Why Restaurants Are Making a Comeback, With Toast CEO Aman Narang
Dec 8, 2024
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Aman Narang, CEO and co-founder of Toast, a tech firm revolutionizing restaurant operations, joins the discussion on the restaurant industry's comeback. He explains how technology is reshaping dining experiences post-pandemic, from digital payments to online ordering. Despite rising food costs, innovations are driving record patronage in restaurants. Narang dives into the challenges and advancements that have helped restaurants adapt, revealing how tech has transformed the way we dine and engage with food services.
Despite economic concerns, Americans are increasingly prioritizing dining out, resulting in crowded restaurants and record spending on experiences.
The restaurant industry is rapidly evolving through technological integration, enabling enhanced customer experiences and operational efficiency to meet modern expectations.
Deep dives
Challenges in Restaurant Reservations
Getting restaurant reservations has become increasingly difficult during the holiday season, with many diners finding it takes considerable effort to secure a table, even for small groups. Despite widespread concerns about inflation and rising prices, many people are still eager to dine out, leading to crowded restaurants in urban areas like New York. This paradox highlights an interesting trend where consumer behavior does not entirely align with economic anxieties, suggesting a strong preference for dining experiences persists. The conversation also touches on the rise of localized dining, as some individuals opt for familiar neighborhood restaurants to avoid the hassle of reservation apps.
Evolution of the Restaurant Industry
The restaurant industry is experiencing significant changes in the wake of the pandemic, marked by rapid technological integration. Many establishments are now adopting digital payment solutions and other innovations to enhance the customer experience, demonstrating a shift in how restaurants operate. The CEO of a leading restaurant technology company, Toast, emphasizes the need for modern hospitality techniques, such as easy online ordering and efficient staff management systems. This technological transformation is vital for restaurants to remain competitive and meet the evolving expectations of diners who demand convenience and personalization.
Appetite for Dining Amid Economic Concerns
Despite worries about inflation, Americans continue to prioritize dining out, leading to record spending on restaurant experiences. Several factors contribute to this trend, including busy lifestyles, increased availability of dining options, and a profound shift towards food delivery services. The rise of technology in dining, such as pre-arrival recommendations based on individual preferences, indicates a move towards more personalized dining experiences. As restaurants adapt and invest in technology, their ability to meet customer expectations while managing costs effectively will be crucial for thriving in a competitive landscape.
Welcome to WSJ’s Take On the Week. Co-hosts Gunjan Banerji, lead writer for Live Markets, and Telis Demos, Heard on the Street’s banking and money columnist, cut through the noise and dive into markets, the economy and finance—the big trades, key players and business news ahead.
This week, Telis and Gunjan debrief on BlackRock’s $12 billion acquisition of private credit manager HPS. Then they tackle the “i word” – inflation – and the upcoming consumer-price index report. They also chat about bitcoin cresting over $100,000 in the wake of an expected crypto-friendly Washington under a Trump presidency.
Later on in the show, Telis gets into what’s driving people to restaurants at projected record levels, even though the cost of food and dining out have been high. He’s joined by Aman Narang, CEO and co-founder of Toast, a technology company that sells software and hardware to restaurants for digital payments, online apps, takeout and delivery, kitchen management and more. They talk about how the restaurant industry has fared since the pandemic and how technology like Toast’s has brought the sector further into the 21st century.
Have an idea for a future guest or episode? How can we better help you take on the week? We’d love to hear from you. Email the hosts at telis.demos@wsj.com and gunjan.banerji@wsj.com.