The IoT and the Hospitality Industry

Posted on: August 18, 2017 by RMS Hospitality Group

The Internet of Things, or IoT, coined in 1999 by British technologist Kevin Ashton, refers to the interconnectivity between people and their surroundings. What was once a futuristic concept is now a determining factor in the way we interact with each other and other connected devices. While the majority of the IoT market is held by the consumer electronics sector, so many other industries can benefit from utilizing this technology, and the hospitality one is no exception. In this article, we’ll cover how the restaurant and hospitality industries can benefit from the IoT. Before reading on, protect your business with a comprehensive and customized Restaurant Insurance Program.

Applications of IoT in restaurants.

According to Food and Beverage Magazine, restaurants can use the IoT to monitor the equipment that cooks, cleans or stores food. Operationally, by utilizing technologies like routing software and IoT sensors, food service businesses can enable dynamic scheduling of deliveries that boost the bottom line. One example is receiving deliveries only when needed, which would eliminate administrative costs and management concerns while helping drive efficiencies for all involved.  Simplicity for food delivery drivers in their route can be in effect from the moment they arrive to work through even something as easily deployable as a smart phone app. This can allow your operations management team to check on each driver’s progress and proactively contact that person when needed.

Data can be collected from connected devices, such as fryers and grills, to make analytical decisions on purchasing, repairs, maintenance and more.

Types of data provided by IoT.

Most importantly, sales data and performance of machinery and equipment is the most valuable to collect. Using this information to make data-driven decisions minimizes waste and increases efficiency.

Is it financially feasible for restaurant owners to utilize the IoT?

The short answer is yes, according to Jeff Kiesel, CEO of Restaurant Technologies, Inc. He explains, “Cost savings, improved management practices, consistent food, better equipment utilization, reduced energy costs, and increased employee engagement and morale are some of the benefits an IoT user can enjoy—sometimes by deploying even just a relatively budget-friendly smartphone app.”

Implementing these technological strategies doesn’t have to be expensive, but there are a variety of ways you can do so. Depending on how large the restaurant is and the specific needs of it, the pricing can vary.

About RMS Hospitality Group

At RMS Hospitality Group, we are dedicated to protecting the operations of restaurants and their employees. Our comprehensive coverage provides protection against a broad scope of exposures your businesses and employees face to promote their success and longevity. For more information, contact our knowledgeable specialists today at (516) 742-8585.

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