The Business Case for Restaurants to Adopt More Tech for BOH Operations

Let’s take a deeper look at why it is important for restaurants to use IoT to streamline back-of-house (BOH) operations like  food safety, energy management, and hand hygiene practices for front-of-house (FOH) benefits and what they can do to get there.

Embrace Change

Restaurant chains have competing priorities when it comes to capital investments in their establishments. While the pandemic sparked more industry spending on customer-facing technology like ordering apps, kiosks, digital signage, and QR codes for digital menus, the industry did little to revamp processes through investments in new tech and automation in the BOH – one area operators are historically less inclined to invest in. But to stay competitive, reduce costs, and cut into razor-thin margins, restaurant operators must embrace change and pivot towards operational efficiency for customer satisfaction. 

For example, using IoT to glean store traffic patterns can help identify dwell times of certain food stations for better decision-making on how to optimize the area, inform peak service hours for staffing purposes, and ensure optimal inventory management (e.g., so you have the precise amount of ingredients on hand to minimize overbuying or waste food).

Elevate Employees 

The restaurant business traditionally uses a heavy part-time labor model, which poses challenges to attracting and maintaining employees. Restauranteurs are still grappling with staffing shortages, with 45% of operators reportedly needing more employees to meet customer demand and 27% stating their most difficult challenge is recruiting and retention.  

To help alleviate this challenge, operators can look to technologies that automate and enhance routine, monotonous tasks. Take, for example, temperature monitoring of refrigerators and freezers. On average, manual temperature logging consumes 30 minutes of an employee's day. With the current average wage for fast food employees at $14.48/hour, this manual task costs a restaurant chain with 1,000 locations $2.6 million annually in employee time. Automating temperature logging processes through IoT streamlines safety and regulatory compliance and liberates valuable employee time from mundane tasks to higher-level, customer-focused activities. 

Another area in which IoT can enhance employee experiences while automating routine tasks is restocking and cleaning bathrooms. Connected hygiene product dispensers deliver automation and benefit employees by identifying the best time and frequency for cleaning and restocking bathroom supplies based on actual usage data. Without IoT, staff would be required to clean restrooms on a fixed schedule, regardless of use, leading to unnecessary cleanings, added waste from throwing out half-used rolls of toilet paper, and wasted time. More importantly, it jeopardizes the high cleanliness standards that customers expect. 

Seek Scalable Solutions 

Restaurant operators expect a clear ROI from their technology investments, which is why FOH investments are an easier decision. They have a direct impact on top-line revenue. Restaurant chains that are all or mostly company owned are more willing to invest capital into the kitchens and BOH for automation, IoT, and other tech solutions because they drive profit improvements.

Consider the following: quick-service restaurant chains use 10x more energy per square foot than other retail establishments. Further, 80% of energy in restaurants is wasted, meaning only a small percentage of energy is used for the intended purpose (e.g., heating up oil for the fryer).

With an IoT-backed power monitoring solution, operators can monitor and manage power consumption to uncover ways to reduce energy, such as turning off kitchen equipment during non-peak service hours and detecting anomalies in power consumption, which often indicate equipment issues. Therefore, if an ice machine begins using more energy to make ice, this could signal the need for maintenance or suggest that the unit is nearing the end of its life.   

Many large, corporate-owned brands have begun implementing IoT technology for BOH operations and are realizing benefits.  On the other hand, franchised chains tend to invest in technology that grows top-line sales (e.g., digital menu board enhancements, POS, menu development, building décor, and curb appeal) but should highly consider BOH investments for the significant cost saving opportunities. One consideration worth noting here – whether corporate-owned or franchised – is that restaurants that seek and use scalable solutions can keep the total cost of ownership low and ROI high.