Hospitality Business Magazine

Wait not, want not: Five ways to run restaurants without waiters

Waitresses and waiters, a restaurant’s human face may be limited!

Waiters and waitresses have always played a big part in the experience of eating out. However, in big cities with high property prices, good ones can be hard to find, never mind pay reports Paymentsense. They report some restaurants are starting to think the unthinkable: is it possible to have a successful waiter-free restaurant?

The idea of virtual service came up in a recent report on the UK restaurant sector by Paymentsense*. It highlighted enthusiasm for the idea. Indeed, 76% of consumers would consider ordering by app, if they could, including up to 92% of young families.

So, are waiting staff critical to the dining experience? Or just a cultural hangover from a more deferential age? And what approaches are restaurant businesses using right now to serve customers without servers? Let’s take a look at a few emerging trends.

Idea #1: The customers do it 

San Francisco, the pioneer of ‘fast fine’

As the hub of America’s digital start-up sector, San Francisco is a magnet for ambitious entrepreneurs and skilled tech workers. But this unprecedented boom has sent property values soaring while waiting staff have become ever more scarce and expensive.

One approach, pioneered by Greek restaurant, Souvla, is to get the customers to muck in. Runners deliver the food, but diners must find their own seat, get their own water from a stand and, if they fancy more wine, go back to the counter to order it.

Perhaps this is the right approach for the city’s high concentration of tech workers, many of them millennials. The so called ‘impatient generation’ appreciate quality, but don’t always want to hang around too long getting served.

By offering a limited range of high-quality food in charming surroundings and eliminating servers, it’s possible to reduce costs without compromising on quality. Of course, self service is nothing new, but this is a different approach with a new name: ‘fast fine’ and it’s creating interest among purveyors of other cuisines.

Idea #2: The cooks do it

Further down the California coast, in Encino, outside Los Angeles, flamboyant chef Phillip Frankland Lee is pioneering a different approach centred on his Scratch Bar & Kitchen. Rather than eliminate waiters, he’s delegated the role to his cooks.

As well as preparing the food, his kitchen staff must also meet and greet customers, wait tables and take payment. One advantage of this arrangement is that customers are served by someone with an intimate understanding of each dish.

Rather than see his idea as cost-cutting, Lee believes it’s an opportunity to forge a new relationship between staff and customers. And despite a few ups and downs, it seems to be working.

Idea #3: Robots do it

Alibaba Group is China’s own version of Amazon, re configuring multiple business models at scale for massive profits. However, unlike their American rivals, they now run restaurants and their Freshippo chain is leading the way in robotised service.

At their Shanghai branch, customers use an app to secure a table. Once seated, they scan the table’s QR code and use an app to make their meal selection. The robotic servers then use radio frequency identification to wheel the meal over in a serving pod with a lid that opens automatically.

Idea #4: The owner does it

At De Haan restaurant, in the Dutch city of Groningen, owner Dennis de Haan does everything. He’s the chef, cook, server, sommelier and dishwasher at the sixteen-seat establishment which serves five courses and features an open kitchen and wine bar.

He’s done it by ruthlessly rationalising every aspect of the experience and every inch of space. Each course has a wine pairing and a dedicated work surface, with ingredients located at arm’s length. Guests simply write down what they’ve eaten to create the final bill.

However, as de Haan admits, solving the logistical challenges would be worthless without great food. Fortunately, customers keep coming back.

Idea #5: Nobody does it

The Wufangzhai restaurant chain in China’s eastern city, Hangzhou, is over 100 years old. Yet the company recently revolutionised its offering with a new type of “intelligent restaurant.” The food is still prepared by human hands, but everything else is automated.

Customers enter an unmanned, hi-tech space and use their Alipay smartphone app to select and pay for a hot meal. Within five minutes, they can pick up their purchase from one of the automatic lockers lining one wall. They can also order in advance or choose from a range of pre-prepared items.

The new concept has halved the company’s annual labour costs, while encouraging customers to spend more cash, and less time, in-store.

Idea #6: It doesn’t happen

Perhaps inevitably, the recent take-off of take-out meals has led some restaurant brands to eliminate their bricks and mortar presence. As a result, we’re now seeing restaurants with a ‘delivery only’ app presence.

This is possible due to the arrival of ‘ghost kitchens’ – out-of-town warehouses where all types of food are prepared purely for delivery through apps such as Just Eat, Deliveroo or Uber Eats.’ With minimal restaurant overheads and burgeoning demand, this trend is taking off in London, Paris, Los Angeles and throughout China.

Some of these digital restaurants are simply extensions of existing bricks and mortar establishments, such as Wagamama or GBK. Others are entirely virtual concepts with no actual walk-up presence.

Food for thought

So, will these new trends threaten high street restaurants or save them? Are they destroying livelihoods or providing an alternative? And will people eat out less – or eat restaurant food (in and out) more?

Perhaps these questions are too simplistic. In the end, businesses are simply adapting to changing economic incentives and new technology. The price points may make these ideas viable for many, but there will always be a demand for a proper night out – and that usually requires table service.

*Restaurant Insights 2020: The inside story on eating out.  A Paymentsense Annual Market Report. To download the report visit https://www.paymentsense.com/uk/restaurant-insights/

Bed Tax support dropped

The Productivity Commission has dropped its support for local bed taxes and has accepted Tourism Industry Aotearoa’s position that international visitors are already more than paying their way, primarily through the GST system.

The Commission’s Report into Local Government Funding and Financing has been tabled in Parliament this afternoon.

In its draft report issued in July, the Productivity Commission had recommended the introduction of accommodation levies – or bed taxes – to fund tourism-related infrastructure at a local government level. TIA strongly pushed back on this recommendation, and actively engaged with the Commission to broaden their understanding of how the visitor economy works.

TIA Chief Executive Chris Roberts says TIA took up this fight on behalf of the accommodation sector and the wider tourism industry. He is delighted the Productivity Commission is now recommending councils should use the existing tools available to them.

“Bed taxes would miss the majority of travellers and add costs to a small set of operators already struggling with increased business and compliance costs, at a time when tourism is slowing.”

The Productivity Commission report says councils already have a wide range of funding options available to them and need to make better use of these, including user pays, rates and debt funding. The Commission says there is also a role for central government funding support, which could be targeted more efficiently to ensure councils can plan and prepare for tourism.

Mr Roberts says TIA agrees with all eight of the tourism findings and the four tourism recommendations outlined in the report. TIA also agrees wholeheartedly with the Productivity Commission’s conclusion on tourism (page 279), which states:

‘Better use of existing tools and central government funding should be enough to address tourism funding. Given the small scale of the funding gap, introducing new tools would incur significant implementation, administration and enforcement costs and is unlikely to result in a net benefit to councils.’

The report also notes that tourism is the only industry that is ‘double-taxed’ by the GST system – ‘…international tourism not only incurs 15% GST; the imports funded from its foreign-currency earnings also incur 15% GST. This charging of GST on both the export and import sides is not consistent with the principles of a pure GST’ (page 263).

Mr Roberts says this observation supports TIA’s position that central government should consider distributing funds equivalent to a portion of the GST take from international visitors to local government.

“The new Stats NZ figures out this week showed that international visitors spend $17.2 billion a year in Aotearoa, $1.8 billion of this going directly to the Government in the form of GST.

“As the Productivity Commission quite correctly points out, international visitors more than pay their way: ‘…this GST represents a large excess of revenue from international tourists above and beyond the costs they impose but don’t already pay for…’

“We look forward to working with the relevant agencies to progress the work and recommendations of the Productivity Commission,” says Mr Roberts.

Hotel quality scores improve revenue strategies

Cutting-edge technology pairs traditional revenue management tools with new Hotel Quality Index™ to boost hotels’ REVPAR

Challenging the adage of ‘quality over quantity’, travel technology company Beonprice (www.beonprice.com) has redesigned the hospitality industry benchmark assessment to help hoteliers better qualify rates and competitor set in their revenue management strategies.

The new Hotel Quality Index™ (HQI™), developed by Beonprice, is a unique way of assessing a hotel’s reputation and market position to improve a property’s REVPAR. Combining traditional revenue management considerations with real-time information about the hotels’ positioning in the marketplace, HQI™ assesses the best price as well as the chances of selling at that price in the market.

For their hotel partners using HQI™, Beonprice’s unique use of technology has led to as much as 11% increase in REVPAR in the first six months of use1.

Developed with input from former hotel revenue managers, HQI™ analyses external market data, including product quality and online reputation, using Artificial Intelligence to calculate an overall quality score for hotels.

The HQI algorithm evaluates the room weighting value of each product’s characteristics according to the target guest segment to optimise the objective quality to reach the overall quality score. Essentially calculating the value of the product to the most relevant customer at that specific moment in order to optimise the booking rate in relation to sales probability.

“Revenue management is a science, and like all scientific fields, progress brings a deeper understanding and better results,” says Emilio Galan, Chief Technology at Beonprice. “Using HQI™, hotels are able to set a multifaceted pricing strategy, refining their rates and estimating the probability of sale for different segments. Having the most accurate pricing recommendations per room and rate type at their fingertips helps our clients meet their goals and react in real-time to market changes.”

Beonprice is dedicated to improving its customers’ business results, combining its technology with clear, user-friendly dashboards; exemplary customer service with a dedicated revenue strategy expert assigned to each customer; and an online Academy providing revenue training for hotel staff.

For more information on Beonprice, visit www.beonprice.com

Entries open for 2020 Awards

Kiwi food and drink producers are invited enter the 2020 Outstanding NZ Food Producer Awards, to  be judged in March.

First held in 2017 the awards celebrate Kiwis who harvest, grow and make food and drinks. Each year a team of specialist judges assess around 200 products, awarding stand out products with an Outstanding NZ Food Producer Award which allows the products to wear a Gold, Silver or Bronze medal sticker as an independent endorsement of its quality. Gold Medal winning products will be assessed for five special awards and the five Champion Awards, with one of the Champions to be named Supreme Champion.

2019 Supreme Champion The Wooden Spoon Boutique Freezery is encouraging producers to enter the awards. Co-owner Sharon Galeon said; “We can’t put a value on the increased brand awareness we have as a result of winning the Supreme Champion Award. The flow on effect is strong growth in our sales and improved national distribution. We are working on some exciting new products to enter in the 2020 Outstanding NZ Food Producer Awards.”

The 2020 Awards judging panel will again be led by advocate for artisan food producers, Lauraine Jacobs. She will be supported by Lucy Corry, NZ Life & Leisure Taste editor and contributor to NZ Herald, Be Well magazine. They will be joined by a host of food and drink experts who will judge in specialist panels across the major categories; paddock, dairy, water, earth and drink. For the first time Sustainability judging will be led by Fiona Stephenson, National Communications Manager for the Sustainable Business Network.

In recognition of the importance of sustainability the marks allocated for sustainable business practice in 2020 are increasing to 15 percent for each entry. With 75 percent of marks awarded based on product quality, flavour, aroma, texture, consistency and innovation with the final 10 percent allocated for brand story and product originality.

The most outstanding product as assessed by the judges will be named Supreme Champion at the Champions Party in Auckland on Tuesday 21 April 2020. After the awards Marvellous Marketing will host Winner Dinners at leading restaurants around New Zealand between May and July 2020 to showcase the winning produce and introduce it to Kiwi food lovers.

The full list of awards include: Outstanding NZ Food Producer Supreme Champion, Emerson’s Dairy Champion, Seafood New Zealand Water Champion, Farro Earth Champion, Giesen Wines Paddock Champion and Label & Litho Drink Champion. Special awards are: NZ Life & Leisure Spirit of New Zealand Award, Outstanding Sustainability,  FMCG Business Outstanding New Product, Outstanding Free-From Product and FRESH Outstanding Startup Producer.

Announcing the opening of the 2020 awards, organiser Kathie Bartley made special mention of new sponsor Seafood New Zealand and thanked the loyal sponsors who make the Awards possible; NZ Life & Leisure, Giesen Wines, Emerson’s, Farro, FMCG Business, Label & Litho, Fresh.co.nz, Coast and Marvellous Marketing.

From 1 February 2020 the organisers will be encouraging foodies to vote for the Coast Outstanding Product and Coast Outstanding Farmers’ Market in the annual Coast People’s Choice Awards.

New Zealand producers harvesting, growing and making food which is available for retail sale must enter the awards online at outstandingfoodproducer.co.nz  by Friday 28 February 2020.

New culinary & hospitality school launched to combat skills-shortage

The Culinary Collective, a progressive school of cooking and hospitality has been launched in Auckland in response to an alarming industry shortage of skilled workers and the need for skills that reflect the new ways people like to eat, drink and be entertained.

According to the Restaurant Association of New Zealand, it is estimated the industry will need another 55,000 skilled workers to meet demand over the next five years.

The Culinary Collective is on a mission to attract more students into the fast-growing cooking and hospitality industry by helping them transform a passion for food and service into a rewarding long-term career.

Offering a range of contemporary qualifications tailored to meet the needs of the modern food and hospitality industry, The Culinary Collective is keenly focused on ensuring qualifications are directly connected to employment outcomes, with all 16 courses offered named after jobs students will be aspiring to work in. This includes the International Chef, the Visionary Foodie, the Professional Chef, the Restaurant Manager, the Front of House and the Entrepreneur Baker.

The Culinary Collective, CEO, Nicole Domett says a new approach to vocational education for cooking and hospitality has the potential to redefine the industry and attract the next generation of industry leaders.

“A recent survey by the Tertiary Education Commission3 found that 18-24 years olds don’t have a positive image of vocational education in New Zealand. We know this applies to hospitality and cooking and there is a job to do in redefining the opportunity – engaging and relevant study is an important starting point.

“The Culinary Collective is taking a fresh approach to equipping students with skills that will support their professional goals and are in-line with industry trends, and importantly we are focused on attracting more students into careers in hospitality by shifting perceptions around what ‘working in hospo’ can be,” says Ms Domett.

Guided by a suite of industry leading tutors and a dedicated careers team, The Culinary Collective works closely with students throughout their study to place them into internships and then transition them successfully into employment.

Industry employment partnerships will see students transitioning into employment with major hotels and resorts such as Sofitel, Grand Mercure, Pullman Hotels, Hilton Hotels & Resorts, Cordis Hotel, and

Millennium Hotels and Resorts. For students looking for experience overseas, international employment partnerships will enable students to work in the United Kingdom for hotels like the Ritz Carlton, and in America for hotels within Walt Disney World Resort along with five-star resorts in Banff, Jasper and the Rockies.

According to the MoneyHub guide of ‘What to Study in 2020’, training to be a chef is highlighted as one of the Top 20 areas of study in New Zealand based on where in-demand jobs are, what they pay and the potential for career progression.

“New Zealand is a leading tourism destination and services are at the core of the economy. Training to be a chef is an excellent career choice, given the demand for jobs here and worldwide. It’s creative, flexible, self-managing and highly engaging,” said Christopher Walsh, senior research at MoneyHub.

“Best of all, many chefs go on to run their own business, and/or expand entrepreneurially in other ventures. It’s a career that is only going up, with opportunities for every interest.”

Taking a distinctive approach to higher learning for cooking and hospitality, The Culinary Collective will teach students a diverse mix of traditional and contemporary skills, in and out of the classroom, spanning classical cooking and service techniques, contemporary hospitality trends such as the global move towards relaxed fine dining, along with a stronger focus on provenance and sustainability.

“The Culinary Collective reflects New Zealand’s unique food culture hallmarked by a diverse mix of flavours and cultures, world-class produce from paddock, land and sea, and the driving passion Kiwis have to be innovative, and find new ways of doing things. We are creating a learning environment that will allow students to forge their own personalised ethos around food and service, and further expand the global impact of Kiwi-centric hospitality through a successful career,” says Ms Domett, CEO of The Culinary Collective.

The Culinary Collective forms part of the category one provider NZMA which is part of UP Education, the largest provider of career and industry focused skills and qualifications in New Zealand. Each year, over 80% of UP Education graduates go on to higher study or successful employment.

Student enrolments are now open for The Culinary Collective with the first cohort of students beginning study in February 2020.  For more information, visit https://www.culinarycollective.co.nz 

AUT applauds hospitality excellence

Top Auckland restaurateur Tony Stewart was acknowledged with a Lifetime Achievement Award for his significant contribution to New Zealand’s hospitality industry at AUT’s School of Hospitality and Tourism Awards ceremony on December 9.

His commitment to food and service excellence were key factors in his award nomination, says Dr David Williamson, Head of the school’s hospitality department.

“Tony Stewart’s Clooney restaurant has set a new dining experience standard,” he says.

“Since leaving Clooney, Tony’s commitment to recognising New Zealand produce and terroir has provided an inspirational future view.”

Dr Williamson says Tony Stewart appears to be on a never-ending quest in his contribution to the industry.

Tony Stewart says he is humbled and somewhat shocked to receive the award, however he was proud to be recognised for his past and future contributions.

Kate Fay

One of Auckland’s top chefs, Kate Fay of the renowned Cibo in Parnell, was also acclaimed at AUT’s awards ceremony, also gaining an Outstanding Achievement Award.

The award recognises not only her 25-years at Cibo, including 21 years as Head Chef, but also her innovative approach to cuisine.

Exemplifying the latter is Kate Fay’s infamous hāpuka and slipper lobster with spicy XO and coconut porridge, followed up with Valrhona chocolate with a peanut slab, fondant and macaron for dessert.

In 2018 Beef and Lamb New Zealand awarded her a platinum ambassadorship award for winning four standard ambassadorships (1999, 2005, 2013, 2018). Kate is the first woman chef to receive this award and there are only eight holders of the award nationwide.

The Head of AUT’s culinary programmes, John Kelly, says she is a great role model for chefs.

“Kate’s approach to food and willingness to train staff are legendary,” he says.

“We are delighted to honour her in this way.”

Zest OK opens for the socially-conscious youth traveller

If a fun, social vibe is what you’re looking for from your next stay in the City of Sails, then the latest addition to Auckland’s youth accommodation scene is designed with you in mind.

The world’s first Zest OK youth hotel has opened in Auckland’s Grafton ushering in a new era for backpacking in the city. This exciting new addition to the accommodation fold offers private rooms, with lively shared spaces to make your stay a memorable one.

Created for the young and young-at-heart, Zest OK promises a fun, social environment for short and long term travellers .The central Grafton location ensures entertainment is on the doorstep with transport hubs in close proximity, the buzz of the central city is 10 minutes away, as well as being a convenient distance from Spark Arena and festival hotspots.

Designed with the socially-conscious youth traveller in mind, this affordable two-star youth hotel delivers a vibrant atmosphere where meeting new people is encouraged, thanks to the shared social spaces available.

“Zest OK offers guests a vibrant place to stay where meeting new people is encouraged. It’s designed to enhance the travel experience, allowing you to share your experiences and make them even more memorable with new friends,” states Oliver Faull, Vice President of Australia and New Zealand for Swiss-Belhotel International.

Made up of 321 rooms with a choice of single or double occupancy, each room is fitted with a bed, fridge, desk and windows, along with shared bathrooms (two per floor) and common areas on each of the 11 floors.

The shared social spaces are where the action happens, with each floor featuring a kitchen, lounge/TV room and laundry facilities. While a large outdoor space fitted with a BBQ and covered seating is on offer for all guests to enjoy.

Each guest is provided with a security card with 24 hour access and entry to your floor and common areas, ensuring a safe and secure environment.

This new addition will extend Auckland’s youth accommodation offering and provide a value-conscious option for those looking to make their dollar go further.

Zest OK has a summer special, offering guests a week-long stay for $265 (now – 31 January 2020). Daily and monthly rates are also available.

http://www.zest-ok.com

Sean Connolly exits SkyCity Auckland

Celebrity chef Sean Connolly is hanging up one of his many hats and calling last orders, as he departs from his role as Signature Chef at SkyCity Auckland’s The Grill and Gusto at the Grand. Sean’s last day at SkyCity will be 31 December 2019.

SkyCity would like to thank Sean for the many years he has dedicated to the Auckland precinct, where he played a considerable role in helping to establish the popular Federal Street dining precinct.

Michael Ahearne, Group Chief Operating Officer, says that he and the wider SkyCity team have thoroughly enjoyed working with Sean, where his industry knowledge and culinary skills has created amazing experiences for customers and employees.

“The talents of Sean Connolly, combined with our great working relationship, has resulted in outstanding results and success at our outlets, helping put Federal Street on the map and creating to a lasting reputation for the precinct,” says Mr Ahearne.

Sean Connolly says that it has been a very tough decision, “when I joined SkyCity Auckland more than eight years ago, the Federal Street dining precinct was just an idea. Today it is widely recognised as a premier dining district and home to some of the best restaurants in Auckland,” says Mr Connolly.

“I’ve had a thrilling journey with the group and I’m proud that my time with The Grill and Gusto have contributed to the legacy of Federal Street. I leave with great memories and I will miss the unbelievably talented team of staff that I have been so lucky to work with.

“I want to thank SkyCity COO Michael Ahearne, Exec GM, Hospitality Callum Mallett and the SkyCity Board for their vision in creating a home to some of the best bars and restaurants in Auckland. They have truly redefined the inner city and created a culinary heart for Auckland,” says Mr Connolly.

“Sean leaves SkyCity with our best wishes for the future, but this isn’t goodbye, as we look forward to continuing to work with him via Sean’s Kitchen, which is located at SkyCity Adelaide,” says Mr Ahearne.

Operations at SkyCity’s The Grill and Gusto at the Grand will remain the same, where the array of food and drinks that customers love will continue to be served. Ryan Allen will continue to lead the team as the Head Chef at The Grill, alongside, Vaughan Kay, Head Chef at Gusto at the Grand.

SkyCity is excited to launch its summer menus, alongside a delicious oyster and champagne offering over the coming months.

Interest sought for Dunedin luxury hotel

The Dunedin City Council has put the call out for developers to register interest in building a high-quality hotel complex.

To be located on the CBD’s Moray Place/Filleul Street carpark site, interested parties are being asked to submit registrations of interest which include concept designs and details of their development experience.

Demand for a luxury hotel has increased significantly in Dunedin reports insiderdunedin.co.nz. High-end, boutique and or self catered accommodation such as the Chamberson and The Terminus have emerged lately, but tourist and business event operators confirm there is further need.

Hospitality New Zealand appoints new CEO

The Hospitality New Zealand Board has announced the appointment of Julie White to the position of Chief Executive Officer. Julie is looking forward to working closely with the association’s Board, elevating Hospitality NZ’s reputation as a high value contributor to New Zealand’s economy and an important part of the tourism sector.

“I look forward to working closely with Julie as we continue to support our members, advocate tirelessly for the industry and bring value to our members,” said Jeremy Smith, President of the association on announcing the appointment.