Restaurant And Hospitality News – October 10, 2016
By Christine Kern, contributing writer
In news this week, the Hospitality Hardware Market is on pace to reach $14.3 billion by 2020; Drone delivery was successfully completed by Orange Leaf Frozen Yogurt; and Restaurant Operators are expressing the highest negativity about the financial state of the industry since 2012.
Hospitality Hardware Market Set To Grow To $14.3 Billion By 2020
New research from IHL Group anticipates that the worldwide market for POS, Servers, Printers, and Mobile Devices in the Hospitality Market will grow from $13 B to $14.3 billion by 2020. The report examines the real leaders in the marketplace and reveals which vendors are leading in sales, innovation, market reach and the implementation of a complete Unified Commerce approach.
"The hospitality hardware market is changing rapidly," said Greg Buzek, President of IHL Group. "Worldwide the market is expanding and different segments are growing faster than others. Knowing where those opportunities are critical for vendors."
Included in the Total Hospitality Hardware Market study are an overview of the market, the trends driving increased IT adoption, forecasts ( through 2020), rankings of the top 15 vendors Worldwide and North America, IHL Insight MarketView positioning maps for Fast Food, Bar/Table Service Restaurants, and Lodging/Casino/Cruise/Entertainment and then detailed competitive company profiles for the top vendors which include revenues, split of their business by geography, line of business as well as key customers and company changes.
Available immediately, the study includes rankings and/or positioning for vendors including: Agilysys, Apple, CBS Northstar, Cisco, , Dell, Epson, Four Winds Interactive, Fujitsu, Fujitsu, GuestTek, HP, IBM, Ingenico, NCR, Oracle, Panasonic, ParTech, TGCS, VeriFone, Wand, Wincor Nixdorf, Wincor Nixdorf, and Ziosk.
Orange Leaf Tests Drone Delivery To Michigan College Campus
The U.S. Federal Aviation Administration has issued strict guidelines surrounding the use of drones for commercial activity – guidelines that have proven to be difficult for many retailers to meet. Now, however, Oklahoma-City based Orange Leaf has proven that it can safely abide by FAA regulations and complete drone delivery of frozen yogurt. The test were performed in Holland, Michigan, where “Project Flying Orange Unicorn” was able to make drone delivery a reality.
Geoff Goodman, Orange Leaf president, said the chain will now offer drone delivery on an appointment basis for events and parties. “Now that we have some data and know the effort and commitment it takes, we can refine the business model,” he explained. “We’re trying to pioneer this as a replicable model.” That means that if the beta test goes well, the chain could be looking at expanding drone delivery into more markets. However, Goodman said that the cost of the drone delivery is still not clear, and Goodman cautioned, “I don’t know if we’ll see drone delivery happening with a single cup to your back door, but for specific events, it’s more viable.”
The drones can carry up to 35 pounds, or roughly 30 servings of yogurt, packed in a modified catering box and wrapped in an ice blanket for delivery. “We’re still waiting for the FAA to approve guidelines,” Goodman stated. “But we do think drone delivery is viable. The technology exists today to send a drone out to a specific location and have it return unmanned. It’s in the not-too-distant future.”
The beta test was possible in Holland, Michigan because the local Orange Leaf franchisee Jeremy Latchaw also serves as the president of the local drone dealership Mishigami Group.
"We continue to lead the innovation taking place in the frozen yogurt category, and we continue to look for ways to grow and foster brand loyalty by reaching our customers in new ways," said Geoff Goodman, president of Orange Leaf Frozen Yogurt. "Millennials are an important target audience for Orange Leaf and because we know they are interested in emerging technologies that also offer convenience, we selected a college campus for our first-ever drone delivery test. The test exceeded expectations and we look forward to further exploring drone deliveries and other unexpected ways to get our froyo into the hands of fans across the country."
NRA’s Chief Economist Finds Restaurant Operators Skeptical Despite Steady Job Growth
Bruce Grindy, Chief Economist for the National Restaurant Association (NRA) says that although recent employment reports have remained positive, negativity among restaurateurs has been on the rise, according to Restaurant.org. September saw the national labor market continuing to expand at a moderate pace, adding a net 156,000 jobs, according to Bureau of Labor Statistics data. Overall, the employment statistics are generally positive, but the view from the restaurant trenches is not so light.
The National Restaurant Association’s September 2016 Tracking Survey found just 17 percent of restaurant operators stating that they think economic conditions will improve in six months, and 29 percent believe that they will worsen. The remaining 52 percent stated that they think economic conditions will remain constant for the next six months.
The results mean that the Economic Negativity Index is trending higher in recent months, with September’s reading of 29 percent being the highest level since 2012. As Grindy explains, “Based on their daily contact with customers, restaurant operators are often the first to notice any changes in consumer behavior or economic conditions. While operators’ current economic sentiment does not suggest that a recession is imminent, it has risen to a level that requires close monitoring in the months ahead.”