The Importance of Technology in Restaurants

The purpose of the study was to determine the impact of technology in the restaurant industry particularly the importance of these innovations on the overall operations. The section provides results for the finding from the primary and secondary data collected regarding the research problem. Notably, the specific objectives that were answered through surveys include determining how consumers are likely to spend money at a restaurant that uses modern technology, examining buyer’s current views of technology, and evaluating the impact of these innovations on restaurants. Views on different variables were determined including; consumers experience, level of acceptance, benefits, innovative trends, and implementation approaches. The hypotheses regarding the topic were reviewed followed by the collection of primary data using survey and quantitatively analyzed using SPSS software. These results are based on 100 respondents who participated in the survey where 59% were male while 41% were female.


4.2 Demographic Distribution


4.2.1 Respondents gender


Male respondents were 59% while that of the female was 41% and this could be due to their availability online since the questionnaire was provided online through Google forms. In light of this, high participation rates among males are a clear indication that very conversant with technological changes. As such, it is apparent that they are the most frequent customers influenced by these changes when making decisions about restaurants purchase their meals or enjoy drinks (Adler, 2013).


Figure 1.1 Respondent gender


Source: (Researcher, 2019)


4.2.2 Age differences


The age bracket was included in the survey to determine which group of people visits the restaurant more often. The outcome was as follows: age 22 to 35 years was the highest with 41% and this could be have been caused by their young age and the way they embrace technology, 36 to 50 years and 51 to 64 years were at the bar. Up to 21 years recorded 15%. The old age people 65 years and above recorded 6%. Arguably, customers are attracted in the restaurant because of the various benefits associated with technology. In this context, the frequency in which these groups visits the restaurants depends on many advantages such as improved convenience, increased control, and reduced processing time (Adler, 2013). Therefore, individuals for the age brackets of 22 to 35 visit restaurants, which have incorporated their practices with technology in order to access improved convenience and quality meals and drinks. In other words, this group is constituted by youth who prefer preserving their efforts and time. An increase in convenience relates to a high level of satisfaction among the employees as the technology allows customers to easily place orders and make reservations (Chen and Chen, 2012). Those with the age brackets of 51 to 64 occupies the second largest percentage as it is perceived that technology enables them to have substantial control over service encounter. In restaurants, consumers exercise behavioral control by deciding the time they eat and the desired table. Technology can speed service through minimizing the order tracking time, tighten service time by the use of table management systems, and further shortens payment time (Chen and Chen, 2012). Therefore, it is evident that technology enhances the delivery of quality services, which eventually increases customer experience. In fact, age differences for the respondents are fairly distributed; hence, giving an indication that consumers from different age levels prefer dining in restaurants which have adopted modern technology in their day to day practices (Malkawi, 2017).


Figure 1.2 Age Differences for Respondents


Source: (Researcher, 2019)


4.3 Technological Acceptance in Restaurants


Consumers prefer technology to service staff


On whether consumers prefer guest-facing technology in restaurants instead of using service staff to take their orders, 70% agreed to use the technology to make their order and only 30% preferred to use service staff to make their orders. In recent days, the hospitality and restaurant industry has been moving towards digital and technological developments to become more responsive to the ever-changing needs of the consumers (Lee, 2012). The way customers dine, access, and order food and drinks have significantly changed as many prefer restaurants that execute its processes using the technology (Lee, 2012). Now and moving forward, having 70% of respondents who entirely uses technology to make order clearly indicates that innovation is becoming the cornerstone in the sector. To this end, the finding indicates that technology is accepted by both customers and companies that operate in the restaurant and hospitality industry.


Figure 1.3 Percentage of Consumers who Prefer Technology to service Staff


Source: (researcher, 2019)


Technological fits the way people do other purchases


Notably, 76% of the respondents agreed that the use of technology fits their way of doing other purchase (order online, order mobile). When observing the current operations in hotels, there is a use of computer systems completely integrated in day to activities. Today restaurants are focused on delivering customized, more efficient, and sustainable meals to customers (Hallak, Assaker, O’Connor and Lee, 2018). In order to efficiently achieve these objectives, restaurants have acquired modern technologies that allow individuals to make orders as well as pay for meals using digital devices. Importantly, the tremendous change in the technological environment has culminated in a reduced cost of information communication devices such as personal computers and smartphones which facilitate interaction between companies and customers (Hallak et al., 2018). In relation to the outcome, technology suits the way consumers do other purchases which are evidenced by a significant number. Therefore, all restaurants which have integrated their services with technology realize significant benefits from these developments since they access many customers and the operational efficiency which leads to reduced costs.


Figure 1.4 Technological fits the way people do other purchases


Source: (Researcher, 2019)


4.4 Usefulness of Technology in the in Restaurant


4.4.1 Allow consumers to make orders more efficiently


The 64% of the respondents asserted that make orders using technology. Such trends depict how technology is immensely used in the restaurant and hospitality industry to enhance service delivery and customer satisfaction. Currently, there are many ways innovation is used in the sector to survive fierce competition and maximize profits. Those that have integrated technology have managed to meet the ever-evolving needs of consumers (Nasir, 2018). Some of the changes include more advanced forms of payment, a point of sale technology, automated services, and restaurant tech-dining experience. These areas have substantially been impacted leading to improved performance. As such, Nasir (2018) argued that consumers need more integrated methods of payment and this imperatively requires restaurants to acquire appropriate technologies to accommodate these customers. Surprisingly, 36 % stated that they have not yet placed orders using these technologies which highlight the need for hotels and restaurants to make further investments in innovation.


Figure 1.5 Respondents allowed by technology to make orders efficiently


Source: (Researcher, 2019)


4.4.2 Guest-facing technology makes it easy for consumers to make payment


From the responses, 86% stated that technology is making it easier for customers to make an online payment. With the introduction of technology, individuals are moving from using cash as a central form of payment to plastic methods (Ozturk, 2016). In this case, many customers rely on digital systems of payments such as PayPal and Apple play to make execute online transactions. In light of this, a point of sale technology has enhanced organizations capability to integrate new forms of payment that suit customers expectations. These kinds of technologies play an instrumental role in making transactions easier for both restaurants and consumers when ordering and paying which eventually leads to operational efficiency (Ozturk, 2016). On the other hands, the results indicate that 14% of the respondents still use cash approach to make a payment which indeed depict that technology is widely applied.


Figure 1.6 Consumers who use Technology to make Payment


Source: (Researcher, 2019)


4.4.3 Technology answers any doubt about the order


From the survey, 58% of the participants stated that the use of technology eliminates doubts regarding orders that are placed online while 42% provided the opposite opinion. Having more than half of the population supporting the use of technology apparently indicates that its application in the sector will consistently increase (Sunkyoung, 2017).


Figure 1.7 Responses that technology answers potential doubt about the order


Source: (Researcher, 2019)


4.4.3 Technology enhances consumers experience in a restaurant


Findings indicate that technology enhances consumers experience in a restaurant by enhancing the delivery of quality services, efficiency, and convenience. Out of the 100 subjects, 81 percent stated that their purchasing and dining encounters have substantially improved due to the integration of technology with day to day practices. The remaining 19% asserted that these changes have not positively impacted their experience in a restaurant which, however, does not contravene the fact that technology contributes to convenience.


Figure 1.8 Responses about whether technology enhances consumer’s experience


Source: (Researcher, 2019)


4.5 Restaurants that Benefit the Most


4.5.1 Types of restaurants


Fast food restaurant benefits much from the use of technology in restaurants. In regards to this, 42 % of the respondents stated that they have at least used the technology in fast food restaurants, 32% have previously utilized casual dining (family restaurants), 23% fast casuals (cafes, lunchrooms) and 3% of the respondents previously used fine dining. Indeed, the results portray that technology has brought about many benefits to restaurants of different levels. Thus, its application is consistently growing because of the overwhelming benefits in restaurants of different sizes (Bangsawan, Marquette and Mahrinasari, 2017).


Figure 1.9 Responses about restaurants that benefit the most from Technology


Source: (Researcher, 2019)


Figure 2.0 Respondents views concerning Restaurants that offer an outstanding experience


Source: (Researcher, 2019).


4.6 Security of Quest-Facing Technology


4.6.1 Personal Information


According to the results, 77% of the respondents stated that it is secure to share their personal information while using the guest-facing technology in a restaurant while 23% felt otherwise to sharing their personal information. Indeed, this number indicates that many customers strongly belief execution of transactions through the internet is safer compared to the cash systems.


Figure 1.10 Responses about the security of the customer's personal information


Source: (Researcher, 2019)


4.6. 2. Bank details


In this case, 80% of the respondents asserted that sharing the bank details using digital technologies is insecure while 20% stated the approach is very secure. Based on these results, security is one of the primary challenges, which deter consumers from embracing this technology in the hospitality industry.


Figure 1.11 Responses concerning bank details


Source: (Researcher, 2019)


4.7. Guest-Facing Technology is More Secure than Staff Service


Regarding whether using technology is secure as compared to staff service, 56% agreed with the proposition while 44% stated that technology some flaws that compromise security.


Figure 1.12 Responses concerning the safety of the technology


Source: (Researcher, 2019)


4.8 Previous Technology Experience


4.8.1Order kiosk


Respondents had a prior encounter with technologies in the restaurants. 77% stated that they have used order kiosk, while only 23% said otherwise.


Figure 1.13 Responses about order kiosk



Source: (Researcher, 2019)


4.8.2 Tablet


In regards to tablets, 51% of the respondents stated that they had previously used a tablet in the restaurant while 49% had not used a tablet. The data is shown in the figure below.


Figure 1.14 Responses about the use of tablets


Source: (Researcher, 2019)


4.8.3 Mobile ordering


On whether the respondents had used a mobile ordering before, 69% agreed while 31% had not used mobile to make orders for meals or pay for the services.


Figure 1.15 Responses on the mobile ordering


Source: (Researcher, 2019)


4.8.4 Mobile paying


From the results, 52% of the respondents admitted to having used a mobile paying while making payment in the restaurant while 48% had not used the approach.


Figure 1.16 Responses on mobile paying


Source: (Researcher, 2019)


4.8.5. Touch-screen tablet


Results indicate that 52% of the respondents had used touchscreen tablet while in restaurants while 48% stated they had not.


Figure 1.17 Responses about the use of touchscreen tablet


Source: (Researcher, 2019)


4.9 Consumers Lifestyle Effect on Technological Acceptance


According to the finding, 67% of the respondents asserted that they were compatible with the use of technology since it fits their lifestyle. However, 33% stated these innovations have negatively affected their lifestyle; hence, they do not require it.


Figure 1.18 Results about effects of technology on lifestyle


Source: (Researcher, 2019)


4.10 Reasons for Using the Technology


From the results, 42% of the respondents prefer to use technology because it enables them to make orders within the shortest time, 42%. Moreover, 28% stated that technology enhances their dining experience, 16% use the innovation because it lowers cost. Further, 6% of the respondents preferred human interaction to technology while 8% of the respondents had a different view to why they use technology which included transparency, accountability, convenience, and evidential purposes were some of the reasons they gave out.


Figure 1.19 Reasons why individuals use technology


Source: (Researcher, 2019)


4.11 Impact of Technological Implementation on Business


The response by respondents shows that 91% of the restaurant owners believe that technology has helped in running the operations smoothly. Among the consumers, 73% report that technology has made transacting of business better in a restaurant environment for them, with 69% having mobile ordered. As a result, these developments have increased the number of times customers visit restaurants. In this case, the research indicates that 37% of the customers visit the restaurants between 3-5 times a week. Secondly, 25% visits 6 plus times a week, 23% takes 1-2 a month, 13% takes 1-2 times a week, and 2% had never visited the restaurant.


Figure 1.20 Consumers visiting time


Source: (Researcher, 2019)


4.12 Technology Acceptance


Based on the responses, respondents dine in restaurants which are integrated their processes with technology as a way of enhancing their dining experience. Hence, 77% of the respondents had previously used kiosk order, 51% have tablets. Further, 69% stated that they have used mobile ordering, and 58% had utilized mobile devices to make payment. According to this response, it is beyond doubt that the respondents prefer the use of technology in restaurants. For instance, Fast food restaurant recorded the highest number of responses to embracing technology, which could be due to its effectiveness in executing day to day services leading to customer satisfaction. On security, respondents preferred sharing their personal details indicated by 77% of the respondents. Therefore, the result indicates that the high adoption of technology in the hotel and hospitality industry is associated with multiple benefits that are derived from innovation (Jasonos and McCormick, 2017). Some of the merits include; making transactions run smoothly, enhancing efficiency, and tracking and managing all the records have been made better and more efficient.


4.13 Practical Implications of Findings


In the restaurants, the development and implementation of technology will significantly contribute to an increment in the level of service quality as well as customer satisfaction in the industry. Many of the studies described in the literature review primarily focused on how to improve level of service delivered to the clients. Since service quality has received a great deal of attention, it can be regarded as a social construct and companies should analyze the entire experience of customers from the pre to post-purchase in order to become successful (Koutroumanis, 2011. The executives of the restaurants can increase their ability for gauging the customer experience through the strategic use of technological factors in the prediction of consumption habits of current, prospective and clusters of clients. As a result, it becomes easier to build competitive and strategic advantage by gaining deeper insights of the needs and wants of clients to increase the repeat business (Cobanoglu, Berezina, Kasavanaand Erdem, 2011). Total commitment from the entire organization will require the distinctive competency of technology which aids in uncovering many opportunities for restaurant owners.


4.14 Value for Clients and Restaurant Owners


Restaurant owners can use technology to establish customer loyalty due to increased personalization, flexibility effective communication, convenience of the dining out experience, connection with younger demographics and provision of rewards for online engagement with the brand (Susskindand Curry, 2016). The different mobile applications can be used in online slot reservation and allow the clients to place orders through the digital menu cards. The restaurant owners will have increased ability to eradicate the mediator’s role through fast food chains and enhance online presence through the social media websites (Doug, 2010). Therefore, implementation of technology will increase efficiency, cost savings and better dinner experience.


4.15 Limitation and Future Research


The study relied on only on online survey as the method for data collection and this aspect made it difficult to follow trends in real time. The data were collected at a single point in time and therefore, the study did not measure changes in population. Furthermore, the individual online surveys cannot provide evidence-based data on cause and effect (Kazandzhieva, Ilieva, Student and Filipova, 2017). Other limitations that impacted the research include insecurity that limited access to the concerned population and competing tasks that led to a lower priority in conducting the survey. Future researchers should focus on identifying the prospects and challenges of the technological innovations in the restaurant industry and how the state-of-art technologies have reshaped the potential future of the restaurant service platform. Further exploration of the technological applications and their impact on the client satisfaction level are necessary.


References


Adler, H., 2013. Perceptions of hotel concierges on effects of technology on guest service and their positions. Journal of Tourism Research & Hospitality, 2(4).


Bangsawan, S., Marquette, C. and Mahrinasari, M., 2017. Consumer restaurant experience, electronic word of mouth and purchase intention in the Indonesian restaurant industry. Journal for Global Business Advancement, 10(6), p.613.


Chen, Y. and Chen, Y., 2012. The advantages of green management for hotel competitiveness in taiwan: in the viewpoint of senior hotel managers. Journal of Management and Sustainability, 2(2).


Cobanoglu, C., Berezina, K., Kasavana, M. and Erdem, M., 2011. The impact of technology amenities on hotel guest overall satisfaction. Journal of Quality Assurance in Hospitality & Tourism, 12, pp.272-288.


Doug, D., 2010. Restaurants and technology – past, present and future: a practitioner's viewpoint. Worldwide Hospitality and Tourism Themes, 2(1), pp.94-99


Jasonos, M. and McCormick, R., 2017. Technology Integration for Restaurants & Hospitality Industry in the Year 2025.


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[Accessed 5/1/01].


Hallak, R., Assaker, G., O’Connor, P. and Lee, C., 2018. Firm performance in the upscale restaurant sector: the effects of resilience, creative self-efficacy, innovation and industry experience. Journal of Retailing and Consumer Services, 40, pp.229-240.


Kazandzhieva, V. and Ilieva, G., 2017. The impact of technological innovations on hospitality service. [Online] Available at: https://www.researchgate.net/publication/317290270_THE_IMPACT_OF_TECHNOLOGICAL_INNOVATIONS_ON_HOSPITALITY_SERVICE [Assessed 1/1/2018].


Koutroumanis, D.A., 2011. Technology’s effect on hotels and restaurants: building a strategic competitive advantage. Journal of Applied Business and Economics, 12(1), pp.72-80.


Lee, H., 2012. The customers' responses to online restaurant reviews:exploring the moderating impact of opinion leadership. FoodService Industry Journal, 8(2), pp.7-23.


Malkawi, A.F., 2017. The impact of the use of information technology in improving the quality of services: a field study of fast-food restaurants in Jordan. European Scientific Journal, ESJ, 13(23).


Nasir, N., 2018. Performance of hotel industry and hospitality from IFA Hotel and Resort. SSRN Electronic Journal, 2(3), pp.21-27.


Ozturk, A., 2016. Customer acceptance of cashless payment systems in the hospitality industry. International Journal of Contemporary Hospitality Management, 28(4), pp.801-817.


Sunkyoung, L., 2017. Impact of famous restaurant information source on perceived value and revisit intention. FoodService Industry Journal, 13(1), pp.141-157.


Susskind, A. M. and Curry, B., 2016. The influence of table top technology in full-service restaurants. Cornell Hospitality Report, 16(22), pp.3-9.

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