In a fast-changing restaurant industry, one constant is the need for a reliable soda supply that keeps delivering big profit margins. Christian Annesley spoke to Pulsa about progress
These are challenging times in the restaurant industry, with some unique pressures emerging over the past few years in the wake of the Covid-19 pandemic.
The 2020 shutdown drew a line in the sand for restaurants for myriad reasons, but far-reaching supply disruptions and employee shortages were especially painful in an industry that runs on tight margins and depends on positive customer experiences.
To meet these challenges, many restaurants reviewed processes across the board and in the intervening years have embraced new technologies, with the changes hastened by innovation in supporting industries like food delivery. On the front end, it can be seen in connectivity, with delivery apps and touchless ordering to the fore. On the back end, the aim of the game is to adopt technologies and systems that maximize margins by creating new efficiencies and eliminating waste.
Where CO2 fits
If that’s the big picture, carbon dioxide (CO2) bubbles sit at the heart of things for many eating and drinking establishments. Why? Because fountain beverages are the single most profitable item for restaurants and bars. Running out of CO2 is nothing less than disastrous, particularly for quick-service restaurants, where a bad soda experience can cause customers to simply leave and go elsewhere. Emergency refills, which aren’t even always available, cause real harm to the bottom line.
In short, these businesses just cannot afford to run out of beverage bubbles – and distributors that cannot guarantee they won’t run out may lose customers. The best way to sidestep this situation is with automation and telemetry.
Today platforms from the likes of Pulsa allow restaurants to measure physical inventory consumption remotely and in real time using sensor and software technology – and that’s a game-changer compared with years gone by.
David Wiens is Chief Executive of Pulsa and sets the context for us.
“Real-time intelligence is essential for beverage carbonation operations – and it’s one of Pulsa’s most important propositions. Our platform provides readings every three minutes – and that matters. When it comes to restaurants and bars, consumption patterns can be highly unpredictable. Knowing how much was left in the tank on Friday doesn’t do much good on Saturday when the crowds start showing up.
Not recognizing until Sunday that there was a leak will only make matters worse. It follows that high-frequency readings are the only way to stay ahead of stockouts and costly inventory leaks.”
How does the technology work? “One size does not fit all, and it’s not only about carbon dioxide, either,” says Wiens. “At Pulsa we offer a full complement of precision-sensing solutions that report pressure, weight ,and temperature. The temperature sensors are great for cold lines and food storage. We also offer the most comprehensive communications system in the industry.”
Wiens also notes that Pulsa is currently the only telemetry provider that’s compatible with all three of the major cellular carriers in the US: AT&T, Verizon and TMobile.
“All told, in fact, our system works with over 400 cellular providers worldwide, which ensures seamless coverage even in remote settings. We are also the only solution that works across 2G, 3G, 4G and 5G networks. Remember, some rural areas are still only serviced by 2G networks.”
Service innovation
To add to the space, Pulsa has recently launched Pulsa Installation Service, which is part of a push to make it easier than ever to put technology onto inventory assets.
“We’ve always worked hard to make it easy to install tech on inventory assets – even tanks that have legacy hardware in place,” says Wiens. “For example, our Mediator Board for Pulsa Link is a plug-and-play bridge that lets existing digital gauges from Cyl-Tel and Anova report data into the Pulsa dashboard. And now, with our installation service, we’re making it even easier to deploy Pulsa at scale through trained installers that get the job done quickly – at the rate of 160 to 200 sensors per month.”
The restaurant industry since 2020
How US restaurants have changed:
Automation: The 2020 pandemic served as a catalyst for increased automation, with restaurants adopting robotic chefs, servers, bartenders, and kiosks to improve hygiene, lower costs, and ensure safety.
An economic hit: The industry was heavily impacted by the pandemic, with sales dropping by $240bn in 2020. Over 110,000 establishments closed temporarily or permanently, and employment fell by nearly 2.5 million jobs below its pre-pandemic level, with only some recovery since.
Off-premises dining: With dining restrictions in place, takeout and delivery became essential, with 68% of consumers more likely to purchase takeout than before the pandemic. The adoption of technology and off-premises dining options has been a significant trend.
Contactless: Restaurants have increasingly adopted contactless payment methods, which became the norm during the pandemic. This technology is hygienic and convenient to customers. It is expected to dominate within a few years.
Digital kitchens: Digital kitchen ‘boards’ or Kitchen Display Systems (KDS) have been implemented to streamline operations, improve communication between front- of-house and kitchen staff, and enhance order accuracy and efficiency.
Self-service kiosks: Fast food and casual dining has seen a rise in self-order kiosks, which reduce the likelihood of order errors and can increase the average order value through upselling prompts and personalized customer experiences.
Evolving delivery apps: Third-party delivery services like DoorDash, UberEats, and GrubHub are today crucial for restaurants. They are developing innovative features, such as searchable pickup maps and the ability to order ahead for pickup at airports or sports stadia.
Related developments
“Because we’re engineers first, we’re always looking for ways to do things more efficiently,” says Wiens. “Our new Notes and Images feature is a good example. In many cases, a tank or a sensor gets installed in an unusual way for structural or environmental reasons. But critical, site-specific information tends too often to get lost inside employee texts or emails. Notes and Images makes it easy to connect boots-on-the-ground teams to office management systems.”
Wiens says developments like this have helped to transform the offer from being simply an inventory measurement and monitoring tool to being a more integral operations solution.
A message for distributors
“One size does not fit all, and it’s not only about carbon dioxide, either”
A Pulsa customer plugging into a restaurant business is just as likely to be an industrial gases distributor as the restaurant itself.
it’s a win-win for everyone. End-user customers get the convenience of optimized, no-worry refills. But through those same optimizations distributors can cut truck stops by 50%-plus, as well as improving payloads for each run.” And with restaurant business margins at 2% to 5% for full-service eateries, this is a context where every dollar counts.
