Archive

Categories

 
Wednesday, March 04, 2009

Food Service, an accelerating productivity crisis, and technology

Let's face it - as an industry our productivity sucks. I define productivity as sales per labor hour. As we recently highlighted during our 2008 People Report Best Practices Conference, the graph below shows Food Service productivity relative to the US overall and retail. For the last 10 years we have been outpaced by retail and the economy as a whole and have flirted with zero to negative productivity growth three times - and I won't even scare you with where we are at right now.

The current economic conditions are forcing us to figure out new ways to help our businesses survive and technology has to play a key role in that if we hope to ensure our companies will not only survive but thrive on the flip side of this downturn. Hiding out in the assumption of "we are a labor intensive industry" will get us no where - fast. Recently Microsoft's Business Division unveiled their vision of the future and guess what? The "future" is not that far away; its 2019 and while Microsoft may not be the darling that Apple is currently, their vision is pretty impressive, check it out.

So what's the future vision for the Food Service industry that will make our restaurant employees more productive and your customer experience more engaging? Grocery added self check out to create efficiency and RFID tags are going help retail continue their productivity growth.

Food Service clearly needs to create its future vision because our direct competitors for employees are already working on it - check out Banking:

And Retail and Grocery - our direct competitors for not just employees, but sometimes consumers is really working on it - check it out.

Your company needs a future vision for both customer and employee facing technologies and clearly there are companies out there carrying the torch for our industry. Take a look a list of recommended links on the left of this page there are some great technology partners listed and here are a couple quick examples:

ESP - Impacting both employee productivity and the customer experience

HotSchedules- Save your managers time, make your hourly employees lives easier to manager, and manage your labor costs. They even have an iPhone app.

 

What's your company going to do in the face of an accelerating productivity crisis? What is your company's future vision for technology and what technologies will you invest in? Remember the digital revolution has just begun - we are only at Web 2.0 there are many more versions to come. Microsoft's vision of 2019 sets a new framework for how we need to be thinking about ways that we can confront the operational pressures of productivity gains and ensure our restaurants are sustainable and profitable.

Shyam Patel | Post a Comment | Email Article


0 comment(s) for “Food Service, an accelerating productivity crisis, and technology”