Deploying Automation in Hospitality

The hospitality industry is currently experiencing a surge in automation. Rising costs—from cost of goods sold (COGS) to higher labor expenses—have squeezed margins, forcing many businesses to raise prices and limit staff. As a result, companies are increasingly turning to technology for solutions. Recent advancements in robotics and software have made automated systems more reliable, stable, and capable of providing metrics that justify the initial investment.

For example, White Castle has deployed robotic fry cooks, Chipotle uses an automated tortilla chip maker, Buffalo Wild Wings has a robot assisting with the preparation of wings and fries, and Chili’s employs server robots that function like waiters on wheels, delivering food and drinks.

Are these technological advancements right for your operation? There are several factors to consider:

  1. Customer Satisfaction: Will adopting new technology affect your customers’ level of satisfaction?

  2. Operational Disruption: How disruptive will the adoption be to your current operations? Changes to standard operating procedures (SOPs) and staff training can be costly and disruptive. Additionally, physical modifications to your facility may be required, which could add further costs.

  3. Pilot Programs: Testing new technology through pilot programs can provide accurate metrics to support the investment decision. Ultimately, decisions about adopting new technology come down to math. Can you maintain or improve customer satisfaction while reducing operational costs and boosting EBITDA? If the answer is yes, moving forward becomes a much easier decision.

When deployed correctly, robotics should lead to quick paybacks, increased productivity, and reduced shrinkage, all of which result in better margins and increased profitability. While automation offers an obvious solution, it should be approached with caution. There are both good and bad high-tech options, and selecting the right solution requires careful planning and research. Sometimes, unintended consequences arise—one of the most common being staff concerns about job security. It’s important for management to take the time to explain and train staff on how the new technology will enhance their jobs by making them more efficient. Often, employees can significantly improve their earnings while also boosting sales for the company.

Take bartenders, for example: their income is largely based on tips. The more drinks they pour, the more tips they earn. The faster they can serve drinks, the happier the customers, and the more revenue the company generates.

Today, there is a product that does all of that—the Smartender by Smart Bar USA. It is currently deployed in various casino hotels, theme parks, airports, arenas, restaurants, and entertainment venues. The Smartender integrates with the customer’s point-of-sale (POS) system. Once an order is placed, it is automatically sent to the Smartender. The order appears on the Smartender’s screen, and with the press of a button, the drink is dispensed into the glass in just five seconds. There are no free drinks, as all orders must flow through the POS system, and each cocktail is made to your exact specifications every time. No bartending experience is necessary—if you can input an order into the POS, that’s all the training you need. Servers can now pour their own drinks, allowing management to better control labor costs and schedules while providing customers with a more consistent cocktail, faster.

Smart Bar USA offers automation systems to fit any need, big or small. This includes portable automated bars (just plug it in and pour), self-serve bars, and fixed modular systems capable of pouring up to 50 different brands of liquor or wine. Numerous liquor supply options are also available.

If you are struggling with labor issues, shrinkage, or want to improve customer service, the Smart Bar USA automated cocktail dispensing system might be the solution you’re looking for. The math works! Visit their website at www.smartbarusa.com or call 702-456-4724 to speak with a sales representative. What do you have to lose?

 

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A Smarter Way to Combat Sustainability and Waste Reduction in the Hospitality Industry