White Paper. Can you Grow Efficiency and Customer Satisfaction at the Same Time? Yes, Today's Technology Makes It Possible. Long Range Systems, LLC

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1 White Paper Can you Grow Efficiency and Customer Satisfaction at the Same Time? Yes, Today's Technology Makes It Possible. Long Range Systems, LLC

2 Summary Are your customers engaged? Are you connecting with customers through mobile technology? Do you have operational processes that include consumer measurement and marketing capabilities? When it comes to brand awareness and customer loyalty, there are many variables, but one guaranteed constant fast-casual diners want good food, great service and will leave your restaurant never to return after one negative experience because there are so many restaurant choices. And the old adage a customer who has a bad experience tells 10 people is still true, though now they can tell the whole world through social media. Not meeting customer expectations results in low customer satisfaction and decreased sales, but can ultimately put your business at risk. Logically, you can simply improve your food or service, but implementing the right technology can raise customer service levels and promote personal interaction that encourages repeat business. This white paper makes the case for embracing new technology to engage customers, improve efficiency and streamline operations without sacrificing service or even raising labor costs. In 2012, Neilsen reported that earned media is more trusted than paid media of any kind, including digital, mobile, TV and print media... Using Data to Elevate the Customer Experience In a fast-paced environment where nearly every customer is perpetually connected, the personal touch can be the only competitive differentiator between you and the business next door. Capitalizing on that instant connection customers feel, as they do when greeted by name in their favorite restaurant, is actually easy. But it requires business owners to harness the power of customer data and new technologies that capture customer feedback in real-time. The LRS tabletbased survey tool provides businesses the opportunity to instantly capture customer feedback while they re still visiting the restaurant. These mobile data collection devices may be given to customers with their bill, and capture meaningful, raw insights from the customer while they re still in the restaurant. That information can be instantly shared with a manager, allowing them to change a negative experience to a positive one before they ever leave the premises. Plus, the LRS survey system provides measurement data and trends online and via to help you understand customer perceptions about operations, staff, products and the atmosphere, ultimately enabling you to run more efficiently and effectively. Having the ability to act instantly on customer data keeps existing customers happy. Traditionally, happy customers act on their feelings either through repeat purchases, or more importantly, by influencing others to buy as well. Such loyalty can range from positive suggestion to passionate persuasion. Establishing that emotional connection to your brand begins by acting on the customer data you collect to elevate the customer experience and analyzing the trending data to streamline operations and gain efficiency. In 2012, Neilsen reported that earned media is more trusted than paid media of any kind, including digital, mobile, TV and print media, 4 so transforming loyal customers into brand advocates has direct impact on revenue. Maintain Service Levels and Increase Efficiency Simultaneously The fast-casual sector of the restaurant industry has grown by 3.1 percent in the past year, representing 20 percent of the entire restaurant industry. 7 And fast-casual customers aren t compromising food quality for quick service. They want high-quality food and service levels found in casual restaurants, but in a quick-serve setting. To combat the wave of emerging fast-casual 1

3 brands entering an already fiercely competitive market, restaurant owners and managers must increase efficiency without sacrificing food quality or service. Long Range Systems (LRS), a longtime communication technology provider for the restaurant industry, identified two trending areas of focus related to efficiency and labor costs: food preparation speed and table-side food delivery. Maximizing the labor dollar while meeting customers' high expectations is a primary reason restaurateurs are implementing LRS table tracking technology, as efficient solutions enable restaurants to use less labor, or the same labor in a more meaningful way, without sacrificing service levels, rather improving them. For example, by tracking the consumer s table location, the staff knows precisely where to deliver food without hesitation or roaming the premises; allowing the staff to engage with the customer, provide a better level of service, and check on diners during their visit. Additionally, by tracking the production of an order, food preparation lines know what orders are delayed and have exceeded delivery time standards, and as a result, the team can rally together to fulfill orders in a more timely manner. Mobile Technology Improves Efficiency Excluding the Internet, it s hard to think of any technological advance in the last decade that has impacted people more than mobile phones, especially smartphones. According to CTIA-The Wireless Association, the "app" economy employs 519,000 developers and related jobs and grew from almost zero to nearly $10 billion in four years percent of U.S. smartphone users have a restaurant-specific app on their smartphone, 5 and by the end of 2013, there will be more mobile devices on Earth than people. 3 Full-featured smartphones allow customers and businesses to connect anytime, anywhere, and offer unprecedented individual personal interaction. Branded mobile apps are a direct link to loyal customers, which strengthens that relationship and provides even more customer-level data. The bond created by customers keeping your branded mobile app on their smartphones is a powerful marketing tool that creates top-of-mind awareness every single day and drives customer engagement. By the end of 2013, there will be more mobile devices on Earth than people. Using mobile business apps can speed efficiency. Wait list apps like LRS iqueue allow restaurants to speed up table turns, and the more tables you serve, the more revenue you ll generate. If you invested in a paging system, that system s capabilities can be easily extended to page customers or send a text or voice message to their cell phones. iqueue, the only wait list app that allows you to text cell phones and page guest pagers, gives businesses the flexibility to engage with both cell phone users and non-cell phone users. Acquiring A New Customer Base With Technology New tracking technology can open new business opportunities in the fast-casual space for existing casual dining establishments. Casual concepts can become fast casual during the day and remain casual at night with table tracking systems like Table Tracker. This advanced technology makes table-side food delivery far faster during the lunch-hour when meal times are compressed and when table turns must be quick. Plus, this restaurant tracking technology follows and reports on the entire service cycle from ordering, seating, food delivery, to table clearing. Staff communication is drastically improved thanks to the real-time data displaying order status and table locations. Wait staff is able to spend more time talking with customers and less time running around the restaurant finding a table, which noticeably improves customer experience while speeding up table turns. On average, fast-casual customers using table management technology from LRS reported that they shaved a full minute off ticket times just by having the ability to prioritize orders and deliver food faster. 2 2

4 Moving from a casual to fast-casual operation during the lunch hour enables casual restaurants to increase incremental traffic and reach an entirely new customer base. According to foodservice research firm Sandelman & Associates, about a quarter of casual-dining consumers say they are eating out less often, with 40 percent of those consumers choosing to dine instead at fast-casual or quick-service restaurants. Casual concepts getting a piece of this business during the most desired part of the day for fast-casual service with a table tracking technology can show quick ROI for a stronger bottom line. Fast casual has set the bar really high, said Chris Miller, executive vice president at Sandelman & Associates. In order for a new concept to break in, [it] has to really deliver on that great food and experience. Implementing the right technology is shrewd economic sense, but maintaining focus on the customer experience is key. In 2010, Forrester Research released a study 1 that showed improving the customer experience results in significant revenue growth. Some highlights from that study were: Wireless carriers, as a group, could add up to $1.7 billion in additional revenue The hotel industry could add $1.2 billion in revenue. The most significant source for revenue growth was a reduction in customer churn rates. Technology s Impact on Labor Costs and Customer Service With the proliferation of fast-casual concepts, it s increasingly difficult for restaurants to differentiate themselves from competitors. Prices and menu offerings are easy to copy. One point of differentiation that customers care about that s difficult for competitors to replicate is quality of service. From the staff taking phone orders to the waiter delivering food, consistent, professional service sets a restaurant apart from its competitors. No matter what technology you employ, there is no substitute for well-trained, efficient customer-facing employees. But in a sluggish global economy, labor is one place where owners and managers can cut cost, often at the expense of customer service and efficiency. However, by deploying technologies that identify opportunities to improve, or better yet, technologies that directly improve operational efficiency by making processes easier and faster, your best staff may be rewarded and retained. Streamlining operating costs is essential to achieving a stronger bottom line, and technology with a fast return on investment can bridge the gap so that the most valuable staff is affordable. Conclusion Embracing new technology will make your business more efficient by streamlining operations, but more importantly, will allow you to engage customers more effectively. By using the data you collect now or will connect through apps and tracking technology, you can establish a personal connection and convert engaged customers to brand advocates. Identifying and implementing technology that has fast ROI can actually help you personalize service while improving efficiency, because your staff can spend more time with customers and less time managing the chaotic process of calling waiting guests, delivering orders or identifying problems with late orders. Back-end data 3

5 available with new table management technology can help you identify trends and peaks in business so you can properly staff during those times. For more information on how LRS solutions can help you enhance customer service and engage customers, go to. Sources (1) Burns, Megan. "Forrester." Forrester.com. Forrester Research, Inc., 7 Dec Web. Mar (2) "Case Study: Table Tracker & Jason s Deli." Table-Tracker.com. Long Range Systems, LLC, Web. 01 Apr (3) "Consumer Trust in Online, Social and Mobile Advertising Grows." Nielsen. Newswire, 10 Apr Web. 25 Mar (4) "Fast-Food & Quick-Service Restaurants Industry Overview." Hoover s Inc., a D&B Company. Hoovers, Web. Mar (5) "Global Mobile Data Traffic Forecast Update, " Cisco.com. Cisco, Web. 24 Mar (6) "Ordering Food Goes Mobile, According to Super Bowl Snacks Research from IAB and Viggle." IAB. Interactive Advertising Bureau, 28 Jan Web. 25 Mar (7) "U.S. WIRELESS INDUSTRY: ECONOMIC IMPACT." CTIA.org. CTIA - The Wireless Association, Nov Web. 23 Mar