Oh, Canada: The Potential Impact of AI and Tariffs
4 Min Read By MRM Staff
"These tariffs could deeply affect the food service and hospitality industries on both sides of the border," Alex Thalassinos, President of Silverware POS, one of the first tech providers dedicated to Canada’s hospitality industry, told Modern Restaurant Management (MRM) magazine. Operators would see increased prices in their supply chain, resulting in rising costs to their guests as well. If this were to happen, we would likely see a reduction in the hospitality workforce, potentially impacting nearly two million employees in the sector."
MRM checked in with Thalassinos to get his views on the potential impact of tariffs as well as issues affecting the Canadian foodservice and hospitality industries.
"It would become more important for restaurants and hotels to work with partners they can trust – ones who have similar values to them. They would need to be able to lean on their technology partners to offer tools that help create efficiencies, and better manage costs. I believe the impact on both countries would be too great for this increase in tariffs to happen. A trade war would impact Canada to the tune of approximately three percent of GDP reduction; however, it would also reduce GDP in the U.S. by about one percent. The 30-day delay on this is positive and I am hopeful this will give both sides the time they need to resolve these issues."
In what ways is technology changing the Canadian hospitality industry and what impact do you see AI having?
Technology is rapidly transforming the Canadian hospitality industry in several ways, with AI playing a pivotal role in driving this revolution.
For instance, we're seeing a significant shift towards personalized guest experiences. AI-powered systems are now capable of analyzing vast amounts of guest data to provide tailored services. Depending on a guest’s allergies or dietary preferences, AI can suggest personal picks from a restaurant’s menu, for example. This level of customization not only enhances guest satisfaction but also drives customer loyalty, which is crucial in our competitive market.
AI has the potential to revolutionize hiring processes, employee training, and even workforce scheduling, leading to more efficient operations and improved guest services.
AI is also boosting staff productivity. Our hospitality solutions can automate routine tasks, allowing hotel staff to focus on high-value guest interactions. AI-powered chatbots can handle guest inquiries and requests efficiently, freeing up front-desk staff to provide more personalized attention where it matters most – the customers.
In terms of operations, we're seeing a trend towards integrated systems. Hoteliers and restaurant operators are increasingly demanding POS systems that seamlessly connect with CRM, loyalty programs, reservation systems, inventory management, and payroll.
Looking ahead, I believe AI will continue to transform talent acquisition and management in the hospitality sector. It has the potential to revolutionize hiring processes, employee training, and even workforce scheduling, leading to more efficient operations and improved guest services.
What does the Canadian guest expect from a restaurant experience?
With rising living costs and economic uncertainty during political unrest, Canadian consumers are increasingly cost-conscious. They're seeking value without compromising on quality or experience. Restaurants are responding with creative menu innovations, offering smaller portions, bundled meal deals, and "value bites" menus to provide premium experiences at reasonable prices. Canadians also actively seek out restaurants with loyalty programs and special promotions to access discounted prices.
Personalized dining experiences are also emerging as the new standard for guests. They appreciate restaurants that use AI and data analytics to anticipate their needs, remember their preferences, and offer seamless ordering processes. A couple wants to be able to go to their favourite restaurant for dinner and be greeted with their favourite beverage, or told that the server has already reminded the kitchen about their shellfish allergy.
By understanding and catering to these evolving expectations, restaurants can create more engaging and satisfying experiences for their guests.
In this time when value is highly desired by operators and guests, how does technology like Silverware help restaurants be more efficient?
All components of our suite of hospitality and restaurant solutions are designed to help operators achieve greater efficiency and gain better visibility of their operations.
Our flexible and user-friendly system allows for easy configuration of security access roles, enabling restaurants to customize permissions for different staff members. This ensures that employees have the right access to perform their duties efficiently without compromising security.
Mobile applications and devices accelerate the convenience that operators can bring to their guests. Our SilverFlex platform, for example, empowers service staff to elevate the guest experience while on the move. It allows for placing orders by seat, course, and shared items for the table with a full graphical floorplan, significantly speeding up the ordering process and reducing wait times.
We've also introduced the GuestX Platform, which enables guests to place food and drink orders directly from their mobile devices. This "phone-to-table" technology not only increases the speed of service but also enhances the overall guest experience by allowing them to view bills, split, and pay from their mobile device.
Lastly, our integration capabilities allow restaurants to connect various aspects of their operations seamlessly. From property management systems to advanced reporting tools, these integrations help create a cohesive operational environment that reduces errors and saves time.