Restaurant and Hospitality News – May 16, 2016
By Christine Kern, contributing writer
In news this week, self-ordering kiosks are expanding at QSRs, Joe’s Crab Shack’s no-tipping experiment got negative responses from customers, and Hilton integrates Google Mapping technology into its HHonors app to enhance room selection.
Self-Ordering Kiosks Expanding In Fast-Food Restaurants
Self-ordering kiosks are making their mark in the limited-service sector, helping to make operations more efficient and allow quick-service restaurants to function with fewer employees, according to the Nation’s Restaurant News. Wendy’s and Panera have both announced that they are adding kiosks to their locations, and CKE Restaurant Holdings Inc. has tested kiosks, and McDonald’s has been adding kiosks in its U.S. locations that offer customized ordering.
But the kiosks are also attractive to customers, according to QSR Magazine. White Castle vice president Jamie Richardson told QSR that “I don’t necessarily want to have 12 people around me when I am ordering. There is an intimacy and privacy about how we enjoy food. The kiosk system allows customers to tailor to their tastes – they can ask for more pickle or less onion, for example – in their own space.”
Wendy’s kiosks tests have been positive, and with rising minimum wages coming in many states combined with overall labor demand pushing up wage rates, kiosks seem a logical solution to both increasing customer satisfaction and reducing operational costs.
Joe’s Crab Shack Finds No-tipping Experiment Not Popular With Customers
Joe’s Crab Shack has backed off on a no-tipping model that it has established in 18 of its restaurants nationwide since August. Apparently, the test is failing to meet customer approval, and as a result the chain is cutting back the experiment to just four locations, according to CNN. Bob Merritt, who became CEO of Joe's parent company Ignite Restaurant Group in November, announced the decision on the company's first-quarter earnings call, stating, "Our customers and staff spoke very loudly [about the policy], and a lot of them voted with their feet," he said.
Joe’s Crab Shack was the first major restaurant chain to try a no-tipping policy, raising prices at the pilot restaurants to cover the new labor costs. According to CNN, the pilot locations saw a decrease of 8-10 percent of customers, on average, as a result of the new policy. Merritt said, “We tried it for quite a while and we tried communicating it different ways,” but customers did not respond positively. Research by the chain demonstrated that 60 percent of customers said the policy removed incentive for good service and that they don’t trust that management is passing along that increase to the workers.
The remaining four locations, which the company did not identify, will continue to operate without tipping for the time being. “We are going to try to figure out why it worked in some places and why not in others,” Merritt said. “The way we look at it is: We are really continuing the tests in place with where it works.”
Integration of HHonors App With Google Maps Aids Room Selection For Guests
Hilton Worldwide has announced the integration of Google Maps into the HHonors App, allowing members to see more details about a specific hotel’s surrounding and their room’s potential view before choosing a room. The new digital floor plans include detailed geographical information about the environment around the hotel, allowing users to visualize where available rooms are located in relation to geographical markers. Members will also soon be able to see where points-of-interest such as landmarks or attractions are located in relation to particular rooms.
“We are the only global hotel company offering this game-changing technology and it is one of the most popular features on the Hilton HHonors app. Our guests love having the ability to choose their own rooms, but they have asked us to provide more detail about the hotel’s surroundings, and we have delivered,” said Geraldine Calpin, chief marketing officer, Hilton Worldwide. “By working with Google, we’re making our guests’ feedback reality by providing an exciting, in-app experience that lets our Hilton HHonors members pick their perfect room.”
The new feature is available to Hilton HHonors members booking directly through Hilton’s brand websites, mobile app, reservation call centers or preferred corporate travel partners and professionals.
“Google Maps want to make it as easy as possible for people to get the information they need in a simple and intuitive way,” said Megan Boundey, Google Maps Product Manager. “With Hilton’s spirit of constant innovation, combined with the Google Maps API technology, together we were able to enhance the guest experience by changing the way travelers plan and prepare for their hotel stay.”