Hello and welcome to Modern CEO! I’m Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning.
I’ve always thought that technology is making service in the hospitality sector increasingly impersonal. Kiosks allow you to check into a hotel without engaging with a front desk clerk. Apps let you pre-order and prepay for restaurant food. A variety of tools and software seem to be taking human interaction out of a business whose very name—hospitality—implies warm and welcoming interactions.
High tech vs. high-touch
But Danny Meyer, founder and executive chairman of Union Square Hospitality Group, believes technology can enhance humanity at his establishments, which include respected fine-dining restaurants such as Union Square Café and Gramercy Tavern. “Any great technology should advance ‘touch’,” he says, adding that software can eliminate some of the guesswork and friction that happen behind the scenes at restaurants, “allowing the human beings to enhance the hospitality part.”
At a NYC Tech Week event last week, Meyer and Rob Thomas, who leads IBM software and oversees all of IBM’s artificial intelligence (AI) products, spoke about the ways technology is helping restaurant managers with some of their most pressing issues, including ongoing labor shortages and inventory management challenges. Meyer says platforms such as SevenRooms (Meyer’s Enlightened Hospitality Investments fund is an investor) help restaurateurs build stronger relationships with customers by tracking information from past visits. A host can be prompted to say “welcome back” if someone is a regular or acknowledge a birthday or anniversary; a server can be notified in advance if a guest has allergies or food preferences, and more.
Technology also can prevent embarrassing mistakes: Meyer recounted a story of how his restaurants once sent out a mass email to all customers inviting them to bring their own wine—the corkage fee would be waived—to fill tables during a snowstorm. But nondrinkers who received the offer were unpersuaded, or worse, offended. So-called “guest experience” technology can help restaurants better target and personalize their marketing efforts.
Turning the tables with AI
I’m not convinced that the typical restaurant will use technology and AI to enhance personal touch. Meyer’s high-end eateries are as much about the dining experience as they are about the food and thus can be thoughtful about the way they incorporate AI-generated predictions into menu planning or customer recommendations. Harried managers at quick service restaurants may not have that luxury. Indeed, both Meyer and IBM’s Thomas talked about how AI could be used at drive-thrus and fast-food restaurants to suggest order add-ons because workers are sometimes reluctant or too busy to steer customers to purchase extras.
Meyer did win me over with one technology he’s hoping to deploy. He says servers sometimes struggle to know exactly when diners are reaching the end of their meals (he poked fun at the phrase, “Are we still working on that?”) and might be ready for their check. Meyer says one of the things he likes most about ride-hailing app Uber is its frictionless payment, and that he’d be keen to introduce a system where diners can pay their bills digitally and leave whenever they’re ready. As someone who often needs to catch a commuter train after dinner in the city, and really dislikes miming signing a receipt, I’d welcome the ability to pay for my meal digitally and dash to Grand Central Terminal!
Automation in action
What parts of your business have you automated, and have they enhanced your employees’ ability to serve customers or increased the human touch? I’d love to hear about your experiences with automation in your own business. Send your examples to me at stephaniemehta@mansueto.com.
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