Just over 10 years ago, the only tech in a restaurant was a POS system. Restaurants now use over 15 software vendors to run their business. They say necessity is the mother of invention. And in a fast-paced developing world, it is necessary to have vision of not only the current needs, but how to meet the growing demands of the future.
Living in the tech-revolution, it makes sense that the restaurant industry stays in step by using technology to fill the gaps, increase productivity and improve employee and customer experiences by their use. However, it can be a blessing and a curse. When at industry trade shows even five years ago, the tech booths were few, and they covered a very small footprint of the vendor space. Today, there are large “Tech Pavilions” with their own large sections of the shows. Tech has been seen as “sexy” and fun, a cool trendy playing field that a restaurant owner, and certainly a large restaurant group or franchise, must be incorporating into their operations to be on top of their game.
I recently had a discussion with the Founder of ZagOps, Saverio (Savi) Ferraro, about the pros and cons of this topic and how it impacts the restaurant, their people, and their culture. He raised some thought-provoking questions and offered insightful feedback to some concerns of my own, in our vibrant conversation. I’d also really like to know your thoughts on this important topic and if you see tech supporting or draining your culture. Please send your thoughts to: [email protected], to help others by being shared here for the readers.
Savi asks, “How has widespread tech adoption in the restaurant industry impacted your employees?”
Let’s break it down. In the last decade, the restaurant industry has witnessed a whirlwind of technological innovation, with new tools, apps, and devices transforming nearly every aspect of the business. From ordering systems to back-of-house operations, restaurants have embraced tech to streamline processes, boost efficiency, and meet evolving customer expectations. However, this rapid pace of change also presents challenges, particularly for employees. As restaurants innovate, they must balance the promise of enhanced productivity with the need to maintain a human-centered approach to hospitality, and, a big factor, the impact of tech fatigue and overwhelm of it all.
Fast-paced tech innovation can undoubtedly enhance operational efficiency, but it also risks overburdening employees and diminishing the warmth that defines a great dining experience. As restaurant leaders navigate these innovations, the ultimate challenge lies in leveraging technology to improve both customer and employee experiences — without tipping the scale too far from human interaction.
The Pros of Technology in the Restaurant Industry
There is no doubt that technology has significantly improved the efficiency of restaurant operations. Tools like mobile ordering platforms, inventory management systems, and online reservations allow businesses to run more smoothly than ever before. Consider Chipotle, a brand that has harnessed the power of mobile ordering to expedite the customer experience. In 2022 alone, 41% of Chipotle’s sales came from digital channels, showcasing how embracing tech can drive both convenience and revenue.
One of the clearest benefits of tech is its ability to reduce human errors and streamline workflows. Digital ordering systems can minimize miscommunication between the front of house and the kitchen, ensuring more accurate orders and fewer mistakes. Just yesterday I decided to work in a café for a change of scenery. After eating, I added a coffee to my order. It came cold (though I hadn’t ordered iced coffee). She apologized, whisked it away, and said she’d bring me a hot cup. About 30 minutes passed. I finally asked about it. She looked shocked that I had not received it. When she returned with it, she explained that it was her mistake of not putting in a ticket for it, but just told them verbally. They got busy and forgot. Mistakes happen, yet had she used the tool to ring in the coffee, I would have been on my second or third (paid) cup by the time I got the first one.
Similarly, inventory management software like ClearCOGS can help predict demand analyzing historical data together with outlier influencers like weather, special events in the area, etc., and reduce waste and improve profit margins. Data analytics are critical in controlling inventory levels and customizing menus based on regional customer preferences.
Another pro advantage is the simplification of employee training and onboarding. Point-of-sale (POS) systems like Toast are designed to be user-friendly, making it easier for new hires to pick up tasks quickly. Digital training modules help standardize instruction, ensuring that all employees receive consistent guidance. Additionally, scheduling apps like 7shifts empower employees by offering more control over their work-life balance, giving them the flexibility to swap shifts and manage their time. Certainly more single-sign on tools will help the multitude of different apps that don’t speak to one another, which of course causes more confusion, room for error, and the consumption of many more hours away from the ultimate goal of serving customers with warm hospitality.
The Cons of Over-Reliance on Technology
The adoption of tech also has its downsides. One key issue is the risk of disconnection between employees and customers. In an industry defined by hospitality, the growing reliance on tablets, kiosks, and mobile devices can reduce the level of personal interaction that customers expect. Employees are now spending more time focused on screens and data inputs rather than engaging with the diners in front of them, which can hurt the overall experience. This is a challenge for Panera Bread, which implemented self-service kiosks. While the kiosks have improved order accuracy and reduced wait times, some customers feel the dining experience has become more impersonal.
Another potential con is tech overwhelm for employees. The cognitive overload is real. The constant need to learn new systems and software updates can be dizzying, particularly for those who are not naturally tech-savvy. This is compounded by the increased pressure to multitask, as staff are expected to manage both traditional responsibilities and new tech-driven tasks simultaneously. For example, McDonald’s employees, who must juggle between taking mobile orders, drive-thru tasks, and customer service, have reported feeling overburdened by the fast-paced environment. And the customer feels it! It's a lose-lose proposition for your internal and end customers.
Savi points out, “Tech fatigue has for sure decreased job satisfaction and added more admin work to the week. However, there are quantifiable performance related increases. The question is at what cost. For example: The GM saved 2% on labor cost resulting in a profit increase of $20k, but the GM was burnt out after and quits. Now the business spends $50k+ on a replacement, if they can even find one. Then take that example and extrapolate over the 20 KPIs they’re judged on.
For older or less tech-inclined workers, this digital shift can create feelings of alienation. The fast adoption of new systems may lead to higher turnover if these employees feel frustrated or unsupported in learning new tools. A survey by the National Restaurant Association revealed that 62% of restaurant workers aged 50 and above found it challenging to adapt to new technology, which could lead to reduced retention if not properly addressed.
The Balance Between Tech and Human Interaction
The essence of the restaurant industry lies in hospitality, and personal interaction (the leading indicator for long-life according to Susan Pinker’s TEDx talk), is at the core of a memorable dining experience. Restaurants are more than just about food — they’re about connection. Even as technology evolves, this human element should never be lost. Customers still value face-to-face interactions with staff, and employees thrive on creating these experiences.
While at the National Restaurant Association Show in Chicago this May, I was a part of a conversation which spoke specifically to this point as it applies to owners and management that don’t want to lose that on-the-floor, person-to-person interaction. It was between a father owner/operator and his son. The son was introducing his dad to a software service to help with efficiency, inventory and staff management. The father said, “I already use X, Y and Z and don’t want anything else that will keep me in the back office behind a computer.” The son’s response was, “But we can’t scale this way.” This went back and forth. A very real issue regarding the adoption of tech being inevitable, and an interesting conversation to observe.
The key to balancing tech with human interaction lies in thoughtful integration. Some restaurants have successfully adopted technology without compromising personal service. For example, Chick-fil-A has managed to balance technology and human touch effectively. While it utilizes mobile ordering and digital payment systems, it emphasizes customer service through its "second-mile" initiative, which encourages employees to go above and beyond in providing warm, friendly interactions with every customer.
Technology should ideally support employees, not overwhelm them. A best practice is to involve staff in the decision-making process, seeking feedback on how tech impacts their work. This helps ensure that new tools are seen as aids rather than obstacles. Managers who make it a priority to gather insights from their teams can adjust systems to better align with their staff’s needs, creating a more positive work environment.
Management’s Role in Navigating Tech Innovation
Managers play a critical role in determining how effectively technology is integrated into their restaurant's culture. Creating a tech-smart yet people-focused team requires a careful approach. Leaders should ensure that tech is used as a tool to enhance — not replace — the hospitality experience.
Building a tech-savvy workforce begins with comprehensive training, but it shouldn’t stop at hard skills. While employees need to understand the systems, soft skills like communication, empathy, and problem-solving should remain at the forefront of their development. Restaurants like Danny Meyer’s Union Square Hospitality Group, emphasize these “essential” (not “soft”) skills, ensuring that employees understand that hospitality is about making meaningful connections. Meyer’s "Hospitality Quotient" model highlights the importance of emotional intelligence in staff training, even as tech plays a more significant role in operations.
Adaptability is another necessity, especially for leadership. Technology evolves quickly, and what works today might be outdated tomorrow. Regularly assessing the effectiveness of tech tools and their impact on team dynamics is crucial. Managers should be willing to adjust workflows and systems as necessary to ensure that the technology serves both employees and customers in the best way possible.
The Path Forward
In a rapidly evolving industry, restaurant leaders must continuously evaluate how technology affects their operations, their customers, and, most importantly, their employees. Technology has the potential to increase efficiency and streamline processes, but it should never come at the expense of human connection.
The future of the restaurant industry lies in a balanced approach — one where technology enhances, but doesn’t overshadow, the warmth and hospitality that define great dining experiences. By staying adaptable, prioritizing the needs of both employees and customers, and ensuring that tech remains a support system rather than a substitute, restaurant leaders can create a culture that thrives in the face of innovation.
If you enjoyed and gained something from this article, email your own culture questions: [email protected]. Have your question answered and highlighted in the next Ask Jill! Develop Your Company Culture article.
