Given the changing operational dynamics and the squeeze on profits, foodservice operators are increasingly leveraging technology to enhance operational efficiency while striving to maintain a personal touch in customer service.

While technology can significantly enhance operational efficiency and customer experience in the foodservice industry, operators must navigate challenges related to maintaining personal service, integrating data, adapting customer behavior, training staff, and managing customer expectations, says GlobalData, a leading data and analytics company.

Parthasaradhi Reddy Bokkala, Lead Consumer Analyst at GlobalData, comments: “Foodservice operators are employing multiple technologies to improve their 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. Operators are also deploying Implementing customer-centric technology solutions, such as personalized ordering systems that recognize repeat customers, can enhance the customer experience.”

Deepak Nautiyal, Consumer and Retail Commercial Director, APAC and Middle East at GlobalData, adds: “Operators can employ AI-driven systems to manage routine tasks, such as handling phone orders. This allows staff to concentrate on in-store customer interactions, thereby enhancing the overall guest experience.

“For instance, the integration of AI in voice ordering ensures that customer calls are answered promptly, which reduces wait times and captures unmet demand without sacrificing the quality of service. This dual approach not only improves operational efficiency but also ensures that customers receive personalized attention when they visit the restaurant.”

Reddy adds: “With the rise of technology, customer expectations have also evolved. Customers increasingly expect quick service and seamless experiences, which can pressure operators to prioritize speed over the quality of personal service. This creates a tension between meeting operational demands and ensuring that customers feel valued and attended to.

“Asia-Pacific (APAC) consumers have a positive impression of the usage of technology in personalizing their services. For instance, 24% of respondents in a recent GlobalData consumer survey* find it very appealing when their food or drink is personalized using a 3D printer, while another 28% find it somewhat appealing. Meanwhile, 58% of respondents find it appealing when operators offer personalized recommendations based on their previous purchases, out of which 20% find it very appealing.

“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, utilizing 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.”

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