Giving Guests Options with QR payments is Key to Thriving for Hospitality and Restaurant Brands
We know the primary challenges the hospitality and restaurant industry are currently facing: labor shortages and rising costs. In 2022, we find that servers are most in demand when compared to other employees, with 30% of restaurants surveyed in Canada needing to hire more servers but every position in foodservice is in demand. We also know that these shortages are impacting customer experience with wait times way up. Yelp review data drives the point home. In the first quarter of 2022, mentions of wait times was up 23% over the same period a year ago and mentions of short staffing are up an incredible 229%.
We know the challenges, but what are the solutions?
Taking a Cue From Grocery: Using Technology to Adapt
In many industries, we’ve seen technology integrated and, in some cases, redefine it. Often though, we think of technology as a panacea when it’s much more valuable to think of technology as complimentary to traditional services. This is what we’ve seen in banking with ATMs and teller services and what we’ve seen recently with grocery brands.
Grocery chains have rapidly adapted and adopted technology that was designed to add customer touch points. Not so long ago, a customer at the grocery store could only pay through the checkout. Then, a self-serve checkout was added. This was one more option for customers to choose how they wanted to be served. Did they want human interaction at that moment or did they need something faster? And now, driven by the pandemic, there’s options for home delivery, or order online and pick up outside of the store. To reiterate, customers at grocery stores can choose between:
Paying at a cashier
Self-service payment
Order online and pick up at store
Order online for delivery
That’s four different ways for customers to determine their own experience and match it to their needs at that moment.
Recall that technology should be considered complimentary. And, as we see in grocery, it absolutely is. With all of these new touchpoints, the cashier is still there and customers who want that human connection still have that option. But, it’s not ALL on the cashier anymore. The customer now knows that if the service is too slow for their liking, they have other ways of expediting payment, which reduces frustration.
Similarly, hospitality and restaurant brands need to adapt in order to thrive under the new conditions of labor shortage and rising costs. Technology needs to be added to provide customers with more options to order and pay for their meals. There are several benefits to using technology to give guests options to order & pay (and we’ve seen all of these with our clients at Ready):
Fewer servers per table are needed since some of the order & pay obligation is removed from their job.
Servers can focus more on guest-satisfaction.
Technology has been proven to get orders to the back of house faster and more accurately.
Tips increase because a guest is most likely to tip their highest at the exact moment they are ready to pay and the server has been providing great service.
Tables are turned faster.
Average order size increases because guests always have their menu available and can more easily act on sudden impulse. Additionally, we find that with smart digital menus guests love to see the pictures of their food, also recommendations, what’s popular, and ties into their loyalty programs.
Guests are able to leave feedback right away at checkout, instantly informing FOH managers of when things are going right and when service needs some improvement This keeps bad reviews in the restaurant, and guests less likely to post their grievances on social media.
Changing the role of the server
Implementing order & pay technology would seem to impact servers the most. Though this is true, it doesn’t need to be a negative impact. Traditionally the server has had a largely transactional role in the restaurant as a key mediator in the guest relationship. Beyond the greeting, their primary function is to take orders and process payments. If technology replaces some or most of those tasks for the guests that prefer to use the technology, there is the immediate benefit of freeing up time for the server, allowing them to serve more tables. But, what is the future for servers if they don’t take most orders and payments?
Well, they are the face of the restaurant for the guests they serve. If they are no longer transactional for guests then they can focus on the qualitative experience and elevate the guest experience by ensuring comfort, order accuracy, and that the guests are enjoying their experience. In short, they have more time to focus on what really matters.
Do Guests Like Using QR Technology?
No matter your solution, it has to be one that customers are willing to adopt. Like many industries, we see technology adoption really breaks down along demographic lines. Gen Z and Millennials in particular (with a 78% approval rate) welcome QR codes in restaurants at a very encouraging rate, while boomers lag behind in adoption.
Digital transformation in the Restaurant Industry
Like other industries that have faced key transformations through technology, the restaurant industry is at a sea-change moment. The restaurants that adapt to the new realities of labor shortages and customer expectations can thrive, while those who hold too tightly to the ways of the past are likely to be left behind. Imagine a bank that didn’t offer ATMs or a theater that didn’t sell tickets at self-serve kiosks or online. Those that didn’t adapt simply don’t exist anymore.
Whatever technology solutions you choose, the key is to find a solution provides a seamless and enjoyable experience for guests, that can integrate with your POS, is able to integrate with loyalty programs, and offers an easy-to-update, interactive menu that can be scheduled to put items where you want them, when you want them (think happy hour menu).
It’s also important to remember that, just like the grocery store, your technology doesn’t have to replace traditional menus. A good technological solution complements traditional methods, giving guests more options, and more control, over their dining experience.
If you want to find out more about how Ready’s order & pay hospitality, entertainment and restaurant tech can help your brand increase revenue and improve customer experiences, please get in touch with our team today.
About Ready
Ready partners with innovative restaurant, foodservice, and hospitality brands to create frictionless order & pay experiences that WOW guests.
Our mobile-first flexible order & pay software platform empowers guests with more choice, boosts revenue, and connects brands directly with customers.
We are a company of food lovers whose goal is to make guests, servers, and operators say, "Why hasn't it always been like this?"
Our clients are Restaurants, Hotels, Stadiums, Venues, and anywhere food or drinks are served.
Ready to order. Ready to pay. Ready when you are.