USA | The National Restaurant Association has called for hospitality businesses to focus on their unique value propositions.
According to industry leaders, restaurants will excel by balancing the use of technology to make the dining experience more efficient, convenient, and personalised while still being attentive and customer-focused.
This message was underscored by National Restaurant Association President and CEO Michelle Korsmo during her keynote address delivered to attendees at the annual National Restaurant Association Show in Chicago. Korsmo emphasised to the owners, operators, and suppliers present that restaurant operators will find success by knowing their target customers.
"Thinking about technology starts with understanding the value proposition you offer your customers, determining their needs, wants, preferences, and behaviours and then tailoring your technology and service accordingly. This is the high-tech and high-touch approach that is critical in the restaurant business today. It can build loyalty and ultimately lead to growth. Technology has developed significantly in the restaurant industry. Now, each of you are at the crossroads where you must figure out, what is that high tech – high touch balance for your business," said Korsmo during her remarks.
According to the National Restaurant Association's 2024 State of the Restaurant Industry report, the restaurant industry is on track to reach record highs in sales. However, the industry isn't typically thought of as high-tech. In reality, there is rapid and widespread adoption of new technologies in the industry, with 76 percent of operators saying that technology gives them a competitive edge.
Korsmo also noted that the industry chiefly relies on its people and the services they provide, reinforcing the importance of remaining in touch and why the customer experience continues to be the paramount differentiator for restaurants.
"Ultimately, the experience you provide in real life is what keeps your customers coming back. How you use technology to interact with them is what converts new customers into regulars and regulars into high-frequency guests. Our research shows today's customers demand new, tech-driven ways to interact with restaurants. You must get your technology strategy right for your restaurant. But remember, you can't have a technology strategy that is separated from your value proposition. Ultimately, it is your value proposition that sets you apart and makes you successful," Korsmo said.
Determining how investments in technology should evolve over time to meet those preferences is a crucial part of this balance, as is using new technologies to help recruit, train and retain employees. Korsmo reiterated that restaurants face labour challenges, with operators stating their most significant challenge in 2024 is recruiting and retaining employees.
Korsmo also stressed that rather than displacing workers, technology will enhance job functions across the workforce. Her final call to action for the industry was that you do not have to choose between high tech and high touch, but you do need a balance to create the best possible experience for customers.
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