Restaurant Growth
Jul 12, 2024
|
5
min read

How restaurant brands are prioritizing digital solutions in 2024

Article Outline

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For restaurant brands, the importance of digital ordering solutions is no secret. Nearly everyone has invested in technologies to meet the demands of today's digital-first customers. But as the industry continues to evolve, the question becomes: is your current tech stack capable of delivering the hyper-personalized ordering experiences your customers expect?

We surveyed 1,000 restaurant leaders to learn more about the investments they're making to drive revenue growth in 2024. From unified systems to operational efficiency to new technology, we uncovered the driving forces behind the data to understand how brands are reshaping their approach to digital.

(Nearly) Every Order is Now Digital

The data paints a clear picture: digital ordering is no longer a complementary channel – it's a primary revenue stream. Over 60% of owners and C-level executives reported that more than a quarter of their sales come through digital channels. Even more striking, 36% revealed that online ordering accounts for over half of their total revenue.

And this trajectory shows no signs of slowing. Nearly 80% of respondents expect digital sales to rise over the next 1-2 years, with 46% projecting an increase of over 20%. Within the next two years, it isn't hard to imagine a majority of limited-service brands will have 50% or more of their sales originating from digital channels.

The Legacy System Bottleneck  

While technology adoption has accelerated, many restaurant executives are hamstrung by legacy systems that fail to meet their unique needs. 67% of owners and executives feel their current solutions lack the customization their businesses require. Inflexible capabilities and integration challenges are hindering operations and hurting customer satisfaction.

Employees feel it, too. 35% report that more than half of their staff's time is dedicated to fulfilling digital orders, emphasizing a need for more efficient ways to prep food and reduce kitchen delays.

The pandemic further exposed these deficiencies, forcing a rushed adoption of stopgap solutions. Now that the dust has settled, 42% of respondents expressed dissatisfaction, citing issues with affordability, integration problems, and the need for more comprehensive solutions.  

The Path to a Seamless Experience

Recognizing these pain points, restaurant brand executives are actively seeking consolidated, customizable solutions. 74% of owners and executives are exploring options to streamline their digital infrastructure, with nearly 40% already researching potential platforms. Solutions like kiosks and voice AI are top of mind, with 25% citing kiosks and 20% expressing interest in AI/voice technologies to optimize in-store operations.

For enterprise operators, the need for a unified experience is even more pronounced. A staggering 93% are planning upgrades to at least one component of their tech stack in 2024. 

Priorities include:

  • Ordering and delivery: 32%
  • Point-of-sale systems: 28% 
  • Payment processing: 27%
  • Kiosks: 25%

For restaurant executives the story is similar. From their POV priorities for this year include:

  • Ordering and delivery: 29%
  • Payment processing: 27%
  • POS: 26%
  • Loyalty: 22%
  • Catering: 21%
  • AI/Voice: 20%

Piecemeal solutions that are harder to integrate no longer cut it. Success hinges on how well restaurants can future-proof their technology, support the needs of restaurants, and keep pace with changing customer habits. Brands resonate the most with solutions that not only provide the software but also emphasize a more hands-on approach to support. Technology can only take you so far. Prioritizing companies who understand the intricacies of the restaurant business and are there to help you scale means less effort is required to grow consistently.

Staying Ahead of the Curve  

The stakes for restaurant brands have never been higher. Diners now expect seamless, personalized ordering experiences at every touchpoint, operating costs are up, and inflation continues to put pressure on margins. Disconnected legacy systems simply aren’t up to the task. This data supports the idea that prioritizing custom, integrated ordering solutions is a common strategy for brands focused on accelerating revenue growth.

67% of leaders feel shackled by inflexible tech that forces them to adapt to the solution's limitations instead of having the solution cater to their unique business needs. Brands unwilling to course-correct risk losing ground to nimbler restaurant brands focused on elevating their digital ordering experience.

What should restaurants do? Prioritize technology with customization and flexibility so that you can meet customer expectations and consistently drive revenue. Based on the data, brands are already exploring more dynamic tech stacks with the needed features and controls. As everything continues to shift, brands that succeed will be the ones most likely to test new solutions, find unique ways to personalize digital interactions and build relationships with guests. Download the full report for all the details.

Jared Castronova
Head of Marketing Communications
Jared is a seasoned expert in restaurant technology with 7+ years of industry experience. He specializes in creating content that simplifies complex concepts for enterprise restaurant brands, offering actionable strategies to boost digital growth. As a respected voice in the field, Jared's insights help industry leaders leverage technology for a competitive advantage in today's digital-first market.

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