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Chapter 14. Technology in the Restaurant Industry. Objectives. After reading and studying this chapter, you should be able to: Identify the main types of restaurant industry technologies List and describe the main types of software programs
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Chapter 14 Technology in the Restaurant Industry
Objectives • After reading and studying this chapter, you should be able to: • Identify the main types of restaurant industry technologies • List and describe the main types of software programs • Identify factors to consider when choosing technology for a restaurant
Technology in the Restaurant Industry • Technology • Has come a long way from mom-and-pop operators and their cigar box • Independent operators may not require (or be able to afford) technology that chain operators are using • It is hard to overlook the progress in making technology available and affordable for independent restaurants
Back-of-the-House Technology • Consists of product management systems for: • Purchasing and managing inventories • Menu management • Controlling labor and other costs • Tip reporting • Food and beverage cost percentages • Human resources • Financial reporting
Purchasing and Inventory Control • Purchasing: • Product management • Tracks products through each inventory cycle • Automatically reorders when the item falls below par stock • Ingredients for the cost of recipes are calculated for total cost and selling prices • Inventory control: • Systems quickly record inventory • Easily allowing new stock to be added
Kitchen Display Systems • Manage and control kitchen efficiency • Provide highly visible, real-time information • Installed in more upscale restaurants • Than in fast-food and casual restaurants • Mounted in kitchen or food prep area • Visible to the entire kitchen staff • Display food orders for preparation • Monitor timing of orders • Provide feedback about table status
Food Costing • Personal digital assistant (PDA) • Used to enter inventory amounts into the system • Laser bar code scanning • Speeds up inventory-taking process • Makes it more accurate • Data is entered into the system, variance report is generated, and any significant variances are investigated
Food Costing (cont’d.) • ChefTec & ChefTec Plus software • Integrate programs • Recipe/menu costing • Inventory control • Nutritional analysis capabilities
Menu Management • MenuLink: • Evaluates managers’ produce purchasing • Compares actual to expected food usage • Tests proposed recipes and pricing changes • Menu management function: determines what offers work best, so coupon building may be directed toward those items • Automated Raw Material Transfer: when one store needs to borrow material from another store, a transfer is generated
Labor Management • Interfaces back- and front-of-the-house • Working hours • Human resources information • Includes: • Application monitoring, recruitment, personnel information, I-9 status, tax status, availability, vacation information, benefit information, and scheduling • Examples: Windows-based labor schedulers and TimePro
Financial Reporting • Front- and back-of- the-house systems • May interface by transferring data to and from the central server • Information is provided in real time • Makes it easier to monitor: • Service times • POS food costs • Labor costs • Guest counts
E-learning • Computer based training • Delivered via the Internet or proprietary Internet sites • The National Restaurant Association Educational Foundation • Several online courses • Example: ServSafe Food Safety Training Program
Front-of-the-House Technology • Revolves around: • Point-of-sale (POS) systems • Wireless handheld devices • New technologies • Multimedia lobby displays • Self-service kiosks • Wireless payment-processing units • In-store dashboard displays
POS Systems • Standard component of operational costs • Selecting a POS system • Focus areas: • Human Factors Engineering (HFE) • System usability • Equipment operations • Examples: NCR’s Real POS and Aloha
POS Systems (cont’d.) • Suppliers: • IBM: Linux servers and Sure POS 700 series • Sharp: UP-5900 system • NCR: 7454 POS Workstation, Real POS 70, and Compris • Micros: Eclipse PC Workstation
Table Management • Table management software • Meticulous control of restaurant efficiency, consistency, and accuracy • Faster table turnover • Increases revenue and profit • Handles reservations and waiting times • Incorporates alert features • Example: MICROS Systems, Inc.
Paying at the Table • Handheld device may be provided to guests to: • Verify their bill • Swipe their card • Include any tip • Print the receipt • Benefits to guests: • Peace of mind concerning security issues • Ability to leave the restaurant a little sooner
Web-based Enterprise Portals • Offer centralization of applications • Sales reporting • Cash management • In-store profit and loss statements • Labor and food costs • Prep • Ordering • Task lists • POS data
Gift Card and Loyalty Programs • Customer relationship management • Deliver a 360-degree view of the guest’s activities • Tracked and controlled from a central database • Monitor guest spending patterns • Gift cards are help increase revenue • Gives the ability to issue and activate cards with fixed or preset values • Integration: the bottom line
Guest Services and Web Sites • Restaurant technology has evolved • Restaurant can store and recall guests’ preferences • Tables, menu items, wines, and servers • Additional advances include: • Internet booking • Guest checks splitting and suggested tips • High-speed Internet access • User-friendly Web sites • Wireless surveys
Restaurant Management Alert Systems • MICROS Alert Manager • Monitors conditions and compares them to established standards • Exceptions are immediately identified • Alert or message is sent • New integration with the RES products and the on-premise paging • Communications solutions made available by JTECH