Technological advancements in the restaurant industry: A progressive measure aiming to rejuvenate the sector following the Covid-19 pandemic
The future of the hospitality industry necessitates an embrace of digital transformation, as consumers increasingly engage in digital platforms, a trend that predates the Covid-19 pandemic. This was the focus of a discussion organized by Edenred yesterday, aimed at addressing the future of the sector and digital support as a means to facilitate its post-pandemic recovery.
1. Embracing Digitalisation in Restaurants and Hospitality
The restaurant technology ecosystem already boasts extensive existing infrastructure, and digitalising restaurants serves as a crucial step in advancing the sector. Opportunities abound, particularly in better forecasting inventory demand, which can help reduce waste and cut costs. Matthias Kuom, from the European Commission's DG CNECT, illustrates this with the Estonian company, Kulinaaria OÜ, which employs robots to optimise intra-logistics, reducing labor costs by 20%, cutting 10% on intra-logistics defects, and speeding up transport by 10%.
Marie Audren, HOTREC's Director-General, called for technology providers to extend their options to restaurants, emphasizing the value of these innovations in facilitating recovery and growth in the sector. However, the size of the restaurant will impact its ability to launch digital services, while the return on investment is likely to be positive once the necessary investments are accounted for.
Alfred Gajdosik from the European Economic and Social Committee pointed to Japan's approach, where a 120-room hotel relied on robots to manage service, though similar implementations remain rare in European establishments. Still, Gajdosik acknowledges that such innovations may gain traction if the right technology becomes available.
2. Overcoming Shocks and Navigating Digital Transformation
Partnerships will be key to the success of digital transformation, particularly in an increasingly complex landscape with a growing number of service providers catering to restaurants. Instruments like meal vouchers offer digital solutions that help restaurants find a balance between profitability and digitalisation. A recent French study indicated that consumers would cut their restaurant spending by almost 50% without meal vouchers.
Audren highlighted a transformation in the restaurant industry, driven both by the pandemic and the evolving needs of consumers, particularly among the younger generation who rely on mobile devices and technology for their consumer habits. With optimism towards a better year than the past two, Audren noted that growth is being fueled by domestic European travel, although the absence of international tourists due to ongoing restrictions in the US and China remains a challenge.
Audren also addressed the impact of the war in Ukraine, predicting food shortages and overall trade disruptions that will influence menus.
3. RESTwithEU: A Boost for Digital Innovation in Restaurants
The Commission's RESTwithEU project is currently underway, aiming to identify and develop digital innovations to support the restaurant sector's recovery and growth. RESTwithEU is exploring the use of artificial intelligence and organizing activities like hackathons to initiate the development of innovative technical solutions. The project's final results will provide solutions and a guidebook to support the restaurant sector, explaining the most appropriate digital tools for each specific case.
- As businesses in the hospitality industry gradually embrace digital transformation, opportunities like implementing robots for optimized intra-logistics, as demonstrated by Kulinaaria OÜ, could help reduce costs in both restaurants and hotels.
- The future of tourism and restaurant industry growth is closely tied to the successful implementation of digital platforms, with meal vouchers serving as an example of digital solutions that balance profitability and digitalization.
- Alfred Gajdosik from the European Economic and Social Committee suggests that as innovative technologies become widely available, there may be an increase in the use of robots to manage hotel services, similar to the Japanese 120-room hotel that has already adopted this approach.
- The digital transformation process in the hospitality industry could be supported by strategic partnerships between businesses and technology providers to facilitate recovery and growth, especially considering the growing number of service providers catering to restaurants.
- The evolving landscape of consumer preferences, particularly among younger generations who rely on technology for their daily habits, is driving a shift in the restaurant industry, making digital platforms increasingly important for reaching and catering to this demographic.
- Looking ahead, the effects of geopolitical events such as the war in Ukraine, which may lead to food shortages and trade disruptions, will have a significant impact on the restaurant industry's menus and overall operations.
