By Sakshi Singh, Contributory Author
Oct 17, 2023 / 9 MIN READ
Just a few decades ago, the concept of connecting kitchens with datasets and merging food with blockchain technology was utterly unfathomable. Even the most forward-thinking leaders in the hotel industry could not have predicted a future where the kitchen would evolve into a technological epicenter. In what has largely gone unnoticed, the food and beverages sector has quietly undergone a technological revolution. Technology has been steadily infiltrating every aspect of this industry, spanning from customer-facing functions such as food ordering and delivery to the behind-the-scenes operations of kitchens and sourcing.
Among the pivotal technologies anticipated to gain more ground in the F&B space are Artificial Intelligence (AI)-driven solutions, kitchen automation, the Internet of Things (IoT), and the integration of blockchain for enhanced traceability. Alongside AI and IoT, advanced order management systems, digital invoicing, and real-time inventory management have become commonplace in the hotel industry.
"In the ever-evolving landscape of the hotel industry's Food and Beverage segment, several noteworthy technological breakthroughs are shaping the way hotels provide their services. These include contactless ordering and payment systems, AI-driven personalization, smart kitchens, sustainability initiatives, and food safety technologies," observed Ranjan Rajani, Director of Food & Beverage at Sahara Star. This industry, which thrives on flawless service quality with no room for errors, has proven to be a fertile ground for technological disruption. Digital order and inventory management systems, for instance, have streamlined processes from sourcing to food delivery, enhancing consistency and quality in food preparation.
The profound impact of these new-age technologies on food and service quality becomes evident when considering the historical disconnect that existed among various departments in large F&B operations. In the absence of an integrated system, procurement, ordering, preparation, and delivery were disjointed processes. However, digital solutions like integrated order and inventory management systems have successfully synchronized procurement with order volumes. Traditional paper tickets in kitchens have been replaced by digital screens, seamlessly connecting the front-end restaurant with the back-end kitchen. This integration allows for the clear display of outstanding orders, inventory levels, necessary checks and processes, and estimated preparation times, simplifying operations in high-pressure kitchen environments.
The use of integrated systems in F&B operations also empowers data capture, which is analyzed by AI-powered software to identify patterns, facilitating efficient operations. "Data analytics plays a pivotal role in understanding guest preferences and behavior. Hotels leverage this data to tailor their F&B offerings, optimize pricing strategies, and allocate resources effectively," according to Gaurav Bisht, Assistant Food and Beverage Manager at Hyatt Regency Pune. With the right amalgamation of hardware, software, and data, hotels can personalize orders for high-value guests. A recent incident in a large NCR hotel serves as a prime example. The hotel's AI-powered system utilizes available data to inform kitchen staff about guests' preferences, including any allergies, in real-time, eliminating the need for guests to repeatedly communicate their preferences.
Efficiency is the cornerstone of emerging technology solutions in the F&B industry, and one of the sector's most pressing issues is food wastage. IoT-enabled appliances and devices have emerged as a sought-after solution for minimizing waste. Connected pods for cooling and heating devices maintain the optimal temperature and alert staff to microbial or bacterial growth, leading to better resource utilization and reduced wastage.
Strict control over spoilage, wastage, and traceability ensures the delivery of quality products to guests. Some hotels have begun using blockchain technology to verify the authenticity of suppliers and the purity of ingredients. Mihir Kane, Executive Chef at Fairmont Jaipur, explained that "Blockchain ensures transparency in the hotel industry's supply chain by creating an immutable record of every step in the sourcing and distribution process, reducing the risk of counterfeit products and ensuring that guests are served only the highest-quality items."
These new-age technologies have undeniably enabled both large and medium-sized hotels to better manage their food and beverage operations. However, adopting cutting-edge technologies comes with a substantial financial investment. The major players in the industry possess the financial resources to implement the latest technologies, but is it a sound decision for independent operators to allocate a significant portion of their budgets to technologies that may not yield immediate returns? Hotels, on average, allocate a minimum of 2.5 percent of their Net Room Revenue to technology.
While the returns from technology investments manifest as cost savings in the long run, the time savings are evident immediately. "By digitizing aspects of restaurant and hotel kitchens, such as daily safety checklists, small business owners can save more than 10 hours per month by eliminating paper-based reporting," noted Bisht. Financially, technologies like digital invoicing contribute to improved cash flow management in hotels. The digitization of invoices has made it easier for F&B players to access invoice-based financing options, particularly beneficial for small-scale establishments.
As we look to the future, the evolution of food technologies and their adoption is challenging to predict due to the rapid emergence of new technologies. However, one thing is certain: technology has become deeply ingrained in F&B operations and is likely to remain a fixture for the foreseeable future. Increasing automation of routine tasks, such as cleanliness and hygiene checks, will free up crucial human resources for more important responsibilities. Moreover, as technology matures, its costs will likely decrease, as has been the case in other industries such as energy and consumer durables. This trend will undoubtedly extend to the hospitality sector, ensuring continued technological advancements in the world of food and beverages.
Just a few decades ago, the concept of connecting kitchens with datasets and merging food with blockchain technology was utterly unfathomable. Even the most forward-thinking leaders in the hotel industry could not have predicted a future where the kitchen would evolve into a technological epicenter. In what has largely gone unnoticed, the food and beverages sector has quietly undergone a technological revolution. Technology has been steadily infiltrating every aspect of this industry, spanning from customer-facing functions such as food ordering and delivery to the behind-the-scenes operations of kitchens and sourcing.
Among the pivotal technologies anticipated to gain more ground in the F&B space are Artificial Intelligence (AI)-driven solutions, kitchen automation, the Internet of Things (IoT), and the integration of blockchain for enhanced traceability. Alongside AI and IoT, advanced order management systems, digital invoicing, and real-time inventory management have become commonplace in the hotel industry.
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