The Tech Pavilion was a popular spot, as always. | Photo: Joe Guszkowski
The three days we spent at the National Restaurant Show in Chicago this week revealed a lot about the state of restaurant technology. Here are nine takeaways from the big event.
Technology is the hottest thing since free samples
This isn't news, and it's not necessarily surprising, but it's worth taking a step back and marveling at how central technology is to the show.
Traffic from the booths was so overwhelming that it was difficult to pass through the aisles in the tech pavilion at some points. (And there were some great booth designs this year.)
You'd think the vendors would be handing out hot dogs or something, but no, they were just offering software demos and the occasional glorified piece of new hardware. It was a testament to the growing interest in technology in restaurants.
Everyone wants to do it all…
The most noticeable trend while roaming the technology booths was the number of suppliers claiming to be the only technology platform restaurants need.
Vendors have been working in this direction for years, in part because restaurants are looking for more simplicity in their technology.
That's how Square entered the kiosk industry. The POS company has worked with other kiosk providers for years, but launched its own kiosk provider this year.
“Merchands who use Square's platform are always asking, 'When are you going to build your own kiosks?'” says Ming-Tai Su, Square's head of food and beverage. “They don't want another integration to have to manage.”
This was a phrase often heard at the show venue.
…but there are also benefits to a patchwork approach
However, some carriers believe that a combination of vendors is better than going all-in on one.
Grant Krueger, owner of Tucson, Ariz.-based Union Hospitality Group, said diversification gives restaurants more flexibility if they decide to make changes.
“It's better to have a variety of players and tech stacks than to put all your eggs in one basket,” he said, noting that overhauling the POS can be a arduous process.
Small and medium-sized enterprises seek an exit
The move to more all-in-one platforms is impacting smaller, more specialized vendors, some of whom are hoping to be swallowed up by bigger fish. “We would love to be acquired,” said a representative from a small and medium-sized company, speaking on condition of anonymity.
Certainly there are buyers. Back-office technology supplier Restaurant365 has just acquired training specialist ExpandShare and has just raised $175 million, a portion of which it plans to use for further acquisitions and more.
A technology community is forming
There's a real movement among vendors and restaurants to build more community in a fragmented technology world.
That was evident on the show through the proliferation of podcasts recorded on the floor. Restaurateur and podcast veteran Shawn Walsh said the format is a great way for operators to learn from each other. “We started podcasting so we could connect with people all over the world,” he said.
Some suppliers are trying to facilitate similar connections for their customers. For example, SpotOn has started hosting monthly online meetups where restaurants can talk about their establishments. Toast also distributed documents inviting operators to join her Toast Community, a free online forum. “Connect with your industry peers whenever it’s convenient for you,” the handout says.
Sean Walscheff (right) will host a podcast on Saturday's show.
Keep an eye on Otter
The digital ordering company run by CloudKitchens CEO Travis Kalanick quietly launched a point-of-sale system this year, and operators are taking notice.
Rafael Alves, CEO of New Jersey-based Snackmania, is a longtime Toast customer and enthusiast (we spotted him taking photos in front of the booth), and he said that Otter was the only system he saw at the show that came close to what Toast was offering.
What can't AI do?
Need something done in your restaurant? If AI can't do it now, it probably can soon.
The show featured just a few of the applications on display, including cameras that monitor the quality of burgers, software that automates billing, and a system that shows you how to add avocados to your menu.
While AI has officially achieved buzzword status, there seemed to be a lot of real enthusiasm for it among attendees.
“We're really excited about the right use cases,” said Patrick Knapp, vice president of operations at Bobby Flay's Bobby's Burgers. “AI today can take data, leverage that information, and present it in a way that is useful to us.”
Mexico's Avocados was showing off an AI tool that generates avocado-based menu items.
Technical support is missing
Several operators have lamented the abysmal customer service provided by some vendors these days.
One person pointed out that much of what was once known as customer service is now self-service. Another person shared a long-standing complaint that it's difficult to call a real human when a problem occurs.
Knapp spoke to many providers as he built Bobby's tech stack, and he focused on providers who made him feel like a partner, rather than a potential salesperson.
“We weren't looking for a POS system, we were looking for a POS partner that would say, 'Here's how we can help you,'” Knapp says.
Restaurants are a data business
Believe it or not, there are still operations out there that have little to no insight into their sales performance or which products are selling the best. This is a huge limitation in an age where costs are changing so quickly and every penny counts.
“The future of restaurants is data-driven,” said Brian Soler, chief product officer at point-of-sale provider SpotOn. “They're either going to evolve or they're going to die.”
SpotOn has invested heavily in its data capabilities, developing dashboards that reflect a restaurant's performance in real time, right down to which servers are selling which items.
That level of visibility is essential to operational improvement, says Soler. “If you can see it, you can teach it.”
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