Reports of the death of RFID (radio frequency ID) are exaggerated. Wal-Mart purportedly is backing down from its implementation plans for RFID. Although maybe not dead, it appears that the plan has changed. While Wal- Mart is the most published RFID program, other implementations have been piloted and proven successful.

In the area of beverage management, active, rather than passive, tags are being implemented. Active tags can be reprogrammed and used time and time again, thereby improving the ROI of this more expensive technology. The tag not only identifies the item to which it is attached but indicates how much liquid is poured, its temperature, and where it is stored. Vita Nova at the University of Delaware installed this type of beverage management system to improve operations. And they use reports from the system to educate and train students while improving the guest experience.

The ROI of this technology has been demonstrated by other customers, hence the plans for extensive rollouts in some casual dining chains. By combining data gathered from active RFID tags with point of sale (POS) transaction data, food and beverage managers have immediate accounting of bar activity. Exceptions in pours to POS transactions trigger the video security to flag a selected section of video for management to review. By identifying the exception times in the video, the time to review a problem shift can be cut from six hours to 45 minutes or less. By identifying pours to transaction, shrinkage can be better managed, and quality control can be improved. Accuracy and consistency of pours also improves customer satisfaction.

In a meeting with Anne Perez, VP of information technology of Golden Corral, we discussed RFID. Although Golden Corral has no need for a beverage control system, the concept of RFID stirs the imagination of creative people. If you can manage beverages, why not cases of meats and other valuable supplies? By installing a network of receptors throughout the restaurant, a missing case of canned tomatoes can be instantly located and brought to the kitchen in time to prepare for the evening meals. A box of misplaced perishables can be queried to determine the temperature it has been at and for how long. Instant inventory of dry goods storage can be taken from headquarters to set up for replenishment delivery tomorrow. Opportunities for this type of technology are limitless and will continue to find new uses.

Jerry Leeman is an independent consultant based in Raleigh, North Carolina. Frederick J. DeMicco, Ph.D., is professor and ARAMARK chair of Hotel & Restaurant Management, the University of Delaware. Contact Dr. DeMicco at fdemicco@udel.edu