Tuesday, December 6, 2022
Allen Kopelman, CEO and co-founder of Nationwide Payment Systems, reviewed the list of companies that are laying off people and said it reads like a "Who's Who" of technology leaders.
"Meta, Twitter, Uber, DoorDash, Stripe, Coinbase, FTX, Netflix, Klarna, Shopify, Tesla, Lyft, Carvana, PayPal, Microsoft, and more," he said. He also noted the stock prices of these companies have plunged along with other companies that were affiliated with FTX, representing over 140 companies and counting.
Kopelman went on to say these companies are trying to "right their ships" by laying off 5 to 15 percent of their workforces during uncertain economic times, a trend he expects to continue.
The post-pandemic economy has been especially tough on food service businesses and hospitality brands, many of whom continue to struggle with supply chain issues and inflation, Kopelman noted. Small restaurants are closing and major restaurant, hotel and retail brands are laying off workers, replacing them with self-service kiosks.
The National Restaurant Association estimated 30 percent of restaurants fail, with one in three closing within the first year. In a March 24, 2022, blog post titled, "Education through experience," Kelli Valade, president and CEO of Red Lobster, reflected on changes taking place in the casual dining sector.
"The model has clearly shifted, and everyone is having to rebuild in some way," she said. "We're all having to rethink how to do the same things better and do them better year over year. We have to look at ways to evolve and integrate more technology, including through third-party delivery and virtual kitchens."
Automation and integrated technologies are top of mind in hospitality, according to a recent survey of 210 hotel operators conducted by Duetto. Researchers found 77.6 percent of respondents were planning to increase hotel technology investments over the next three years, and 56.2 percent would focus on hotel revenue management in 2022.
Kopelman recalled a recent trip to Las Vegas that was almost entirely automated, from airport to ride-hailing app to hotel. In a strange about-face, he noted, advanced self-service technologies were at the forefront of the customer experience, with human operators standing by to help bridge gaps between humans and machines.
"At the airport, I checked in and weighed my bag at a kiosk and not all of the machines were working so employees were helping people," he said. "Checking in at the hotel was done online and when I arrived at the hotel, there was a long line at the front desk and one employee, who showed me how to use the app to get on the elevator and unlock my room door with my iPhone. Oh, was I glad to use that app!"
Amazon introduced Just Walk Out technology in 2018 with Amazon Go, a solution designed to enable shoppers to add items to a virtual cart that tabulates totals and automatically checks them out as they exit the store. Initially tested at small convenience stores, the Amazon Go solution was later deployed to small grocery stores, followed by full-scale supermarkets, according to Dan Berthiaume, senior technology editor at Chain Store Age.
In a Jan. 25, 2022, post, "Amazon Go launching new store format for suburbs," Berthiaume noted Amazon would soon open its first mega version of Amazon Go in Mill Creek, Wash., with 3,240 ft. of the total 6,150 sq. ft. dedicated to the self-attended shopping experience.
"The Amazon Go suburban format, which will feature the company's Just Walk Out technology, will be designed to offer customers a quick shopping experience to pick up grab-and-go food, snacks and beverage items and a few everyday essentials," he wrote. "Customers will also be able to choose from a full selection of beer and wine, including local favorites." 
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