How VARs Can Educate Restauranteurs On Business Intelligence
By John Workman, Product Management Director, NCR Hospitality
Not long ago, restaurants were run mostly by intuition and personal experience. Restaurant operators would put a menu together, serve their customers and hope the customers liked it — using anecdotes as the metric of choice. They would estimate how much staff was needed based on their recollection of history, and hope the managers scheduled enough — but not too many.
Today, all that has changed with the arrival of real-time analytics tools that empower restaurant owners and managers with facts to solve their problems. Restaurant operators have significantly changed their approach to processing data with the primary goal of incorporating actionable data into day-to-day operations.
Previously, data’s primary purpose was loss prevention and improving operational efficiency.
However, the lens has widened to enable restaurant operators to use data in ways that drive real-time marketing efforts and improve the overall customer experience. In fact, the proliferation of mobile consumer devices now creates opportunities to use data even before the customer enters a restaurant.
With real time analytics, key operational metrics, such as voids and comps, net sales by hour, time of day and category are available to restaurant managers and owners at any time, from almost any device. They, in turn, can use this information to make immediate decisions that directly impact the bottom line, regardless of where they are.
Even as restaurant owners and managers become more familiar and comfortable with technology, VARs still have the unique role of educating operators on how the latest technology, including point of sale solutions, can provide relevant data that helps shape the customer experience, enhance marketing efforts and further improve operational performance.
Delighting The Customer, Improving The Experience
Social media, online reviews and other factors are changing, and often setting consumer expectations; and with negative feedback distributed through hyper-connected social networks, it can be more challenging to build a loyal customer base. With that as a backdrop, restaurant owners are looking at all possible avenues to improving the consumer experience and use that feedback to drive key marketing activity for the business.
Real-time data, with enhanced reporting, is one key factor in this elevated service delivery. Consider for example when a dissatisfied customer sends a meal back. An off-site manager can review the order queue, see an order was returned and which table returned it. The manager can then call the restaurant and speak to someone at the table, apologizing and thanking them for their patronage — perhaps even sending a virtual “comp” to the consumer’s mobile phone or email address for their next visit. These subtle, yet innovative ways, can help eliminate customer frustration and build customer advocates — all of which is driven by management’s interception of key data in real time.
Operators also can improve the customer experience by shortening wait times. New technology records the time customers check in and also the when they abandon the waiting queue. The aggregated data can show how long customers are willing to wait based on time of day, day of the week, etc. This allows staff to understand the proverbial sweet spot and accelerate service when the wait time is moving close to perilous territory.
Better Data, Better Marketing
Most restaurant management technology solutions provide purchase behavior data that helps restaurants make actionable decisions. In the past, the focus was on “what did we sell at the site?” Now, the focus is on “who bought what?”
Enhanced demographic breakdowns of purchase behavior allow restaurants to personalize marketing efforts to their audiences. If a particular item performs well for millennials, restaurants can specifically target that demographic with offers around that item. Whether through targeted promotions or targeted messaging, this provides a premier opportunity to drive sales and traffic.
More Floor Efficiency
Business intelligence solutions also have helped operators further maximize efficiency. Mobile apps are core to many restaurant management technologies today. If a restaurant comps a meal, these apps can push notifications directly to an operator’s phone. The operator can then see the full detail of the transaction, what was added, who approved the comp, even how the guest paid for their meal — all in real time from anywhere.
The real-time nature of the data further empowers the operator to make informed labor management decisions, as well. Scheduling has become less guess-work and more of a science. Real-time reports make it easier for operators to be confident in decisions to reduce floor staff during lulls, or even asking the right employee to stay on for another hour and not risk the loss of part time status or overtime costs.
A Bright Future For Business Intelligence
The growth in available data shows no signs of slowing. However, many restaurant operators need assistance turning data into actionable insights and valuable information. Here is where the reseller can step in and serve as an educator, identifying the necessary solutions, making informed recommendations and providing real value leading to an operator’s long-term success.
Workman has been in software development for 23 years, with the past 17 years having been spent in hospitality technology. He began his hospitality career at Radiant Systems before joining RedPrairie (now operated as JDA) to lead the Restaurant Performance Management team. Workman currently leads the Cloud Connect and Big Data teams for NCR Hospitality.