Smartphones.... You either probably are holding one right now or have it within your reach... these are amazing devices and are essentially computers we can pop in our pockets. But have you ever thought of the data that these collect from using them each day.. We use them for so many daily activities such as call, texts, searching and creating social media posts to name just a few.... and most people have a smartphone which leads to huge amounts of data been generated each day. This data is coined Big Data due to it's huge scale. This data can then be further broken down into the 5 V's. Today I'm going to explore these 5 V's within the restaurant industry.
"Restaurants can take serious advantage of big to boost profits and marketing ROI. There is a wealth of information from existing restaurant POS systems, including sales transactions, inventory history, employee schedules and payroll expenses. This can be used to predict future stocking and scheduling needs" (Mad Mobile, 2021)
Big Data can be used to give predictive insights in several areas of the food industry in terms of supply chain, ordering and customer decisions. Data is important, Knowledge is power and data helps that knowledge. Previously food businesses would use Quantitative and Qualitative to predict decisions but now with vast amount of data collection through transactions business can make better decisions.
Volume refers to the amount of data captured, this can be in terms of food orders from guests, high or low selling menu items, returning guest data.
Velocity refers to the speed of which this data is captured in terms of a busy restaurant service within an establishment. Huge amounts of data on customers can be captured in one sitting which can be useful for the business such as how popular a certain special on the menu is.
Variety looks at the data types whether this is written customer feedback online or orders placed or reports pulled through the excel system.
Veracity looks at how accurate and trustworthy the data actually is and finally Value looks at how this information is actually better for making wiser decisions in terms of changing menus ordering stock which ultimately means a financial saving for the business.
Big Data is changing the way the restaurant industry works and thrives. In its report on the top "business-shaping forces" for 2018, Restaurant Business Online put the implementation of Big Data at number four, stating, "Data drives everything. From personalized marketing and menus to smart kitchen tech, to deep demographic dives, analyzing and implementing strategies based on Big Data is now the standard of the restaurant industry. New independents and emerging chains are using their tech-savvy and agile size to become competitive, while familiar legacy brands are going all-in on data-driven analytics to maintain market share and grow new customers. (Michigan State University, 2021)
So next time you visit a restaurant for a BIG FEED think of how your every move is captured in BIG DATA!
David Donnelly
David I found your post very interesting. I like the infographic with the 5 V’s. This is something I hadn’t seen before but it clearly defines the properties of Big Data. I completely agree that “Data drives everything.” The information we omit into the ethernet without a thought is phenomenal. We use our mobile devices 24/7 and indeed when ordering food and giving details for a booking in a restaurant, our information in stored on a database somewhere, either by the business itself or a third party. It really is food for thought! I will definitely be thinking more around information sharing in the future.
ReplyDeleteColette Breen-O’Boyle
Great post David, very in-dept and informative. Yes, I agree, the use of big data analytics has great potential and importance for marketing within the restaurant industry. You mention analysis of hign or low selling menu items and I think this, in particular, could be a game changer. You could consider what was selling well, and perhaps factors like what would sell better at different times of the day, for example. If the restaurant is a nationwide or international chain, it could also be interesting to see if this information differed between different locations. Cultural differences could come into play that the restaurant would need to take note of. The marketing plan would then need to be altered as per the location of the restaurant. Of course, knowlege of what sells well also ties into stock control ( ingredients) and waste reduction, which saves money. Ultimetly this is essential knowledge if the restaurant wants to stay competitive.
ReplyDeleteLooking forward to your next installment.
Suzanne Mc Cabe
First off, what a fantastic title for the blog post David...love the words you use throughout your post to tie in with the food industry - its a very clever way if writing to get the reader hooked in from the get go. The blog post overall is easy-going, yet informative...very easy to digest what would normally be considered a very overwhelming and heavy topic. Not everyone understands the concept of Big Data, but you have explained it in simple language here, using examples that are relevant and easy to understand, similar to your post last week on data analytics. Looking froward to the next blog post.
ReplyDeleteSuzanne Earley
great post David, data does indeed drive everything and we all need to be more savvy about what we give away as well as what we use.
ReplyDeletethanks
caitriona