May 1, 2023

DRA @ RLC 2023

On April 18, Joe Reinstein, Executive Director of the Digital Restaurant Association, led a panel discussion at the Restaurant Leadership Conference, joined by Mike Axiotis, CEO and President of Lehigh Valley Restaurant Group (Red Robin franchisee) andTalon Restaurants (Wingstop franchisee), Juan Martinez, Owner of Martinez Hospitality (Don Juan MexGrill, Melly Mel’s Chicken, Miss Jackson’s Kitchen), and Sean Kennedy, EVP Public Affairs National Restaurant Association to discuss how digital tools have helped revolutionize the restaurant industry and address the emerging challenges restaurants face in the implementation of these tools.

Digital takeout and delivery has become an essential part of life for every generation. Third party platforms played an integral role throughout the pandemic in keeping restaurants in business and continue to add tremendous value in exposing new customers to brands. “83% of restaurant operators believe that technology innovation has favorably changed the industry—which is rather shocking when you’re looking at seven tablets cranking out seven different delivery services. And yet, we still embrace technology and embrace it to drive efficiency, streamline our operations and connect us to new customers,” said Joe Reinstein. “But with this opportunity, brings challenges.”

At a time when online orders make up 30% to 50% of a restaurant’s business with increasing reliance on third party delivery platforms, complete control of the customer experience has shifted away from the operator. “People go where they feel appreciated,” said Juan Martinez, as he spoke about his experience as an independent operator with Martinez Hospitality and Don Juan MexGrill. “When customers come to our restaurant we provide them consistent good food and service, it’s a reflection of our brand and our value. With third party delivery, that doesn’t always happen.” 

Third party platforms add a layer between the operator and the customer that makes it difficult to address concerns in real time, resulting in negative experiences that could’ve been solved through direct communication, ultimately eroding customer loyalty. “When you have guests in your dining room, you have the opportunity to go up and visit the table and apologize and remake their food, you don’t have that same opportunity when they live 10 minutes or 15 minutes away,” Said Mike Axiotis, speaking about running Wingstop and Red Robin franchises. “We need to have the technology capabilities to not only communicate with them effectively, but also incentivize them to come back and try us again.”

To remove the hurdles that prevent the best possible customer experience, the panel discussed how essential open and transparent data sharing is between restaurants and third party platforms. Sean Kennedy highlighted the importance of collaboration with the platforms outside of pursuing solely legislative avenues: “Restaurants are the lowest profit margin business for small businesses—3% to 4% for most of them. We’re not going to survive. And the message that we’re conveying to DoorDash and Uber Eats is ‘You’re mature, you finally have your act together, so to speak. We need to identify a long term relationship.’”

“It’s in everybody’s best interest from the delivery services, customers, drivers and restaurants that we want to give a better experience to our customers. And that means being able to resolve issues in real time avoiding errors by being able to have communication and logistics connection between restaurants and the drivers and the platforms and customers,” added Joe. “It just makes sense. It’s good business.”

The Digital Restaurant Association is at the intersection of restaurants, elected officials and stakeholders, and the technology platforms used to run our businesses, and dedicated to advocating for fee transparency, customer information sharing, and furthering the interests of member restaurants across the country.

For a limited time, the Digital Restaurant Association is waiving new membership fees. Find out more information and become a member by clicking here.