Tracy Kim, CEO of Dig, a popular East Coast restaurant chain, shares her journey to leadership and insights on the brand’s growth. She discusses the company's rapid expansion, marking its 33rd location, and how they are adapting their business model to meet family dining trends. The conversation also dives into evolving consumer preferences, particularly the shift towards kiosk ordering, and the integration of technology to enhance operations. Kim reflects on overcoming pandemic challenges and the brand's significance in New York.
Dig is transitioning from an urban lunch spot to a family-friendly dining option, expanding its menu and audience reach.
The integration of kiosks at Dig enhances customer satisfaction and sales by providing a no-pressure ordering environment with higher check averages.
Deep dives
Trends in Restaurant Technology
Recent discussions in restaurant technology highlight significant trends such as the diminishing reliance on dynamic pricing and the increasing integration of voice AI systems in drive-through services. The potential for voice AI to assist in customer interactions has caught attention, particularly regarding its ability to reduce wait times and improve order efficiency. Behind this technology is the concept of human intervention, where operators step in to assist when AI struggles, maintaining an overall interference rate of about 10%. This combination of automation and human support represents a substantial shift towards balancing efficiency and customer satisfaction in fast-casual dining.
Dig's Expansion Strategy
The fast-casual brand Dig is experiencing a phase of transformation, moving from a primarily urban lunch spot to a more versatile dining option suitable for suburban markets. Recent efforts have involved expanding their menus to cater to more family-oriented dining, increasing options for dinner while adapting their diner engagement strategy to include more personalized connections with local patrons. Moreover, Dig operates with the strategic aim of expanding beyond its core northeastern locations, with plans to explore markets in the Midwest, working towards broadening its reach. The brand's vision reflects a strong focus on scalability while maintaining its core commitment to quality, wholesome food.
Reimagining Customer Interaction
The customer experience at Dig is evolving through the integration of kiosks, which facilitate menu exploration and provide a no-pressure ordering environment. User feedback indicates that many customers prefer this method to avoid interaction while browsing the extensive menu options. Importantly, this system is proving beneficial for both customer satisfaction and sales, as the check averages reported are significantly higher when kiosks are utilized. By minimizing operational pressures, Dig is not only enhancing the customer experience but also achieving favorable economic outcomes.
The Role of Catering in Growth
Catering has emerged as a critical growth channel for Dig, driven by heightened interest in group dining and increased business activities aimed at coaxing employees back to the office. The expansion of catering services is designed to meet the demand for both corporate events and home gatherings, particularly during holidays. Research shows that effective marketing strategies, such as direct mail campaigns with discounts, help foster initial customer engagement while aiming to convert these customers into repeat visitors. This focus on catering aligns with broader trends in the restaurant industry, as operators capitalize on the shift in consumer dining habits and preferences.
Dig, formerly Dig Inn, is an East Coast-based chain selling its plates, sandwiches, sides, and salads at 33 locations. CEO Tracy Kim joined Dig nearly three years ago and spent the past year-and-a-half in the top role. In this episode, we talk business growth, marketing, positioning, and, yes, kiosks for a growing brand with big plans for the future.
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