Skip Kimpel welcomes Brandon McRrill, co-founder and CEO of 5Out, to delve into the transformative role of machine learning (ML) in the hospitality industry. As the conversation unfolds, McRrill shares his extensive background in the restaurant sector, which began at the tender age of 15. His journey through various prestigious establishments laid the groundwork for his current endeavor, where he aims to harness data to enhance operational efficiency in restaurants. A key theme of the discussion is the common misconception that artificial intelligence (AI) is synonymous with machine learning. McRrill argues that true AI, as depicted in films, does not yet exist in practical applications. Instead, what we see today is sophisticated programming that utilizes vast datasets to automate and simplify processes, ultimately benefiting restaurant operations.
The dialogue shifts to practical applications of ML within the restaurant space. McRrill emphasizes the importance of predictive analytics in optimizing staffing, menu design, and inventory management. By leveraging data, restaurants can make informed decisions that not only improve profitability but also enhance the customer experience. Kimpel and McRrill dissect the challenges of integrating ML into existing systems, highlighting the need for user-friendly interfaces that allow operators to easily access and implement insights without getting bogged down in technical complexities. As they explore the future of hospitality technology, they stress the importance of delivering actionable outcomes rather than just insights, setting the stage for a new era of efficiency in the industry.
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Brandon McCrell:This is Brandon McCrell, co founder and CEO of Five out and you're listening to Skip on the Tech Chef Podcast.
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Skip Kimpel:Welcome back to the Tech Chef.
Skip Kimpel:I'm Skip Kimpel, your guide to the latest hospitality technology insights and inspiration straight from sunny Fort Lauderdale, Florida.
Skip Kimpel:Whether you've been with us for a while or you're joining us for the very first time, we are thrilled to have you here.
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Skip Kimpel:Anybody that was at CES this year, all I have to say is wow.
Skip Kimpel:It was an action packed show with major announcements coming from all industries.
Skip Kimpel:Of most interest to me however was the keynotes from Nvidia and Sony.
Skip Kimpel:I'm not going to spoil it for you, but if you missed those, make sure you jump on YouTube and check them out.
Skip Kimpel:This week's show is interesting as we challenge the concept of AI.
Skip Kimpel:Crazy, you say?
Skip Kimpel:Well if you are curious you are in the right place as we explore this topic with our special guest, Brandon McGrill.
Skip Kimpel:With more than 26 years of experience in the hospitality industry, he is the co founder and CEO of five Out, a company that leverages machine learning to provide actionable directions for food, service and resort businesses.
Skip Kimpel:He leads the vision, strategy and execution of five out, which aims to revolutionize the way hospitality operators design, manage and optimize their operations and customer experience.
Skip Kimpel:Brandon has a very strong background in food and beverage conceptual development, having founded and co founded several successful restaurants and cafes.
Skip Kimpel:Buckle up and let's get a little controversial with this week's title episode.
Skip Kimpel:AI does not Exist.
Brandon McCrell:Let's go.
Skip Kimpel:Brandon, thank you so much for joining the show today.
Skip Kimpel:Can you share your professional journey leading up to founding five out and really what inspired you to step into the restaurant and hospitality tech industry?
Brandon McCrell:First of all, thanks.
Brandon McCrell:Great to be here and great talking with you and seeing you again.
Brandon McCrell:And then to answer those questions, I would say five out was begotten from my career in the hospitality industry.
Brandon McCrell:So I got started in the restaurant industry when I was 15 years old.
Brandon McCrell:I was playing soccer at the time, competitively, got injured.
Brandon McCrell:I was injured enough to the point where I couldn't play soccer competitively anymore, but I still could walk and walk well.
Brandon McCrell:And so my mother said, you need to take that 15 year old energy, get out of the house and take it somewhere else.
Brandon McCrell:So I went looking for a job and in all the places that I applied without much experience at the ripe old age of 15, the first place that hired me was actually the Grosse Pointe Hunt Club in Grosse Pointe Woods, Michigan.
Brandon McCrell:And I was parking cars and washing dishes.
Brandon McCrell:So I would park cars in a little tuxedo shirt and suit and then I would take it off and run inside and wash dishes and then come back outside and put that shirt and suit back on and unpark people's cars at the end of their meal.
Brandon McCrell:And I just kind of became enamored with the industry from that point.
Brandon McCrell:I was always interested in food growing up, but I really started to understand where it came from, literally and figuratively, and I stuck with it from there.
Brandon McCrell:So throughout the rest of high school and college, I worked in restaurants.
Brandon McCrell:I transferred from going to school in downtown Detroit to Columbia Chicago and accidentally fell into working at a high end restaurant called Alinea, which is a three Michelin star, four star restaurant in Chicago.
Brandon McCrell:And that's when I really made a material commitment to transition my career to hospitality.
Brandon McCrell:Previously I was studying photography.
Brandon McCrell:So from there I went to work for some pretty relatively well known restaurant tours like one off Hospitality.
Brandon McCrell:Dm Paul Khan, Richard Melman to let us entertain you, Danny Meyer at Union Square, Union Square Hospitality group at the MoMA, John George Lucas, David Burke, Marcus Samuelson.
Brandon McCrell:And then I started opening my own restaurants.
Brandon McCrell:So I was in my late 20s.
Brandon McCrell:I started opening my own restaurants in the Lower east side of Manhattan.
Brandon McCrell: I opened Pearl Nash in: Brandon McCrell:Being only open for three and a half months at my second restaurant put us on a national radar.
Brandon McCrell:We got scooped up by a publicly traded REIT to open up a ground floor restaurant in a $350 million mixed vertical neighborhood in Philly.
Brandon McCrell:Went and opened, that stayed, worked with those developers to open up two more restaurants.
Brandon McCrell:And that has been the last 26 years of restaurant touring.
Brandon McCrell:Wow, fast go backwards.
Brandon McCrell:Yeah, that was, it was a lot.
Brandon McCrell:It was A run, but it was 26 years, so obviously time to get stuff in.
Skip Kimpel:And by the way, you did a lot of name dropping there.
Skip Kimpel:But the only thing that stuck in my head is the picture of you parking cars.
Skip Kimpel:It reminds me of the.
Skip Kimpel:The kid in goodfellas parking the cars for all the mobsters out front.
Skip Kimpel:Barely, barely, barely tall enough to look over the steering wheel.
Brandon McCrell:No driver's license.
Brandon McCrell:But thankfully, the parking lot was very close to the front door.
Brandon McCrell: So fast backwards to: Brandon McCrell:I'm in New York City.
Brandon McCrell:I've just opened up my second restaurant.
Brandon McCrell:And facing headwinds as I had seen it, many other restaurants that I had worked at before and for many other restaurant tours that I'd worked that before, and that's that.
Brandon McCrell:Generally speaking, the hospitality industry and the restaurant industry in particular, has a finite profit margin.
Brandon McCrell:And with the two largest expenses being labor and cost of goods.
Brandon McCrell:If you can understand what your product demand is going to be, and therefore what you're purchasing and expense needs to be across those two things and understand them in advance, then you can potentially be more profitable.
Brandon McCrell:And the easiest way to, to kind of speak to that is if you're running a banquet hall, let's say, for example, and you book a wedding six months in advance, and the people who are hosting the wedding have sent out requests for RSVP and ask people if they want steak or chicken, and they have filled it out that they're coming and which one they're eating.
Brandon McCrell:Then you know how many people you have, and you know what they're going to, what they're going to eat.
Brandon McCrell:So you know, you only need to purchase and prep exactly for the amount of people that you know are coming and it's already paid for and exactly what food they're going to be, they're going to be having.
Brandon McCrell:So you know how many staff you need to cook that many chicken and steak and how many drinks they're going to have, and all these things become predetermined.
Brandon McCrell:And if a restaurant, any restaurant, not just a banquet hall, but any restaurant, had that kind of visibility, looking forward into what was going to occur in advance, they could have a better handle on how much staff do I need doing what job, where and when, and how much product do I need, where and when.
Brandon McCrell:So myself and my CFO at the time, Mike Marion, who's now my CTO at five out, we decided, is there enough data out there to allow us to create something simple and rudimentary that can help inform us and give us a better understanding of what is likely to occur in the future.
Brandon McCrell:Utilizing Excel and a thumb drive plugged into a Micros terminal in a basement, we pulled raw data and utilized other outside data like foot traffic and weather and local and national events, and made simple algorithms handwritten in Excel and put this data through those algorithms and use it to forecast what was going to happen going forward, just by a single week, broken down by day, and then by meal period, and then by hour, starting with revenue and then items sold.
Brandon McCrell:And if you know what your hourly revenue is and your headcount and what items are going to get sold, then you can simply use simple arithmetic to reverse engineer into a labor budget and a purchasing budget that is more specific and finite than you would on your own by guessing.
Brandon McCrell:And in doing so, we were able to bring $300,000 of additional net profitability to a $3 million restaurant.
Brandon McCrell:So that was a sizable material beneficial impact.
Brandon McCrell:So we applied that to a second restaurant of mine and then three more, and at five restaurants we crashed out.
Brandon McCrell:Because Mike is a human being and not a computer, and he was spending about 10 hours a week per restaurant calculating this data, turning it into a.
Brandon McCrell:First of all pulling it, then calculating it, turning it into a deliverable that's actually utilizable by a restaurateur, which I'm one, so I get to make comments like that.
Brandon McCrell:So it has to be simple.
Brandon McCrell:And then tracking changes and following up to make sure they did it.
Brandon McCrell:Those seven steps for each restaurant took about eight to ten hours per week.
Brandon McCrell:So we hit bandwidth issues.
Brandon McCrell:So that Mike and I said, why don't we turn this into software?
Brandon McCrell:If we can automate this process, automate the data digestion, automate the output creation, automate the updates, automate the changes, automate the distribution, automate the tracking, then we can apply this to a lot more people.
Brandon McCrell:We did that.
Brandon McCrell:Rolled it out of my own restaurants.
Brandon McCrell:That was working, Saving time, saving money.
Brandon McCrell:Then I started handing it out for free to my friends.
Brandon McCrell:They started utilizing it and telling us they liked it a lot.
Brandon McCrell:And then we said, I think we got something here.
Brandon McCrell:We should probably take this to a broader market.
Brandon McCrell:That was how five out got born.
Skip Kimpel:Interesting.
Skip Kimpel:Well, that leads perfectly into the main portion of what the show is about.
Skip Kimpel:It's really not a pitch for five Out.
Skip Kimpel:Even though I'm fascinated by your product, you know, I consider you to be one of the experts in the industry around AI and ML machine learning.
Skip Kimpel:So.
Brandon McCrell:Right.
Skip Kimpel:Start heading down that route because everything you've explained so far is important to the conversation because you Identified very specific data points that help formulate the success of the output.
Skip Kimpel:How should restaurants leverage AI and ML to optimize restaurant operations and customer experiences?
Brandon McCrell:Let's have the complicated part of the conversation first and get it out of the way and then we'll have the simple of the conversation.
Brandon McCrell:So the complicated part is what's AI, what's ML, what's the difference between the two?
Brandon McCrell:So AI doesn't really exist in our world because it is, it is a computer learning on its own, teaching itself and creating on its own, and having its own mind and doing what it wants to do.
Brandon McCrell:And as far as we all know, besides what we've seen in the movies, that hasn't been created and it certainly hasn't been rolled out at scale.
Brandon McCrell:So we're not talking AI.
Brandon McCrell:So then let's talk about ML.
Brandon McCrell:So machine learning is learning, but not coming up with any ideas on its own and not doing what it wants to do.
Brandon McCrell:Therefore it's simply programming.
Brandon McCrell:Higher level, more complex programming, but programming nonetheless.
Brandon McCrell:And so what that means is going into the simple part of this conversation is it's just automation, which is just technology, which is just replacing the horse drawn carriage with an automobile.
Brandon McCrell:So for all those folks that are out there that are a little bit skeptical or nervous or scared or hesitant or anything that doesn't get you leaned in into the conversation around AI and ML, it's just another form of technology that's being introduced to us.
Brandon McCrell:Just like the printing press, or just like the Internet or like the computer.
Brandon McCrell:It's just one more thing that's here to help us in our life.
Brandon McCrell:And I think when people come to that realization, which is going to happen for everybody in their own time, but the faster people come to that realization, and the more people come to that realization, the more quickly that our lives are all going to get a lot simpler as a byproduct of ML.
Brandon McCrell:First and foremost.
Brandon McCrell:That's the lofty, broad, flowery language answer.
Skip Kimpel:Well, very controversial answer too.
Skip Kimpel:So are you saying at this point in time AI is a misused term?
Brandon McCrell:Yes, very much so.
Brandon McCrell:I think that because of the complexity and the nuance of what the actual differentiation is between machine learning and AI, that a lot of people are lumping those two things together and calling one the same and making them synonymous.
Brandon McCrell:And in fact they're very, very different.
Brandon McCrell:And so what I want everybody to start doing is understanding that starting at the top, which I like to call ChatGPT, that's machine learning.
Brandon McCrell:It's not AI, it's not true AI and everything, I'll call it below that, if that's the top and that's the gold standard, is also machine learning.
Brandon McCrell:So we are not in the age of AI yet.
Brandon McCrell:We're actually only in the age of machine learning.
Brandon McCrell:And that's just advanced algorithms utilizing large data sets.
Brandon McCrell:It's not thinking on its own, it's not writing its own course, it doesn't have its own thoughts.
Brandon McCrell:And therefore it's not out to kill us, such as Terminator 2, which is great because we don't need that.
Skip Kimpel:Okay, so I will remove AI from this conversation.
Skip Kimpel:And by the way, I think that last statement is probably going to break the Internet when this podcast launches because we might have some conversations going on in line in online regarding that, which is.
Skip Kimpel:I love those conversations.
Brandon McCrell:I would love for people to point URI to true AI being deployed currently in the restaurant space, the hospitality space, or any other sector, because I have yet to see it.
Skip Kimpel:So what are some of the biggest challenges that you faced when integrating machine learning into five outs platform?
Brandon McCrell:The biggest challenge is that software development and machine learning are two completely different functions.
Brandon McCrell:Almost the same as building an airplane versus building a rocket ship.
Brandon McCrell:An airplane has all of its engineering requirements and its engine requirements, and all of those things are well understood and known by most of the same group of people.
Brandon McCrell:But building a rocket ship is you have the engineering side and then you have the rocket science.
Brandon McCrell:And it's a great example.
Brandon McCrell:So if you want to build a software platform, you need engineers.
Brandon McCrell:If you want to do something with machine learning, you need data scientists and other ancillary folks around the world of data science.
Brandon McCrell:And you can't work one without the other.
Brandon McCrell:So if you want to build a software solution that utilizes machine learning, you actually have to engage two independently skilled teams and bring them together and help their work coalesce.
Brandon McCrell:So I guess what I'm saying is it's a lot easier and more straightforward to build software than it is to build software that utilizes ML.
Brandon McCrell:And that was probably the biggest challenge, is learning that and then figuring out how to exist in that world where we had to bring those two areas of focus together.
Skip Kimpel:So when creating this language model and this database, how do you ensure data security and ethical use of.
Skip Kimpel:I keep wanting to use the term AI.
Skip Kimpel:Now you throw me all off when handling sensitive restaurant and customer data.
Skip Kimpel:I mean, what does that look like within the industry?
Brandon McCrell:So I'll speak to our experience and then I'll speak to other folks experience that I can only, you know, talk about from A from a outsider perspective, as far as we're concerned here in, in our company, in our solution, we don't utilize any personalized data.
Brandon McCrell:So we specifically, you know, block that out.
Brandon McCrell:If anybody tries to give it to us, we tell them we don't want it.
Brandon McCrell:Reasons are somewhat business related, somewhat security like you're talking about, but also we just don't need it.
Brandon McCrell:We're not focused on the individualistic Persona, perspective, experience, we're focused on the backend financial data aspects.
Brandon McCrell:So that's our experience, that's our walk of life when it comes to other people.
Brandon McCrell:Now that we live in a cloud based world where data is mostly stored with Amazon and utilizing aws, which is where a lot of the government stores a lot of its data, I like to look at an equal playing field.
Brandon McCrell:So if you're able to engage with AWS and I'm able to engage with aws, the United States government and IBM and JP Morgan are able to engage with aws.
Brandon McCrell:It's not exactly apples to apples, but it's at the very least apples to oranges.
Brandon McCrell:We all kind of have a fair shot at keeping our data secure.
Brandon McCrell:Now we know starting up from the very top level all the way down to the simplest of solutions, there is data breaches and it happens.
Brandon McCrell:And that's the world that we live in, that we, most of us have chosen to opt into, but not everybody.
Brandon McCrell:So I think that we're all pretty secure or at the very least as secure as most folks in the world who focus on making it so that it is we are secure, stay that way.
Brandon McCrell:So that's the way I think about data security and data privacy.
Brandon McCrell:In terms of ethics, that's a whole other conversation and that we are no way, shape or form in a position to have figured out.
Brandon McCrell:I mean I think at the end of the day, going back to talking about the gold standard of ML, when we're talking about open air, we're talking about chat.
Brandon McCrell:Machine learning is machine learning is machine learning.
Brandon McCrell:Data training is data training is data training.
Brandon McCrell:Data sets are what's going to set people apart, no pun intended.
Brandon McCrell:So whoever has access to the best data sets to put into their models.
Brandon McCrell:And this is going to get interesting for everybody, skip it.
Brandon McCrell:In the next one to five plus years it's going to be who has a data set that no one else can get access to, who has that the report from the United States government?
Brandon McCrell:Who has that analysis from Bain, who has that Harvard study?
Brandon McCrell:Who has that unpublished data set that they can put into their model that all of a sudden is going to lift it up and get it much higher.
Brandon McCrell:So being able to tier up into different levels of data set and who can get the best data sets and who can, you know, unfortunately this is not a word I like to use, but obfuscate that data set from some of their competitors is what's gonna, is what's gonna help separate some cream from the rest of the pack, so to speak.
Skip Kimpel:Yeah, it's interesting you say that because that has come to light recently.
Skip Kimpel:We're Magic Gate is actually training a model for a very specific industry that will be unique and will be competitive and will be advantageous to Magic 8.
Skip Kimpel:It becomes the proprietary information of our organization and having that unique data set really gives us a competitive advantage.
Skip Kimpel:So I can't wait to talk more about that in the future, but totally get where you're coming from, Brandon.
Skip Kimpel:We're going to take a little break and when we come back, we are going to dig into some of the, the insights that you can drive from this data that you're collecting, the future of AI and hospitality and a bunch of other great things.
Skip Kimpel:So everybody stay tuned.
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Skip Kimpel:Okay, let's pick up where we left off.
Skip Kimpel:Let's talk about some of the machine learning driven insights.
Skip Kimpel:How can tech companies use machine learning to help restaurants make better decisions about menu design, staffing or marketing campaigns?
Skip Kimpel:Obviously I'm moving outside the five and out sector here, but I think there is education to be had for other vendors.
Skip Kimpel:There's common misconceptions, especially for operators in regards to what this technology is and what it isn't.
Skip Kimpel:So I'm very interested to hear your insight on that.
Brandon McCrell:Yeah, so there's, there's a couple roads to think about when starting to understand what you might want to utilize from new technology perspective when it comes to machine learning.
Brandon McCrell:And I like to, I like to simplify it as much as possible.
Brandon McCrell:And we can say it's machine learning, which it is, but then we can also say it's automation, which it is, and therefore it's just technology.
Brandon McCrell:So it's really just what new automation technology do I want to bring into my restaurant.
Brandon McCrell:So as an example, do I want automation that answers the phone for me and indicates to someone whether they want to know what my business address is or what my telephone number is, or what directions to my business, or to be able to make a reservation or maybe even to troubleshoot a problematic scenario where it can feed me to a pipeline of this person's voicemail or this person's voicemail.
Brandon McCrell:That's ML, that's automation.
Brandon McCrell:That's technology.
Brandon McCrell:That's one utilization.
Brandon McCrell:Same type of ML can also be used to help people place orders.
Brandon McCrell:So if you've been to McDonald's lately, you might have noticed that there is a voice that answers when you pull up and then there's a different voice that takes your order.
Brandon McCrell:So there's actually an ML that's asking you if you want to utilize your telephone number to be able to be recognized, or if you want to use the custom app, or if you've placed an order with the custom app.
Brandon McCrell:There's all these different AB testing that's happening.
Brandon McCrell:And then after you answer that order, which is being asked by ML and answer is being logged by ML and a decision tree being utilized by ML, then a human being comes in.
Brandon McCrell:And what does that allow for?
Brandon McCrell:That allows for one human being to be taking someone in order and ML to get started on the process for the next person.
Brandon McCrell:So what's that?
Brandon McCrell:It's automation.
Brandon McCrell:What's automation technology?
Brandon McCrell:So it's ML, sure, but it's automation technology.
Brandon McCrell:And that's simple and that's easy.
Brandon McCrell:That's not anything that anybody should be scared of or hesitant of.
Brandon McCrell:So that's another thing that I think that people can look to.
Skip Kimpel:How do you see ML further revolutionizing the restaurant and hospitality industries over the next five to 10 years?
Skip Kimpel:And will we see the true AI in that time period?
Brandon McCrell:So that to me breaks down to the definition of hospitality.
Brandon McCrell:So some people think the definition, definition of hospitality is the function of getting served, and some people think it's the service, and then some people think it's both.
Brandon McCrell:So if I go to a hotel and I can check in and sleep in that room, then I've gotten hospitality.
Brandon McCrell:And some people think it's the level of service that you get, and then some people think it's the marriage of those two.
Skip Kimpel:That's a very good point because a lot of people view it as the touch much points and which with that, which adds to the value add of the proposition.
Brandon McCrell:Right?
Brandon McCrell:So if I can call a restaurant and an ML can Answer the phone and answer my questions and I can make a reservation or change a reservation or get a question answered, then that's hospitality.
Brandon McCrell:But if I really enjoy that experience, if that ML sounds like I want it to sound and it makes me feel good about having done it and I feel good leaving it, then that's an elevated level of hospitality.
Brandon McCrell:So the way I want to answer the question is can we first hit function and then can we get to form?
Brandon McCrell:And if we can get form and function, then that's the perfect marriage of hospitality for most.
Brandon McCrell:I think some people are still going to say I prefer that, that human element and aspect.
Brandon McCrell:And I'm, I'm, I want to have my cake and eat it too.
Brandon McCrell:I want to live in a world where both exist for forever, hopefully, knock on wood.
Brandon McCrell:Some people want just one, some people just want the other.
Brandon McCrell:But I think people figuring out what their druthers are on that, on that answer is going to be an interesting thing that we're going to see develop over the next five and 10 years is what does hospitality mean to you when it comes to something that's been programmed by a human?
Brandon McCrell:Right, because it's not a robot you're talking to, it's a human being that programmed a voice.
Brandon McCrell:It's maybe a voice recording and it's maybe a person that wrote that code.
Brandon McCrell:So underlying there is a human at work, at play there.
Brandon McCrell:So it's still going to be about human connectivity and human emotionality.
Skip Kimpel:Well, with these advancements in these technologies, do you see automation in this area potentially replacing traditional roles in restaurants or hotels?
Skip Kimpel:Or is it more about augmenting the human decision making process?
Skip Kimpel:That's the million dollar question right there.
Brandon McCrell:It might be the trillion dollar question.
Skip Kimpel:Yeah, exactly.
Brandon McCrell:I was listening to an interview by Mark Andreessen at Andreessen Horowitz this morning and he that the, the new ML that's going to be coming out is going to be able to decide what is the next best solution to code on its own and then we'll be able to execute on that.
Brandon McCrell:And in that occurring, that whole process that you just talked about where there is no human intervention at a certain point is coming the next six to 12 months.
Brandon McCrell:And as that's the case, I'm not certain who's going to outperform.
Brandon McCrell:I want to say that the human being is still going to be able to outperform and is still going to be able to have more human empathy and more human sympathy just by simple definition.
Brandon McCrell:But I'm not, I'm not ruling out the option or the possibility that the computer is going to be able to confuse the human and we're going to lose, we're going to lose an ability to be able to differentiate between the two.
Brandon McCrell:And then when we hit there, of course we're right back up to the initial part of this conversation.
Brandon McCrell:True AI when we can no longer tell.
Brandon McCrell:Right.
Brandon McCrell:That's the touring test.
Skip Kimpel:So many restaurant operators may not be tech savvy and it sounds like you've built a lot of this technology that we just talked about into five outs offering which, you know, how do you make, how do you make these tools intuitive and user friendly to the operator?
Brandon McCrell:I think there's nothing more important than that, frankly.
Brandon McCrell:Simplicity is key.
Brandon McCrell:And I also think that insights are a bad word and I think that helping is a bad word.
Brandon McCrell:And I think that those things are currently where a lot of people are focused on and we're past that.
Brandon McCrell:I think everybody should be past that to a point of giving something in its final state or near final state, it has to be delivered as an answer and we need to actually take it beyond that and get to what we internally call a closed loop system.
Brandon McCrell:So as an example, you might send an email to someone and say, hey, I want to do this thing at work and I'm putting you on notice on Monday that if I don't get an answer back from you about Wednesday, I'm going to do that thing.
Brandon McCrell:And so what we would like to do in our areas of focus and what I think other people are going to do is start creating similar closed loop systems where I'm actually going to create a schedule, a labor schedule for a restaurant and I'm going to send it to an operator, let's say on a Monday and say I'm giving you until Wednesday to edit, change, opine, pull back, what have you.
Brandon McCrell:But after that, if you haven't made any of those changes or edits, I'm actually going to distribute that to your team and then those folks are the folks that are going to actually show up.
Brandon McCrell:And we're doing the same thing with purchase orders and prep lists.
Brandon McCrell:So I want to create an automated prep list which is how much food do I need to make for tomorrow?
Brandon McCrell:I want to email that to the team in the morning, first thing and prior to I want to send it to whoever's the decision maker at the night time and say, here's the prep list the teams are going to get tomorrow, make edits or changes.
Brandon McCrell:And if you don't by this time at 6am they're going to have those in their inbox.
Brandon McCrell:Same thing for the vendor.
Brandon McCrell:I'm going to put together your meat order, your dairy order, your fish order, your beverage order and I'm going to send it to you and I'm going to say you have this amount of time to apply and if you don't reply at a change or otherwise, I'm going to send it to your vendor, which means the next day that's the food and that's the beverage that's going to show up at your front door.
Brandon McCrell:So that's where we need to get to, is not only well past insights and well past help and guidance, we got to get to a delivered answer, a finite, explicit delivered answer and we actually need to ship that answer to the next person so that we're not bottlenecking decision making, we're not bottlenecking on execution and that we're moving at speed.
Skip Kimpel:Well, that was really my next question, but I think that's your, you've answered it and it was really around, you know, how do you balance the complexity of these data driven insights with the simplicity that restaurant operators often need in their day to day tools?
Skip Kimpel:And it's really just handing them the results of what they're looking for, what they need, not necessarily what they're looking for.
Brandon McCrell:It's absolutely similar as opening up a new computer.
Brandon McCrell:So if you go get a new Apple laptop, you open the box, you take it out of the plastic, you open it, you turn it on and that's it and it runs from there.
Brandon McCrell:There are so many complex systems running underneath the surface that none of it, well, most I don't and a lot of people don't understand.
Brandon McCrell:There are many out there that do, but most don't.
Brandon McCrell:But it just works just like a car, which I also don't understand how a combustion engine works, but it works and I go in and I press the on button and the car works and it runs.
Brandon McCrell:That's the level that I think that the restaurant industry and probably other people as well, hospitality inclusive, need to be thinking about machine learning.
Brandon McCrell:It has to be.
Brandon McCrell:The end result has to be automated, deliverable action.
Brandon McCrell:And anything else I think is a failure of our own ability to recognize what works as a solution in the hospitality industry.
Brandon McCrell:I don't think insights work, I don't think data works, I don't think help works, I don't think guidance works, I think delivered actions are it.
Brandon McCrell:And that's anything else I think is short sighted and it's it's doesn't have legs.
Skip Kimpel:Brandon, in closing, if you could give one piece of advice to restaurant operators, navigating, and I'm going to say the word the AI landscape, what would it be and what would you caution them against?
Skip Kimpel:Now, obviously there's questions they should be asking based upon our conversation today.
Skip Kimpel:You know, I've said for years, a lot of smoke and mirrors out there when it comes to AI, a lot of wizard of Ozing.
Skip Kimpel:And I think you have provided some very interesting insight today.
Skip Kimpel:Like I said, it's going to cause some controversy and I can't wait to see the post on this when we, when we go live with the show.
Skip Kimpel:But what is your advice for those operators looking to do go down this path?
Brandon McCrell:I would, I would advise people to ask anyone that they're speaking to who is offering up AI and ML solutions to show them first and foremost what the deliverable is, not to start at the beginning of the story and say, why did you create this?
Brandon McCrell:What does it do, how does it work, who does it work for, et cetera.
Brandon McCrell:I would go to the very end of the line and say, what does the deliverable look like?
Brandon McCrell:Show me the deliverable.
Brandon McCrell:And then if the deliverable looks like it's something that your team can use and that you could put it into your work process and you can digest it and then it's going to be helpful for you, then I would start working backwards.
Brandon McCrell:Where did this information come from?
Brandon McCrell:How did you get to it?
Brandon McCrell:What is the, what is the process?
Brandon McCrell:Who else have you used it for?
Brandon McCrell:That's how I would ask people to go about evaluating a solution.
Brandon McCrell:Show me the end deliverable and look at it and say, could my, and would my team use this to execute in their restaurants?
Brandon McCrell:And if the answer is yes, then start working your way backwards to the rest of that journey.
Skip Kimpel:Brandon, I am so glad I brought you on the show.
Skip Kimpel:I know we had a little scheduling issues, but this was a very worthwhile conversation.
Skip Kimpel:I love your insight, I love your perspective and I am so appreciative that you came on the show to talk to our audience here today all about what is not AI, but more or less it's machine learning.
Brandon McCrell:Great to do it.
Brandon McCrell:Happy to be here and thank you for the invitation.
Skip Kimpel:Boy, that was interesting.
Skip Kimpel:I bet you might have a few questions or a few comments and I would love to hear your thoughts on this and continue the conversation.
Skip Kimpel:If you'd like to do so, you can leave a message on my LinkedIn profile.
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Skip Kimpel:You can always go to the website skipkimple.com for all of the archived shows including the show notes which are posted there as well.
Skip Kimpel:You can also hear these new episodes on the Magic gate website@magicgate.com and of course you can email me at any point in time@Skipagicgate.com next week on the Tech Chef Ken Garvanovits joins us to talk about transformative growth and leadership for high impact hospitality executives.
Skip Kimpel:He is all about driving innovation, creating scalable growth and creating team excellence.
Skip Kimpel:Known for his Amazon best selling book entitled Business Breakthrough 3.0 and his skills at public speaking, Ken shows us some eye opening opportunities to fine tune your leadership style.
Skip Kimpel:Well, here is to wishing you a good productive week ahead as we push forward to conquer January together.
Skip Kimpel:So until next week, stay safe, stay healthy and stay hungry.
Skip Kimpel:My friends.