Pay attention: Technology is changing the produce game
The race to innovate is at full throttle, whether you're a grower-shipper or a foodservice operator. In the blink of an eye, the produce game is changing and there's no turning back.
Automation, robotics, Internet of Things and big data analytics are among the most talked about tools that cross over from farm to restaurant, all promising increased efficiencies, productivity and competitive advantage.
Like many of their production agriculture counterpoints, foodservice operators are at various stages of adoption.
Some have adopted consumer-facing technologies, like mobile applications, mobile payments and social media technologies that appeal to the end user, but are more reluctant to make back-of-the-house changes to operations.
Many wonder when to make investments of time, energy and resources behind new technologies - some of which can at times feel too futuristic.
In a world where everyone is trying to stay a step ahead, all parts of the agri-food supply chain would be wise to adopt an innovation mindset and pay attention.
The late Steve Jobs has a famous quote, "Innovation distinguishes between a leader and a follower."
One doesn't have to go too far out on a limb to agree with the Apple visionary.
Foodservice operators are finding the digital realm can have an effect on the bottom line and attract new customers.
At Wingstop, which specializes in flavored chicken wings, online orders have grown to 16% of sales, worth $12.5 million in 2015.
"In some cases, your new customers might engage with your digital storefront before they ever enter into your front doors," said Stacy Peterson, chief information officer for the Dallas-based chain in a story from Nation's Restaurant News.
"Sometimes the best technology is the one you don't see."
Peterson said Wingstop is excited about the possibility of extending ordering directly in social media channels. Others are asking consumers for their technology preferences.
Tech at the table
OpenTable, the online reservation service, asked more than 6,000 adults in 10 U.S. metropolitan areas about how they use technology before, during and after a restaurant meal.
They found many were hungry for more technology, especially at limited-service restaurants. Most of the survey respondents, 76%, had made at least one reservation through OpenTable in the past year, so they may have a pro-technology bias.
Still, most consumers engaged with the information cloud on some level before visiting full-service restaurants. All of them at least occasionally made reservations online, and 88% said they did so frequently.
Other pre-visit activities include: finding restaurants, 87%; reviewing menus, 86%; reading diners' reviews, 60%; and reading reviews by professional critics, 48%.
The ability to know a restaurant's location, price point and menu offerings affect a consumer's decision-making process.
Other restaurants, like Dominos, are using technology to offer consumers a proverbial peek behind the curtain.
Domino's Pizza Tracker app allows consumers to track the progress of their pizza's preparation, cooking and delivery. This is a great example of the kind of supply chain transparency customers are demanding.
Back at the farm, producers are increasingly relying on technology to finesse production and gain information that will help them improve operations and, ultimately, the end food product for consumers.
Drones, talked about for years, are now a viable business tool and are actively used to keep a virtual eye on the fields.
Automated harvesting helps growers with an increasingly short supply of labor.
Sensors provide a host of information to improve the agri-food process, including being used on the farm to detect soil health and irrigation needs.
Throughout the supply chain, sensors applied to packaging track food from the field to the restaurant's back door.
This doesn't just provide huge food safety traceability benefits, but can help those along the agri-food chain share origin stories with customers pining to know more about their food.
Whether in the field, a restaurant, a retail setting, or even a consumer kitchen, innovation and technology are on a fast track. It would be easy to get left behind scratching your head and wondering what happened.
It's a call to action if I've ever seen one.
Grower-shippers: pay attention to the trends, assign an internal team to formally monitor new developments, look for buyer-partner opportunities, and get a jump on competitors.
Tim York is CEO of Salinas, Calif.-based Markon Cooperative. Centerplate is a monthly column on "what's now and next" for foodservice and the implications for produce. E-mail timy@markon.com.
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