Customers consuming food or beverage on site has dropped so much that many “fast food” services are closing their dining rooms and building new locations without seating: 9 Fast-Food Chains That Are Phasing Out Dining Rooms — Eat This Not That

This is another way to save on labor costs. The pandemic resulted in many outlets becoming largely “pick up and go” places. At some chains, “dining in” is down to 20-30% of their customers. My local Starbucks has very few people drinking inside – most are drive up and counter pick up orders.

This is another way that labor-intensive, low-density value services will cut costs – smaller retail footprints, no indoor seating, and limited parking for those making a quick stop to pick up something. Lowers costs all the way around.

Closing the dining room is a business process change that does not require automation, but is enabled, in part, by mobile app and web ordering. As noted elsewhere on this blog, many fast-food chains are experimenting with automated voice recognition to process phone orders and drive-up window orders, without needing any staff.

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