Digital technology is changing the fundamentals of operating a restaurant, and enabling restaurants to finally take advantage of the accompanying availability of high-quality data and consumer insights.
Prior to digital transformation, what it took to run a successful local retail business looked very similar to what running a restaurant does today. But stores then had a “POS view of the world.” They understood only what a customer spent during a transaction, not across their lifetime, making marketing and customer acquisition challenging. A lack of data meant that most things could not be measured, so there was a lot of guesswork and often wrong conclusions.
With digital, everything changed. Most things could be measured well and a lot of data was available to remove the guesswork on decisions. Retail businesses that embraced data and adapted their operations (and business culture) had a big advantage. The remaining businesses have struggled, and are unsure how to survive in the new world.