Wrestling with Technology
Posted by estiator at 10 December, at 07 : 14 AM Print
MANAGING FOR SUCCESS By CONSTANTINE N. KOLITSAS Business Coach
I just opened a new restaurant (my second Greca Mediterranean Kitchen + Bar). Opening a restaurant is never easy—there is construction, equipping, staffing, training, and marketing, and they all have their own headaches and challenges. But no headaches or challenges are as frustrating as those related to technology, particularly as technology comes to impose itself on our business in increasing ways. Still, technology is necessary. This column, then, is specifically written for those considering various technology additions to their business. I’m not endorsing or condemning any specific product, and I’m not suggesting any solutions. Instead, I’m sharing some frustrations that stem from my not understanding some aspects of those technologies in the hopes that you, my reader, will be able to sidestep some of the things that caused those frustrations. Good luck!
Reservation Systems. After being in business in my Connecticut location for 18 months, I finally signed up with OpenTable to reach their network of users and attract them into the restaurant. It’s not cheap. They charge a monthly fee to use their software (but not their hardware; you need to purchase your own iPad to use the product), and they charge you for each cover that reserves through their network. Excluded are covers that reserve using OpenTable but get there through a widget on your website. Don’t read quickly past that last sentence. Do something to drive people (particularly OpenTable users) to your website so you can save that per-cover fee!
But back to the setup: All is well and good in the Connecticut location. The restaurant is situated in a small market where OpenTable is used occasionally but not overwhelmingly. The OpenTable reservations rarely cannibalize the entire restaurant, and walk-ins are still the majority of the business.
My new location, however, is in the center of White Plains, New York. This is a mini version of midtown Manhattan, with two 42-story Ritz-Carlton Residences towers directly across the street, which are in a huddle of luxury residence towers that also include a formerly named Trump Tower.
As expected, the number of reservations that come in through OpenTable are significant. And this is a much larger restaurant, and one in which reservations constitute approximately 80% of our covers, particularly on the weekend. Last night was a Saturday (our fifth since opening), and, as with last Saturday, we were completely sold out between the hours of 7 and 9. Still new to many aspects of the software, I called tech support on Wednesday to turn off the reservations from continuing to come in at those hours, as we were at 90% capacity for Saturday as of that time. Accordingly, no reservations came in through the app until Saturday morning, when I noticed the total reservations number in the corner of the tablet screen increasing. I had to call support again and shut it off again. But the greatest frustration occurred when I was trying to assign the tables. The software automatically assigns tables, and every time I moved a table to make room for a large party, it would replace the reservation I just moved with another reservation, making it impossible for me to assign the table as I wanted. Another call into support and I learned that there is a way to turn off the auto-assign function. But when I did, all the table assignments that were not manually assigned disappeared, and I had to assign them all over again.
Gift Cards. Gift card blanks are not universal. While they are not necessarily system-specific, you have to order cards that are compatible with your POS system. With the global supply chain disruption, I was told that it would take about three weeks to receive gift cards. Unfortunately, the cards I have for the Connecticut location are not compatible with the POS system I inherited in the new location. (The previous operator vacated due to COVID and left the three-yearold system behind.) I’m waiting now for three weeks just to get the card company to send me the form to fill out so I can order them. Christmas is in six weeks at the time of this writing. This snafu is going to cost me tens of thousands of dollars in lost gift card sales.
Online Ordering. In Connecticut, I have two concepts that operate out of a split kitchen—the upscale Greek concept, and a pizza takeout and delivery-only concept. Key to that operation is the online ordering function. Users can order through my website or through an app that was created by the POS company. The app was available for iPhones as well as for Android phones. Unfortunately, about six months ago, Apple changed the way apps are registered (this is what I was told from my POS provider) and is no longer available to download. It still works for anyone who downloaded it previously, but no one can download it today. This was a problem, as I chose the POS company in large part because they promised an app. And it works great. Customers love it. But I can’t grow that part of the business because iPhone users who don’t already have it on their phones do not have access to it.
Good luck with your technology decisions. If reading this month’s column helps you avoid any potential problems, then it was a good investment of your time. Cheers!
Constantine Kolitsas is the president of CNK Consulting, a restaurant consultant and coaching business. He can be reached at 203-947-6234 or at ckolitsas@gmail.com.
