The year 2022 has been nothing less than a rollercoaster ride! We've been through a lo of things, experimented, struggled and got through them all. Is safe to say that we at least tried to go through all of these, whether it was inflation, supply chain challenges, or labor shortages, and guess what was constant in all of them that helped us get through? Guess what was common in all that helped us get through? It's tech! Technology has always been by our side for us to improve and get through the difficult times that we faced.
And let's face it, all these issues are not going away anytime soon, hence it is important, not only for the restauranteurs, but people in every industry to be familiar with the tech trends before planning out their strategies for the next year. Here, we have talked about the top 5 tech trends to watch out for in 2023.
Not only because of the pandemic, which forced numerous restaurants to discontinue dine-in service, but also because of the convenience of online ordering, it is expected that online ordering and delivery will grow even more. People nowadays want their favorite foods delivered right to their door. To begin, a decent website and app provide a firm foundation to build. Allowing customers to pay for online purchases directly on your website would simplify the process even more. Customers will love the convenience of ordering and paying for food from their computer or mobile device.
According to a report by Statista, the revenue of online food delivery is estimated to expand at a 13.68% annual rate (CAGR 2022-2027), resulting in a market volume of US$1.45 trillion by 2027.
Restauranteurs should focus on taking help from in-house online ordering platforms, such as Foodkonnekt, which minimize the high margins charged by the third party delivery platforms and also enhance the customer experience.
According to current data, meal delivery orders increased by more than 150 percent from 2019 to 2020, and UBS predicts the food delivery company to rise more than tenfold in ten years, from $35 billion to $365 billion. More restaurant operators and food entrepreneurs are turning to cloud kitchens as a feasible business solution as the demand for meal delivery develops.
Restaurants rent space in virtual or "ghost kitchens," which are centrally located, licensed commercial food production facilities, to create menu items that are best for delivery.
They are essentially kitchens without a dining area; food is only prepared for delivery. Under one roof, a single restaurant may manage multiple brands or virtual eateries, or the kitchen may serve as an incubator for other suppliers.
As the demand for meal delivery grows every day, many restaurateurs have turned it into full-fledged businesses, and this trend appears to be continuing into the next year. The market for ghost kitchens is anticipated to reach $1.05 billion in value by 2023.
The next trend that we'd like to discuss is the technology that goes into establishing and implementing loyalty programs. We are all aware that the oncoming recession will make life more difficult in the following year. Consumers are spending less and less on products they don't necessarily use in their daily lives as costs rise. As a result, as a restaurant owner, you must choose how to optimize revenues despite the possibility of a recession.
And here is when a loyalty program comes into play. In monetary terms, it is a well-known fact, and all marketers emphasize it, that new clients are more difficult to target than regulars. The cost of acquiring new consumers is significantly more than the cost of retaining existing customers. As a result, now is the ideal time to target your loyal customers.
And that can be easily done with a proper loyalty program in place.
Freekwent is a digital loyalty program that we at mKonnekt operate for our clients across several locations. It is an excellent approach to treat your regulars to fresh deals and discounts that you may choose to run.
In these difficult times, it will help you retain those extra dollars.
The marketplace is getting more competitive. Those who identify present demands and react accordingly will thrive in the long run. The world is becoming more frantic and digitally dependent. Customers want better efficiency, prompt service, and high-quality products. An automated inventory system is a modern solution to the myriad challenges associated with human inventory systems. Because inventory systems are automated, they are more efficient and straightforward to administer, allowing management to manage activities more effectively and at a faster pace.
It helps restaurants manage their ingredient purchase orders, stock levels, menu, and recipes expenses. The best inventory management software systems for restaurants integrate with or are built into point-of-sale (POS) systems, minimizing administrative time. These services cost between $99 and $129 per month. Some tools, on the other hand, are free and have limited functionality.
Furthermore, to enhance restaurant operations, says Dirk Izzo, President and General Manager of NCR Hospitality, they are using data for more accurate forecasts.
Customers and restaurant businesses are embracing AI, from robots that flip hamburgers and make salads to those that handle order taking. McDonald's acquired AI company Dynamic Yield in 2019 with the goal of enhancing the customer experience at drive-thrus with the help of the business' automated personalization offering. The menu choices are shown according to the time of day, the weather, the volume of customers dining now, and what's trending on the website. Additionally, it makes meal suggestions based on the decisions each customer makes.
The need for third-party delivery services increased as a result of the COVID-19 pandemic, which forced individuals to remain at home. Although companies like
UberEATS and
DoorDash have adapted to the challenge, restaurants still have a chance to enhance delivery even further.
So this is the food part of AI. There is a much more pressing need, and we are already seeing the increasing likeability on the marketing front of the restaurant industry as well.
Everything is now digital. And there are numerous ways for customers to interact with a business. Everything from social media to chatbots to websites. And all of these contacts are a direct source of what we refer to as "first party customer data."
This data is a gold mine, if you ask us. An astute marketer can do so much with this information. And this is where technology and analytics come into play, which will be a clear and prominent trend in the coming year.
For example, in order to conduct a successful email campaign, order data can be segmented so that targeted messages can be sent to consumers who haven't ordered in a specified length of time, say three months, and another section can be developed for people who are regulars.
We have a team of incredibly smart marketers here at mKonnekt; contact us if you want to see the mKonnekt magic!
Those who are in tune with changing conditions are the clear winners in any industry. Here, we addressed the biggest restaurant innovations that will come to power in the following year, so get ready!