Vancouver is one of the hottest technology hubs in North America.
With so much news, data, and events to cover across the city and province, Techcouver leans on professionals in the field to help keep our audience properly informed and up-to-date.
In our first Expert Wisdom edition for Techcouver, we look at innovation in the restaurant industry, which was among the most upended business models when the Pandemic struck.
Rise of the Ghost Kitchen
“If the pandemic has taught us one thing, it is that the hospitality industry is shaped by an incredibly resilient and innovative group of people and entrepreneurs,” says Ryan Moreno, chief executive of Joseph Richard Group, a BC-based collection of hospitality ventures.
Restaurants adapted as necessary to endure the rough ride.
Now, with the pandemic over, many customers remain used to remote dining options.
“To better meet the growing demand, there has been a trend of virtual restaurants, also known as ghost kitchens, popping up across North America,” Moreno informed Techcouver.
Delivery-only food concepts operate out of existing restaurants or commercial kitchens to provide a unique and diverse dining experience, according to Moreno.
“With growth supercharged by the Covid-19 pandemic, experts in the field estimate that by 2030, virtual restaurants will make up 50% of takeaway service and more than $250 billion in global annual sales,” he says.
Remaining accessible to all customers and continuing to provide new, interesting products is in the best interest of every restaurant owner, believes Moreno.
“These figures indicate that not only are online restaurant models a beneficial tool for increasing revenue streams but also an essential part of the industry,” the restaurateur says. “Business owners will be making changes to their restaurant operations to stay relevant and accessible in the coming year.”
It appears that the virtual restaurant and its ghost kitchen represent a new and growing market for both restaurateurs and technology providers.
Tech VS Challenges
While many Canadians love ordering in these days, others still prefer the in-restaurant experience that no home can quite provide. Traditional restaurant demand is once again booming post-Pandemic and tech continues to find its way into the gears of the industry.
Not everything is rosy though. Many restaurants in BC shut down during the pandemic, and some of the survivors are still struggling with debt and profitability issues relating to multiple years of government restrictions.
“That, combined with the rising inflationary costs and ongoing labour shortages, means BC’s restaurant industry continues to face challenges,” explains Brittain Brown. “Add in an economic downturn, and the challenges seem never-ending.”
Brown is the President of Givex, an integrated customer engagement platform based in Toronto.
“Change is essential if this vital sector of the economy is going to survive and thrive once again,” he informed Rob Lewis, editor-in-chief of Techcouver.
He believes tech is necessary to boost the efficiency of restaurants in order to maximize financial outcomes.
“With inflation affecting the cost of ingredients, inventory management systems can help restaurants optimize their supply chain and save money on food costs,” he says. “To reduce food waste at the ingredient level, operators can also use their POS to track inventory and forecast sales to ensure no unnecessary waste occurs.”
Technology can no longer be an afterthought, according to Brown.
“All aspects of the customer experience, from digital menu boards to QR codes and self-ordering kiosks, are critical to a well-functioning business,” he posits. “By introducing digital ordering systems, restaurants can reduce the need for labour, which is an excellent solution for staff shortages. Self-service kiosks are a great way to streamline the ordering process, reduce wait times, and increase efficiency.”
According to Brown, investing in the right technology “will help operators alleviate stress and help these industry professionals do what they do best: provide outstanding dining experiences to customers both now and in the future.”
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