Shopping Center Business is the leading monthly business magazine for the retail real estate industry.
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RESTAURANTS 126 • SHOPPING CENTER BUSINESS • December 2017 Beverage machines that dispense more than 100 different drinks and mobile or- dering options are a couple of ways that restaurants are trying to maintain a com- petitive advantage over the competition. It's been said that in five years, half of all orders will be made digitally off premis- es. It's a nice feature for customers to tap a few buttons on their smartphone and have their dinner delivered in the time it takes them to commute home from work. Additionally, as consumers place less emphasis on human contact, some restau- rant concepts have started to pare down the workforce by employing futuristic touch-screen kiosks, where customers can order their meals. One of the most well-known adaptations in recent years was made by McDonald's. McDonald's sales were down over pre- vious years, so it began to look for ways to implement more technology while reduc- ing labors costs. Touch screen monitors were added to lobbies throughout the world where guests ordered meals with- out the need for human interaction. Not only was McDonald's successful in reducing its operating costs, imple- menting technology helped McDonald's access customers who had migrated away from the hamburger chain in search of fresh options available elsewhere. Once millennials were on the "hook," Mc- Donald's has continued to roll out new, exciting offerings that are fresh, healthy and flavorful in order to keep customers coming back for more. While McDonald's is beginning to take the appropriate steps to compete with the new age in the restaurant industry, con- sumers will have to wait and see how the full-service giants are going to reinvent themselves to cope with new competi- tion, rapidly growing costs, and seize opportunities to position themselves for success. SCB James Medefind is first vice president of investments and director of the national retail group at Marcus & Millichap. In order for the national full-service chains to succeed, they will need to think outside the box and reinvent themselves. If they are not willing to change, their ability to compete with the fast-casual industry on quality, service and experience will be an unwinnable war.