off an AI tool that generates avocado-based menu items.
Technical support becomes unavailable
Several operators have lamented the abysmal customer service provided by some vendors these days.
One person noted that much of what was once known as customer service is now self-service, while another shared a long-standing frustration that it's difficult to call a real human being when you have a problem.
Knapp talked to many providers when building Bobby's technology stack. He valued someone who made him feel like a partner more than a potential sales pitch.
“We weren't looking for a POS system, we were looking for a POS partner who said, 'How can we help you?'” Knapp says.
Restaurants are a data business
Believe it or not, there are still operations that have little insight into sales performance or which products are selling best. This is a major limitation at a time when costs are changing rapidly and every penny counts.
“The future of restaurants is data-driven,” said Brian Solar, chief product officer at POS provider SpotOn. “It’s like evolve or die.”
SpotOn has invested heavily in its data capabilities, developing dashboards that reflect a restaurant's performance in real time, right down to which servers are selling which items.
That level of visibility is essential to operational improvement, says Soler. “If you can see it, you can teach it.”
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