Monday, August 28, 2017

To Survive in Tough Times, Restaurants Turn to Data-Mining

The early diners are dawdling, so your 7:30 p.m. reservation looks more like 8. While you wait, the last order of the duck you wanted passes by. Tonight, you’ll be eating something else — without a second bottle of wine, because you can’t find your server in the busy dining room. This is not your favorite night out.

The right data could have fixed it, according to the tech wizards who are determined to jolt the restaurant industry out of its current slump. Information culled and crunched from a wide array of sources can identify customers who like to linger, based on data about their dining histories, so the manager can anticipate your wait, buy you a drink and make the delay less painful.

It can track the restaurant’s duck sales by day, week and season, and flag you as a regular who likes duck. It can identify a server whose customers have spent a less-than-average amount on alcohol, to see if he needs to sharpen his second-round skills.

So Big Data is staging an intervention.

Both start-ups and established companies are scrambling to deliver up-to-the-minute data on sales, customers, staff performance or competitors by merging the information that restaurants already have with all sorts of data from outside sources: social media, tracking apps, reservation systems, review sites, even weather reports. (...)

In Chicago, at the Michelin-starred Oriole, where 28 diners sit down each night to a $190 tasting menu, the owners, Noah and Cara Sandoval, rely on data from the Upserve system to identify their top 100 guests in terms of numbers of visits and amount spent, but that’s just the start. The system also creates a profile with every first-time reservation.

“You can’t know that someone’s going to become a regular, so you don’t necessarily keep track of those people,” Ms. Sandoval said. “But the system does.” It also tracks the top 100’s dining companions when they split the check. Upserve sends a list of credit card numbers, dates of visits and items bought; the restaurant matches each number to a name, and a search on Google, Facebook and LinkedIn provides a face to go with it.

“We’re sure to recognize them” the next time they come in, so the staff can welcome them back by name, Ms. Sandoval said. “It surprises people, in a nice way, when they didn’t make the reservation themselves.”

Even the type of credit card contributes to the dossier. If a customer pays with an airline card, a server might mention travel. If a customer is a sports fan, he will most likely get a server who is as well.

The food gets similar scrutiny. Upserve offers a “magic quadrant” feature that divides dishes into four categories — “greatest hits,” “underperformers,” “one-hit wonders” that are popular with first-timers but not with repeat visitors, and “hidden gems,” which regulars like and first-timers don’t — to help the Sandovals understand which are popular, and which prompt diners to return.

Customers who find the mining of personal data invasive can opt out, up to a point, but it requires effort: To avoid detection, they have to pay cash and not make reservations. Those who participate actively in the process get more information in return.

by Karen Stabiner, NY Times |  Read more:
Image: Cole Wilson
[ed. Hmm... I can't think of a better way to alienate your customers.]