Embracing Change: Legacy Restaurant Operators Go High-Tech
At FSTEC in Grapevine, Texas, a group of venerable restaurants demonstrated that the adage “You can’t teach an old dog new tricks” doesn’t hold true in the world of fast-casual dining. Brands like Golden Corral, Captain D’s, Brix Holdings (the parent company of Friendly’s and Red Mango), and The Habit Burger & Grill are not only surviving but thriving by modernizing their technology infrastructure and prioritizing digital investments.
The Case for Overhauling Legacy Technology
Dawn Gillis, Senior Vice President and Chief Information Officer of Golden Corral, shared a compelling narrative about the buffet industry’s struggles during the pandemic. “After the pandemic almost killed our business model, we realized we had to take a hard look at our operations,” she noted. One of the most pressing issues was their outdated technology, which had not kept pace with the times.
Golden Corral made a bold decision: rather than patching up the antiquated systems, they committed to a full tech stack overhaul. Gillis revealed that their front-of-house technology was about 15 years old, while the back-of-house systems were even older, at about 25 years. “We faced a massive challenge, but it was far better to scrap everything and start anew. Our new e-commerce engine doubles as a countertop POS, a significant improvement for efficiency,” she explained.
Focusing on People-First Technology
"People-first technology" became a resounding theme at FSTEC this year, highlighting the human-centric approach that these legacy companies adopted during their tech transformations. Gillis emphasized the importance of engaging restaurant teams well before launching the pilot programs. They started communication four months ahead and formed an extensive change management initiative with representatives from each restaurant.
This same principle carried over into the franchise world. Sherif Mityas, CEO of Brix Holdings, articulated the importance of building a solid business case for franchisees during technology shifts. “Our franchisees are business owners, and if I’m asking them to invest, I need to show them a return,” Mityas stated. “It can’t just be a shiny new tool; it has to have tangible benefits attached.”
Education as a Cornerstone of Change
Adopting new technology often involves introducing unfamiliar systems to both employees and customers. For many guests, a traditional dining experience is part of the charm that keeps them coming back. It’s crucial, therefore, to educate them about the benefits these changes bring.
Mityas pointed out that effective communication and user education are key. “It’s about asking, ‘How do we make your life easier?’ Simple innovations like pay-at-the-table can enhance the guest experience significantly,” he noted. This tech not only streamlines the payment process but also helps families with young children enjoy a more efficient dining experience.
Size Matters: The Advantages of Being Smaller
The Habit Burger & Grill, under the aegis of Yum Brands, navigates a unique position as a smaller brand with the backing of a giant corporation. Mike Repetti, Chief Digital and Technology Officer of The Habit, commented on the agility that smaller brands can cultivate. “Being small allows us to adapt quickly to market changes and embrace new technologies without the cumbersome layers typically associated with larger operations,” he said.
Repetti believes that this nimbleness is a vital asset during the technology adoption process. “We remain committed to agility and a quick go-to-market strategy as we grow,” he asserted.
Unlocking New Customer Avenues
Digital technology has opened new channels for customer engagement, which has proven pivotal for many legacy brands. At Captain D’s, Chief Marketing Officer Bindi Menon spoke about the implementation of a multi-channel digital ordering system that encompasses both first-party and third-party delivery options, loyalty programs, and a mobile app.
“Our digital sales have skyrocketed,” Menon said, highlighting that this data allows them to understand their customers like never before. “We now know exactly who our customers are, how often they order, and through which channels.” Most importantly, the shift has attracted a younger demographic—one willing to pay delivery fees for their favorite meals. “Thanks to new technology, we’ve expanded our customer base significantly – it’s a game-changer,” she added.
Through these lessons, it is clear that even legacy restaurant operators can transform their operations dramatically when embracing technology and prioritizing human-centric approaches. The narrative shared at FSTEC illustrates a committed shift toward modernization, ultimately enhancing customer experiences and maximizing operational efficiency.