Evolution is critical to the progress, and even survival, of any business yet the restaurant industry has earned a reputation for being slow to innovate.
“For restaurants to evolve, understanding the next-generation customer is critical. And the next generation is already here,” Deloitte says in as report titled The Restaurant of the Future.
“‘Winning’ restaurant brands will be those that best understand their customers, capitalise on digital technology options and analytics, and seize the opportunity to engage customers in a highly personalised way,” it adds.
Right on cue, Wendy’s Company, a Nasdaq-listed fast-food chain, last week announced the “Global Next Gen” Restaurant of the Future that is scheduled to open in New Albany, Ohio, in the third quarter.
The idea is to build a restaurant equipped to deal with streamlined omnichannel ordering. The Global Next Gen prototype will include a pickup window enabling customer to bypass the dining room when collecting their orders.
It also features mobile-order parking and pickup shelving inside the restaurant, along with a galley-style kitchen design that stretches the length of the restaurant to offer increased oversight of operations.
The US international fast-food restaurant specialising in hamburgers has come a long way since its founding by the late Dave Thomas in 1969, and the company joins Taco Bell in reimagining the restaurant.
Taco Bell recently announced a prototype restaurant concept, the “Taco Bell Defy”, which includes an elevated restaurant with multiple drive-through lanes, food lifts, and many digital integrations.
In SA, the obvious question is whether local restaurant operators are they embracing similar innovation, or are they being left behind? Empirical evidence is unclear.
Still, local restaurants could be preparing — out of sight — for the evolution of their restaurants. JSE-listed Famous Brands appears to be taking this route. The owner of Debonairs, Steers, Wimpy, and sit-down “signature” restaurants such as Turn ’n Tender and Vovo Telo is seeking to gain a deeper understanding the next-generation customer.
“[Famous Brands] has been building its digital capabilities for several years,” chairperson Santie Botha says in the company’s latest annual report. “We are reaching a point where our value proposition in the digital space will meet and exceed customer expectations.”
How is one of Africa’s leading branded food services franchisers doing this? Famous Brands appreciates that digital options, from ordering to payment channels, are at the core of the future restaurant and has invested in consumer-facing technology. During the Covid-19 pandemic in 2020, it invested in delivery technology solutions.
It also continues to invest in enhancements, especially in the quick-service restaurant space, including driver tracking. Furthermore it has formalised its database infrastructure in the cloud, bringing all customer data to one platform.
The company also provides contactless payment plus order and pay at table technology, and says this has improved turn times and hospitality, while the data gathered enables it to understand customers better.
Moreover, Famous Brands has invested in technology to manage the queues at the drive-through facilities. It has also increased technology interfaces in-store, such as digital menu boards, digital payment options, and self-ordering terminals.
Rival Spur Corporation, the owner of Panarottis and RocoMamas, is keeping mum on its strategy. Still, more than half of its restaurants now participate in the group’s virtual kitchen brands launched during the hard lockdown in 2020.
It has also expanded its online, delivery-only virtual kitchen brands with the launch of Just Wingz, which operates without a storefront. It, too, offers online ordering and delivery via apps, including Uber Eats and Mr D which now account for most of the group’s takeaway orders.
Deloitte says creating the restaurant of the future is paramount. “Competition [in the industry] is intense, customers already expect these experiences, and the time is now.
“For restaurants that recognise that change is upon them and take the broad view of the customer experience, this is a tremendous opportunity; to wisely integrate the new digital capabilities people expect with the traditional comfort and value they have associated with restaurant experiences for generations.”
• Lourie is the founder and editor of TechFinancials.
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