The return to human interaction
Much of the hospitality industry has followed that of the retail sector in being wholly seduced by a digital-first approach. The objective has been to strip-out friction by getting people in and out the door as fast as possible and reducing employee costs through technology and automation.
Kiosks, QR codes, self-checkouts, online ordering and delivery, along with a growing number of just-walk-out type models, have contributed to what has arguably been a dehumanising strategy across these consumer-facing sectors. Face-to-face contact has increasingly been eliminated.
This has undoubtedly contributed to some serious health issues – globally. A report in the US by its former surgeon general found the average American had lost 24 hours of in-person connection per month in the last two decades. Young adults are hardest hit by this, with social interaction between 15 to 24-year-olds having dropped a shocking 70% over this 20-year period. The UK is no doubt in an equally dispiriting state.
Thankfully, we have maybe reached the tipping point of this digital-first approach. At the sharp end of this is Starbucks. It originally espoused the concept of the “third place” – somewhere to spend time outside the home and office – but then went gung-ho on digital. Starbucks pushed customers into ordering ahead via its app and focusing on the to-go visitors. It led the way in prioritising digital orders and focusing on store models with no seating, or very little at least.
But no more it seems. Under new chief executive Brian Niccol, it has paused the roll-out of its high-tech Siren Craft barista system and is instead hiring actual human baristas and introducing a people-based Green Apron Service model. “We over-rotated on the idea of equipment and that replacing the humanity of service,” he now admits.
Niccol recognises hospitality is losing the human touch and that this has ultimately impacted trading at his firm: “Despite everybody saying they’re more connected than ever, everything I read is people feel lonelier than ever. I think part of the problem is there aren’t enough third places anymore.”
Research suggests customers are responsive to a re-humanising of hospitality and want something more physical nowadays. Since March 2022, there has been a decline in people taking food and drink away from coffee shop brands to another location, according to Savanta, which found it dropped from 49% to 38% over this period.
Starbucks is not alone in recognised the mistake of dehumanising the in-store experience, as Itsu founder Julian Metcalfe has admitted to embracing technology too quickly and has been adding manned tills back into Itsu’s 80-plus outlets. The policy had been to have only one such touchpoint alongside the self-service kiosks, but he is doubling up on the human-powered tills. This mirrors the strategy of some supermarkets like Morrison’s and Booths, which have scaled back or booted out self-service in favour of old-school payment points.
In the US, the technology-forward salad brand Sweetgreen has been reassessing how it implements its automated Infinite Kitchen model in its outlets, having acknowledged that the focus on technology has adversely impacted the experience in its dining rooms. It is investigating the layout and flows of its restaurants in order to boost the appeal to dine-in visitors.
Here in the UK, Pret A Manger is undoubtedly tapping into what I reckon is a growing reappraisal of hospitality with the launch of its new shop format. It will include made-to-order food as well as greater dine-in space, where customers can linger longer and their children can enjoy the Little Stars Café play areas. The objective is to make Pret a comfortable destination for customers who are in less of a rush and want to spend more time with friends and family.
Such moves indicate a turning point, with digital no longer continuing to dictate many strategies to the detriment of the personal element. We are returning to hospitality yet again being about person-to-person interactions rather than focused sausage machine-like on processing customers as fast as possible.
By feeding the growing appetite among consumers to have a more humanised interaction, hospitality brands can contribute greatly to helping address some of the loss of community and rise in loneliness that has undoubtedly been a by-product of the industry’s many digital-first strategies.
Glynn Davis, editor of Retail Insider
This piece was originally published on Propel Info where Glynn Davis writes a regular Friday opinion piece. Retail Insider would like to thank Propel for allowing the reproduction of this column.