Digital transformation is no longer optional; it's essential.
At the forefront of this change is a relatively new C-suite position: the Chief Digital Officer (CDO). Recent moves by major restaurant chains highlight the growing significance of this role in driving growth and enhancing customer experiences. As restaurant technology consultants that are hired to help you gain the confidence of CDOs, it's important that we keep abreast of what these new folks are hired to do and what kinds of technologies they're likely attracted to. Starting with the recent appointment of Zaxby's first CDO from a non-industry background, we have some insights to share.
Zaxby's Strategic Digital Push
Recently, Zaxby's made headlines by appointing Chris Kung as its first-ever CDO. This strategic decision underscores the company's commitment to digital innovation. Kung will lead a new loyalty and e-commerce division, focusing on accelerating growth and deepening customer engagement through digital channels.
Previously, these responsibilities were shared between the Chief Technology Officer and the Chief Marketing and Strategy Officer. By creating a dedicated CDO position, Zaxby's aims to streamline its digital strategy and allow other executives to focus on their core areas. CEO Bernard Acoca emphasized that Kung's expertise would drive incremental growth and improve customer experiences through personalized interactions.
Industry-Wide Trend
Zaxby's is not alone in recognizing the value of a CDO. Other major players in the restaurant industry have made similar moves.
- KFC U.S. and Denny's established digital officer roles last year
- Yum Brands appointed a Chief Digital and Technology Officer earlier this year
- CKE Restaurants introduced a Chief Technology and Growth Officer role
These appointments reflect a growing trend of integrating digital innovation into core business functions. And it seems like a fair assessment that most of these new CDOs are coming from outside of the restaurant industry.
The Multifaceted Role of a Restaurant CDO
The Chief Digital Officer's responsibilities in a restaurant business are diverse and crucial.
- Digital Menu Strategy: Developing and implementing online ordering systems, digital menus, and kiosk interfaces to streamline the ordering process.
- Customer Engagement: Enhancing dining experiences through personalized mobile apps, data-driven loyalty programs, and targeted promotions based on dining habits.
- Restaurant Technology Integration: Implementing and optimizing point-of-sale systems, kitchen management software, and reservation platforms to improve operational efficiency.
- Cross-Department Collaboration: Working closely with culinary, front-of-house, and marketing teams to ensure seamless integration of digital initiatives with the dining experience.
- Growth and Innovation: Driving incremental growth through innovative solutions like ghost kitchens, meal kit services, or AI-powered inventory management systems.
Attention: Restaurant Tech! Here's How to Attract a CDO to Give Your Product a Solid Look
As consultants, you hire us to help you focus on actionable strategies to attract the attention of CDOs in the restaurant industry. Here are some recommendations for how we can help restaurant technology founders and companies market themselves more effectively to CDOs:
Focus on Integration and Scalability.
CDOs are often looking for solutions that can seamlessly integrate with existing systems and scale as the business grows. Technology companies should emphasize:
- API capabilities and ease of integration
- Scalability features that accommodate growth
- Compatibility with popular restaurant management systems
Highlight Data Analytics and Insights.
CDOs value data-driven decision-making. Technology companies should showcase:
- Advanced analytics capabilities
- Real-time reporting features
- Predictive modeling for customer behavior and operational efficiency
Emphasize Customer Experience Enhancements.
CDOs are tasked with improving customer engagement. Tech companies should demonstrate how their solutions:
- Personalize customer interactions
- Streamline ordering processes (both in-store and online)
- Enhance loyalty programs through data utilization
Showcase Security and Compliance Features.
With increasing data privacy concerns, technology companies should highlight:
- Robust security measures
- Compliance with industry standards (e.g., PCI DSS)
- Data protection and privacy features
Offer Customization and Flexibility.
Every restaurant chain has unique needs. Technology companies should market:
- Customizable features and interfaces
- Flexible deployment options (cloud-based, on-premises, hybrid)
- Modular solutions that allow for selective implementation
Demonstrate ROI and Performance Metrics.
CDOs need to justify technology investments. Provide:
- Clear ROI calculations
- Case studies from similar-sized restaurant chains
- Performance benchmarks and KPI improvements
Highlight Mobile and Omnichannel Capabilities.
With the increasing importance of mobile ordering and omnichannel experiences, emphasize:
- Mobile-first design approaches
- Seamless omnichannel integration
- Features that bridge online and in-store experiences
Offer Thought Leadership and Industry Insights.
Position your company as an industry leader by:
- Publishing thought pieces on digital trends in the restaurant industry
- Hosting webinars featuring successful CDOs or digital transformation case studies
- Maintaining a blog with insights on emerging technologies and their applications in restaurants
Provide Excellent Support and Training.
Emphasize your commitment to smooth implementation and ongoing success.
- Offer comprehensive onboarding and training programs
- Provide dedicated account management for enterprise clients
- Showcase your customer support track record and availability
Leverage Partnership Ecosystems.
Demonstrate how your technology fits into the larger digital ecosystem:
- Highlight integrations with popular third-party delivery services
- Showcase partnerships with other complementary technology providers
- Offer solutions that work well with major POS systems
By focusing on these areas, restaurant technology companies can position themselves as valuable partners to CDOs, addressing their key concerns and aligning with their strategic objectives. Remember, CDOs are looking for comprehensive solutions that drive digital transformation across all aspects of the restaurant business, from customer-facing experiences to back-end operations.
Looking Ahead
As digital touchpoints continue to evolve, the CDO will play a pivotal role in navigating this landscape. Their ability to blend technology, customer insights, and business strategy will be crucial in ensuring that restaurant chains not only survive but thrive in an increasingly digital-first world.
For those interested in diving deeper into this topic, here are some valuable resources:
- National Restaurant Association's Technology Report: Offers insights into technology trends in the restaurant industry.
- Deloitte's Digital Transformation in Restaurants: Provides a comprehensive look at digital trends in the restaurant sector.
- Harvard Business Review's article on CDOs: Offers a broader perspective on the role of CDOs in business transformation.
As consultants, it's crucial for Popcorn GTM to stay ahead of these industry shifts. The rise of the CDO in restaurants is not just a trend; it's a fundamental change in how these businesses operate and compete in the digital age.
What are your thoughts on this digital shift in the restaurant industry? How do you see it impacting your clients or projects? We would love to hear from you. Reach out to us.
