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From robots in the kitchen and self-serve kiosks to online ordering and mobile apps, restaurant technology trends are rapidly transforming the fast casual and quick service restaurant space.
Technology is becoming so ingrained in the food service industry industry that many major franchises and chains are now appointing Chief Technology Officers (CTOs) to their executive teams—positions more commonly found in sectors like tech, healthcare, and banking.
For independent restaurateurs without a whole team of professionals at their disposal, keeping up with these restaurant technology trends is challenging. There’s no question that some technologies, like cloud-based restaurant POS systems, are necessities. But with so many new technologies emerging, how do you know which ones deserve your attention and which to ignore?
The short answer: It depends on what you need to run a profitable restaurant.
The long answer: Let’s dive into some of the top restaurant technology trends we’re seeing (no robots required).
Restaurant Technology Trends: Third-Party Food Service Apps
From mom-and-pop cafes to multi-million-dollar franchises, third-party apps have become almost essential in the food service industry. GrubHub, DoorDash, and UberEats dominate the delivery and online ordering space, but does that mean your quick service restaurant needs to join them?
Delivery has been a popular service option among fast casual and quick service restaurants for decades, but it wasn’t until 2020’s social distancing requirements that it became nearly essential. Today, customers expect the convenience of online ordering and delivery from their favorite restaurants.
However, these services come at a cost.
DoorDash, for example, charges a 30% fee on every order. This means that for every $10 chicken sandwich you sell, DoorDash takes $3 right off the top, leaving you with $7.
Now, let’s break this down further. Typically, restaurants aim to keep their food costs around 20% of the total menu price. In this case, the food cost for that $10 chicken sandwich would be about $2, leaving $8 to cover other expenses like rent, utilities, labor, and profit. However, with DoorDash taking 30%, you’re left with only $7 after the fee, which is already $1 less than what you need just to cover your overhead.
This creates a critical issue: instead of making a profit, you could actually lose money on each sandwich sold through DoorDash if you don’t adjust your pricing strategy.
The 30% fee eats into the portion of your revenue that’s supposed to cover overhead costs and contribute to your profit margin. Without careful cost management or price adjustments, using third-party delivery services can turn what seems like a convenient revenue stream into a financial drain.
Takeaway: It’s essential to consider the impact of third-party delivery fees on your bottom line. Tools like the Table Needs DoorDash Calculator can help you determine the right pricing strategy to ensure you’re not just breaking even, but actually making a profit on each order.
Restaurant Technology Trends: Artificial Intelligence
Artificial Intelligence (AI) is making headlines as more fast casual restaurants begin incorporating AI into their operations. Currently, AI is primarily used to support drive-thru service and optimize in-house ordering kiosks. But is this restaurant technology trend here to stay?
In both cases, AI helps alleviate staffing shortages, improve accuracy, and increase efficiency. For drive-thrus, voice AI enables staff to focus on fulfilling accurate orders and serving in-house customers. AI-enabled kiosks offer similar benefits while also helping to increase average check size by suggesting upsells and cross-sells based on factors like time of day, weather, and current ordering trends.
But you don’t have to be a multi-million dollar operation to tap into the power of AI. Many smaller quick service restaurants, coffee shops, and food trucks are using AI to:
- write enticing menu descriptions
- analyze data for trends and insights
- plan schedules
- and much more!
Takeaway: Artificial Intelligence offers endless possibilities to help restaurants improve productivity, reduce costs, and increase revenue. Even small, independent restaurants can benefit from AI, especially when facing staffing challenges.
Restaurant Technology Trends: Digital Menus
While perhaps not as exciting as AI, digital menus are getting a serious upgrade in 2024. Restaurant menu design and management has always been crucial to running a successful business, but in the digital age, simply uploading a PDF of your printable menu online isn’t enough.
Digital menus—designed specifically for online display via internet browsers—offer significant benefits to both customers and businesses.
For customers, checking out a restaurant’s menu ahead of time greatly increases the likelihood that they will choose to dine at your establishment. It sets expectations for the type of cuisine, options, and prices.
For restaurant owners, digital menus encourage customers to order from your restaurant, make menu updates a breeze, and help you track what’s selling and what’s not much more easily.
Plus, digital menus allow you to offer multiple menus simultaneously. For example, you can have a standard menu, a specials or seasonal menu, an allergen-free menu, and an events-only menu—all available at the click of a button.
Takeaway: Digital menus are essential for running a profitable restaurant business. Using the right restaurant menu design and management system helps attract customers, increase revenue, and streamline operations.
Restaurant Technology Trends Worth Your Investment
If your goal as a restaurant owner is to run a profitable business, incorporating some of these restaurant technology trends is a smart move. It may seem like a lot of tech for a humble mom-and-pop shop, but starting with a streamlined solution like the Table Needs Restaurant Operations Platform can make a tremendous difference.
The Restaurant Operations Platform includes everything you need to operate a profitable restaurant: a powerful POS with free online ordering and QR code ordering, a built-in kitchen display system (KDS), built-in menu design and management, restaurant budgeting tools, and even digital marketing.
Ready to learn more? Schedule a hassle-free demo today!
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