Restaurateurs to increase tech spending and automation
Restaurant operators are turning to tech to deal with understaffing issues after many have said they have faced 18 months of staffing pain.
A recent report titled "Future of Restaurants Report 2024" by Square highlights the increasing reliance of cafes and other restaurants on technology, with 40% utilising tech tools to handle customer orders. Fast food establishments are also leveraging technology significantly, particularly to address staffing shortages and track item availability in real-time, a practice adopted by 37% of such venues.
In the fine dining sector, technology proves most beneficial for managing customer loyalty programs (37%) and real-time restaurant capacity (38%).
The report also indicates a growing interest in artificial intelligence among restaurant operators. As they seek to diversify, 77% of surveyed restaurant owners plan to experiment with non-core offerings like meal kits, subscriptions, and events in the coming year. Currently, 19% of their revenue comes from these supplementary products and services.
“Automation and AI are going to be key growth levers for restaurants in the coming year, though not in the way you may think. The vast majority of restaurants will be integrating AI into their operations in small, iterative ways – not through flashy robots but through automation in marketing or kitchen workflows – and these minor changes will add up to saved time and more profit,” Ming-Tai Huh, General Manager of Square for Restaurants said.
According to the report, two out of three restaurant owners have found that adopting these tools to reduce manual labour has improved either employee retention or the customer experience. The benefits are even more pronounced for larger establishments, with 40% of owners with more than three locations reporting increased profits due to their investment in automation.
Looking ahead, 54% of restaurants across various regions and types plan to boost their spending on technology and automation tools over the next year. For the remaining restaurant owners, technology remains a key focus; 34% of them will maintain their current investment levels in these tools to continue achieving their business goals.
Jonathan Jackson, 20th June 2024
