Unlocking the Power of CRM in Restaurants: Insights from Industry Leaders

Customer relationship management (CRM) technology is becoming an essential part of restaurant operations, shifting from a background function to a critical driver of guest engagement and business growth. A recent panel discussion with Dave Harris, CTO, Cooper’s Hawk Winery & Restaurants and Aaron Abramoff, CFO, The Restaurant People -- moderated by Robyn Kesler, member of RTN’s Board of Governors -- shared insights on how CRM is evolving and the challenges restaurants face in adopting it effectively.

Here are key takeaways from the conversation:

1. CRM Must Go Beyond Data Collection

Collecting customer data is just the beginning—using it effectively is where restaurants can gain a competitive edge. Abramoff emphasized that a strong CRM system should provide actionable insights, not just aggregate data. He shared an example of leveraging POS and reservation system data to optimize restaurant layouts, proving that when data is integrated properly, it can influence real-world decisions that impact efficiency and guest satisfaction.

2. Balancing Instinct with Data-Driven Decision-Making

Restaurants have long relied on gut instinct to guide business decisions, but panelists agreed that CRM data can enhance and validate these instincts. Harris discussed the concept of being “instinct-led and data-informed,” noting that while hospitality remains an intuitive industry, CRM tools can refine operational choices. This balance is particularly important in areas like menu development and targeted marketing, where understanding customer habits leads to better engagement.

3. Personalization is the Future—but Execution Remains a Challenge

The hospitality industry is striving to meet guest expectations for personalized experiences, due in part to Uber and Amazon having conditioned consumers to expect seamless service. However, Harris highlighted that implementing personalization in restaurants is complex. The challenge lies in consolidating data from different sources—POS, reservations, loyalty programs—and making it accessible to front-line staff. Abramoff added that small touches, like remembering a guest’s favorite dish or preferred table, can make a big difference in guest loyalty.

4. Measuring ROI on CRM Investments is Difficult but Essential

Determining the return on investment for CRM technology is a major hurdle. Abramoff pointed out that tracking the effectiveness of marketing campaigns is especially difficult unless there’s a clear link between promotions and reservations. Harris recommended setting clear objectives before investing in a CRM, ensuring that success metrics are defined upfront. This strategic approach helps businesses evaluate whether a CRM system truly enhances guest satisfaction and operational efficiency.

5. Seamless Tech Integration is Key

Many restaurants struggle with tech fragmentation, juggling multiple systems that don’t always communicate effectively. Harris stressed that CRM success hinges on integration with existing platforms, such as POS, inventory, and marketing tools. Without seamless connections, even the most advanced CRM system can become a burden rather than a benefit. Abramoff echoed this sentiment, advising that when evaluating new CRM solutions, operators should start by considering how well they align with operational needs.

6. AI and Automation Are Changing CRM Strategy

AI-driven tools are becoming a bigger part of CRM, helping restaurants automate tasks and improve guest interactions. Abramoff shared his evolving perspective on AI, calling it “augmented intelligence” rather than artificial intelligence. By using AI to enhance—not replace—human decision-making, restaurants can streamline processes like staff training, customer support, and predictive analytics.

Final Thoughts

CRM technology is no longer a “nice-to-have” but a must-have for restaurants looking to stay competitive. The key is not just collecting data, but making it actionable, integrating it seamlessly with other tech, and using it to create a better guest experience.