Before the pandemic, Black Bear Diner CEO Anita Adams was of the opinion that technology and hospitality don’t mix.
Tech was OK in the back-of-house, she felt, but in Black Bear’s cozy, cabin-themed dining rooms, the human touch was everything.
But as COVID-19 upended traditional service models, her mind began to change. With the rise of things like QR codes and handheld server tablets, Adams saw that technology and hospitality don’t have to be mutually exclusive.
The realization has 153-unit Black Bear Diner poised to make a big investment in technology this year. It will include an overhaul of its point-of-sale system and more tech at the table, where QR codes will allow guests to order and pay from their phones.
Part of Adams’ technological awakening took place during a visit to a small restaurant on the Oregon coast, where she had to scan a QR code to view the menu, order and pay. “The entire experience was on our phones,” she said. And yet the level of service didn’t suffer. Staff were just as attentive, she said, but customers controlled the ordering cycle.
At Black Bear, “we’re embracing that completely,” she said.
Black Bear Diner CEO Anita Adams / Photo courtesy of Black Bear Diner
Another lightbulb went on when Adams saw the impact tech had on servers. A test of handheld ordering devices proved “wildly successful,” especially for newer employees still learning the chain’s large menu. Because the system prompts servers what to ask, like how a guest wants their eggs, “it becomes a training device,” Adams said.
That’s a big deal given restaurants’ labor woes. As of December, the industry remained 450,400 jobs short of pre-pandemic levels. Anything restaurants can do to make workers’ jobs easier—and get them up to speed faster—should help the bottom line.
“Labor’s not coming back in the way that it was,” Adams said. Technology, she said, is an obvious solution.
Not only did the handhelds help staff, but they also improved service. Because orders are instantly beamed to the kitchen, for example, drinks can arrive at the table almost as soon as they’re input.
“A quick beverage sets the tone for the experience,” Adams said. “That was part of our realization.”
Guest sentiment on QR code menus has been mixed at best. At Black Bear Diner, where customers are king, there will always be an option to order the old-fashioned way. But Adams said the challenges of the pandemic gave restaurants permission to evolve. Guests, even older ones, she said, can be trained to do things differently.
“You can’t just assume that older generations don’t understand this,” she said.
Some Black Bear Diners have added pickup windows for to-go orders. / Photo courtesy of Black Bear Diner
Many of Black Bear’s customers are already well-versed in digital ordering. Off-premise makes up 18% of the chain’s sales mix, down just slightly from the era of COVID-19 lockdowns. And those sales have been incremental, helping Black Bear expand its average unit volumes to $2.8 million, from $2.6 million before the pandemic.
In an effort to grow the channel further, Black Bear has added second makelines dedicated to off-premise orders as well as pickup windows in storefronts to simplify handoff and avoid disturbing dine-in guests.
The Redding, Calif.-based chain is coming off a strong year. Same-store sales rose 12% year over year on positive traffic, Adams said. It signed four new franchisees and opened 10 new restaurants in 2022 and is continuing to expand eastward, with a particular focus on Texas.
But technology is what Adams said she is most excited about. “We see this as a breakout year for Black Bear,” she said. “It’s all about having tech that sets you up for the future.”