Project of an information system for restaurant business
management
⋆
Vasyl Morokhovych
1, ∗,†
, Ihor Liakh
1,†
, Vasyl Kut
1,†
, Vitalii Petrus
1,†
and Bohdan
Morokhovych
1,†
1
Uzhhorod National University, Narodna 3, 88000 Uzhhorod, Ukraine
Abstract
Information technologies provide automated systems for enterprises that can help companies
track customer interactions and allow employees to quickly process customer data. This concept
is known as Customer Relationship Management (CRM), and when properly implemented, it
enhances companies’ ability to achieve the ultimate goal of customer retention, thereby achieving
strategic improvement in comparison to competitors. The article discusses the main trends in the
development of CRM systems for the restaurant business. Implementing specialized software can
address the following tasks for restaurants: organizing staff work and monitoring the quality of
task execution, optimizing the operation of all establishment workstations, maintaining a
customer database, tracking orders, controlling inventory turnover, and generating reports,
among others. Integrating artificial intelligence and machine learning in the restaurant business
sector enables data processing optimization, assisting in predicting customer demand and
preferences based on their orders and behavior. Modern CRM systems in business are actively
used to analyze data aimed at understanding customer preferences, enabling the creation of
personalized offers and effectively implementing targeting campaigns. During the project
implementation, the functionality, advantages and disadvantages of management systems for the
restaurant business were analyzed. The information system for the restaurant was modeled
using UML diagrams, including the requirements for the IT project and the design procedure.
Keywords
restaurant business, information technologies, CRM systems, artificial intelligence, UML
diagrams
1
1. Introduction
A CRM system is an information system designed to automate a company’s business
processes, ensuring that all its departments interact with customers at the level determined
Proceedings of the 5th International Workshop IT Project Management (ITPM 2024), May 22, 2024, Bratislava,
Slovak Republic
⋆
You should use this document as the template for preparing your publication. We recommend using the
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∗
Corresponding author.
†
These authors contributed equally.
[email protected] (V. Morokhovych); [email protected] (I. Liakh); vasilij.kut@uzhnu.edu.ua (V.
Kut); [email protected] (V. Petrus); [email protected]a (B.
Morokhovych)
0000-0002-4939-6566 (V. Morokhovych); 0000-0001-5417-9403 (I. Liakh); 0000-0001-5267-331X (V.
Kut); 0009-0000-7162-6818 (V. Petrus); 0000-0002-3498-6547 (B. Morokhovych)
© 2023 Copyright for this paper by its authors. Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0).
CEUR
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Proceedings
ceur-ws.org
ISSN 1613-0073
by the CRM ideology. By automating processes, the system helps companies build a more
effective dialog with customers, avoid mistakes in their work, and ultimately provide better
services throughout the entire life cycle.
A luxurious restaurant, a cozy pub, a small cafe – all of these are integral systems that
require clarity and focus. An attractive menu and a pleasant atmosphere are only half the
battle. The ability to organize the work of the establishment plays an important role.
Accuracy of calculations, coordination of goods turnover, card servicing and organization of
a discount system, as well as control of warehouses and personnel – all this facilitates the
implementation of a restaurant business automation system presented in the form of
software.
At the current stage of development of customer relationship management systems,
advanced technologies such as artificial intelligence (AI) and machine learning (ML) play a
key role. These technologies are being integrated to optimize the processing of large
amounts of data and develop predictive models of customer interaction based on past
experience and behavior.
Modern restaurant business management systems tend to focus on understanding the
collected customer data and transforming it into knowledge. They effectively use the
concept of big data to target companies and develop individually tailored offers.
2. Formulation of the problem
Optimization of customer relationship management (CRM) in the restaurant business is
gaining new dimensions through the introduction of innovative technologies. Trends in the
development of CRM systems in the restaurant industry are determined by the need for
effective customer interaction and optimization of internal business processes. The use of
modern CRM solutions allows restaurants not only to store customer data, but also provides
automated management of orders, inventory, and other business components. The use of
analytical tools and artificial intelligence in CRM helps to make personalized offers to
customers and predict their preferences.
However, despite the obvious advantages, there are a number of problems that
complicate the full implementation of CRM systems in the restaurant business. Poor
integration with existing technology platforms, high implementation costs, and insufficient
staff qualifications can be an obstacle to the successful implementation of CRM in
restaurants. This issue requires attention and further research to determine the optimal
strategies for developing and implementing an IT project of an information management
system in the restaurant business in order to increase the efficiency of customer interaction
and business process management.
3. Analysis of recent studies and publications
According to the results of a study aimed at assessing the popularity of CRM systems and
their fundamental functionalities, several key aspects can be identified. First and foremost,
users highly value contact management capabilities, which accounts for 94% of responses.
In addition, interaction tracking (88%) and scheduling/reminders (85%) are important [1].
These results show that CRM system users value the ability to effectively manage
contacts and interact with customers. About a quarter of the respondents show interest in
using sales pipeline and funnel tracking functions. These data emphasize the importance of
developing and improving CRM systems that meet the specific needs of users in managing
customer relationships.
It’s worth noting that some CRM users are showing interest in more sophisticated and
advanced features, such as sales automation, a central database, email marketing,
customization, and reporting/analytics. Maximizer Software managing director Mike
Richardson discusses the importance of a balanced approach between complexity and a
centralized view of the customer, arguing that the best systems are rapidly becoming more
complex, but all customer touchpoints should be centralized for a single customer
experience [2].
Moreover, Salesforce research indicates that for 85% of customers, it is the experience
that a company provides that is important, compared to products and services. Using CRM
technology to improve the customer experience includes the use of live chat for fast support,
a data bank to display the complete customer journey, and automated knowledge bases. It
is also important to synchronize customer data between different applications to create a
complete customer image [3].
Recent studies show that the integration of artificial intelligence and machine learning
allows for improved data processing, making predictions of customer interaction based on
their past experience and behavior. Modern CRM systems are becoming more focused on
understanding and analyzing collected data to target campaigns and create personalized
offers. In addition, the use of the Internet of Things (IoT) allows you to collect data on
customer behavior and automate interaction processes.
Artificial intelligence in CRM involves the use of machine learning techniques to extract
information from data, recognize patterns, and make decisions with limited human
intervention. Successful companies effectively use artificial intelligence in CRM to analyze
customer data, chatbots, and virtual assistants, personalized recommendations, voice and
speech recognition, and predictive analytics [4].
Antonio V. believes that AI technologies can have a significant impact on key areas of
business, such as forecasting, performance management, upselling, and cross-selling.
Beyond the immediate benefits, integrating AI into CRM systems also has long-term
strategic implications, allowing companies to adapt and thrive in an ever-changing market
landscape [5].
4. Formulation of the purpose of the article
The purpose of this article is to analyze the trends in the development of CRM systems in
the restaurant business using advanced innovative technologies, in particular, artificial
intelligence, machine learning and the Internet of Things, and also to model the main
processes of the project of an information system for managing the restaurant business.
5. Presenting main material
Today, restaurateurs are looking for ways to improve customer service and increase sales,
and it is the use of CRM systems in the restaurant business that solves these problems.
CRM systems in the restaurant business are software that restaurants use to manage and
track customer interactions and data [6]. As a restaurant customer relationship
management tool, they help to retain customers by effectively managing critical guest data,
which enables personalized service and marketing. For example, they can track guests’
contact information, booking history, dietary preferences, or birthdays. Restaurant CRM
systems integrate with other important tools to share customer data between cash
registers, loyalty programs, and reservation systems.
CRM for restaurants is beneficial for both customers and the restaurant business itself.
The systems provide customers with a personalized experience by remembering their
preferences and making suggestions based on past orders. On the other hand, they help
businesses increase sales and improve loyalty by “understanding” customer behavior and
identifying upsell or cross-sell opportunities.
The CRM space is constantly evolving, which indicates the emergence of new trends and
innovations. It is important to focus on the key trends and innovations in CRM systems, in
particular, in the field of customer relationship management, significant progress has been
made through the use of AI, machine learning, and the Internet of Things (Figure 1). The
development of predictive analytics is making the data collected even more powerful,
enabling businesses to better understand their customers and predict future buying trends.
Figure 1: Trends in CRM systems development.
Artificial intelligence and machine learning are used in business intelligence,
automation, and user interfaces, as well as in customer service systems through chatbots
and automated systems. This reduces the time spent on routine work, such as automatically
transferring leads and data directly to sales and marketing departments.
AI-powered CRM systems offer businesses automated task completion, customer
interaction, and data analysis capabilities. They can automate processes such as lead
qualification, customer development, and support. They also analyze customer data to
identify trends, segment audiences, and personalize marketing messages. Artificial
intelligence is used to predict the behavior of customers who may be at risk [7].
Machine learning, which is part of AI, allows computers to automatically acquire and
improve skills based on their own experience without direct programming. In CRM systems,
machine learning is applied to a number of tasks, namely:
• lead scoring: machine learning algorithms evaluate and rank leads based on their
behavior, helping to increase the efficiency of sales teams by prioritizing and
focusing on key customers;
• customer segmentation: machine learning improves the process of customer
segmentation, allowing companies to tailor their marketing strategies to specific
customer groups;
• product recommendations: machine learning algorithms analyze customer
preferences to provide personalized product recommendations that improve the
customer experience;
• predicting customer churn: predictive models help to predict customer churn,
allowing you to take preventive measures to retain them [8].
In addition, CRM systems are gradually integrating with IoT channels. This includes
interaction with various smart devices, from home electronics to health tracking devices.
Integration with IoT allows CRM systems to receive data on customer behavior, identify
possible product issues, and automatically initiate a support process to resolve them [9].
The introduction of mobile applications to interact with smart devices is becoming a key
strategy in many industries, including the restaurant business. This will help to avoid the
lack of interaction with customers through various means of communication. Thanks to this,
the smart device receives constant data about consumers, analyzes their habits and
influences them at different stages, from purchase to operation. This systematic monitoring
allows businesses to provide a variety of services, such as remote maintenance and product
customization, while facilitating the effective implementation of customer relationship
management strategies.
The introduction of IoT technology in production allows businesses to reduce the risk of
losing customers, as their data stored on IoT devices becomes inaccessible when a
consumer switches to another manufacturer. In turn, customer analytics allows you to
create a personalized experience for customers by understanding their behavior. Using
specialized software, companies can create detailed customer profiles. Marketing analytics
helps to optimize the effectiveness of campaigns by using data analysis tools to understand
customer preferences.
Revenues from specialized customer relationship management (CRM) software have
surpassed those database management systems to become the largest in the IT market.
According to the forecast, revenues from the use of software are expected to reach more
than $80 billion by 2025, making CRM systems the fastest growing market in the service
sector [10, 11, 12] (Figure 2).
Figure 2: Forecasting revenue from CRM software.
Trends in the development of CRM systems in the restaurant business indicate a growing
interest of companies in using innovative technologies to improve customer interaction and
optimize business processes. Domestic startups are actively developing CRM products
aimed at the restaurant industry with a focus on the international market. Adapting to
global standards is a key element of competitiveness, so creating a product requires a clear
understanding of the necessary stages of software development.
Management software is constantly evolving, and new interesting offers appear on the
market. Software products for the service sector should effectively build work with clients,
control employees, assess the level of service, and record information about visitors [13].
Table 1 analyzes the functionality of CRM systems for the restaurant business.
Table 1
Functionality of cloud CRM systems for the restaurant business
Name of the CRM
Advantages
Disadvantages
Toast
Integration of
email and sales.
Automated email
marketing
campaigns.
Campaign metrics.
Loyalty program
options.
Gift card program.
No SMS marketing.
OpenTable
Client profiles with
notes and server
settings.
Customizable and
automated
communication
options.
Tracking of
marketing ROI.
Detailed reports
on customer
spending and
order history.
Competition
analysis.
Integration with
POS.
Lack of marketing
automation and
guest surveys.
Poster POS
A full-fledged
guest database.
It works from
mobile devices.
Remote access.
Intuitive interface.
Automation of
restaurant
workplaces.
Receiving a variety
of reports.
Customer
analytics.
Loyalty programs.
Instability and
malfunctions in
keeping records of
goods.
Limited
functionality and
flexibility of the
system.
Let’s analyze the life cycle stage of a project aimed at developing a restaurant information
system. At the first stages of creating CRM systems for the restaurant business, it is
important to define the architecture of the information system and conceptualize the main
functionality. The use of UML diagrams allows you to effectively visualize and model aspects
of application requirements analysis and design.
The requirements for a restaurant information system include the ability to view basic
information about the establishment and contacts, view menus with details about the dishes
and images, and the ability to create table reservations for a specific date and time.
Important requirements are an intuitive and friendly user interface, as well as an attractive
system design [14].
The use case diagram visualizes the requirements for the system, helps to imagine the
roles of the system and their interaction with it (Figure 3). It visualizes the functional
requirements from the perspective of the customer and the restaurant administration. The
POSist
Management of
several locations.
Formation of a
customer base.
Opportunities for
guest
segmentation.
Automation and
management of
email, SMS, and
advertising
marketing.
Targeted
marketing
campaigns.
Loyalty programs.
High cost.
Reporting can be
difficult to
understand.
Customer service
is not systematic.
EatApp
The software is
easy to use.
Possibility of
booking tables and
orders.
Comprehensive
customer profiles.
Targeted
marketing
campaigns.
Opportunities to
segment the guest
database.
POS integration.
High cost.
purpose of creating a use case diagram is to determine the context of the subject area for
system design, as well as the need to develop an initial conceptual model of the system and
its further improvement.
Figure 3: Diagram of the system usage.
The activity diagram for the IT project of the restaurant information system is shown in
Figure 4. The activity diagram shows several scenarios of interaction with the system. The
customer has the opportunity to view general information about the establishment using
the website, as well as a menu with prices and details about the dishes.
Figure 4: System activity diagram.
The proposed project of an information system for managing the restaurant business
will provide the following opportunities using artificial intelligence:
• analyzes competitors and identifies their weaknesses;
• writes interesting posts for social networks and the website on a daily basis;
• conducts market analysis and develops promotion strategies;
• helps the sales team overcome objections and close deals;
• creates accurate demand forecasts and improves the quality of management
decision-making;
• train employees and improve their professional skills.
Thus, restaurants need an information system that would be convenient and easy to use
by the client, meet his requirements and requests, namely: to book a table for the right date
and time, order the desired dishes and drinks, and have a guarantee of timely order
fulfillment. The requirement from the staff is to ensure that the order is received from the
client and transferred to other departments – kitchen, bar, hall, automatic collection of data
on online orders and products available in the warehouse, and the current occupancy of the
halls. The requirement for the program from the administration and management is the
automation of personnel management.
6. Conclusions
The concept of CRM systems is based on the principle that the customer is a key factor in
doing business, and their requests, needs and requirements for services are crucial. CRM
systems are aimed at ensuring optimal interaction with customers, taking into account their
wishes, ways of interaction, reaction to the service, as well as assessing the quality of the
service provided. In this regard, the restaurant business is based on service and marketing
processes aimed at meeting customer needs. The practical implementation of CRM systems
in the restaurant business has its own peculiarities, which relate to both the functioning of
the institution and service processes, as well as the model of the CRM system itself. The
processes of working with information reflect the principles of a restaurant establishment,
such as organizing service, searching for potential customers, conducting market research,
and interacting with customers.
Modern trends in the development of CRM systems in the restaurant business include
the integration of artificial intelligence and machine learning to optimize data processing
and demand forecasting. This allows you to create personalized offers for customers and
effectively implement targeted campaigns.
When choosing information systems for restaurant business management, it is
important to carefully analyze the functionality, advantages, and disadvantages of CRM
systems. It is also important to take into account the specifics of your business and its needs.
In this article, the requirements for an IT project are formulated, and the modeling and
design of a restaurant information system using UML diagrams are carried out.
The results of the study theoretically substantiate the need for practical implementation
of CRM systems in the management of restaurant business, in particular, taking into account
the peculiarities of service processes and characteristics of such systems. This approach
contributes to the automation of customer interaction functions and helps to improve the
quality of service in the restaurant industry.
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