If technology adoption in the hospitality industry were a road trip, it would be the kind where you start with great intentions, get sidetracked at the world's largest ball of twine, and finally arrive just in time to see the hotel pool closing. While industries like retail and consumer goods have been tearing down the tech highway in sports cars, hospitality has been puttering along in a well-loved but slightly rusty station wagon.
The journey of technology into the restaurant ecosystem often begins at CES, where the latest gadgets and innovations are unveiled with all the subtlety of a Vegas headliner. Consumer technology is the wild west of innovation, with companies throwing spaghetti at the wall (sometimes literally, if it’s a smart kitchen appliance) to see what sticks. After that initial splash, technology makes its way to the NRF and the retail sector, where it's refined and tested. Retail is the responsible older sibling, adopting tech and showing the world what works and what doesn’t—think of it as the Consumer Electronics Show’s more practical, business-savvy cousin.
And then there’s hospitality. The industry often looks to retail as a crystal ball for what might be next in restaurant tech, a strategy that is both wise and a bit like using last year’s weather forecast to plan this year’s picnic. The truth is, by the time technology reaches the back-of-house in a restaurant, it’s often been through several evolutionary stages—like a game of telephone where the original message was "automation" and the final result is "automated napkin dispenser."
Why Is Hospitality Slow to Adopt New Tech?
- Risk Aversion: The margins in hospitality are razor-thin. One bad tech investment could tip the scales from profit to loss. Many operators have learned (often the hard way) that jumping on the latest tech trend without a plan is like diving into a pool without checking if there’s water in it—except in this case, the pool is also filled with alligators. Hungry ones.
- Cost Concerns: Restaurants, especially the smaller ones, aren’t exactly swimming in cash reserves. Whether it’s a new POS system or fancy kitchen automation, technology comes with upfront costs and ongoing expenses that don’t always fit into the budget. It’s like trying to buy a yacht on a rowboat budget.
- Time and Complexity: Between running the floor, managing staff, and ensuring guests are happy, most hospitality leaders are already spread thin. The idea of adding a technology project to the mix often feels like adding a 10K to an already full marathon—except the marathon is uphill and on fire.
- Capacity and Competing Resources: Technology projects demand resources—sometimes resources you simply don’t have. When your staff is already burning the candle at both ends, who’s got time to learn a new system, let alone manage it? Spoiler: Probably not Karen from accounting.
The Buzzword Elephant in the Room: AI
If “disruptive” was the cringe-inducing buzzword of the last decade, “AI” has taken the crown today. Everyone and their grandmother seems to have an AI-powered solution that promises to transform your business overnight. But here’s the rub: AI is no longer a differentiator—it’s table stakes. If your software doesn’t have AI, it’s like showing up to a sword fight with a rubber chicken.
Remember ten years ago when the big question for businesses was, “What’s your IT strategy?” Today, that’s evolved into, “What’s your AI strategy?” You can almost hear the conversation in the C-suite:
“Hey Bob, we need to get us some of that AI everyone’s talking about.”
Bob, likely trying to remember where he left his sanity, responds with, “Uh, okay... What does that mean?”
And that’s the million-dollar question. Instead of asking, “Do we have AI?” the smarter approach is to ask, “What do we need it to do?” Focus on the utility and outcomes. Otherwise, you might end up with a very expensive solution looking for a problem. Or worse, a sentient AI that schedules all your meetings for 3 a.m. because technically, it was never told not to.
Legal Implications: A Cautionary Tale
Consider the well-known chicken chain out of California that proudly rolled out an employee-facing scheduling tool. The goal was simple: give employees easy access to manage their schedules, cut down on calls to managers, and generally make everyone’s life easier. Unfortunately, this well-intentioned move led to a lawsuit. Hourly employees argued that logging into the app to manage schedules was work, and they wanted to be paid for it. Cue a costly class-action legal battle. The takeaway? Always evaluate the legal implications, especially when technology touches employee interactions. Or, you know, before you inadvertently sign up for a decade of providing free chicken sandwiches to disgruntled staff.
Red Herrings and Missteps
Shiny object syndrome is real. Many operators have been lured by slick sales pitches and buzzword-laden presentations, only to find they’ve invested in a tool that solves a problem they don’t have—or worse, creates new ones. It’s like buying a robot vacuum when you live in a house with no floors. Before you buy, always ask yourself: What’s the problem we’re trying to solve? Or at least make sure your robot vacuum doesn’t develop a vendetta against your dog.
The Wisdom of Defining Requirements First
Stephen Covey famously said, “Begin with the end in mind.” This wisdom is gold when it comes to technology. Rather than asking, “What tech should we buy?” start with, “What problem do we need to solve?”
The Reality
The hospitality industry’s cautious approach to technology isn’t a flaw—it’s a strategy. The goal isn’t to be the first to adopt new tech; it’s to adopt the right tech. By approaching technology decisions thoughtfully and with a clear end goal, hospitality brands can avoid costly missteps and make smart investments that enhance operations and guest experiences. After all, it’s not about having the latest tech—it’s about having the right tech. And, ideally, technology that doesn’t accidentally lock you in the walk-in freezer while it schedules your next team meeting.