Fabulous food, engaging atmosphere, and superior service will always keep guests coming back for more.
Staffing struggles , controlling operating costs, and menu planning are just a few components that go on behind the scenes to create the best guest experience. Running any type of business is challenging, but running a restaurant comes with its own special complexities.
Being a restaurant operator is not for the faint-hearted. On average, 30% of restaurants in the U.S. go out of business in their first year.
Aside from simply surviving, restaurants should thrive as a business.
With so many internal moving parts plus uncontrollable external factors (i.e. the economy, inflation, supply chain shortages, etc.), it may seem impossible to stay ahead as a restaurant.
That's where restaurant technology comes in—providing modern solutions to bring restaurants success. From restaurant inventory management to mobile POS systems, operators can bring efficiency to every part of their business. Plus, customers have come to expect seamless interactions, and innovative technology makes your hardworking staff’s job a whole lot easier.
Restaurant technology is no longer optional. It's now a must for doing business and staying ahead of already razor-thin profit margins. Let’s take a look at the top 10 best restaurant technologies you should consider for your business.
Why Restaurant Technology Is Essential Not only will adopting new restaurant technology make your life easier, but it will also make a big impact on your bottom line. Here are a few ways software for restaurants can help you get ahead.
Move faster than ever According to the National Restaurant Association, restaurant operators invest in technology to automate and streamline their business. 52% of operators reported that they plan on investing in inventory control and management systems in 2024.
Certain tasks, like tracking inventory, taking reservations, staff scheduling, and managing online orders can be time-consuming. Plus, during your busiest hours, these important “to-do” list items can slip between the cracks; technology can ensure this doesn't happen.
Minimize mistakes As the adage goes, “...to err is human.”
Human error is unavoidable. What matters is how businesses minimize the frequency and prevent the impact of mistakes that are bound to happen.
When restaurants don't try to reduce the inevitable, they pay dearly with bad reviews, unhappy customers, and negative marks on their reputation. Adopting certain technologies helps improve error-prone activities likeorder precision, reservation management, restaurant inventory management, and much more.
Enhance the customer experience Whether it's no-fuss reservations with AI answering services or frictionless ordering and payment processing software, customers expect to interact with tech more often.
The National Restaurant Association's 2024 “Restaurant Technology Landscape Report ” surveyed 1,000 adult consumers, and 70% shared they would use a smartphone app to place an order at a limited service restaurant. Almost 80% preferred contactless payments with digital wallets like Apple Pay or Google Pay.
It's important to remember that each type of restaurant and customer segment will have different expectations when it comes to interacting with technology. Full service restaurants still certainly need more human interactions, but limited-service and off-premise establishments can rely more heavily on automation.
Younger generations are comfortable interacting with tech, and even depend on it. On the contrary, only 50% of baby boomers said they would like to place orders and pay from a smartphone app. The lesson here is to adapt accordingly depending on the type of guest you’re trying to attract.
Reduce waste and control costs Did you know that the restaurant industry spends around $162 billion every year in food waste related costs? That’s a double whammy of contributing to the growing problem of food waste while also impacting a restaurant's bottom line.
Paying attention to what menu items are selling the most (and what's not), and using the "first in, first out” mentality are methods to reduce food waste. However, manual counting and spreadsheets aren´t going to cut it. Using inventory management systems will result in the greatest impact.
For example, inventory management technology can reduce food costs by 2-5% . Compounded over time, that's a ton of money operators can reinvest into the business.
Restaurant inventory management can often be integrated into an existing POS system. As guests order, availability inventory is updated in real time. Inventory technology can often forecast future inventory needs and send alerts for when an order is needed, ensuring restaurants only order exactly what they need.
Make smarter decisions One of the best benefits of software for restaurants is all the data you get while using it. Guest preferences, popular menu items, and peak hours are just a few valuable insights that become available at your fingertips.
Restaurant technology empowers businesses to make informed decisions to better adapt to changing trends and customer preferences, leading to a more memorable dining experience for your guests
Best Restaurant Technology for 2024 While every restaurant is different and faces unique challenges, technology can play a huge role in smoothing out obstacles and taking a business to the next level.
To get the return on investment you need, restaurants should consider numerous technology solutions in their utility belt that help them save time, wow customers, and scale successfully.
Check out the top 10 must-have restaurant technology solutions: platforms.
1. Point-of-sale systems (POS) Mobile POS systems are the cornerstone of modern restaurant operations, with nearly 75% of hospitality businesses using a POS system. Food and beverage businesses cite that ordering and payment processing are the most important features.
Beyond processing payments, this crucial tool can track sales, send orders directly to the kitchen, and provide live updates on inventory. Plus, these systems are user-friendly and can instantly provide reports on key metrics like sales, best sellers, staff hours, and table management.
Toast and Square are two excellent examples of mobile POS system providers for restaurants. In addition to managing sales, orders, and payments, these systems can be integrated with customer loyalty programs, kitchen display tools, and staff management programs.
2. Alternative payment processing We all hate when the meal has long been finished, the check has been delivered, and your payment is in-hand and ready, but for some unknown reason, there is a delay. Streamlining the payment process eliminates these awkward few minutes, enhancing customer satisfaction and operational efficiency.
Offering multiple options to process payments accommodates a broader demographic, including different generations and tourists. Some customers prefer to pay simply with a debit or credit card, while others like being able to “tap & pay” using their digital wallets.
Plus, an added bonus of some payment gateways: some work as a customer directory. Customer information can be stored to create a detailed profile that includes payment history, order frequency, and loyalty status.
Payment processing tools like Square and Clover offer secure, quick, and user-friendly options.
3. Contactless ordering and payment In a post-pandemic world, contactless solutions have become more typical than ever.
Contactless ordering and payment systems like Workadu enable customers to view menus, place orders, and pay for their meals using their phones. Restaurants can adopt solutions like QR code-based ordering systems to minimize physical contact and streamline the ordering process.
In the age of convenience, online ordering platforms have become indispensable for many restaurants. Services like DoorDash , UberEats , and Grubhub allow customers to place orders from home or on the go. Utilizing these platforms expands a restaurant's reach in terms of discovery and can increase sales.
5. Kitchen display systems Efficiency in the kitchen is crucial for timely order fulfillment. A KDS replaces traditional paper tickets, ensuring that chefs receive orders promptly. This minimizes errors, enhances communication between the kitchen and front-of-house staff, and ultimately leads to quicker and more accurate service.
6. Inventory management solutions Managing inventory is not easy, but it's essential for cost control and preventing waste. Restaurant inventory management tools like Apicbase and Crunchtime automate the tracking of stock levels. This enables restaurants to streamline supply chain operations, reduce food costs, and minimize inventory risks.
7. Reservation management technology For fine-dining establishments or full-service restaurants, a reservation and table management system solution is indispensable. Many restaurants use tools like OpenTable , Resy , or SevenRooms to enable customers to book tables online. While a seamless experience for guests, it also allows restaurants to optimize seating arrangements and staff schedules.
8. AI-powered restaurant technology AI for restaurants is becoming more common as interest in artificial intelligence has exploded over the last few years. It's already baked into a lot of the innovative technology mentioned previously like POS or reservation management systems. AI minimizes human error and provides an overall smoother experience, which allows your staff to focus on providing service with a personal touch for guests.
Companies like Slang.ai offer customizable AI phone answering solutions available 24/7. A few use cases include answering customer questions and updating reservations without distracting staff from more important tasks.
9. Customer relationship management (CRM) software Building and maintaining strong customer relationships is key to a restaurant's success. CRM software helps restaurants manage customer data effectively, track preferences, and personalize interactions.
One example built for restaurants is Eat App , although previously mentioned brands like Toast and OpenTable offer CRM features and capabilities. With CRM tools, restaurants can send targeted promotions, loyalty rewards, and personalized offers, which helps build customer loyalty.
Building a Tech Stack for Your Restaurant While good food is at the core of every successful restaurant, innovative technology should come as a close second. Especially as you grow your business, restaurant technology will make handling the multiplying complexities much more manageable.
With many options on the market, it can take time to figure out where to start. This list should serve as a starting point, but ultimately you want to invest in tools that:
Increase efficiency Reduce costs Enhance the customer experience Selecting the right restaurant technology is less about keeping up with trends and more of an investment in your restaurant's future. Prioritizing technology that streamlines operations, minimizes expenses, and elevates the dining experience can transform your business.
Explore why AI phone answering should be a part of your restaurant's tech stack. Sign up for a free demo to learn more about Slang.ai.
