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Is Investing In Restaurant Technology Worth It

Akshay Shetty

Restaurant Technology is becoming the new standard of the industry. Higher efficiency, enhanced customer service and fewer operational losses have led to the booming demand for restaurant tech. Fast food giants like McDonalds & KFC are at the forefront of adapting & implementing new tech. And with the proven results, others are bound to follow.

In 2019 the focus was primarily on digitising the back of the house and implementing digital loyalty programs. There was also a surge in the demand for Mobile Applications due to increased customer engagement and retention. However, the industry is shifting towards a new trend. Millennials are prioritising convenience more than ever. The demand for delivery and takeaways has increased drastically. Over a third of adults and half of millennials in the US are more likely to order food for delivery compared to just two years ago. In fact, third party sales are expected to increase to 70% by 2022.

With so many options out there, many are still following the traditional methods of doing business. It’ s true that there are downsides to implementing technology. It takes time to get accustomed to tech, and there are always software issues to deal with. But the positives of using tech outweigh the negatives. So here are five ways in which tech can help you improve your business in 2020.

Efficient Business Operations

The most crucial aspect of running a restaurant is to have a smooth flow of operations. Be it the front of the house or kitchen efficient operation plays a vital role to increase profits. Automated kitchen tools integrated with the POS system, help decrease food waste. Kitchen automation tools can also reduce the time taken to prepare an order. Lower processing time means you can serve more guests at the same time while gaining satisfied customers.

Inventory management software can automate supply orders and ensure optimum utilisation of resources. Such tools can also help you reduce your labour cost saving you time and money. You will also be able to control your food and beverage cost-efficiently, which means more revenue for your business.

Better Customer Service

A 2001 Study by Fred Reichheld found that a 5% increase in customer retention translates to over 25% increase in profit. Customer retention takes time and effort. Providing high-quality service forms the very base of customer retention. Tech products like tablet ordering system and inventory control platforms can assist in providing better customer service.

Digital ordering systems can enhance the customer experience, especially if you are targeting Millennials and Gen Z. 37% of restaurant operators believe the most critical area of technology development in the next five years is customer orders. Inventory software will ensure you never run out of ingredients. So your customers can be assured that they won’t miss out on their favourite dish due to lack of ingredients.

Increased Revenue

If you are wondering how investing in tech increases your revenue, think of it from a long-term perspective. The aim of investing in any tech is to simplify and fasten the process securely. Today such platforms provide all kinds of analytics. From your customers’ regular drink to the number of times they visit. You can also better engage with your customers by keeping track of their eating habits and providing offers on the same. Such analysis helps you serve your customers better and increase loyalty overtime.

Kitchen automation and inventory platforms ensure smooth operations in the back of the house. It also enables you to optimise your food and beverage cost so you can earn more from your resources. Such tools also help you reduce labour cost, especially when there is a shortage of labour in the industry. Eventually, you will see a growth in revenue and the tech will start paying for itself. If it doesn’t it’s time to change.


Let’s focus on the talk of the town, Sustainability! Investing in technology can definitely help you create a more sustainable environment. In fact, most technologies help you reduce waste in some or the other way. Customer awareness about Sustainability today is really high. Customers appreciate and reward establishments who invest in technology. Food waste is one of the significant problems in the hospitality industry. Using tech which can help you reduce food waste can help you save time and money while creating a better environment for all.

With numerous options available in the market, it can be hard to choose the right one. It’s crucial to focus on your requirements and prioritise the platforms you need. If you still can’t find the right one, you can always take a free trial of the products. Most companies do provide one.

Akshay Shetty