Thursday, February 5, 2009

Data Sashimi

Despite the abundance of data sashimi in restaurants, few establishments harness the power of raw data effectively.  Failure in this regard can be attributed to a number of causes; ineffective collection mechanisms and inappropriate analytic methodologies provide but two examples. Because the process of data analysis involves several steps, it is far too broad to investigate in a single post.  So let's start at the beginning -- data collection at the individual restaurant level.

From the moment a guest enters a restaurant, the data collection process begins.  Formalized collection may occur by requiring walk-in guests to provide their full names and informal collection may take place through observations of a guest's behavior.  Further data becomes available once guests are seated and have ordered their meals, which are typically entered into POS systems such as Micros. Throughout the dining experience, severs and managers may speak with guests and inquire about the quality of their experience, providing additional data pertaining to a number of critical metrics (e.g. food quality, service quality, atmosphere...).  At the conclusion of the meal, guests may have the opportunity to complete a comment card, enabling the restaurant to capture key insights into meal quality as well as contact information that can assist with targeted marketing efforts.  

Clearly, there is plenty of data to be captured from a single dining experience.  And fortunately for restaurateurs, much of it is automatically collected through systems such as Micros.  Yet opportunities exist to further refine collection processes, particularly in terms of observational data and contact information.  Throughout the course of a given service, both servers and managers will likely observe a number of issues related to both food and service quality. Instead of simply taking note of these issues, staff should formally record, code, and track them through a database.  Furthermore, individual guest preferences (an issue in of itself) that are observed by staff should be recorded and included in guest notes.  While tempting to ask for upfront, contact information should be obtained at the end of the meal; walk-in guests are likely to be irritated that they need to provide personal information before even being sat for dinner.  True, response rates might be lower at the end of the meal but at least you don't risk souring the diner's experience before it has even begun.

The very nature of service industries make data collection tricky. Since customers act as co-producers in restaurants, the potential to negatively impact their experience by forcibly extracting data from them is omnipresent.  Thus, restaurateurs must carefully balance their desire to obtain useful data with their need to provide an excellent experience for their guests. By effectively utilizing all resources at their disposal (e.g. systems and personnel), restaurateurs can ensure that their data sashimi is as fresh as can be.       

4 comments:

  1. Sashimi = raw data ;-) Interesting perspective that staff should try to take their qualitative impressions and code them into the application. What implications would this have for the skill set one requires of employees?

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  2. You're killing me with the analogies... love them! :) Thanks for the overview of both the scope of your entire blog as well as each individual post. Definitely helps to focus me (the reader) on your point and objective.

    You focus on how to gather more data from the customers... and yet you also say that much of the data currently gathered isn't fully used. Which do you think is more important? Which, as a restauranteur, should I be most focused on? Gathering more? Leveraging more? Training more? Can you do it all?

    You also have a good point at looking at the customers' reactions to the IS cycle for information. They may not always welcome data gathering. Any ideas how to improve or make it less obvious?

    Interesting reading. Keep it up!

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  3. I really enjoyed reading the entries. The topics reveal interesting ways to collect and use data on the hospitality industry, more specifically restaurants. I heard many times before that hospitality is an art, not a science. Here we all question paradigm and argue that it is both. David’s entries challenges this myth and proposes ways how science can enhance and evolve this art, specially with proper analysis.

    His entries made me more curious about this movement in restaurants leading to additional research. This movement to introduce science in services is growing, but the difficulties faced by the industry are considerable, in particular to smaller businesses.

    The hospitality industry lacks high qualified employees and usually the more qualified the employee is; the further he is from operations. The majority of front of house employees in restaurants are not qualified to identify and collect the variables that support more complex business decisions.

    The few employees that have enough skills to slice and dice the data are usually in the corporate headquarters, in consulting companies, or are academics. This certainly decreases the ability of individual restaurant owners to take the maximum advantage of such rich resource.

    If David continues with his blogs I would like his opinion on the future of analytics in the industry. How this concept will grow, will it continue to be lead by industry giants, educational institutions, and consulting services? How does he picture the adoption of these techniques in smaller businesses? How the industry will deal with the HR issues involved with these concepts?

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  4. great article on Data Sashimi and the effects of managing data correctly. on a side note as the above post suggested a lack of talent in data extraction for local services is a problem, but could be solved by using a simple service like http://www.extractingdata.com which could accomplish the task for a minimal fee

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