In the past several months, those who keep up with the news have been subjected to a rather steady dose of “future technologies” expected to alleviate some of the more labor intensive operations in restaurants and retail stores. Those stories, often tied in with minimum wage discussions, usually focus on the features and benefits for customers and owners.
Reporters typically explain how touch screen systems can speed and reduce errors in the ordering process, whether they’re positioned tableside or at the counter. They’ve covered burger-flipping robots that not only cook the meat, but place it in a bun and wrap it for delivery. And how about automated waiters, machines that not only take your order but deliver your meal with a courteous expression? Or better yet, how about using drones for tableside service?
Sure, a few of the more “newsworthy” technologies are still a bit sketchy on business value or real world applications. Some simply aren’t ready for prime time and, when they are, the service providers who support the robotic elements may fall outside the “mainstream” IT channel. But some of these automation examples are not just future opportunities, with several having been available for quite some time.
Innovation Driven by Efficiency Needs and Cost
Why is automation a big topic of discussion in the retail and hospitality industries (as well as a few others)? Simply put, most businesses in those segments are extremely labor intensive. Many first time employees got their start in restaurants, grocery stores and hotels (myself included), performing basic tasks like taking orders and filling food orders, cleaning rooms and dishwashing. They need bodies, which gives those with little or no experience an opportunity to prove themselves and gain a few skills.
The pay for restaurant and retail is often relatively low for the effort required. As a matter of fact, almost 47% or 1.5 million of the total 3.3 million minimum wage workers are employed in the “food preparation and serving related occupations” as of 2013, according to the latest U.S. Bureau of Labor and Statistics figures.
Despite a heavy reliance on rock-bottom salaried employees, many small restaurants and retailers still operate on very low margins (industry estimates range from 2-7%). When expenses rise significantly, they typically offset the increases with cuts in headcount or services to remain profitable. Whether you support or oppose government-imposed minimum wage escalations, it’s important to realize some of these businesses can’t increase prices to make up the difference…without losing a significant number of customers and sales.
The Future is Already Here for VARs and MSPs
The need for innovation in the restaurant and retail industry is significant, but robots and burger flipping machines may not be the answer ─ yet. Managed services providers certainly understand the business benefits of automation and can certainly put their skills and knowledge to good use with cost-conscious businesses. Cloud and remote management offerings typically reduce clients’ capital investment requirements and increase customer satisfaction and greater revenue opportunities (fewer system failures).
The funny thing is that many of the other so-called recent “innovations” have actually been available for many years. One of our local gas station chains began mounting kiosks next to the pumps more than a decade ago so customers could order food while filling their tanks. That gives you more time to peruse the menu and the option to pay at the pump, then you simply pick up the order at the counter after gassing up. Inside the “restaurant,” there’s a bank of the same kiosks so customers can select from a multitude of food and condiment options.
No employees are involved in the ordering process ─ though they do still prepare the meals and man the registers (though automation is also simplifying or taking over some of those processes as well). The chain saves money on the front end and the system minimizes errors with customer orders, a win-win for all (including its workers, who receive premium starting and career-long wages).
Touch screen and tablet-driven registers are common-place today. A host of new, labor-saving technologies, including a variety of innovative IoT-related machines, move from beta testing into actual retail establishments each year. The options for an enterprising solution provider are expanding rapidly, especially for those willing to customize offerings to meet the unique needs of their clients.
Considering a move into thriving new vertical markets such as retail, restaurants or hospitality? Download and check out the latest CompTIA Research & Market Intelligence research as well as the CompTIA Channel Training Catalog, which includes an overview of the association’s related educational programs and materials.
Brian Sherman is principal consultant at Tech Success Communications, an IT channel business development and marketing firm. He served previously as chief editor at Business Solutions magazine and senior director of industry alliances with Autotask. Contact Brian at Bsherman@techsuccesscommunications.com.
