Technology hits a restaurant icon

restaurant icon

Technology hits a restaurant icon

5 minutes

Route 66 was constructed to address a need created by an emerging technology: the rise of the auto in the United States. When completed in 1926, the highway gave motorists quick passage (at the time) from Chicago to Los Angeles. This transportation shift also gave rise to another innovation. In 1947, Red's Giant Hamburg in Missouri opened the first drive-thru window so customers could pick up their food without leaving their car.

This year the drive thru turns 70, and its influence on the food business is staggering. Americans made 12.4 billion trips to the drive thru in 2016, according to a QSR magazine study, which said that quick service restaurants routinely generate 60–70 percent of their business through the outdoor lane. McDonald’s alone reported that the drive thru accounted for 70 percent of its U.S. sales last year.

Driverless cars, mobile and automation

Tech continues to shape the drive-thru with the biggest changes yet to come. One force is the auto industry. By 2030, around a quarter of all miles driven in the U.S. could be in shared autonomous electric vehicles, according to research. Already technology providers are looking at ways driverless cars could change the food business. More immediately, mobile communications, and automated supply chain advances are spurring shifts.

Forecasting food’s future tech

At September’s FSTec restaurant industry food show, where I delivered a keynote presentation on integrated solutions shaping food service, audience questions covered everything from mobility to connected kitchen strategies. Here are a few ideas.

Ever approach the drive-thru in the middle of a rainstorm? You and everybody else. At America’s drive thrus, bottlenecks are often inevitable, and companies are introducing technologies to serve customers what they want when they want it.

Innovation at Habitat Burger Grill

A few years ago, a chargrilled burger from The Habit Burger Grill, a nationwide fast-casual restaurant concept that specializes in fresh ingredients, was named the “best tasting burger in America.” To accommodate growing interest in its food, The Habit Burger Grill opened drive-thru windows.

To handle the numbers of people who want to use the outdoor lanes, the company introduced a careful mix of planning and technology. It turned to Panasonic Toughbooks to take orders from customers while they wait in the drive-thru line. This gives restaurant employees multiple points to take orders instead of relying on the traditional microphone and menu setup. By having employees move up and the down the line while cars wait, ordering and drive-thru pickup is faster.

DQ’s experience

In Texas, select Dairy Queen restaurants have moved toward putting the entire ordering process into customer’s hands. By providing Panasonic’s solution for self-service touch-screen kiosks, the company has put the power to fully customize orders directly into the hands of their tech-savvy customers. Now customers can place and pay for their orders on self-service kiosks. This frees up staff to more quickly complete orders.

For many food franchisees, profit nirvana is the connected kitchen, which links technologies in the front of the house—including drive-thru windows and kiosks—to automation systems in the back. Robotics is one area garnering excitement. More immediately, tech companies are leveraging other forms of automation—such as algorithms and artificial intelligence—to create solutions to repetitive tasks, like predictive maintenance on a deep fryer so food oil is ordered and changed just in time.

For more on how technology is reshaping the restaurant business, read The Future of the Drive Thru: Overcoming Choke Points.

Authors
Jeff Pinc - Director of Food Services at Panasonic
Pinc has more than 15 years experience in the QSR industry.

Technology’s impact on your summer ice cream parlor

icecreamblog

Technology’s impact on your summer ice cream parlor

6 minute read

While consumers may spend their summer seeking exotic ice cream flavors—Lobster, Cheetos and Spruce Tip are whipped up, ready for the adventurous eater—savvy businesses are bringing on new technologies to help figure out things like what new flavors will sell. 

Just south of Cincinnati, across the Kentucky border, vegan and vegetarian ice cream and sandwich shop Piper’s Cafe is leveraging big data to keep up with its customers: “We are growing and we can't remember all of our customers by name and face any longer. I'm looking forward to seeing what patterns my new regular guests fall into and adapting," says co-owner Chip Atkins in a report from The Week. Cloud and mobile technology mean that ice cream shops and other small restaurants can take advantage of the kind of big data insights that large restaurant owners have been using to lower costs and boost operational efficiencies. 
 

How the restaurant industry is reading tech disruptions

Not all restaurant innovations come in the form of new flavors or food items. Some important breakthroughs arise as solutions to common problems plaguing restauranteurs—from high labor costs to declining traffic. How to use breakthroughs such as big data and other disruptive technologies dominated our conversations at the 2018 National Restaurant Association trade show. 

In a recent research study conducted by Panasonic, nearly four out of five respondents stated they believed competitors in their own industry will pull ahead if they do not adopt or invest in disruptive technology. Seven in ten said they felt companies outside their industry could disrupt them. 

And these ideas were more pronounced in the food service, hospitality and retail industries. These sectors are more likely than others to say disruptive technologies are critical to the future success of their companies.

Connected restaurants

Across all industries, three of the top five adopted disruptive technologies are cloud, IoT and robotics. Each of these technologies plays a role in the connected kitchen, where appliances all sync to the cloud, communicate over a network, can be managed remotely and even using predictive analytics. Spyce, a new restaurant in Boston, is built around a robotic kitchen, and relies on cloud and IoT. The robotic kitchen “wirelessly collects multiple orders from a bank of self-service menu kiosks, displays the names of the guests whose orders are being prepared, pipes the various ingredients from refrigerated hoppers into a wok to be cooked and tossed, and dumps the hot meal into a compostable bowl waiting on the counter below,” according to a review in Salon. 

Labor is one of the costliest elements of running a restaurant and can eat up as much as 40 percent of a restaurant’s gross revenue, according to estimates. Software that has the capacity to collect and analyze data will the connecting element of automated processes and are already making it possible for labor intensive industries across the board to run more efficiently. MaryPat Sullivan, chief nursing officer at Overlook Medical Center in Summit, New Jersey, told Healthcare IT News earlier this year that the hospital network was able to save $70 million on operational costs by successfully employing predictive analytics. Software programs such as Panasonic’s Clearview platform have helped franchise owners of some of the largest QSR chains grow at a faster rate than their corporate-owned counterparts that still operate on legacy software. These functionalities integrated with the automation capabilities of PanaCIM are already changing the landscape of kitchen and back office interoperability.

icecream infograph

Personalizing experiences

Last month, we wrote about how the hospitality and retail industry are turning to artificial intelligence to create an increasingly nuanced personal experience for their customers. Of all the industries polled in our research, 90 percent say personalization is important to the future success of their company. Furthermore, they believe that the first step is to simplify the customer experience. But there is also a divide about what personalizing the customer experience entails. According to 40 percent of respondents, “personalizing” means making it simpler for customers to engage. Only 20 percent interpret this as “being able to customize services and offerings” by using customer data analytics to predict and impact purchase behavior. 

Personalization in ordering has contributed to the widespread interest and adoption of kiosks in the restaurant industry. McDonalds see kiosks as part its digital growth accelerator that will expand choices for how customers order, pay and are served, according to its latest annual report. Similarly, Subway also announced it was planning to introduce kiosks. In Texas, a number of Dairy Queen restaurants are already reaping benefits of self-service kiosks. 

Brands that have been early adopters of kiosks have reported that the average check size is up to 30 percent higher than at the counter. These kiosks don’t just allow the restaurant to continually upsell through the entire ordering process, but customers are also given the opportunity to fully customize their order, which leads to an increasingly personalized experience.

Authors
Jeff Pinc - Director of Food Services at Panasonic

Inside next-gen manufacturing

next gen factory

Inside next-gen manufacturing

5 minutes

In mid-February, the National Association of Manufacturers kicked off a cross-country trip visiting plants in more than a half-dozen states. The trip started in Troy, Michigan at “Automation Alley.” 

Job growth from Michigan to Buffalo, NY

The trip began as the business of making things faces major changes. Today American manufacturers need to fill some 364,000 jobs, according to a report from Deloitte and NAM. Panasonic manufacturing jobs are among them. In Buffalo, New York, Panasonic is partnering with Tesla in the production of solar cells for roof tiles—a product that integrates high-efficiency photovoltaics with roofing materials—and we’re looking for next-gen workers.

According to the Deloitte/NAM report, over the next couple of years, the number of manufacturing jobs in this country is expected to climb to 3.5 million. What kind of jobs will they be?

Our findings show that most of these new jobs will be created by small to mid-size manufacturers. The majority of American manufacturers are considered “small,” with fewer than 500 employees, according the U.S. Census Bureau. Its data shows that in 2015, there were 251,774 firms in the sector and all but 3,813 were defined as small. 

Disruptive tech in manufacturing

When these manufacturers create jobs tomorrow, they’ll have titles like supply chain specialist, manufacturing execution system developer, electrical technician and analyst. These titles relate to changes brought on by everything from supply chain automation to advanced robotics to artificial intelligence (AI). A few years ago, consulting firm McKinsey identified AI, advanced robotics and IoT among two dozen disruptive technologies that would account for trillions of dollars in economic value. Panasonic is deeply engaged in the advancement of almost half of these technologies. That’s important because when you’re creating experiences, chances are, you’re going to need to stitch together many of them into an integrated solution. Our future is focused on finding ways to apply our disruptive tech expertise to make radically new experiences possible. 

Factory work is becoming a new experience. From Automation Alley in Feb., NAM CEO Jay Timmons talked about how innovation is changing work: “Some people may think ‘automation’ and ‘job creation’ are mutually exclusive. That’s simply not true. Innovation is expanding opportunities and what American workers can do."

Millennials bring new skills to manufacturing

Manufacturers must think about how disruptive technologies will change the way they do business, operate plants and train workers. Automation, for instance, means that a worker will handle more responsibilities and needs additional skills to fulfill them. Big Data skills, for instance, are important to advanced manufacturing. Panasonic’s award-winning PanaCIM is a manufacturing execution system that creates an ecosystem connecting disparate islands of data across an enterprise—production data, MRP/ERP and legacy systems. Understanding and applying such data is key to operating the system.  Millennials (often defined as those now aged 20-40) come to manufacturing with new skills like MES management, but experts say that's just the start. “Millennials have already started changing the manufacturing and supply chains -- and for the better," according to an IndustryWeek report.

In support of growing manufacturers, Panasonic has invested heavily in its vision of a new manufacturing landscape–one that supports companies regardless of size, product mix or skill level. For instance, it designed its MES Manufacturing Execution System software to optimize the supply chain as a full-blown package and as an easy-to-install express system for companies with limited infrastructure. Panasonic introduced pick-and-place equipment that addresses the need for smaller lot sizes and tighter control over work in process and scheduling. Additionally, the Panasonic cloud9 Innovation Center, just outside Chicago, is a comprehensive facility where manufacturers can try out new applications, speak with experts and explore production hardware and complementary technology. 

Learn more about disruptive technology and manufacturing. 

Authors
Faisal Pandit - President of Panasonic Factory Solutions Co. of America