Just as the point of sale (POS) system did back in the day, the Internet of Things (IoT) promises an avalanche of positive change for foodservice establishments everywhere. But is IoT just some futuristic tech that’s nice in concept, but largely unattainable? All signs say no. But if that’s the case, and IoT is within reach, what’s pushed it into the mainstream and how are foodservice establishments incorporating it in their everyday operations?
IoT and its journey to widespread adoption
The global IoT market is projected to reach a whopping $1.1 trillion in revenue by the year 2024. In other words, IoT is picking up speed. And it’s firmly taking hold in a ton of industries, including foodservice. Pop your head into a large percentage of foodservice establishments (perhaps even your own) and you’ll find that any number of objects — lightbulbs, signs, speakers, thermostats, and more — are now connected to the internet. And because of this (and some sensors and computer chips), they’re able to do some pretty “smart” stuff like collect information, send it, and even act on it. But what’s thrust this brainy tech into the mainstream?
Well, just like with many technologies, IoT grew in popularity in part because it became cheaper. The sensors used to collect information and the computer chips that receive, process and act on this data came down dramatically in price. This made manufacturing, and therefore purchasing, IoT devices and solutions more affordable. More IP addresses became available (yup, there was a shortage). Consumers began to adopt IoT in their homes, which significantly demystified the technology for slower-adoption industries like foodservice. And while COVID-19 hurt the foodservice industry in oh-so-many ways, it also brought about a digital transformation that catapulted IoT to the frontlines as a way to work faster, use less labor, lower operational costs, and make remote access to systems and equipment obtainable.
The perfect convergence of circumstances? No, not really; IoT has been gaining traction for some time now. The above factors were just the push it needed to gain firmer footing across more industries. So now the question is — how is IoT showing up in foodservice?
IoT and its presence in the foodservice industry
As with any technology, there will always be a scale of adoption. Some bigger operations with a clear vision and budget will go all in (KFC being one such example). Others will dip their toes in with a few smaller IoT investments, weigh the impact, and increase adoption from there. Regardless of where your organization falls on this scale, there are a variety of obtainable, benefit-inducing ways you can leverage it. Here are a few examples:
Energy and water savings
For a long time now, foodservice operations have smartly invested in equipment with built-in power-saving features, such as automatic shut-off capabilities and energy-saving modes. This will continue, but operators are also embracing additional cost-saving IoT strategies to supplement and further reduce energy waste and inefficiencies throughout their operation.
This adoption is playing out in a number of ways. Foodservice operators are controlling their lights, appliances, thermostats, and electronics from the remote and automated convenience of an app. To prevent unnecessary heat or cold loss, they’re using IoT door sensors and systems that notify a manager when a fridge or exit door is ajar. Operators are even turning to IoT-enabled faucets to gather data on how much water is being consumed, so they can identify potential areas of waste and rectify them.
Inventory control and management
A foodservice operation’s cost of goods sold (COGS) is substantial. From the oil used in a fryer to the produce, spices, beverages and other materials that go into executing a menu, it’s an important cost for foodservice pros to control through careful inventory management.
Using IoT, operators are automating and improving the accuracy of their inventory management. For example, some foodservice operations are leveraging IoT-powered inventory tools that integrate directly with their POS system to track inventory and then automatically calculate and order product through suppliers. Others are getting a better handle on areas such as oil management by installing IoT-based systems that monitor oil use and notify a vendor when it’s time to add, filter and dispose of oil. In other words, they’re using Iot to offload a lot of the dirty work that’s both time consuming and prone to human error.
Temperature and humidity monitoring
Certain foodservice equipment, such as self-regulating warming cabinets, can self-monitor and automatically balance internal air temperature and/or humidity levels inside their cavities. This is all done without the help of IoT. But when this level of equipment self-sufficiency isn’t available or deeper connectivity, data collection and communication are desired, many operators are pulling in IoT solutions.
IoT solutions for monitoring temperature and humidity vary in terms of sophistication. In many cases, an IoT vendor will provide the hardware (or sensors) and a subscription-based service that provides things like real-time monitoring, text notifications, reporting and analytics. Operators love this because it alerts them of equipment failures or temperature and humidity issues so they can address them immediately and keep inventory safe, prevent spoilage and track trends across time periods and locations.
Automation for to-go services
If there’s one service format that’s proven its staying power since the onset of the pandemic, it’s off-premise dining — specifically carryout and delivery. Given the steadfast popularity of these offerings, foodservice establishments are doubling down on efforts and working exceptionally hard to iron out any remaining kinks in their processes and to automate as many steps as possible.
One way they're doing this is through the use of IoT-powered foodservice equipment, such as self-service lockers or pods. These solutions are designed for holding to-go orders at safe and ideal temperatures until they’re ready to get picked up. But that’s not where the IoT magic comes in. Certain IoT models and integrations allow operators to auto-notify customers and delivery services when orders are ready for pickup. Then, when whoever is picking up the order arrives, they can simply scan a QR code or click on the link they received to open the cubby containing their order. No additional staff needed. No mistaken order pickups. And an all-around better customer experience.
IoT is just one of many lower-labor solutions.
Lights that you can switch on and off using an app from your phone. Sensors that track and notify you about resource use and potential equipment issues. And even foodservice equipment that interacts with customers for you. IoT is everywhere — and it’s quickly becoming a critical tool in helping foodservice operators reduce reliance on labor and combat staffing shortages.
But IoT isn’t the only solution operators are turning to. Lower-labor equipment is also proving to be a much-welcomed ally for operations of all shapes and sizes. For an overview of 12 products that are helping foodservice pros move faster, reduce reliance on headcount, automate tasks and weed out inefficiencies, check out our Lower-Labor Solutions Guide today.
