When COVID-19 unexpectedly walloped the restaurant industry, operators got a crash course in resiliency. They amped up their technology investments and retooled their business models to maintain their strength — or at least keep the lights on.
In multisite operations, many of these changes were happening behind the scenes, literally. Back-end technologies, such as Internet of Things (IoT), gave operators the extra eyes and hands they needed to accelerate productivity, preempt financial and safety risks, and focus on pleasing their takeout, delivery, or dine-in customers.
These important objectives were amplified when the pandemic began, and they are still important three years later. That’s why IoT, and the equipment data it uncovers, have become essential for boosting operators’ long-term financial performance.
Indeed, a close-up view of dish machines, ovens, fryers, freezers, and HVAC systems empowers restaurateurs to improve operations and execution at every location. What machines are working inefficiently? What needs a tuneup, and what should be replaced? What safety issues are lurking? Connecting their equipment’s digital controls and monitoring the data being sent to the cloud is now a best practice for maximizing restaurants’ top and bottom lines. The same technology enables operators to automate critical but routine functions and become more efficient.
Why is this especially important now?
- Labor Wars: While restaurants and bars added about 99,000 jobs in January alone, they are working hard to keep every person. Using IoT to eliminate routine tasks, like refrigeration temperature checks, makes restaurant work more satisfying. In addition, connected equipment helps employees be more efficient, get more time back in their personal lives, improve their quality of life, and in turn, they’re more tempted to stay.
- Energy costs: Restaurants consume enormous amounts of energy, and recently, many have experienced double-digit price increases. Detecting and addressing malfunctioning HVAC switches, staff overrides of lighting/HVAC set points, or excessive use of air conditioning during peak demand periods can have significant bottom-line benefits.
- Maintenance: IoT prevents the ripple effect of equipment going out of service because a problem wasn’t diagnosed and fixed in time. It’s common for restaurants without visibility to deal with equipment downtime due to misdiagnoses, incorrect replacement parts, and scheduling issues. This negatively impacts sales, employee and guest experiences, cash flow and profits.
- Scalability: Facilities/maintenance teams often struggle to scale, and IoT is helping these individuals coordinate simultaneous repairs across locations rather than tackling them piecemeal. This assists teams that already feel the pressure to scale and perform at a high level.
IoT solutions are evolving to help restaurants future-proof their operations. For example, new “open” technologies enable restaurants to “read” their equipment data, regardless of who manufactured it.
As the pandemic has wound down, people’s desire to connect and enjoy a meal together has fueled the restaurant industry’s resurgence. Similarly, connecting restaurant equipment has the potential to fuel a more profitable future for major multisite restaurant operators.
By Drew Holst
Vice President
Newton, Mass.
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