Restaurants Archives - Interface Systems Managed Services for Multi-Location Enterprises Wed, 15 May 2024 16:18:49 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.3 https://interfacesystems.com/wp-content/uploads/2022/11/interface-favicon-orange.svg Restaurants Archives - Interface Systems 32 32 Network Modernization – A Practical Guide for Multi-Site Enterprises https://interfacesystems.com/blog/network-modernization/ https://interfacesystems.com/blog/network-modernization/#respond Fri, 23 Feb 2024 05:59:31 +0000 https://interfacesystems.com/?p=5959
Picture of Bud Homeyer
Bud Homeyer

Chief Operations Officer

Managed Network & Voice PCI Compliance Restaurants Retail

Network Modernization – A Practical Guide for Multi-Site Enterprises

What’s Driving Network Modernization in Multi-Location Enterprises?

Multi-site enterprises and consumer-facing brands such as retail and restaurant chains have bounced back from the shock of COVID-19. In hindsight, the winners are those retail and restaurant brands that could adapt to dramatic shifts in customer preferences, high frontline staff attrition rates, and a slew of unexpected physical security and supply-side challenges.

The only way businesses can deal with future uncertainty is by investing in human capital and technology infrastructure that can support rapid changes in operating models.

Here are the key reasons why network connectivity and security hence take center stage in any program that aims to build an agile multi-location business.
Industry Disruption
Why Network Modernization is Needed
Challenges in Hiring & High Employee Turnover

According to the National Restaurant Association, the restaurant industry is currently operating with a labor shortfall of 540,000 employees. The US Bureau of Labor Statistics reported the annual average total separation rate for the retail industry was 5% compared to 3.9% across all industries in May 2023.
Boost Employee Productivity

Retail and restaurant operators have to keep a sharp focus on boosting employee productivity at every touchpoint and automating mundane activities. A scalable network backbone is critical to deploy time-saving productivity and collaboration applications and improve application performance.
Changing Customer Expectations

According to Brandwatch, in 2023, consumers are placing a lot more emphasis on convenience. There is a 12% increase in social media chatter about convenience and shopping experience compared to the previous period.
Create Superior Customer Experiences

Restaurant brands have to reimagine the dining space with a focus on enhancing the speed of service, offering greater convenience, and a wide range of digital ordering services. Similarly, retailers have to invest in delivering superior in-store experiences and last-mile fulfillment across channels. None of these are possible without the underlying network and connectivity infrastructure.
Rising Food Prices and Inventory Glut

The US Department of Agriculture reported that the restaurant consumer price index in July 2023 was 7.1% higher when compared to the same period in 2022. This has impacted both retailers and restaurants. Rising prices also mean unsold inventory. Markdowns and discounts help move them but leave a serious dent in the bottom line.
Invest in Streamlining Operations

Retailers and restaurant brands want to streamline every aspect of their operations to cut costs. Economies of scale are needed in the entire supply chain and the underlying tech infrastructure to take advantage of standardized processes. Well-designed network backbones can optimize operating costs and support advanced analytics solutions to streamline the business.
Violence & Theft

Business locations, especially those in high-risk areas, face significant threats in the form of violent customers, robbery, and gun violence. Internal theft and cash handling risks have historically been a concern for retail and restaurant operators
Invest in Intelligent Security Solutions

Retailers and restaurant chains have to invest in intelligent security systems that provide advanced warnings and are capable of zeroing in on anomalies across millions of POS transactions. This requires investment in a wide range of cloud-based, AI-enabled sensors and data analytics. None of these applications can be deployed with outdated network infrastructure.
As multi-site businesses attempt transformative initiatives, they are faced with practical issues that go back to network design, labor-intensive network operations, management protocols, hardware procured from diverse vendors with differing capabilities, and network security vulnerabilities across the infrastructure.  
  • Employees are becoming more mobile, accessing the network from various locations and endpoints beyond corporate IT control. They are also connecting to public clouds for essential business applications like Office 365.
  • IoT devices, widely distributed in remote and unsupervised locations outnumber human-controlled endpoints opening the door for new security threats. 
  • Cloud service providers have expanded their presence across numerous branches, which connect directly to the cloud, bypassing corporate data centers.
  • With ever-tightening Payment Card Industry (PCI) requirements and data privacy regulations, restaurants and retailers face tremendous risk when migrating data from on-premise POS to cloud-based solutions that offer easier integration with inventory management, online ordering platforms, and the extended supply chain.
  • Support for bandwidth-intensive applications such as video management systems and devices with edge computing capabilities that deliver critical real-time data on store operations (such as security cameras) can be challenging when the last-mile connectivity is not properly handled.
 
The goal of any network modernization program should not only take into consideration the evolving technology solutions that drive transformation but also aim to create a resilient technology operating system that can change rapidly without creating bottlenecks in the future.

Challenges in Managing Legacy Network Infrastructure

There aren’t clear-cut answers. Most likely, retail and restaurant chains always have some part of the network designed decades ago and other parts that were added recently.

Outlets with legacy network components can still run online ordering operations, support in-store applications, and manage their supply chains. The real problem is in administering the network and the penalty it imposes through inefficiencies, downtime, latency, and security vulnerabilities. The limits of what a network infrastructure can support efficiently determine whether a network upgrade is needed or not (Refer to Exhibit 1).

Challenges in managing legacy network infrastructure
Exhibit 1: Multi-location businesses face a variety of challenges in managing their network infrastructure.

Flat Network Architecture

Restaurant chains with a flat network architecture face significant challenges as the business grows and new requirements emerge.

1. Limited Segmentation

Without dividing the network into security zones, all devices and systems within the organization, such as point-of-sale (POS) systems, employee workstations, and guest networks, are interconnected. This lack of segmentation increases the attack surface, making it easier for an attacker to move laterally across the network. For example, a malware infection in a POS system could spread to the corporate network, compromising sensitive data and systems.

2. Increased PCI Audit Scope

In a flat network, the scope of the PCI audit expands, encompassing the entire network infrastructure, rather than just specific segments. This can increase the complexity and cost of compliance efforts.

3. Weakened Access Control

Without segmentation, it becomes challenging to implement role-based access controls, network segmentation based on user roles, or least privilege access principles. This can result in unauthorized access to critical resources, data leakage, and a higher risk of insider threats.

4. Performance and Scalability Bottlenecks

A flat architecture can hinder performance and scalability. Broadcast and multicast traffic, typically limited to individual segments, can quickly propagate throughout the entire network, leading to congestion, reduced bandwidth availability, and degraded performance.

5. Difficult Troubleshooting

Lack of segmentation makes it challenging to pinpoint the root cause of network problems. This results in increased downtime, extended troubleshooting efforts, and potential business disruptions.

Manual Failover

Manual failover relies on the availability of personnel to identify and respond to network failures promptly. There are serious risks of not upgrading to automated failover systems.

1. Limited Scalability

As the network grows in complexity, manually managing failover becomes increasingly challenging. The need for human intervention in every failover event can limit the network’s scalability and agility.

2. Increased Operational Complexity

Implementing manual failover requires detailed documentation, well-defined processes, and trained personnel who understand the failover procedures. It also increases the reliance on specific individuals or a limited group of staff members with the necessary expertise.

3. Prone to Human Error

There is an increased risk of human error during the transition, such as misconfiguration or oversight, which can lead to service disruptions or unintended consequences. Human error becomes more likely in high-pressure situations, potentially impacting the network’s availability and stability.

Centralized Network Security

Some retail and restaurant chains continue to rely on the security infrastructure at the data centers to do the heavy lifting. This approach can stifle application performance and increase network administrative complexities.

1. High Latency

Routing all traffic through the data center for security scans can increase latency and reduce the performance of internet-dependent applications, affecting productivity and user experience.

2. Increased Network Complexity

Implementing a centralized traffic backhauling architecture requires complex network configurations, including routing, load balancing, and secure tunnels to redirect traffic to the data center for security scans. This complexity can make network management and troubleshooting more challenging.

3. Limited Local Response Capability

Backhauling all traffic for security scans to a central data center can limit the ability to respond quickly to local network security incidents. Any network threats or anomalies that require immediate attention or localized mitigation experience delays due to the traffic redirection and the need to wait for security scans performed in the data center.

Legacy Routers, Modems, and Firewalls

Basic routers, modems, and consumer-grade firewalls lack advanced security functionalities, such as deep packet inspection, intrusion prevention systems (IPS), or advanced threat protection. This leaves the network vulnerable to sophisticated attacks and exploits targeting higher layers of the network stack.

1. Insufficient Traffic Visibility

IT teams may struggle to identify and address anomalous or malicious traffic patterns, making it harder to detect and respond to security incidents promptly.

2. Limited Scalability

As the network expands with additional branches, devices, and users, legacy routers, modems, and firewalls may struggle to handle the increased traffic volume and advanced security requirements. This can lead to performance issues and network bottlenecks.

3. Limited Support and Vendor Updates

Basic routers or consumer-grade firewalls often receive limited vendor support. This can result in outdated firmware, unpatched vulnerabilities, and a higher risk of security incidents due to the lack of ongoing security updates and patches.

Unmanaged Switches and Network Installation

Unmanaged switches offer limited or no visibility into network traffic and lack advanced monitoring features. Using them often results in ad hoc cable installations that hinder maintenance, troubleshooting, and overall network management efforts.

1. High Failure Rates & Poor Manageability

Unmanaged switches typically have a lower build quality that can lead to higher failure rates, increased downtime, and the need for frequent replacements.

2. Limited Scalability and Security

They lack features such as VLAN support, access control lists (ACLs), or traffic segmentation, which are essential for implementing network security policies and isolating different segments of the network.

3. Cable Loops and Performance Issues

Without proper cable management and oversight, unmanaged switches can contribute to cable loops leading to network broadcast storms, increased network congestion, and degraded performance.

Legacy WiFi Technologies

Businesses relying on legacy WiFi technologies are saddled with lower speeds, and limited bandwidth compared to newer standards like 802.11ac or 802.11ax (Wi-Fi 6 and Wi-Fi 6E). They may not offer the same level of coverage as newer standards resulting in dead zones or areas with weak signals within the premises.

1. Lack of Support for Critical Applications

Modern restaurant and retail chains often rely on various advanced applications and technologies like mobile point-of-sale (mPOS) systems, inventory management systems, order management systems, kitchen automation systems, and IoT devices. Legacy WiFi technologies may not offer the necessary capabilities to support these applications efficiently, limiting the potential for digital transformation and innovation.

2. Inability to Support High Device Density

As the number of devices connecting to WiFi networks continues to rise, legacy WiFi technologies may struggle to handle the increased device density as they operate on crowded and congested frequency bands, such as 2.4 GHz. This can lead to interference from other devices using the same frequency, resulting in degraded performance and unreliable connections.

3. Security Vulnerabilities

Legacy WiFi technologies may lack the advanced security features available in newer standards. This leaves the network more susceptible to unauthorized access, data breaches, and other security threats.

How Business Needs Can Be Mapped to Network Modernization

According to a 2023 retail industry CIO survey by Gartner, 35% of retailers surveyed cited “growth” as their priority, 27% said they will focus on customer experience, and 20% of the retailers surveyed are doubling down on technology modernization. In the restaurant industry, customer convenience and labor shortage were the key drivers for modernization. According to a survey of 300 restaurant operators by SpotOn, 75% of all restaurants surveyed planned to invest in technology modernization in 2023 to combat key labor shortages and offer better customer experience. These business imperatives are completely reliant on network modernization as highlighted below (Refer to Exhibit 2).
Business priorities require supporting network upgrades
Exhibit 2: Multi-site businesses have to upgrade their network infrastructure to support business priorities.
Business Drivers
Network Improvement Needed
Support for increasing transaction volumes, new store openings, and geographic expansion.
Ability to launch new locations using network templates and automation.
Minimize network downtime to ensure uninterrupted POS transactions and customer service.
Redundancy and fault tolerance mechanisms to mitigate the impact of hardware failures or network outages.
Strengthen network security to protect sensitive customer data and payment transactions.
Compliance with industry regulations, such as Payment Card Industry Data Security Standard (PCI DSS).
Enable smooth integration of online and offline channels to support unified commerce.
Connect in-store systems with ordering platforms, inventory management, and customer relationship management (CRM) systems. Support the integration of IoT devices for inventory tracking and layout analytics.
Improve visibility and connectivity across the supply chain for inventory management, logistics, and order fulfillment.
Build integration with vendors, suppliers, logistics, and delivery partners for real-time data exchange and coordination.
Elevate customer experience at the restaurant and the store.
Deploy reliable and fast Wi-Fi for customers and enable mobile device usage. Support dynamic or personalized menu boards, and enhance drive-thru and checkout experiences.
Streamline network operations, reduce maintenance costs, and optimize network resource utilization.
Monitor network performance, security, and compliance from a single dashboard.

Network Transformation Case Studies

The below case studies for a hypothetical multi-site business highlight two different approaches to upgrading the network based on business requirements.

Expand Drive-Thru and Phone Orders for a QSR

FeastOn was operating in a highly competitive QSR segment with a growing digital footprint. The company wanted to deploy a cloud-based POS integrated with an online ordering system, improve its ability to handle phone orders, and expand drive-thru services.

Network Requirements 

FeastOn IT team identified the need for a high-availability design with 4-hour hardware replacement, WAN failover, redundant 48 port POE switches, 1 access point (guest and company use), VoIP with 4-6 corded phones, loud ringer, caller-ID integration with POS, integration of phones with text messages for order management.  They required the ability to deliver drop-free calls during a WAN failure and to keep online orders (web and POS integrators, 60-70% of all orders) working while running on their backup connection. The current POS integration required a single public IP address that could be used over any circuit at each location for this to work. 

Solution

FeastOn implemented two different network solutions based on traffic volumes and the growth potential of the location. One set of locations had a 4-hour hardware replacement SLA and the other set of locations came with a high-availability design that did not require immediate hardware replacement.  The solution also included a cloud gateway SD-WAN solution that ensured phone calls did not drop during network failure and orders were able to flow seamlessly via the POS integrator that switched to the backup circuit. There were extra redundancy factors added to protect against any cloud gateway failures.  This solution provided FeastOn with both WAN and hardware resiliency and met all application and phone failover requirements. This setup allowed them to continue to use some older POS setups while they transitioned to the cloud-based POS in phases.

Eliminate Downtime and Improve Network Security for a Retail Chain

QualityM realized that store operations were always hobbled by patchy network infrastructure nationwide. Network downtime was commonplace, network security management was a headache, and the legacy POTS phone system kept customers unhappy. PCI compliance kept them on their toes because of poor network design.

Network Requirements

QualityM hired a managed network services vendor to come up with a requirement for WAN redundancy, next-day hardware replacement, secure POS traffic, managed next-gen firewall, 24 port switch, two access points (guest and company use), and three cordless phones with an auto attendant that rings a group of phones to place orders.


Solution

The managed services vendor implemented a broadband circuit with automatic failover to an LTE backup. Every store had a single next-gen firewall, a 24 port switch (4 port POE injector used for the APs to keep cost down), and three cordless phones with auto attendant setup. The POS firewall sat behind the next-gen firewall in its security zone. This allowed the POS to use the WAN redundancy setup and still be secure from other network devices, which were separated into four other networks. This network design provided QualityM with a WAN-resilient and secure network.

Thumb Rules for Network Modernization

Irrespective of business needs or management expectations, there are several key factors and objectives retailers need to consider when evaluating network modernization solutions including:
  • Reliability and Redundancy

Design the network to ensure high availability and minimize downtime.
Implement redundant network components such as routers, switches, and firewalls to prevent single points of failure.

Incorporate backup connectivity options, such as failover to secondary circuits or LTE backup, for uninterrupted operations.

  • Scalability and Capacity Planning

Design the network to accommodate future growth and increasing network demands.

Consider the scalability of network devices, bandwidth capacity, and network architecture. Plan for potential expansion, new store openings, and increased customer traffic.

  • Site Preparation

Conduct a thorough assessment of each store’s infrastructure and requirements. Ensure sufficient power supply, cabling, and physical space for network equipment.

Address any environmental factors that may affect network performance, such as temperature control and ventilation.

  • Contracts with Bandwidth Providers

Evaluate and negotiate contracts with bandwidth providers to ensure reliable and cost-effective network connectivity.

Establish Service Level Agreements (SLAs) for uptime, latency, and bandwidth guarantees.

Maintain ongoing communication and relationship management with providers to address any issues or changes.

  • Contracts with Hardware Vendors

Assess existing contracts with vendors and hardware providers that are no longer needed.

Plan for a smooth transition to new vendors and hardware, including contract termination and equipment returns.

Ensure proper coordination between the network design and procurement/contract management teams.

  • Quality of Service (QoS)

Prioritize critical store applications, like POS (point of sale), inventory management, and sensitive IP traffic.

Allocate appropriate bandwidth and network resources to ensure optimal performance for these applications.

Implement QoS mechanisms to prioritize real-time traffic and minimize latency or packet loss.

  • Security

Implement robust network security measures to protect sensitive customer data and maintain PCI DSS (Payment Card Industry Data Security Standard) compliance.

Utilize firewalls, intrusion detection and prevention systems (IDPS), and secure remote access mechanisms.

Apply secure segmentation to isolate critical systems and restrict unauthorized access.

  • Bandwidth Optimization

Optimize network bandwidth utilization by leveraging caching, compression, and content delivery networks (CDNs).

Implement traffic shaping and bandwidth management techniques to prioritize business-critical applications and limit non-essential traffic.

  • Network Segmentation

Segment the network to enhance security, improve performance, and isolate different store functions.

Separate guest Wi-Fi networks from the corporate network to ensure data confidentiality and prevent unauthorized access.

Segment store operations, point-of-sale, and back-office functions to limit the impact of potential security breaches.

  • Wireless Connectivity

Provide reliable and high-performance Wi-Fi connectivity throughout the store premises.

Plan for adequate coverage and capacity to support customer Wi-Fi, mobile devices, and IoT deployments.

Implement secure guest Wi-Fi with captive portals, authentication, and encryption mechanisms.

  • Migration and Switchover

Develop a detailed migration plan outlining steps for transitioning from the legacy network to the new infrastructure.

Conduct thorough testing and validation of the new network before the switchover. Plan for minimal disruption to store operations during the migration process.

  • Proof of Concept

Roll out a proof of concept (POC) at a limited number of stores to validate the effectiveness of the network design.

Measure the performance, reliability, and security of the new infrastructure in real-world scenarios.

Gather feedback and insights from store staff and IT teams to refine the design before full-scale implementation.

  • Monitoring and Management

Implement network monitoring tools to proactively identify and troubleshoot network issues.

Utilize network management systems to centralize network configuration, monitoring, and reporting.

Ensure real-time visibility into network performance, availability, and security events.

  • Compliance and Regulatory Considerations

Adhere to industry-specific regulations such as PCI DSS, GDPR, and HIPAA, based on the retail chain’s operations.

Design the network to meet compliance requirements and implement appropriate security controls.

Maintain audit trails, access controls, and security documentation to demonstrate compliance.

  • Training

Provide training sessions to educate retail staff on the new network infrastructure and its benefits.

Offer guidance on network usage, security best practices, and troubleshooting common issues.

Ensure that staff members understand how to utilize new applications and tools enabled by the upgraded network.

In-House Vs Managed Services Providers for Network Modernization

Can retailers and restaurant brands choose to implement complex network modernization projects internally or should they choose to work with managed service providers? While there will always be opportunities for in-house network transformation projects, most Businesses are choosing to partner with managed network services vendors. According to Gartner, “Enterprises struggling to balance expense reduction with greater WAN and LAN agility and performance are increasingly turning to managed network services.”  Also, the need to lower capital spending and gain access to specialized skillsets needed for digital transformation make managed network services vendors a compelling option to consider. Here are some additional insights on what’s driving retailers to hire managed network services vendors.
  • Network Management Skill Gap

The demand for diverse network management skill sets and the ability to hire and retain employees with specialized network engineering skills can be a tough challenge for enterprises who would rather spend the time and money to strengthen core business operations and build products or services.

For example, a medium-sized retail chain or a restaurant chain looking to design and roll out an SD-WAN solution will probably need highly skilled network engineering talent during the initial design and roll-out phase. Once the solution is stable, the IT organization’s focus will be on ongoing maintenance and periodic updates.

  • Troubleshooting Challenges in Multi-Vendor Setup
Network technologies are increasingly becoming complex and involve integrating solution components from a diverse set of hardware, software, and bandwidth providers. Implementing a sophisticated network connectivity backbone for optimal business application performance will involve a mix of third-party vendors and OEMs specializing in different aspects of the solution. Troubleshooting performance issues with a POS machine at any location can involve packet tracing across multiple devices, networks, and the ISP serving the location. Coordinating troubleshooting involving multiple vendor entities can be a significant drain on the internal IT team’s productivity. It can even compromise routine tasks that the IT team is primarily responsible for due to lack of time.
  • Limited Geographical Reach

Retail and restaurant chains manage hundreds of geographically dispersed locations or branches. Relying just on internal capabilities and skill sets to manage IT/network operations is not practical for a multi-location enterprise. It’s not feasible for internal network engineers to travel across states or international borders to set up or troubleshoot network issues at branch locations.

  • Network Security & Compliance Gaps

In addition to managing a complex security environment, enterprises have to also comply with various data management regulations that are directly related to how secure and compliant the underlying network is. Compliance regulations such as PCI and SOX impose a significant burden on retail IT teams that are focused on complex network modernization challenges. Most retailers face significant cybersecurity challenges as they embrace the cloud and grapple with a combination of lower-than-average staff focused on security operations and inventive cybersecurity attacks that target POS and loyalty management systems.

  • Access to Technologies
The urgent need to transform business operations is felt a lot more in consumer-facing industries such as retail. In most cases, investments and upgrades in network technologies cannot be handled in-house due to the lack of skills or tools needed for such complex projects across multiple locations. Multi-location enterprises have complex networks that are often difficult to upgrade. Managed network services providers with proven expertise and the backing of the solution providers or hardware vendors are well suited to pilot untested technologies, demonstrating ROI before implementing the solution on a large scale.

For a more in-depth understanding of why businesses should hire a managed network services provider, please read this informative blog post.

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About the author

Picture of Bud Homeyer
Bud Homeyer

Chief Operations Officer

Bud Homeyer is the Chief Operations Officer at Interface Systems. Having worked as an IT and security leader for leading consumer-facing brands like Michaels, Brinker, and Bank of America, Homeyer has a proven track record of solving complex enterprise-wide challenges to drive growth, productivity, and profitability. He spearheads Interface’s efforts to help customers embrace new technologies while minimizing risks.
]]> https://interfacesystems.com/blog/network-modernization/feed/ 0 7 Groundbreaking Drive-Thru Concepts and Trends for QSRs in 2024 https://interfacesystems.com/blog/drive-thru-concepts/ https://interfacesystems.com/blog/drive-thru-concepts/#respond Mon, 09 Jan 2023 14:43:26 +0000 https://interfacesystems.com/?p=307
Picture of Steve Womer
Steve Womer

SVP, Engineering

Business Intelligence Restaurants Video Analytics

7 Groundbreaking Drive-Thru Concepts and Trends for QSRs in 2024

Introduction

What’s Propelling Restaurant Drive-Thru Innovations?

The first-ever restaurant drive-thru concept was launched way back in 1947. Red’s Giant Hamburg drive-thru allowed customers to drive up to a window to place orders and receive their food. Since then drive-thrus have consistently delivered a significant chunk of the revenue in the QSR (Quick Service Restaurant) category.

COVID-19 has accelerated the need for restaurants to have a comprehensive drive-thru strategy in place and focus on drive-thru innovation. This was primarily driven by:

  1. Heightened anxiety about health and safety
  2. Need for greater convenience and flexibility to order food

By the end of 2021, every major restaurant brand reported significant drive-through sales growth and drive-thru accounted for 52% of the customer traffic share for QSRs.

This trend is not just restricted to QSRs. Even full-service chains, cafes, and pizzerias that have traditionally invested in dine-in spaces are expanding drive-thru options for customers. Recently, Applebees revealed that they are planning to aggressively roll out drive-thrus to strengthen off-premise service capability.

5 Groundbreaking Drive-Thru Concepts and Trends for QSRs in 2022
Applebee’s is betting big on drive-thrus
Source: Dine Brands Global, Inc.
Restaurant brands are now investing in a suite of technology solutions and drive-thru concepts that delivers an amazing customer experience across the customer engagement lifecycle for the drive-thru channel.

Speed of Service

  • Upgraded online and mobile ordering
  • AI-driven digital menu and order confirmation boards
  • Bluetooth sensors and mobile apps for personalized drive-thru experience
  • Diverse mobile and online payment options
  • Dynamic menu and menu rationalization based on complexity and inventory
  • Kitchen automation

Employee Interaction

  • Gamification to improve employee engagement
  • Video management systems to access customer interaction videos for training
  • POS with forced prompts or modifiers to upsell related items or premium toppings
  • Automated check-in alerts for employees to serve customers with pre-orders

Order Accuracy

  • Computervision to track order assembly and packaging
  • Advanced speakers and microphones with noise suppression technology
  • Secure identity validation at drive-thru pickup window

In 2024, having a drive-thru is no longer a secondary growth strategy. QSRs that had already bet big on drive-thru services are now accelerating drive-thru automation to tackle one of the biggest challenges to running a profitable restaurant – wage and commodity inflation.

1. Expanded Drive-Thru Lanes

In June 2022, Taco Bell launched the Taco Bell Defy which boasts of four drive-thru lanes, food delivery lifts that eliminate direct contact between customers and employees, and interactive audio-video technology for customer service. Separate drive-thru lanes for app pre-orders, drive-in customers, and third-party delivery agents allow Taco Bell to maximize the speed of service and minimize wait times.
Taco Bells Defy drive-thru concept with four drive-thru lanes
Taco Bell’s Defy drive-thru concept with four drive-thru lanes.
Source: Taco Bell

Brands like Panera, McDonald’s, Burger King, and KFC are rolling out updated restaurant designs with increased drive-thru capacity and smaller dine-in areas.

Adding additional lanes is not the only option to increase drive-thru throughput. Tim Hortons has launched tandem drive-thrus that come with two sets of digital menu boards and intercom in a single lane designed to take orders from two cars at a time.
Tim Hortons drive-thru concept can serve two cars at a time. Source: Tim Hortons
Tim Hortons drive-thru concept can serve two cars at a time.
Source: Tim Hortons

Adding additional drive-thru lanes can be challenging as restaurants have to proactively address points of customer friction, manage traffic volumes, and enable seamless integration with POS systems.

Here is an extract from an article that summarizes the real-world challenges that Schlotzsky’s experienced when they piloted a double-drive-thru, with one drive-thru on each side of the restaurant.
Schlotzsky’s double-drive-thru pilot program Source: Schlotzskys.com
Schlotzsky’s double-drive-thru pilot program
Source: Schlotzskys.com

“When you have two menu boards where you’re taking orders at the same time, we really had to figure out how that flows through into our kitchen. And when two menu boards are taking orders at the same time, we had to equip our drive-thru make station with a headset so that they could listen to both the first drive-thru lane and the second drive-thru lane, and start the production of those products before the guests finished ordering.”

“In the early days of launching this double drive-thru, Schlotzsky’s employees had to train customers that were going to the pickup lane because the service counter is now on the passenger side, which is not what customers are used to. The store needed to go back and modify signage and striping on the asphalt to make directional flow clear to customers and improve traffic confusion.”

2. Intelligent Outdoor Digital Menu Boards (ODMBs)

Outdoor digital menu boards play a critical role in helping drive-thru customers make an informed choice of what to order and speed up the drive-thru experience. The latest generation of digital menu boards are connected to the cloud and have the ability to dynamically change the menu and pricing based on diverse input from other restaurant applications.
Acrelec’s Outdoor Digital Menu Boards uses AI to offer personalized menu boards. Source: Acrelec.com
Acrelec’s Outdoor Digital Menu Boards uses AI to offer personalized menu boards.
Source: Acrelec.com

Some of the recent innovations in personalizing the drive-thru experience include

  • Digital menu boards linked to mobile apps that rely on the phone’s location data to trigger menu board personalization when the customer drives up to the restaurant location.
  • Speciality Bluetooth devices integrated with the drive-thru speaker post to trigger menu board personalization, enable the customer to redeem reward points, and make payments using their mobile phone.
  • Machine learning-driven menu boards not only suggest a personalized menu based on the purchase history, external factors (such as the weather), or daypart, but also optimize the menu to eliminate order processing complexity.

McDonald’s implemented Dynamic Yield’s personalization platform to offer a dynamic menu at their drive-thrus. In the US, McDonald’s is able to show menu items based on factors such as time of day, real-time restaurant traffic information, and popularity to help provide an enhanced customer experience.

Restaurant Brands International, the parent company of QSR brands such as Burger King, Tim Hortons, and Popeyes had already started rolling out personalized ODMBs in 2021 across thousands of locations.
ODMBs can now show personalized menus and recommendations for repeat customers Source: Restaurants Brands International
ODMBs can now show personalized menus and recommendations for repeat customers
Source: Restaurants Brands International

3. Gamification for Drive-Thru Employees

Serving customers at the drive-thru can get monotonous for employees. Critical performance metrics such as average speed of service and order value are reviewed periodically by the manager or supervisor and employees get to hear about it only when they fall short of the productivity benchmarks or for training purposes. Gamification of drive-thru tasks addresses this problem and significantly improves employee participation and engagement.
HME’s ZOOM Nitro’s drive-thru optimization system allows restaurants to gamify drive-thru service for engaging employees. Source

HME’s ZOOM Nitro’s drive-thru optimization system allows restaurants to gamify drive-thru service for engaging employees.

Source

Here are some of the ways gamification can improve employee engagement and productivity:

  1. Drive-thru leader boards can show where employees stand compared to their colleagues and introduce a positive competitive spirit at work.
  2. Restaurant chains can conduct friendly contests between locations with bragging rights and offer rewards as an upside for top-performing locations.
  3. As critical metrics are now transparent and available for all employees in real-time, employees readily take ownership of performance improvement plans.


I3 International’s drive-thru leaderboards offer real-time performance snapshots of drive-thru employees giving employees and restaurant managers a live drive-thru customer service performance update.

i3 International’s video analytics solution includes a drive-thru leaderboard for employees Source: i3 International
i3 International’s video analytics solution includes a drive-thru leaderboard for employees
Source: i3 International

4. Computer Vision and Video Analytics at the Drive-Thru

Video feeds from the cameras in the drive-thru area can be analyzed by computer vision algorithms in real-time to improve sales, improve order accuracy, reduce chargeback claims, flag food safety issues, and track line dropouts before purchase.

  1. Computer vision can read license plates of cars and even identify the age profile of the occupants inside the car. This data is useful to recognize repeat customers and show a personalized menu or offer exclusive perks as the customer pulls into the drive-thru digital menu post.

I3 Internation’s video analytics platform can recognize repeat customers by reading the number plates of cars at the drive-thru. Once a repeat customer is identified, the platform will automatically display relevant information to the employees at the drive-thru to recommend favorite products and offer a personalized guest experience.
Video cameras can identify repeat customers at the drive-thru by reading the registration plates Source: i3 International

Video cameras can identify repeat customers at the drive-thru by reading the registration plates

Source: i3 International

2. Ensuring order accuracy has a direct impact on sales performance and customer loyalty. Computer vision and AI applications connected to cameras in the kitchen can pinpoint mismatches in order assembly before the items are delivered to the customer.

3. In addition to identifying customers, computer vision can track drive-thru line dropout data. This information when mapped to dayparts, locations, weather, and day of the week can uncover valuable insights for QSRs. These insights can help restaurants optimize menu complexity and staffing, or even re-design the drive-thru lanes.

Presto Vision’s software allows restaurants to improve drive-thru sales and delight customers

Presto Vision’s software allows restaurants to improve drive-thru sales and delight customers.

Source
4. A Deloitte study has found that customers are willing to pay a premium if they can see evidence of cleanliness and safe food handling practices. Computer vision and AI applications can spot instances when prescribed food preparation and handling processes are not followed so restaurants can train their employees better and ensure complete safety compliance.

5. AI-Based Voice Assistance

Voice is a critical component of the drive-thru customer experience, and hence more QSRs are investing in installing advanced two-way audio communication systems at the drive-thrus that are designed to

  • Reduce outbound (kitchen noise) and inbound noise (traffic or engine sounds), to improve order accuracy and eliminate delays due to miscommunication or poorly understood order details.
  • Use automated audio alerts for employees to manage customers at the drive-thru, curbside pickup slots, or 3rd-party delivery pickups.

With AI-enabled voice technology, voice can now go beyond just improving communication. It can potentially reduce the need for employees to handle all the drive-thru transactions. This is especially useful in a tough labor market where staffing and retention are significant challenges confronting QSRs. Here are the various ways AI-enabled voice automation is being used by QSRs and fast-casual restaurants.

  • Chipotle had already rolled-out Amazon Alexa reordering skill way back in 2019 for Chipotle customers who are already a part of the loyalty program. They later expanded AI-based voice ordering for phone orders as well. With the recent roll-out of dedicated drive-thru pick-up windows (aka Chipotlanes), Chipotle customers who order ahead using voice or app can drive up to the pickup window and drive out in under 12 seconds.
  • In 2019, McDonald’s acquired Apprente, an AI-based technology that can engage in conversations with humans to improve drive-thru order accuracy. McDonald’s piloted the technology in 2021 at 24 drive-thrus in the Chicago area and reported about an 80% success rate. The technology is being further tested and upgraded with the help of IBM before a system-wide roll-out.
  • Wendy’s is leveraging Google Cloud to roll out a combination of AI-enabled voice technology along with computer vision that’s designed to take orders at the drive-thrus and send the transcribed order details directly to the kitchen and POS.

Presto claims to offer AI-enabled conversational technology that can only take drive-thru orders but also upsell, recommend items with shorter preparation time, and recommend items based on past orders. The Presto voice solution has diverse applications that go beyond drive-thru. These include inventory management, phone orders, tableside ordering, and staff training.

6. Automated Drive-Thru For App Orders

“McDonald’s is piloting a drive-thru concept that completely eliminates the need to have any customer-facing staff. Customers who choose to dine in, place orders via self-service kiosks, and robots bring the order from the kitchen. For those who want to use the drive-thru, the only option available is by ordering ahead via the app.

When customers order ahead via the McDonald’s app with push notifications enabled and location access turned on, food preparation is timed to the customer’s estimated pick-up time. Once the customer reaches the restaurant, they pull into the order ahead drive-thru lane to pick up their order that’s delivered via conveyor belt.

Order Ahead Drive-Thru at McDonald's

McDonald’s is piloting an automated order ahead drive-thru lane at one of their Texas locations.

Source: McDonald’s

The concept of ordering ahead and picking up at a special lane at the drive-thru is not a new concept. What’s novel with the McDonald’s location is the absence of customer-facing employees. As hiring for restaurant jobs and retaining employees becomes tougher, and wage inflation going through the roof, a conveyor belt bringing the order directly from the kitchen to the drive-through pickup point could probably become a mainstream solution.

7. Restaurant Robotics & Future Contactless Drive-Thru

The National Restaurant Association (NRA) paints a grim view of the labor shortages that continue to plague the restaurant industry in the US. According to NRA, “Despite the steady employment gains during the last 2 years, eating and drinking places are still 450,000 jobs (or 3.6%) below their pre-pandemic staffing levels. That’s the largest employment deficit among all U.S. industries.” To combat this challenge, some restaurants have already started deploying robots not only for kitchen automation but also for customer service. It’s just a matter of time before drive-thru customers have an entirely contactless experience when kitchen automation and service automation technologies mature.

A new crop of restaurant robot companies have all graduated their products from the design or prototyping phase to deployment at restaurants. 

  • Robotic Arms – Ally, Nala, Miso
  • Bartender Robots – Makr Shakr, Cecilia.ai
  • Bowls and Salad Maker Robots – Chowbotics, Spice, Beastro, Autec
  • Food Delivery Robots – Starship, Neuro, Kiwibot
  • Robot Waiters – Bellabot, Matradee, Servirobot
  • Pizza Robots – Picnic, Piestro, Zume
  • Coffee Shops – Cafex, Rozum, Artly, CookRight

Prominent restaurant brands are piloting robots or have already deployed them in the first set of locations. 

Sweetgreen launched its Infinite Kitchen technology at its Naperville, Illinois restaurant which leverages automation to dispense greens and other ingredients precisely in bowls moving along in an assembly line.

Other established restaurant brands such as Chipotle, White Castle, and Wing Zone have all deployed Flippy, a kitchen robot that automates fast food preparation. 

 New restaurant brands are launching in 2024 that have embraced an automation-first strategy. For example, Steve Ells, the former CEO of Chipotle is launching a new chain named “Kernel” in the New York area in 2024. Every location will have just 3 employees supported by robots.

We expect these technologies to find a way to the drive-thru in late 2024 or in 2025 as the technology is perfected and real-world ROI is established.

Groundwork Needed for Drive-Thru Innovation

There are some critical issues in the QSR industry that can potentially derail new drive-thru initiatives. Interface recommends restaurant brands to carefully consider some of these challenges proactively before expanding drive-thru operations.

1. Network Capacity

Designing the physical space and logistics of managing the traffic often takes center stage in drive-thru design while the network side of the solution may take a backseat. Network design and capacity to support mobile POS transactions, sophisticated IP cameras with edge computing capabilities, intelligent ODMBs, order confirmation systems, and perimeter security sensors (such as alarm systems) play a critical role in the successful implementation of cutting-edge drive-thru concepts.

2. Network Security

Personalized drive-thru experiences are enabled only when customers share personal data and convenience is possible only when diverse payment options are supported. As a result, drive-thru concepts have opened up a world of network security vulnerabilities that need to be addressed upfront.

3. Accidents and Claims

Even successful drive-thru concepts have a problem – too many drive-thru customers and spill-over vehicle queues that potentially disrupt neighboring businesses or cause ‘drive-thru rage’. Collisions, liability claims, and employee injury (especially when walking up to cars in the drive-thru lane as done by some QSRs like Chick-fil-A) are potential issues to watch for.

4. Backend Bottlenecks

Considering the success of a drive-thru implementation is contingent on the speed of service and order accuracy, getting the kitchen operations right is an absolute necessity. Integrated kitchen display systems that are connected to the POS and inventory management system can help QSRs handle the increased order volume reliably.

5. Operational Complexity

According to the Franchising Economic Outlook report, the US will have about 192,000 franchise QSR establishments by the end of 2022. While the franchising model offers a proven brand and template for growth, key network and security infrastructure are managed by the franchise owners. This creates operational complexity as standards of implementation and solutions may vary across the chain which imposes barriers to innovation.

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About the author

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Steve Womer

SVP, Engineering

Steve has a passion for simplifying the complex. He has been designing and supporting secure network infrastructure solutions for distributed enterprise brands for the past 17 years. His current mission at Interface Security Systems is to ensure customer solutions are built with the highest levels of security and performance with an overarching theme of standardization and scalability. 

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]]> https://interfacesystems.com/blog/drive-thru-concepts/feed/ 0 Making IT Happen – The Interface Blog for Distributed Enterprises https://interfacesystems.com/blog/interface-blog-making-it-happen/ https://interfacesystems.com/blog/interface-blog-making-it-happen/#respond Sun, 11 Dec 2022 13:27:23 +0000 https://interfacesystems.com/?p=1360
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Steve Womer

SVP, Engineering

Restaurants Retail

Making IT Happen – The Interface Blog for Distributed Enterprises

Challenging Business Environment

Distributed, consumer-facing enterprises are grappling with an uncertain economic landscape buffeted by a once in a generation health crisis.
We thought this is the right time to launch Interface’s blog – Making IT Happen, to bring in clarity and help our customers navigate this uncertainty. All these challenges translate into two critical questions for enterprise loss prevention and IT leaders: How do we secure our people, customers, inventory and assets? How can we upgrade our connectivity and collaboration platforms to adapt to changes in our operating business model? These questions are particularly difficult for our restaurant, retail and hospitality customers who are already going through significant changes to their business models.
These questions are particularly difficult for our restaurant, retail and hospitality customers who are already going through significant changes to their business models.

Retailers who are closing down are facing the need to increase security for their vacant premises. Others, such as grocery stores, are finding it hard to get staff. Some customers are already adapting to the situation by changing their business models — offering such services as curbside pickup, home delivery, and more.

As necessity is certainly the mother of invention, these changes are requiring our customers to think differently about their security and networking needs and adopt new business models.

For instance, those who are offering curbside pickup must now also widen the areas they monitor, secure new areas, and observe comings and goings (a remote monitoring option would be a great choice in these scenarios). In addition, enterprise employees are being asked, where it’s feasible, to work remotely and collaborate using online applications. IT teams are having to make sure that employees have secure remote access to all their corporate applications, that their voice applications and help desk services are seamlessly ported over to work from anywhere.

It’s these scenarios and more that drive Interface Security Systems to be the very best at what we do.

We work closely with our customers in the retail, hospitality, restaurant, and financial markets to help them combat various networking and security challenges and loss on a daily basis. In fact, Interface offers Managed Network, VoIP, Asset Protection, and Business Intelligence solutions that maximize our customers’ ROI. It’s something that we’re good at — we’ve been doing it for more than 25 years.

Business Voice Over IP for Better Collaboration and WFH

If an enterprise has not yet converted to Voice over IP, it should certainly look into doing so. VoIP solutions deliver simple, powerful and cost-effective calling services for distributed enterprises.

Most of the business VoIP solutions include features such as unlimited local calling, free long distance on network, four-digit enterprise-wide dialing and voicemail and ‘find-me-follow-me’ to make it easy to be contacted no matter where you are physically.

For essential businesses, having a cloud cloud-based auto attendant that comes with VoIP solutions can be game-changing. The value here is that when someone calls a store or business, the phone is not actually ringing at the location. It’s ringing a cloud-based auto attendant which presents the caller with clear options from there.

For instance, if the caller is looking for directions or for business hours, there’s no need for the call to be transferred to the store or business location. Those kinds of questions can be answered with a recording. If the customer really wants to speak directly with someone at the location, there’s an option for them to transfer.

With this solution , businesses can reduce between 50 to 60 percent of the call volume for employees and free their time to be used for other important tasks.. And while there is some management involved, such as updating information like store or business hours, the customers that we’ve deployed it for absolutely love it, especially when they’ve asked us to manage and maintain the information as it changes throughout the year.

Customers also appreciate the ability to define ring groups and call flows that can be used to dial specific phones in a specific order or in response to different conditions. If no one is available to take the call in a store, for example, after a certain number of rings, the call can automatically be routed to a call center to be handled by the next available agent. Or it could be routed to a cell phone. Or to another store.

There are many possibilities.

Additionally, there are business continuity/disaster recovery options for VoIP that, in the event of a disaster, can reroute calls from one location to another all from a cloud-based console.

What’s Ahead for Essential Businesses

There are many other interesting emerging technologies on the horizon. Some we haven’t covered yet but look forward to announcing soon such as cameras that can detect people with fevers and cloud-based mobile text messaging for handling customer support at scale. We already have some of these in our labs being studied, tested and assessed.

In this blog post, we’ve looked at a number of technologies that have been making serious inroads in various businesses and are currently being deployed. Many are directly making a difference in our current climate.

A managed service provider such as Interface, with years of deep networking and security expertise, can help business, IT and security professionals make the right choices when deciding which technologies are ripe for deployment. We then work closely with them to design, integrate and support custom solutions to meet their unique challenges.

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Steve Womer

SVP, Customer Operations

Steve Womer has experience designing and deploying WAN/LAN infrastructure for distributed enterprise clients since 2008 and has served in various engineering, sales engineering, and operational roles for industry leading managed services providers.

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