In today’s chain restaurants, servers no longer scramble between tables with notepads in hand and pens behind ears, and guests aren’t stuck waiting for their check to pay the bill. Now, with the help of information technology, waiters can input orders into handheld tablets and patrons pay their bills via mobile apps. It’s this consumer-in-control experience that Cheesecake Factory Inc. wants to deliver for guests. Though late to the game, the Calabasas-based casual dining chain launched its first app, CakePay, last month. The app allows patrons to view their bills and running tabs at the bar and to split and pay for their meals using mobile devices. The app is available from both the Apple App Store and Google Play. “CakePay is our first app. It is a mobile payment app that provides the primary function of a convenient, expedited check-out for our guests,” Alethea Rowe, Cheesecake senior director of public relations, said in an email to the Business Journal. “Technology plays an important role in our operations. From the scheduling of our staff members, to the kitchen management system that we use to manage the flow of orders into our kitchens, behind-the-scenes technology is a key ingredient in our operations and our service,” she added. Here’s how it works: Upon arrival guests can check-in on their apps, citing their particular location. Once orders are taken, guests give servers a four-digit code generated from the app and the server inputs that code into the restaurant’s point-of-sale system. From there, guests are able to keep track of their bills on their phones. When ready to leave, guests can select to split the bill evenly or to purchase select items on the bill. Cheesecake Factory is known for its lengthy menu and large portions. The chain is moderately priced and its eclectic menu includes more than 250 items, most of which are made from scratch daily. Guests can purchase lunch or dinner and a drink for $15 to $25 a person. Not to mention the chain’s vast cheesecake selection. From Adam’s Peanut Butter Cup Fudge Ripple Cheesecake to Craig’s Crazy Carrot Cake Cheesecake, the chain’s desserts live up to the company’s name. The restaurateur closed out last year with record sales, it announced in its earnings report in February. For 2015, revenue reached $2 billion, a record and a 1 percent increase compared to the $1.98 billion in sales it reported the year prior. For the fourth quarter ending Dec. 29, the company reported net income of $27.2 million, compared to $24.5 million for the year-ago period, on revenue of $527 million, up from $500 million. The chain has 188 locations that it operates domestically and in Puerto Rico using both the franchise and corporate-owned models. It rolled out its CakePay app nationally in April, and has also installed a back-of-house software program to prevent credit card hacks and identity theft. “Mobile payments have been a hot topic these past few years,” said Rob Edell, founder of New York-based Servy, an app that pays customers to visit and fill out private surveys about restaurants. “Another catalyst is using a tablet to place orders. One benefit is being able to reduce the number of team members needed, which produces cost savings and is really important today as labor costs have gone up.” Squeezing P&L Restaurants are using tech for front-of-house purposes, such as point-of-sale systems, as well as software for training and to store inventory and financial information – anything to cut costs and help staff work more efficiently. “There are mom-and-pop (shops) out there still working out of shoe boxes or cash registers; that’s never going to change,” Ed Doyle, president of RealFood Consulting in Boston, said. “Then you have the other end of the spectrum where everyone is looking for a solution. Everyone is under cost and labor pressure so people are looking to squeeze more out of P&L.” Starbucks, for example, is a leader in the digital sphere and has leveraged technology to build its brand, engage with its audience and to develop loyalty among its customers. The Seattle-based coffee company has developed a mobile app that allows patrons to load money onto gift cards, pay for their drinks and order and pick up their beverage without standing in line. Another innovative leap is its wireless charging rings. Starbucks partnered with Duracell Powermat, a joint venture between Duracell – owned by Cincinnati’s Procter & Gamble – and Powermat Technologies in Israel to provide wireless chargers to customers at the coffee house. “Starbucks is certainly at the forefront and has done a great job of driving both the platform and the adoption,” Doyle said. “It’s a brand experience. Typically, a restaurant has only been able to connect with customers when inside of the restaurant. Now the app lets you expand your reach to connect with your customer at home.” Cheesecake has selected MyCheck as the platform provider for CakePay. With U.S. offices in New York, MyCheck develops custom apps for restaurant operators looking to extend services for their customers. Founded in 2011 by Tal Zvi Nathanel, the company has worked with various restaurants including Not Your Average Joe’s based in Milton, Mass., and Twin Peaks, a sports lodge in Addison, Texas. “The decision to introduce CakePay was not solely driven by cost or measurable savings,” Cheesecake’s Rowe said. “There were also soft benefits to consider such as the benefit of being able to free up some of our servers’ time previously spent cashing-out guests, that can now be spent on more of the hospitality aspects of the guests’ dining experience.” Cost control With labors costs on the rise and profit margins tightening, food service providers are looking for ways to cut costs. In some cases, that means automating duties once performed by employees. Take Eatsa, for example. The San Francisco eatery has no servers or wait staff at all. A Valley-area location just opened late last year at Westfield Corp.’s Village at Westfield Topanga in Woodland Hills. The restaurant, which offers an assortment of quinoa bowls for under $7, is fully automated and distributes meals in a bowl from a machine. Patrons can order and pay from a digital screen, then within minutes their food and drink appears in a window fully assembled. That could be the future model for fast-food operations. “Restaurants are becoming a little more creative in how they’re staffing and leveraging technology to combat that increase in costs,” Servy’s Edell said. Closer to home, Glendale-based DineEquity Inc. just revamped and re-launched its mobile app. The app now allows guests to order and make reservations days in advance. Users can enter and save credit card and debit card information on the app as well. In 2013, Applebee’s installed “tablets on the table” at its Applebee’s restaurants. The idea was that guests could use the tablet to place orders and pay quicker, thus turning tables faster and raising sales revenue. “The new and improved Applebee’s Mobile App is completely redesigned with our guests in mind,” Adrian Butler, SVP at DineEquity, said in a statement. “We’ve made the app more order-centric based on what guests told us they wanted.” But despite these innovations, Edell said the restaurant industry is notorious for resisting the adoption of technology. That – coupled with a lack of understanding from tech providers about how restaurants operate, and an insufficient return on initial investments – is a continuing challenge for innovation. “The learning curve sets fear of the unknown, as does costs,” he said. “A lot of the value propositions (promise) costs savings, but the problem is there is an upfront fee that you have to pay for the technology to later receive the benefit. From an operator’s perspective, sometimes you’re not sure you’ll make that investment.” In an industry where fast-casual competitors are thriving, Cheesecake has strived to stay relevant and fresh by being creative with its menu. Last year the chain introduced its “Super Foods” section to the menu, for which it has received ample praise and recognition. Super Foods are healthy dishes inspired by nature such as the Falafel and California Guacamole Salad or the Almond-Crusted Salmon Salad. Cheesecake is slowly progressing on the tech front, and is constantly on the lookout for software that will enhance the guest experience, according to the company’s Rowe. “For us, every decision is always made with the guest experience in mind – whether it be a new menu item, a new service procedure or new technology,” she said. “It’s critical to remain focused on how the guests’ experience will be affected.”
Restaurant Fills Plate With Tech
