Gregg Majewski sits down with Tony Smith, CEO and co-founder of Restaurant365, to explore how technology is transforming the restaurant industry.

Key Takeaways

The Power of AI in Restaurant Operations
Investing in Employee Training to Reduce Turnover
The Importance of Staying Customer-Centric

In this episode of Room for Seconds, Gregg Majewski sits down with Tony Smith, CEO and co-founder of Restaurant365, to explore how technology is transforming the restaurant industry. Tony shares the story behind founding Restaurant365, discusses key challenges like labor and inventory management, and highlights how AI and data insights are shaping the future of restaurant operations. They also dive into the company’s recent focus on employee training, upcoming innovations, and their partnership with CORE (Children of Restaurant Employees). Plus, Tony offers his take on remote work and the evolving needs of the industry. Tune in for insights on leadership, technology, and the future of hospitality.

The Power of AI in Restaurant Operations

Tony Smith views AI not as a replacement for human roles but as a powerful tool to enhance and support restaurant teams.
"I think it's interesting thinking of AI like replacing people. I think about it much more as augmenting the people you have, making them better, smarter, and more capable." One key area where Restaurant365 is leveraging AI is in the ingestion of invoices. For vendors who still rely on paper invoices, AI technology allows operators to simply snap a photo using a mobile app.
Tony explains, "We've incorporated more AI in that process so that it can pull it in with a much higher accuracy rate and code those line items to cost categories that end up on your P&L—without someone having to touch any of those." Beyond invoices, AI and machine learning are being used to uncover operational insights from vast amounts of industry data.
Tony adds, "We’re starting to work with data in more of a big data way… trying to find insights like, 'Hey, restaurants in your region with similar concepts are spending less on food' or 'They perform better when X happens.'” By tapping into these insights, Restaurant365 is helping operators make smarter, data-driven decisions to enhance profitability and efficiency.

Investing in Employee Training to Reduce Turnover

Recognizing the high costs associated with employee turnover, Tony discusses why Restaurant365 recently expanded into the training space.
He notes that onboarding and retaining employees is one of the industry's greatest challenges, stating, "It's estimated that turning over an employee can cost you $5,000 by the time that you lose someone, find a new person, interview, convince them to come on, and take the ramp time to train them." To address this, the company is investing in tools that make training faster, more efficient, and more engaging. The goal is to help employees feel more confident and connected from the start, reducing ramp-up time and turnover.
Tony adds, "We want to provide a better training experience so that employees are confident and enjoying their job, and a more efficient training experience so that the employees onboard faster and that's cheaper ramp time."

The Importance of Staying Customer-Centric

Tony emphasizes that the future of restaurant success lies in personalizing guest experiences through data-driven insights. He notes the rise of technology designed to enhance guest engagement by gathering deeper customer data and using it to create more personalized experiences.
"There's a lot around guest engagement in the data... Can you market and reach out to them via text or email, but in a much more individual way?"
Tony also envisions a future where servers and operators are equipped with customer insights in real-time, enhancing the overall dining experience.
He mentions, "If they're in the drive-through, can you pop things up for the operator that will help them?" By combining feedback and purchasing data, restaurants can build customer profiles that drive better service and stronger loyalty.

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About Tony Smith

Tony Smith is Chief Executive Officer and a Co-founder of Restaurant365. Tony’s career has centered on using software to solve business issues across various industries. Prior to starting Restaurant365, he was Director of Services at Dynamic Methods, a software consulting company focused primarily on designing and implementing accounting and operations software solutions. From the beginning at Restaurant365 he spent the majority of his time designing and creating an innovative product that would move the restaurant industry forward. Today he primarily focuses on the company vision, culture, growth and long-term strategy. He earned his bachelor’s degree in business management and information systems, magna cum laude, from Brigham Young University. Tony enjoys life while trying out new restaurants, spending time with his girls – wife and 4 daughters, singing and watching college football.

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About Gregg Majewski

Gregg Majewski has a vast amount of experience as a corporate executive in the restaurant industry. As the former CEO of Jimmy John’s, he played a major role in expanding the franchise from 33 to 300+ stores in just 5 years by surrounding the company’s marketing strategy around the innovative approach of delivering sandwiches and being “freaky fast”. Majewski has worked to develop restaurant concepts over the last two plus decades, before starting Craveworthy Brands in 2023, which currently includes a growing portfolio of restaurant brands. Craveworthy Media is Majewski’s gift back to the industry that has given him so much. The goal of Craveworthy is to inspire the up and coming industry leaders by providing important information, stories, and insights from titans past and present.

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Room for Seconds is produced and published by Cali BBQ Media on behalf of Craveworthy Brands

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Tech, AI & Leadership with Tony Smith of Restaurant365