Execs at FS/TEC forecast more guest interaction with tech tools

Nation's Restaurant News,  Nov 27, 2006  by Lisa Jennings

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LONG BEACH, CALIF. -- Technology has long been used to improve restaurants' back-office performance and manage order taking and payments, but tech tools increasingly will involve customers and influence their overall dining experience, said leading chains' chief information officers at a foodservice conference here this month.

From new-age McDonald's outlets to casual-dining Hooters restaurants to units of contract catering giant Compass Group, the use of emerging technologies in front-of-the-house operations and order-entry systems stands to become more prevalent, the panel of CIOs said.

In addition to hearing that forecast, attendees at the 11th annual International Foodservice Technology Exposition, or FS/TEC, also could see the latest version of an outdoor self-ordering terminal that could, for example, enable the giant Subway chain to do more drive-thru development. Such devices promise to break the verbal logjam of squawk-box interactions that otherwise are needed to customize that chain's sandwich orders.

Though only about 5 percent of Subway units have drive-thrus and risk service slowdowns because of the 14-question routine for order customization, outlets in Ohio and Florida are testing the $15,000 driveway kiosks, whose touch screens change height to accommodate sports cars or SUVs.

The CIO panel discussed the tech-enabled "self-service" trend during a featured session of the three-day FS/TEC conference and product expo, which is produced and managed by Nation's Restaurant News and Robert N. Grimes of Accuvia.

Attendees learned that quick-service restaurants are leading the way with trials or limited deployments of touch-screen kiosks and many new drive-thru technologies, from sophisticated service timers to food production forecasting tools.

But even full-service restaurants are seeing the use of mobile, touch-screen ordering devices among servers, while those chains also adopt video-based training systems and wireless devices at tables for processing credit and debit payment, according to Lou Grande, vice president of information technology for Rare Hospitality International Inc. The Atlanta-based company operates the 264-unit LongHorn Steakhouse chain and secondary brands Capital Grille and Bugaboo Creek.

While many chains are using computerized point-of-sale systems, challenges to establishing global systemwide POS standards have been encountered by such large companies as McDonald's Corp. and Yum! Brands Inc., owner of the Taco Bell, Pizza Hut and KFC brands.

"We've been working on this for years," said David Grooms, McDonald's vice president of U.S. information technology solutions.

The hamburger giant has standardized its software in Europe, Asia and elsewhere overseas, but U.S. units are behind in terms of moving to that new platform, Grooms said. "Now we have three providers worldwide and we hope to keep it that way."

Rob Watkins, chief information officer for Compass Group's Americas division, based in Charlotte, N.C., said worldwide standardization is not an option. There are no technology service providers that straddle every segment as Compass does, he said. "Our strategy is a portfolio approach," Watkins said.

The 100-unit Max & Erma's chain, based in Columbus, Ohio, asks franchisees to use the same POS system as corporate units to ensure standardization--except for one unit franchised by contractor HMSHost, said Mary Hamill, Max & Erma's vice president of information systems.

Other operators said franchisees look to the corporate office for advice on POS technology, but generally prefer to choose their own. "They want to have a choice," said Delaney Bellinger, Yum's chief information officer. "The trick is knowing how to keep their choices down."

Bellinger said Yum's brands each have different technology needs, so imposing one POS system across the board was not a viable solution. For corporate restaurants, major "above-store" enterprise applications have been standardized, while unit-level applications generally are uniform throughout each brand.

Also addressed by the tech executives were payment systems that permit guests to retain control of their debit or credit cards, and the potential to enhance video training through the use of game-like interfaces and formats.

Wesley Marco, director of information systems for Hooters of America Inc., said his company's interest in wireless payment terminals that permit guests to settle their tabs by swiping their credit or debit cards at the table stems from customer fears of identity theft. Atlanta-based Hooters is testing such a pay-at-table device in its headquarters city and has said, pending test results, it would roll out the system to all company-owned stores late next year.

McDonald's is looking at the use of self-service kiosks, an idea the company has "gone back and forth on," Grooms said. Use of such kiosks could help during periods between peak hours, as well as in units with labor challenges, but the overall benefits are still unclear.