Only 48% of Restaurant Owners Feel Prepared to Capitalize on Future Mobile Innovations

Mobile has become an integral part of the food and beverage industry. For restaurant owners, this technology has introduced new levels of efficiency in front and backend operations. But according to a new survey by Oracle, only 48% of owners feel prepared to capitalize on future mobile innovations.

Another 62% also expressed doubt in their ability to keep up with the changes taking place in mobile technology. This is despite the fact they fully recognize the threat coming from competitors who have adopted mobile solutions. More than half (59%) said their company faces the threat of disruption from these competitors.

The data comes from two surveys carried by Oracle in the food and beverage and hospitality industries. The food and beverage survey is titled “Going Mobile: A Benchmark of Mobility Maturity in the Restaurant Industry.” And the hospitality survey is the “2019 Hospitality Benchmark Report Mobile Maturity Analysis.”

Both surveys looked into the challenges these industries face in adopting mobile technology and how they can benefit from them.

Simon de Montfort Walker, senior vice president and general manager for Oracle Food and Beverage, said mobile has completely changed the segment.

In the press release, he went on to say businesses who don’t adopt the technology will not be relevant. Adding, “In order to remain relevant to a rapidly evolving audience, restaurants must act quickly to modernize their mobile strategy and offerings. Today, the experience a customer has ordering online or from a kiosk can be just as essential as if they were ordering in the store.”

How Can Restaurants Benefit from Mobile Technology?

The study says there is a “clear and urgent need” for restaurants to adopt the right overall mobile technology. This includes front and back-end solutions with comprehensive systems.

Having these solutions is especially important for small businesses. Owners can drive higher ticket value, turn tables faster and generate more cross and upsell. The technology also improves the guest experience and help cut labor costs by introducing new levels of efficiency.

When it comes to cost, a good app can save a restaurant money on several different fronts. Owners said it saved time and money in hiring, monitoring stock to avoid waste, changing menu quickly, and more.

For 84% of the respondent, guest-facing apps have translated into lower labor costs. And 96% agreed a mobile inventory management app was responsible for saving them time and money.

The Guest Experience

With smartphones now in the hand of almost all adults, restaurant mobile apps are delivering a better dining experience. Customers are making reservations, ordering food, making payments, leaving reviews, and engaging with owners.

In the survey 86% of the owners said branded mobile apps increase the speed in which they deliver service. Faster service has translated into more customers being served, which in turn has increased revenue.

Ninety-three percent of owners also said the guest-facing apps promote loyalty, drive repeat business and improve the guest experience.

The Survey

Oracle carried out the survey with the participation of 279 leaders in the food and beverage industry during the summer of 2018. Seventy-one percent of the respondents are director level or higher and they use mobile technology in their organizations.

The restaurants were full-service, fast casual, and quick service establishments.

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This article, "Only 48% of Restaurant Owners Feel Prepared to Capitalize on Future Mobile Innovations" was first published on Small Business Trends