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NTN- UNLV Presentation

NTN- UNLV Presentation A perspective on Restaurant technologies Agenda What constitutes technology in hospitality? Do technology and Hospitality mesh? Why has the hospitality industry been slow to adopt technology? How are the technologies distributed? What technologies are available?

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NTN- UNLV Presentation

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  1. NTN- UNLV Presentation A perspective on Restaurant technologies

  2. Agenda • What constitutes technology in hospitality? • Do technology and Hospitality mesh? • Why has the hospitality industry been slow to adopt technology? • How are the technologies distributed? • What technologies are available? • What barriers may still exist to any technology? • What might you consider when selecting a technology? • I may answer more than I have listed…

  3. Why hospitality technologies? • Creative industry – almost artistic • Entrepreneurial - many passionate people • Experimental – restaurant owners are always willing to try something new • My job is safe - Restaurants will always need help with technology

  4. Past • Cash register mentality • 5-10 years behind the “real” business world • First technologies provided simple solutions (late 1980’s – early 1990’s) • Hospitality technology got its biggest push when Point-of-sale solutions (POS) were introduced • The Barriers to adoptions were significant

  5. Barriers to Adoption • Technology was a burden, not an opportunity • The restaurant was an art first, business second • Restaurants viewed technologies as intrusive • Technology detracted from, rather than enhanced the customer experience • Technology was impersonal • Restaurants feared the complexity of implementing and managing technologies • Technology was ‘costly’ • There are obviously exceptions • Marriott, McDonalds created POS companies

  6. Examples • Hand held terminals • Liquor control systems • Self order kiosks • Reservations solutions • Result • If the technology impacted the customer experience, it was left behind • Logical business decisions did not pass the ‘ambiance’ test

  7. Distribution as a Barrier • POS companies came first • Cash and basic process control was first • Solutions were proprietary (firmware) • Expensive to purchase, implement, and maintain • Development mentalities were insular • A highly organic and fragmented market was difficult to approach • Distribution was costly • A market dominated by independents / small chains • Result: The reseller model evolved

  8. Business Problems Solved (POS) • Cash and Cost control – theft and abuse • Data collection, aggregation, processing, reporting, and connectivity to additional solutions (Reporting) • Automation and consistency - replaced manual processes • Added systems where there were none • Replaced manual transactions and processes

  9. Types of Technologies • Cash control • POS, PMS • Process control • POS, PMS, Kitchen solutions, bar solutions • Cost control • Inventory, Labor control • Services • Internet solutions, reservations • Revenue Generating • Loyalty and frequency solutions • Local and enterprise level for all solutions

  10. Balancing Act • Can technology enhance without being intrusive? • If the technology provides a direct/indirect benefit to the client it has a chance • Direct – Internet reservations • Indirect – Technologies that improve work environment for employees • The higher the ‘price’ that the customer pays for the service,the less likely the technology will succeed • It cannot detract from the customer experience • How ‘apparent’ is the technology?

  11. Desired goal • Technology should tell us the following • What works and what does not • Where money is made and lost • Where the problems are and why • Who our customers are and how to treat them • Where do decision makers most need to invest their time, and why • This is still a difficult goal to attain

  12. Solutions Characteristics • Basic evaluation criteria • Scalability – single unit or enterprise • Supportability – requirements and services • Choice and flexibility – Migration path • Function - Ability to meet current and future requirements • Cost – short and long-term (cost of ownership) • Impact – On the business and the customer • Distribution – Direct or indirect, integrated or vertically integrated

  13. The Future… • Technology is already driving changes (Internet) • Reduce costs or increase revenues? • In general, restaurants adopted the first already • Increase, decrease the footprint of technology? • Generalization: The less expensive and quicker the food, experience is, the more welcome technology is • Collect more data or interpret what you have? • Catch up with the ‘real’ world, or stay an artist? • Can you do both? • Specific technologies to watch (ASP’s) • What is the basic value proposition required?

  14. Solutions Gaining Momentum • ASP models • Enterprise solutions • Reservations and guest solutions • Kitchen video • CRM tools of any kind (as long as they are not intrusive) – few will succeed • Basic Business Intelligence – Alerts and centralized reporting • BI does not exist in this industry yet

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