Restaurants should own customer data for personalized marketing and better margins.
Emphasize operational efficiency and data ownership to increase profitability and sustainability.
Adapt to market shifts by providing comprehensive platforms for restaurant management and customer engagement.
Deep dives
Arming Restaurant Rebels and the Role of Technology in the Food Industry
The podcast episode delves into the concept of 'arming the restaurant rebels' with Nick Coconis, co-owner of The Alinea Group. Coconis, known for innovative ventures like Tock, discusses the evolving dynamics in the food industry influenced by technology. He emphasizes the significance of restaurants owning their customer data, highlighting how platforms like Tock enable businesses to personalize interactions and marketing efforts. By empowering restaurants with tools to manage their customer relationships, Coconis advocates for increased efficiency and better margins in the traditionally low-profit restaurant sector.
The Impact of Operational Efficiency and Customer Ownership
Coconis stresses the importance of operational efficiency in the restaurant business, citing the need for establishments to own their customer relationships. He discusses how access to customer data allows for targeted marketing strategies and cost-effective promotions. By focusing on increasing margins and optimizing operations, Coconis outlines a shift towards sustainability and better working conditions for hospitality industry workers.
Challenges and Opportunities in the Restaurant Industry
The episode explores the challenges faced by the restaurant industry, including low profit margins and issues like minimum wage and tipping models. Coconis challenges the traditional notion of restaurants as low-margin businesses, proposing strategies for sustainable profitability. He addresses the need for effective pricing models, clear cost structures, and efficient operations to overcome industry challenges.
Adapting to Changing Consumer Demand and Market Trends
Coconis shares insights on adapting to shifting consumer behaviors and market trends, particularly in response to the global pandemic. He discusses the rapid transformation of restaurants towards carryout and delivery services and the importance of providing high-quality dining experiences in non-traditional settings. Coconis emphasizes the role of technology in enabling restaurants to meet evolving consumer demands and maintain operational flexibility in uncertain times.
Adapting to Market Changes and Improving Features
The podcast episode discusses how a company, facing challenges with the market, adapted by signing up clients from OpenTable and Rezsi. They focused on enhancing features like table configurators and contactless payments to meet the changing needs of restaurants during the pandemic. By iterating and improving their product, they successfully converted major restaurant groups to their platform.
Future-Proofing Restaurants with Comprehensive Platform
The episode highlights the importance of future-proofing restaurants with a comprehensive platform that integrates various services like delivery, pickup, reservations, and contactless ordering. By combining these functionalities into one cloud-based platform with analytics and social media integration, the company aims to provide a holistic solution for restaurant management. The focus on scalability and adaptability emphasizes the long-term vision of the platform in streamlining restaurant operations.
We’re joined by Tock CEO Nick Kokonas to discuss how they’re “arming the restaurateur rebels” versus DoorDash / Uber Eats, in much the same way Shopify has done so for e-commerce merchants versus Amazon. This episode is full of lessons on how to execute a counter-positioning playbook to disrupt entrenched incumbents, including the influence of Nick’s friend / Tock investor and Nobel prize-winning economist Richard Thaler. Whether you’re an entrepreneur who’s also building a “picks & shovels” type business or an investor interested in the future of the food industry or disruption in general, this is not one to miss.
There are lots of great replies to help understand the restaurant tech ecosystem, and of course, Nick chimed in with a tweet that led to him coming on the show. (Thanks to Matt Shobe for connecting us!) You can read distilled observations from all the replies here.
“Even if you’re long on Tesla, don’t buy Tesla Options.” – Nick Kokonas (Instagram: @nkokonas, Twitter: @NickKokonas)
