Restaurant And Hospitality News – August 17, 2015
By Christine Kern, contributing writer
In news this week, a new survey finds that disruption is the new normal for the travel industry; another survey finds that diners are hungry for a side of technology with their meals; and kiosks are offering great promise to franchisers.
Disruption In The Travel Industry Is The New Normal, Survey Says
According to a Tnooz survey conducted in July 2014, the travel industry considers disruption the “new normal” (37.4 percent) and many think it “should happen more” (27.4 percent). And while 73.3 percent of respondents said it will be an evolutionary vs. a revolutionary change, the survey revealed that disruption is clearly poised to continue to shape the future of travel. When it comes to the region most predict to be the leader in disruption, 45.6 percent tagged Asia-Pacific as the region to watch, followed by North America (27.6 percent). And respondents cited online travel and metasearch companies (29.6 percent) and destination services and activities (21.8 percent) as the industry segments ripest for disruption. And the survey also demonstrated that consumer behaviors will continue to shape travel, even as the emergence of new players seeking to address traveler needs in unique ways begins to challenge the status quo. Ultimately, it is multi-modal integration and the Internet of Things that will drive further disruption, the findings show, a significant indicator, since according to Gartner there will be nearly 26 billion devices on the Internet of Things by 2020. “Traveler autonomy has increased and preferences have evolved, while technologies have advanced, and new companies and models have dramatically changed the way we think about and conduct the business of travel,” according to the Tnooz survey. “Disruption will continue to shape the future of travel — geographically, economically, socially and technologically.”
Survey Finds Diners Want More Tech On The Menu
A recent OpenTable survey has found that many diners are hungry for more technology, particularly at limited-service restaurants. More than three-quarters (76 percent) of respondents believe that technology has the potential to play a “much bigger” or “somewhat bigger” role at limited-service restaurants, while only 12 percent said that it will play a “much bigger” role and 34 percent anticipating it playing a “somewhat bigger” role in fine dining. Pre-visit activities reported by respondents included making reservations online (88 percent did so frequently); locating restaurants (87 percent); accessing menus (86 percent); reading peer reviews (60 percent); and reading professional critics’ review (48 percent). Diners also would like to have access to wait times (85 percent); access to wait lists (83 percent); ability to pre-order cocktails or wine (19 percent); ability to pre-order meals (14 percent); and ability to pre-pay for meals (12 percent).
Kiosks Offer Great Promise To Franchisers
Kiosks may be the restaurant wave of the future, according to this article from the Nation’s Restaurant News. “Brick and mortar can be challenging,” explained David Ragosa, co-owner of Kono Pizza, an Italian pizza cone concept. “It costs twice, almost three times as much. And then you’re dealing with more permitting processes that can slow down your growth. We can get three carts or kiosks running within six to 12 months. Three inline stores take 12 to 24 months to find locations and work out logistics.” And it turns out that a number of concepts are now looking to kiosks or smaller, portable carts, as the solution to expansion while reducing investment costs. And while there is a science and a strategy to properly implementing kiosks, Rob Israel, founder of Doc Popcorn, explains “It is an exciting and wonderful business model. Once you get the right location, it’s like a moat. You’re there. Traffic is passing by you. It is easy to touch the consumer from that kiosk location.” While not every concept can be translated to a kiosk or cart, those that are successful can see significant returns. “Rent costs are going through the roof,” explained Mike Weinberger, CEO of Maui-Wowi, a Denver-based smoothie chain. “We serve premium smoothies and Hawaiian coffees. Our ticket is about $6.50. You’re going to have to bring twice as many customers to make it work” in an inline location. Mobile carts allow chains to take their products to their customers, and, as Weinberger states, ‘We cater to the captive audience.” The key to kiosk success is customer engagement. Israel explained, “You have to create experiences in these high-traffic areas. The shopping experience can easily be done online. We’re adding something fun to the mall. Popping popcorn is fun for kids to watch. We involve our customers. They get to sample. That has real entertainment value."