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Today, nearly 25% of restaurant transactions are digital - 2x more than 5 years ago. Over the next few years, digital sales will grow at 3x the rate of in-store sales.

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As the restaurant business continues to shift, operators (and vendors) are pushing for something called "unified commerce."

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But what does that actually mean? How is it different than "omnichannel"? Why does it matter? What does it unlock? How do we get there (if we even need to)?

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On this 15 minute live stream, we spoke with Deric Rosenbaum, President of 30-unit Groucho's Deli, to get a restaurant operator's perspective on:

• What unified commerce actually means
• How it impacts your guests, team, and service model
• The team, tools, and mindset you need to get there
• The ROI - or tradeoffs - your brand will face on the way there

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You can find the full transcript below (edited for clarity).

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Abhinav Kapur: What in your words is Unified Commerce?

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Deric Rosenbaum: Unified Commerce is the fusion and seamless integration of platforms and tools into a singular cohesive ecosystem working in cooperative unison to enhance and optimize operations, customer user experience journeys to drive top-line revenue with data-driven insights, and authentic personalized engagement marketing strategies focused on increased retention, frequency, and spend. All while optimizing the brand's digital relevance across all touchpoints.

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AK: So it sounds like this beautiful marriage of your tech stack, your operational execution, and your marketing strategy to enhance the guest experience. Is that right?

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DR: Absolutely. All the while optimizing your data to improve on that continually.

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AK: Why does unified commerce matter?

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DR: It's hugely subjective to the brand and the brand's objectives. If you fail to adapt some version of this, you won't be able to compete in the modern marketplace. I'm seeing this massive aggregation of tech-forward brands growing at rapid scale, understanding their guest and optimizing those journeys and touchpoints continuously. To me, digital relevance is a sum of its parts: operations, execution, experience, reputation management, listings management, online order user experience—all these integrative experiences together.

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AK: Do you think restaurants should push towards 100% digital transactions to make unified commerce a reality? Since if you have a higher share of digital transactions it becomes easier to track and engage guests?

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DR: No, you need to be where your customers are, regardless of the channel. Whether digital, native digital, marketplace digital, in the four walls of your restaurant, kiosk, or drive-thru, you need to understand your guests and how they want to interact with your brand. Unified commerce helps provide a seamless, cohesive experience regardless of the channel.

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AK: How has your share of digital transactions changed from 2019 to today? Where do you think it's going to go over the next few years?

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DR: Pre-pandemic, our native digital sales were like 6% of our total revenue. Through COVID, we grew that exponentially. Today, digital revenue is pushing 40%, a combination of native, third party, and third-party catering. I think it will likely exceed 50%. There's a human component to the act of eating out, and I don't think that will go away, but digital transactions will continue to grow.

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AK: What is the payoff of pursuing a unified commerce strategy?

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DR: It allows you to compete at a different level. Understanding your guest journey from A to B and within each channel lets you continually optimize around PMIX, LTO offerings, scheduling, and operational efficiencies. Optimization is the key, making data-derived decisions based on past actions to influence future actions. Ultimately, it's the only way to remain relevant in today's industry.

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AK: Can you walk us through how you built your tech stack and pursued unified commerce?

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DR: It's a crawl, walk, run approach. Prioritize what's first, second, and so forth. Find true vendor partners that understand the value of open and bidirectional API. Tech stacks should be modular, like a Lego system. Vet true vendor partnerships and try not to do everything at once. Start with a roadmap and tweak and refine as you go. Ask your vendors how they're integrating large language learning models into their platforms because the ability to chat with your data will be revolutionary.

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AK: Derek, thank you again for the time. This was great catching up with you on unified commerce.

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For those tuning in, unified commerce is the marriage of your tech stack, marketing strategy, execution, and superior operations, enhancing the guest experience to drive frequency and sales. Derek, thanks so much. Appreciate it.

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DR: Thanks everyone for watching. Take care.

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