Assembling the right technologies to manage a restaurant is a bit like mingling the ingredients in a gourmet meal. Each tool and system has the potential to create a moment of Zen for the business and customers alike — but a sour note will create more chaos than harmony. If staff and systems don’t work seamlessly together, the result can be a fragmented operation where vital data and processes don’t align, and diners leave unsatisfied.
For those hungry for a recipe for restaurant technology success, this article examines recent trends and provides a menu of 10 technologies that are having the most impact on the industry now.
What Is Restaurant Technology?
Restaurant technologies are tools such as POS systems, online ordering platforms and inventory management software that help restaurateurs meet high customer expectations with superior quality and consistency, cost efficiency and profitability — all keys to success in the restaurant industry. It’s a high-wire act, because restaurants often operate on the thinnest of margins. Success is virtually impossible without restaurant technology to maximize operating efficiency and cost management while creating the exceptional customer experiences that ensure word-of-mouth recommendations and brand loyalty.
The cornerstone of restaurant tech stacks are POS systems that coordinate operations by integrating sales, customer management and reporting functions into a single platform to improve accuracy and efficiency. A few restaurants have even placed customized tablets on every table, letting guests place their orders directly into the POS system. Meanwhile, online ordering and delivery platforms cater to customers’ ever-growing demand for convenience, while also helping restaurants expand their reach and build new revenue streams. Restaurant inventory management systems ensure that just the right amount of ingredients and equipment are always in stock, which reduces waste and lowers costs and, thus, boosts profitability.
In addition, customer relationship management (CRM) tools and digital marketing platforms help foster and maintain strong customer interactions that lead to greater brand loyalty and repeat business. Kitchen display systems and automation tools ease communication between service teams and the kitchen to improve order accuracy and customer satisfaction. And of course, artificial intelligence is making inroads in a few forward-looking restaurant groups.
Key Takeaways
- Restaurants face the difficult challenge of managing high customer expectations, delivering superior quality and consistency, and maintaining costs and profitability in a traditionally low-margin industry.
- Advanced POS systems, online ordering platforms and inventory management software are just a few of the popular technologies restaurants are adopting to gain greater efficiency, reduce costs and improve customer satisfaction.
- Emerging technologies expected to have a major impact on the industry include kitchen automation and robotics, artificial intelligence, Internet of Things devices, and augmented and virtual reality tools.
Restaurant Technology Trends Explained
Over the past 20 years, restaurant technology has evolved from simple POS systems to complex, integrated solutions that can drive every aspect of operations. In the early 2000s, POS systems began replacing traditional cash registers, providing better ways to track sales and manage inventory. By the mid-2000s, online ordering and delivery platforms began to appear, driven by consumer demand for convenience and the growth of internet access.
The 2010s introduced mobile payments and loyalty apps to enhance customer engagement and streamline transactions. In addition, cloud-based solutions became popular, enabling real-time data access and integration across multiple locations. At the same time, digital menus and self-service kiosks emerged to reduce both wait times and labor costs.
More recently, the COVID-19 pandemic accelerated the adoption of contactless technologies, especially those related to delivery and takeout solutions, emphasizing the need for restaurants to embrace flexibility. Today, artificial intelligence (AI), robotics and blockchain are poised to further reshape the industry, offering improved automation, transparency and personalized experiences.
10 Big Restaurant Technology Trends
The role of technology in restaurants continues to grow. In a recent National Restaurant Association (NRA) survey, 55% of restaurant operators said they’re planning tech investments to improve service, while 60% said they’re looking for systems that will enhance the customer experience.
Here are 10 technologies that will likely have significant impact on the restaurant industry in the near future.
1. Contactless and Mobile Payment Solutions
Contactless and mobile payment solutions offer speed and convenience for both customers and staff by reducing wait times, simplifying transactions and enhancing overall buyer satisfaction. What started as a way to minimize human contact during the COVID-19 pandemic has now become standard procedure for most restaurants. Systems like Apple Pay and Google Wallet enable diners to pay quickly by simply tapping their phones, eliminating the need for cash or cards. This is particularly useful during peak hours to reduce bottlenecks at checkout and improve table turnover rates.
2. Online Ordering and Delivery Platforms
Online ordering and delivery platforms are convenient for customers and expand restaurants’ reach. According to the NRA survey, eight out of 10 delivery customers say they would order delivery using a smartphone app. With user-friendly interfaces, real-time tracking and integrated payment capabilities, online platforms refine the ordering process to facilitate better customer experiences. They also help restaurants minimize wait times and overcome limited dining space by managing order flow and reducing kitchen congestion during peak hours. They can provide valuable data insights, too, that help restaurants customize their offerings and smooth their operations.
3. Digital Menu Boards and Self-Ordering Kiosks
Digital menu boards are dynamic displays that can easily update menu items, prices and promotions in real time, reducing the need for static, printed menus. Sometimes, digital menus are part of a self-ordering kiosk that allows customers to browse a digital menu, customize orders and make payments. Like many of the trends discussed in this article, self-ordering kiosks came to the fore during the COVID-19 pandemic as a way to create a touchless experience for customers. In addition to their efficiency and customer service benefits, these technologies also cut down on order errors and labor costs. During busy hours, for example, self-ordering kiosks can handle a higher volume of orders without requiring additional staff, ensuring a smoother flow and faster service.
4. Advanced Point-of-Sale (POS) Systems
The latest POS systems are do-it-all solutions for the restaurant industry. They refine order processing by allowing servers — or patrons — to enter orders directly into the system, which then communicates with the kitchen in real time. They also handle payment transactions efficiently, supporting various payment methods, including credit cards, mobile payments and contactless options. They address inventory discrepancies by automatically updating stock levels in real time as orders are placed, preventing stockouts and waste. They also integrate various operational data, such as sales transactions, inventory levels, customer feedback and employee performance metrics, into a single platform, providing deep insights that serve data management and heighten overall efficiency.
5. Kitchen Automation and Robotics
Kitchen automation and robotics represent some of the more cutting-edge technologies in the restaurant industry, with capabilities including precision cooking, consistent portion control and real-time monitoring. These systems can handle repetitive tasks, like chopping and mixing, freeing up staff to focus on more complex and creative aspects of meal preparation. For example, automated fryers can cook items to exact specifications every time, reducing waste and improving quality. In a busy fast-food restaurant, a robotic arm can assemble burgers with perfect consistency, speeding up service during peak hours. The benefits of these technologies include reducing restaurants’ labor shortage challenge and minimizing human error.
6. AI-Powered Customer Insights and Marketing
Tech suppliers are looking to enable AI in their offerings to help restaurants better analyze customer data and fine-tune marketing strategies. AI-powered tools can give teams insights to dig into customer preferences, predict trends, personalize marketing programs for target audiences, optimize marketing budgets and help increase customer retention. For example, AI capabilities in an ERP system might analyze purchase patterns to suggest personalized promotions, boosting customer loyalty and sales. Find that a particular dish is popular among a certain demographic? Do some targeted advertisements to that group.
7. IoT and Smart Restaurant Management
The restaurant industry is a dynamic environment that requires precise control over operations including inventory management, equipment maintenance, energy consumption and food safety. Using sensors, real-time monitoring, predictive maintenance and automated alerts, Internet of Things (IoT) devices can monitor kitchen equipment, track inventory levels and hone energy use to keep operations running smoothly and efficiently. The result is fewer equipment failures, less waste and higher energy efficiency. For example, a smart refrigerator can send alerts if temperatures fluctuate, preventing food spoilage and minimizing waste. In a busy restaurant, IoT sensors can also track inventory and automatically reorder supplies when stock runs low, ensuring that ingredients are always available.
8. Augmented Reality (AR) and Virtual Reality (VR)
Superior customer experience is a top priority for restaurants. AR and VR apps are an ideal way for restaurants to tackle this challenge because they leverage interactive interfaces, 3D visualization and immersive environments. For example, AR can create interactive menus where customers can see 3D models of their meals, helping them make better choices and increasing the likelihood that they’ll have a positive experience. Meanwhile, VR can be used for immersive staff training by simulating real-life scenarios that better prepare employees for their roles. For example, VR training modules can simulate a busy kitchen, allowing new hires to practice without pressure, leading to better performance and less training time.
9. Sustainability and Eco-Friendly Technologies
Given its high resource consumption and considerable waste production, the restaurant industry is a prime target for sustainability and eco-friendly technologies. Advances like energy-efficient kitchen equipment, waste reduction systems and sustainable sourcing platforms can help restaurants reduce their environmental footprints, cut costs and appeal to increasingly eco-conscious customers. Key features of sustainable and eco-friendly technologies include smart energy management, composting and recycling programs, and traceable supply chains. For instance, companies can use energy-efficient appliances to decrease electricity use and lower operational costs and carbon emissions. In addition, a waste reduction system can track how much food is discarded, allowing restaurants to adjust portion sizes, alter ordering practices and, ultimately, reduce both costs and environmental impact.
10. Enhanced Cybersecurity Measures
Restaurants handle large volumes of transactions and hold customer data, which makes them particularly attractive attack targets. Cybersecurity technologies, such as encryption, secure data storage and enhanced POS systems, can help protect sensitive information, prevent data breaches and ensure compliance with privacy regulations. For example, an advanced POS system with encryption can protect credit card information from being intercepted during transactions, safeguarding customers’ financial data. Multifactor authentication and regular security audits can both prevent unauthorized access and identify potential vulnerabilities. Staff training is also important to teach employees to, for example, recognize phishing attempts and effectively protect customer information.
The Future of Restaurant Technology
Several emerging restaurant technology trends have the potential to reshape the industry. With advances in AR technology, it’s easy to imagine diners using AR glasses to view interactive menus, see virtual dishes on their tables before ordering or get detailed ingredient information and instant allergy alerts. It’s not just cool technology — it can improve the dining experience and modernize restaurant ordering.
AI chatbots and virtual assistants could also wield a wide impact, handling customer inquiries, reservations and even making food preparation recommendations with a level of personalization that feels human. In the NRA survey, 16% of restaurant operators said they plan to invest in AI integration, including voice recognition, in 2024. This could reduce wait times and improve customer satisfaction.
Robotics will also likely continue to make inroads in restaurant operations, handling tasks like food preparation, cooking and even deliveries. This could lead to more consistent food quality and free up staff to focus on creating memorable customer experiences.
Behind the scenes, blockchain technology is increasingly seen as a way to promote greater transparency and traceability in the food supply chain. This could have a profound influence on safety while also building trust with customers by providing clear information on the origins and journeys of their food sources.
How NetSuite ERP Unifies Restaurant Tech
NetSuite’s enterprise resource planning (ERP) system can help restaurants update and unify their technology landscapes by integrating in one platform various aspects of restaurant management, from inventory and supply chain to financials and customer relationships. NetSuite’s cloud-based solutions integrate easily with other restaurant technologies, including POS systems, online ordering platforms and reservation systems, to bring data into one central, real-time system that reduces manual entry and minimizes errors. A busy restaurant, for example, can sync its POS system with NetSuite to automatically update sales and inventory data in real time, ensuring accurate financial reporting and inventory management.
NetSuite also offers real-time data analytics to support better, faster decision-making. For example, NetSuite’s inventory management capabilities help track stock levels across multiple locations to reduce waste. The system’s financial management tools provide a clear overview of expenses, revenue and profitability to enable better budget management and cost control. CRM capabilities can help boost customer engagement by tracking preferences and feedback, fueling personalized marketing programs to improve customer satisfaction.
Technology is already reshaping restaurant operations and will likely have an even more significant impact in the near future, driving major shifts in efficiency and customer experience. Technologies like AI, robotics and blockchain have the potential to improve everything from food preparation to customer service. While adopting these new technologies promises to be exciting, restaurants need to be careful not to create technology silos in the process. The key is to implement technologies that work together to create a cohesive and efficient operation.
#1 Cloud ERP
Software
Restaurant Technology FAQs
What is the trend in technology in the food industry?
The food industry is trending toward greater use of automation, personalization and sustainability technologies. Automation and robotics can improve efficiency and consistency in food preparation and service. Artificial intelligence and data analytics can enable personalized customer experiences and more targeted marketing efforts. Sustainability-focused technologies, such as energy-efficient equipment and waste reduction systems, can help the industry reduce its environmental impact.
What technology is used in a restaurant?
Restaurants today use many technologies, including advanced point-of-sale systems for seamless transactions and inventory management and online ordering platforms for customer convenience. Kitchen automation and robotics improve efficiency and consistency in food preparation. Digital menu boards and self-ordering kiosks enhance the customer experience and simplify ordering processes. In addition, Internet of Things devices and smart management systems optimize energy use and monitor equipment performance.
What are the technological innovations in restaurants?
Technological innovations in restaurants include artificial intelligence to power analytics for personalized marketing and predictive inventory management. Virtual and augmented reality are being used for immersive training and interactive dining experiences. Contactless payment solutions and mobile ordering apps enhance convenience and safety for customers. Sustainability technologies, like energy-efficient appliances and waste reduction systems, are also helping restaurants minimize their environmental impact.
What is the future of restaurant technology?
The future of restaurant technology will see increased use of artificial intelligence and automation for personalized customer experiences and streamlined operations. Robotics will handle more food preparation tasks, improving efficiency and consistency. Internet of Things and smart management systems will optimize energy use and maintenance. Sustainability technologies will become essential, helping restaurants reduce waste and minimize their environmental footprint.
