In an exclusive interview, Ralph Melis, the Co-Founder and COO of ExploreTECH, sits down with Alessio Di Gaetano, Co-Founder and Chief Revenue Officer of DynamEat, to delve into the fascinating world of restaurant revenue management. DynamEat, a platform dedicated to optimizing Food and Beverage (F&B) profitability for hotels and restaurants, is pioneering a transformative approach to the industry's age-old challenges. Let's explore the key insights from this captivating interview and see how DynamEat is reshaping the landscape.
DynamEat's Mission:
Alessio Di Gaetano eloquently defines DynamEat as a powerful platform dedicated to helping restaurants and hotels supercharge their F&B profitability. This mission is accomplished through a two-pronged approach: "Dynamic Pricing" and the "Smart Menu."
Dynamic Pricing: Much like the airline and hotel industry, Dynamic Pricing takes various factors into account - demand forecasts, contribution margins, dish popularity, and preparation speed - to recommend the perfect price for each dish. But it's not about merely hiking prices; it's about selling smarter and achieving higher profitability.
Smart Menu: The Smart Menu treats the menu as an e-commerce platform, enabling restaurants to configure their menu, adjust the number of dishes, and optimize dish visibility. This innovation is integral to embracing digitalization in the restaurant and hotel industry, aiming to increase profitability by up to 15%.
Challenges in Restaurant Revenue Management:
Di Gaetano highlights three major challenges faced by the restaurant industry in revenue management:
Technology Woes: Restaurants have been slow to embrace technology, trailing significantly behind their hotel counterparts. The integration of technology into point-of-sale (POS) systems is pivotal for efficient pricing and menu strategies.
Cultural Shifts: Breaking through industry biases about dynamic pricing is no easy feat. Many question the fairness of paying different prices for the same service. But the winds of change are blowing, and the industry is gradually opening up to dynamic pricing.
Process Hurdles: Revenue management is relatively new to restaurants and even to hotels when applied to F&B revenue. Lack of clear processes and ownership can lead to confusion and inefficiencies. Personnel challenges also pose significant roadblocks.
Measuring Success:
The success of DynamEat is measured by increased profitability without negatively impacting demand. Key performance indicators include profit per diner, demand trends, customer feedback, and improved operational efficiency.
DynamEat's success stories shine brightly. Radisson, InterContinental, Atlantis, and Melia are among the big names that have harnessed DynamEat's power. Radisson, for instance, saw its hotel profitability soar by up to 20%.
The Future of Revenue Management:
According to Di Gaetano, the restaurant industry is on the cusp of embracing Dynamic Pricing and exploring exciting opportunities to enhance reservation and table management. The industry's gradual adoption of this approach is essential to weathering inflationary challenges while keeping profitability intact.
Staying Ahead of the Curve:
DynamEat's strategy for staying ahead of competitors involves focusing on integration, developing new projects, and a strong commitment to listening to customer feedback. Di Gaetano emphasizes that competition is beneficial, pushing them to improve and innovate continuously.
Advice for Restaurant Owners:
Besides considering DynamEat, Di Gaetano advises restaurant owners to ensure their POS systems are tech-ready and open to integration. He underlines the critical role of technology integration for success.
Personal Lessons:
As a co-founder, Di Gaetano shares personal lessons from his entrepreneurial journey. He emphasizes adaptability, continuous learning, and the swift pace of the business world. Starting a business, he acknowledges, is a thrilling journey of unceasing growth and adaptation.
In conclusion, DynamEat is transforming and reimagining revenue management in the restaurant industry, addressing long-standing challenges and opening up opportunities for profitability and innovation. With a focus on Dynamic Pricing, technology integration, and customer-centric solutions, they are leading the way in reshaping the industry's future. As the restaurant industry continues evolving, DynamEat is a prime example of how technology and innovation can drive success in the digital age.
DynamEat is proud to announce its sponsorship of ROC ME 2023. In November, attendees at ROC ME 2023 will have the opportunity to meet Alessio Di Gaetano in person and gain firsthand insights into the future of restaurant revenue management.
GET IN TOUCH WITH ALESSIO
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