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MARKET SNAPSHOT

The Four Imperatives of the Redefined Restaurant Environment

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Q4, 2020

As the speed and complexity of business increases, companies are rushing to adopt digital transformation strategies to keep up. Technology can drive these efforts, but lack of system flexibility can also derail them.

Restaurants have to adopt a business model that enables more flexibility in uncertain environments.

Operational flexibility

In order to survive, restaurateurs were forced to make massive changes. They had to make operational adjustments to implement / enhance curbside and delivery as well as account for additional safety protocols and limited dining regulations.

Delivery

based sales have accelerated from 9% to 13% of total restaurant sales in 2020 and is now expected to grow to 20%+ by 2025.

Evolutionary labor model

To account for new operational protocols, restaurants have to re-train workers on new roles (curbside) and new responsibilities (cleaning, traffic counting, COVID policy enforcer). As restaurants re-open to full capacity, the role of the worker will continue to evolve.

The NRA

now offers a training video on de-escalating scenarios where guests refuse to adhere to safety policies.

Demand uncertainty

Restaurateurs continue to face great uncertainty around capacities and closures based on the resurgence of the pandemic. In addition, typical peak times often no longer apply as guest habits have shifted.

80%

of QSR's have altered their staff and hours to address the change in peak demand times.

To enable greater safety and convenience, retailers must leverage new technology to build Contactless Operations.

Building contactless operations is no easy task, it requires a fundamental re-imagining of the physical store, all operational processes and the underlying technology that support it. There are three core pillars that retailers need to focus on to transform their operations.

The 3 pillars of Contactless Operations:

Frictionless

frictionless

Building a frictionless and contactless shopping and associate experience.

Secure

Secure

Ensuring that all premises, and data is secured.

Smart

Smart

Using analytics and new technologies to drive decisions.