Axonify recently polled 500 frontline managers – in retail, hospitality and foodservice – to ask about the state of their operations. What they found was that there are a wide variety of pressures building up that threaten to disrupt productivity, consistency and revenue. And managers’ expectations for the coming year aren’t very rosy. In fact, 43% of hospitality managers believe operational issues will worsen in the next year.
LABOR
Unsurprisingly, labor is a top issue frontline managers are facing. In fact, 63% of managers (60% for hospitality managers specifically) said hiring more workers and staff was one of their most pressing operational challenges.
Without the proper level of staffing, hospitality managers are worried about a whole host of other problems, including customer service. In fact, 62% of hospitality managers are concerned their team can’t meet customer expectations, and 65% of hospitality managers admit customer service has grown more difficult during the past year. This is likely because customers want more information but often are dealing with less experienced staff members. The data supports this. For example, 58% of hospitality managers are telling senior leadership that customers are requesting more transparency about issues such as inventory, supply chain, pricing, and order fulfillment. And 71% of hospitality managers claim that their customers want more informed and knowledgeable workers.
TECHNOLOGY
To improve the customer and employee experience, managers are embracing AI. For example, 77% of hospitality managers feel comfortable introducing AI to their staff, and 68% of all managers believe AI can improve the customer/guest experience. However, managers still have some concerns. For example, 60% of all managers are worried it will create confusion around job roles and responsibilities, 56% worry it will take away jobs, and 46% worry it could decrease job satisfaction.
Additionally, managers report that there are some major barriers to introducing AI to their staff. For example, 73% of hospitality managers are worried about a lack of understanding from staff, 61% are worried about unknown ROI, and 48% are worried there will be a lack of motivation from staff to learn a new technology.
It makes sense that frontline managers are hesitant to introduce AI when they’re having issues just getting their current technology stacks. In fact, Axonify learned that outdated technology is a very large pressure point among frontline managers. In fact, 66% of frontline managers ranked updating their point-of-sale/operating systems as their number one issue. This number jumped to 70% for hospitality managers.