As food costs rise, it is becoming more important than ever for restaurants to keep careful track of their inventory, identifying and eliminating waste.
Fast-casual giant Chipotle Mexican Grill, which has nearly 3,000 restaurants across five countries, announced Thursday (March 31) a trial of radio-frequency identification (RFID) technology to boost inventory management efficiency and precision. The test is live in the company’s Chicago distribution center and at around 200 locations in the region.
“RFID labels transform inventory management into an automatic, digital function that optimizes restaurant operations and gives our Restaurant Support Centers access to inventory data in real-time,” said Chipotle Chief Restaurant Officer Scott Boatwright in a statement. “This integrated technology is improving our employee experience in participating restaurants while also benefiting our supply partners.”
U.S. Department of Agriculture data from 2010, the most recent year on record, reveal that the industry lost $161 billion to food waste in those 12 months, an amount the equivalent of more than $209 billion in 2022, per the U.S. Inflation Calculator. As restaurants gain better insights into their inventory, they are better able to prevent losses and buy smarter.
According to a statement from Chipotle Chief Corporate Affairs and Food Safety Officer Laurie Schalow, the company has been testing this technology for two years.
“We are excited to test this innovation in the field with our suppliers and restaurants to enhance our robust traceability program,” she said.
Denny’s Targets Consumers’ Inflation Frustrations With Unlimited Breakfast Promotion
As these inflationary concerns wrack the industry, large restaurant brands have the advantage over smaller businesses, able to leverage their scale to price below inflation.
Full-service restaurant (FSR) chain Denny’s, which has more than 1,600 locations internationally, announced Monday (March 28) a limited-time promotion that centers on its ability to offer more food for lower prices than competitors. The company is promising unlimited pancakes, scrambled eggs and hash browns for $6.99 to $8.99 (depending on the location).
“As Americans are being impacted by a unique mix of current events, and gas, rent and costs for supermarket staples, like eggs, milk and cheese continue to increase, Denny’s is proud to bring our guests Endless Breakfast at a time when we know each dollar matters,” Denny’s Chief Brand Officer John Dillon said in a statement.
USDA Economic Research Service (ERS) Consumer Price Index (CPI) data released March 25 revealed that restaurant prices increased 0.4% for customers in February and were up 6.8% from January 2021. Over the course of 2022, restaurant meal prices are expected to increase between 5.5% and 6.5%.
Denny’s is far from the only large restaurant chain taking advantage of its scale. Additionally, on a call with analysts in late March, executives from Darden Restaurants, parent company of Olive Garden and Longhorn Steakhouse, among others, touted its restaurants’ ability to price out smaller brands.
“Obviously, we’re going to continue to look for opportunities to price below inflation,” Raj Vennam, the company’s senior vice president, chief financial officer and treasurer, said. “As inflation creeps up, we’re going to have to try to manage through that, but it’s going to be a combination of pricing and productivity initiatives.”
Read more: Olive Garden Parent Prices out Competitors, Invests in Digital Pickup Ordering
GoTab Partners With Mastercard to Implement Card-on-File Payments
As consumers seek out more frictionless restaurant payment options, restaurant technology providers are unveiling new ways to meet this rising demand.
ResTech platform GoTab announced Thursday a partnership with Mastercard to offer “Click to Pay” card-on-file payments. The option allows consumers to keep a digital tab open and to save their card to be used at any restaurant using a GoTab payment system.
“We strive to help our operators enhance the guest experience,” GoTab CEO Tim McLaughlin said in a statement. “Mastercard Click to Pay is the perfect solution to simplify and make the checkout process easier, faster and completely seamless.”
In February, New York City-based B2B Software-as-a-Service (SaaS) restaurant technology company Olo announced the general availability of Olo Pay, a payment solution meant to make consumers’ saved payment credentials accessible for use at any restaurant on its network, removing friction from the purchasing process.
See more: Olo CEO Says Removing Payment Friction Equips Restaurants to Compete With Aggregators
According to PYMNTS’ 2022 Restaurant Friction Index, created collaboration with Paytronix, which drew from the results of a survey of a census-balanced panel of over 2,100 United States adults, one in four consumers would be more inclined to shop with brands that offered the ability to pay with a card on file.
Read more: New Data Show Digital Loyalty Programs Are Key Differentiator for Top-Performing Restaurants
Additionally, the study also drew from a survey of more than 500 managers of quick-service restaurants (QSRs) and FSRs across the U.S., the results of which revealed that a third of restaurants now offer this payment option. Moreover, the study found that 27% of restaurants do not yet offer it, but they plan to invest in such capabilities in the future.
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