Analyst Predicts Rise of Guest-facing Restaurant Tech

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The growing pressure of labor inflation is driving the restaurant industry to embrace new guest-facing technologies — and rapid consumer acceptance is further spurring that move, said one Wall Street analyst in a report Thursday.

In a note to investors about rising labor costs, Christopher O’Cull, senior analyst with KeyBanc Capital Markets Inc., said rising minimum wage rates and increasing health care costs are causing restaurant operators to change a fundamental aspect of the consumer experience: service.

Chain restaurants have attempted to combat inflation with productivity improvements, such as better demand forecasting to optimize labor scheduling and new back-of-the-house technologies, O’Cull wrote. Read More

Posted on February 25, 2014 and filed under Restaurant Trends.