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Amid rising operational pressures and tightening profit margins, foodservice operators are increasingly turning to technology to streamline operations while maintaining a personal touch, according to data analytics firm GlobalData.


Though technology improves operations and customer experience, operators must address challenges such as maintaining personal service, integrating data, adapting to customer behaviour, training staff and managing customer expectations.


Parthasaradhi Reddy Bokkala, lead consumer analyst at GlobalData, explained that operators are adopting a range of technologies to boost sales and profits. "Some of the technologies being adopted by the operators include digital hospitality to improve the ordering experience through technology while retaining the warmth of in-person service," Bokkala noted. "Personalised ordering systems that recognise repeat customers, [for example], can enhance the customer experience."


Artificial intelligence (AI) is also playing a significant role in this transformation. Deepak Nautiyal, consumer and retail commercial director for Asia-Pacific (APAC) and the Middle East at GlobalData, highlighted how AI systems are being used to manage routine tasks like phone orders. "This allows staff to concentrate on in-store customer interactions, thereby enhancing the overall guest experience". He further explained that AI integration in voice ordering ensures prompt responses to customer calls, reducing wait times and capturing unmet demand without compromising service quality. This approach improves efficiency while maintaining personalised attention for in-store customers.


However, as technology reshapes the industry, it also introduces new challenges. Bokkala pointed out that customer expectations are evolving alongside these technological changes. "Customers increasingly expect quick service and seamless experiences, which can pressure operators to prioritise speed over the quality of personal service". He added that this creates a "tension" in balancing operational demands with the need to ensure customers feel valued and attended to.

Consumers in APAC have a positive attitude towards the use of technology in personalising their services. A recent GlobalData survey found that 24% of respondents found the idea of food or drink personalisation through 3D printing highly appealing, while an additional 28% find it somewhat appealing. Furthermore, 58% appreciate personalised recommendations based on their past purchases, with 20% considering this option very appealing.


Bokkala added: “Operators often face the challenge of ensuring that technology enhances efficiency without compromising the personal touch that customers value. While AI can handle tasks such as taking orders and upselling, it can create a barrier between staff and customers if not implemented thoughtfully. For instance, while AI can answer calls and process orders quickly, operators must ensure that this does not diminish the warmth of in-store hospitality that customers expect.”


Nautiyal concludes: “The challenge for operators is to ensure that they retain customer engagement and personal attention. Operators can successfully balance the integration of technology with personal customer service by leveraging AI for efficiency, embracing digital hospitality, utilising real-time data for informed decision-making, implementing customer-centric solutions, and maintaining transparency in workforce practices. This multifaceted approach not only enhances operational effectiveness but also enriches the customer experience.”


#GlobalData #foodservice

GlobalData says foodservice operators must navigate technology challenges to enhance customer experience

Rafaela Sousa

7 October 2024

GlobalData says foodservice operators must navigate technology challenges to enhance customer experience

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