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Labor Trends Fueling 2019 Restaurant Technology Decisions

After two years of investments in new front-of-house systems, the latest data from 2018 shows restaurants are turning their attention back to the back office.

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If the past two years could be categorized by the percent spend on technology in restaurants, customer experience would easily take first.

While projections don’t expect a huge reduction in the amount spent on front-of-house technology in the coming year, there are strong indications that back office is back on the frontburner in a big way.

And, for good reason. According to Technomic, labor is expected to rise by 50-100% over the next five years. That sharp rise has been reflected in just about every earnings call among publicly traded restaurant brands.

Hospitality Technology also found in their 2018 Technology Study that improving efficiency and employee productivity were back on top as key initiatives.

Which isn’t all that surprising when you look at the human capital management challenges restaurants are facing right now.

The takeaways? Adapting to changing consumer demands through investments in digital customer and omni-channel experiences was critical for restaurants to stay relevant and drive revenue (even if it only resulted in flat same store sales.)

But to really stay competitive and keep costs in check, finance, operations, IT and HR need to focus on giving employees and managers tools to increase productivity, control costs, and drive consistent guest experiences that deliver on that ferrari front-of-house digital experience.

Hospitality Technology 2018 Restaurant Technology Study
Hospitality Technology Building an Insight-Enabled Infrastructure, How Restaurants Seek and Find ROI from Business Data
Technomic, The Future of Foodservice Webinar
Fortune Magazine

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