Global Restaurant Digitalization Market By Component (Software and Hardware), By Restaurant Type (Cafes, Fast Food, and Dining), By Application, By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the Global Restaurant Digitalization Market was valued at USD 6.8 Billion and is expected to reach USD 29.6 billion in 2032. This market is estimated to register the highest CAGR of 16.3 % between 2023 and 2032.

With continuously changing lifestyles, restaurants have tremendous opportunities to reconsider the customer experience, make business strategies through data analysis, and upgrade to new services and products. To achieve all these things, restaurant digitalization is the key.

Adopting digitalization in the restaurant helps to upgrade the efficiency and improve the customer experience from the restaurant. The introduction of contactless payment options, providing online ordering systems & delivery services, integrating the automated inventory management software in restaurant systems, and digital marketing for restaurants help to upgrade the restaurant towards digitalization and improve the customer experience. These applications of digitalization in restaurants can help to boost the growth of restaurants and the overall growth of the restaurant digitalization market.

Advancing technologies and innovative solutions in restaurant digitalization are expected to fuel market growth during the forecast period. In addition, due to the convenient experience, customers are more inclined towards the digital services offering restaurants. This is driving the growth of the restaurant digitalization market.

Driving Factors

The Increasing Use of Smartphones and the Internet is Driving the Growth of the Restaurant Digitalization Market

The increasing use of smartphones and rising penetration of the internet across the world has offered solutions at the fingertips of customers. This is aiding in the restaurant digitalization market’s growth by offering users convenient digital services through smartphones and the Internet.

The fast-forwarding lifestyles with busy and hectic schedules are inclining customers towards convenient and fast services for food, like contactless payments and online food ordering. These services help the customer to optimize time and better management for restaurants. This inclination of customers towards these services is also driving the growth of the restaurant digitalization market.

Many restaurants are using various strategies to promote their restaurant, like using social media platforms by advertising attractive offers and discounts. In addition, restaurants also ask for feedback from customers on social media platforms to analyze the feedback for upgrading and improving the services of restaurants. These major factors are driving the growth of the restaurant digitalization market.

Restraining Factors

High Implementation Costs and Security Concerns Restrict the Growth of the Restaurant Digitalization Market

Flaws and issues in the operations of restaurants due to the digitalization of restaurants can obstruct the growth of the restaurant digitalization market. This can also negatively impact customers and negative publicity for the restaurant in the market. The safety and security concerns for the contactless payment service from restaurants stop customers from opting for digital services.

Also, implementing digital services in restaurants can cost a huge amount of money and requires skilled and trained personnel to handle these services. Any mistake in the operation of digital services can cost a lot of money to the restaurant. This is why many restaurants are avoiding implementing digital services in their restaurants. All these factors are obstructing the growth of the restaurant digitalization market.

COVID-19 Impact Analysis:

Restaurant Digitalization Market Got Affected Negatively By the COVID-19 Outbreak

The COVID-19 pandemic outbreak negatively impacted the restaurant digitalization market. The rules, lockdowns, and regulations from governments across the world have forced restaurants to shut down during the pandemic. This decreased the demand for digital services in restaurants during the pandemic.

However, after the ease of COVID-19 restrictions, many restaurants started to massively adopt digital services in their restaurants to comply with the government regulations for social distancing and stop the spread of the virus. In addition, many restaurants introduced contactless payment solutions in the restaurants. This boosted the growth of the restaurant digitalization market after the pandemic.

By Component Analysis

The Software Segment Dominates Over the Hardware Segment.

The restaurant digitalization market is divided into software and hardware on the basis of components. The software segment is anticipated to grow significantly from these components during the forecast period. This segment’s growth is due to the emerging trend of Industry 4.0, which has increased the demand for digitalization solutions for the hotel and restaurant sector.

Also, the advancing food service industry in developing nations is propelling the growth of the software segment in the restaurant digitalization market. By adopting the software solution in restaurants, owners are able to provide the benefits like less time for meal preparation and convenient customer service. These factors are anticipated to drive the growth of the software segment in the restaurant digitalization market.

By Restaurant Type Analysis

On the Go Food Service by Many Fast Food Restaurants is Boosting the Growth of the Fast Food Segment in the Restaurant Digitalization Market.

Restaurant digitalization is classified into cafes, dining, and fast food on the basis of restaurant types. Among these restaurant types, the fast food segment is anticipated to cover the major revenue share during the forecast period. The growth of the fast food segment is due to the rising popularity of on-the-go food ordering apps from different restaurants that provide customers with convenient experiences.

Customers are more inclined to order fast food from the on-the-go service of restaurants to save time. Also, many restaurants are building stalls for ordering services to offer food customization services to customers. These strategies attract more customers to the restaurants and boost the market growth of the restaurant digitalization market.

The dining segment in the restaurant digitalization market is also anticipated to experience high growth during the forecast period. Many dining restaurants are offering the services like contactless payment and digital menu cards by scanning the QR code. This is boosting the growth of the dining segment in the restaurant digitalization market.

By Application Analysis

Advance Food Ordering Services are Propelling the Growth of Online Ordering Systems and Delivery Apps in the Restaurant Digitalization Market.

Based on application, restaurant digitalization is classified into online ordering systems and delivery apps, automated inventory management software, marketing, contactless payment, digital kitchen boards, and other applications. Among these applications, the online ordering system and delivery apps segment leads the market and is expected to continue the growth throughout the forecast period.

The growth of this segment is owing to the convenient food ordering services by the restaurants like by website, by app, and by scanning the QR code at the restaurant and placing the order through online mode. This also helps the restaurants to reduce the overload on the ordering system of the restaurants. All these major factors are boosting the growth of the online ordering system and delivery apps segment in the restaurant digitalization market.

The contactless payment segment is also expected to grow during the forecast period. Increasing usage of online payment transactions worldwide has boosted the growth of the contactless payment segment in the restaurant digitalization market. Customers can pay the bill using contactless methods like mobile banking, credit or debit card, and many other services. This is boosting the growth of the contactless payment segment in the restaurant digitalization market.

Key Market Segments:

By Component

• Software
• Hardware

By Restaurant Type

• Cafes
• Fast Food
• Dining

By Application

• Contactless Payment
• Online Ordering Systems & Delivery Apps
• Automated Inventory Management Software
• Digital Kitchen Boards
• Marketing
• Other Applications

Growth Opportunity

Integration of Advanced Technologies in Digital Services of Restaurants is Expected to Create Many Opportunities in the Upcoming Period.

Integration of innovative and advancing technologies in the operating systems of the digital services offering restaurants is creating lucrative opportunities for new companies in the market. The use of advanced technologies in the digital services of restaurants can help the restaurants by improving the customer experience, decreasing the cost of operation, and raising the profits for the restaurants.

Therefore, to prevail in these benefits, many restaurants are adopting digital services in their restaurants. This is creating many opportunities in the restaurant digitalization market. Also, the increasing use of social media worldwide is helping restaurants promote the restaurant to a large number of customers at a low cost. Therefore, the shift toward automation is expected to create many opportunities for the restaurant digitalization market in the upcoming period.

Latest Trends

The Trend of Digitalization Across the World is Boosting the Growth of the Restaurant Digitalization.

The rising trend of digital payment solutions for the food industry is the key driver for the growth of the restaurant digitalization market. Major players in the food industry are providing digital payment services to expand their market share and improve payment operations in restaurants. Digital payment provides security, reliability, and an easy way of payment to the customers and also keeps the transition history and other information related to the transaction for the customers. To prevail these benefits, many customers choose a digital payment option for payment in restaurants.

With advancing technology, the food industry has also adopted many technologies to ease their operations, like implementing the technology for online ordering, tracking the location of the order, transaction history, and marketing. These factors are forcing restaurants to adopt the ongoing trend of digitalization in the restaurant.

Regional Analysis:

North America Dominates the Global Restaurant Digitalization Market

North America leads the global restaurant digitalization market by accounting for a major revenue share of 44.8% in the market. The growth of this region is due to the presence of developed countries like the United States and Canada. US and Canada are the major markets for restaurant digitalization in North America.

Due to early developments in North America, the well-developed food industry and increasing urbanization are boosting the growth of the region in the global restaurant digitalization market. In addition, the presence of major key companies and the rising internet penetration in the region is expected to boost the region’s growth during the forecast period.

After North America, Asia Pacific is anticipated to grow at a significant CAGR during the forecast period. The growth of this region is attributed to the increasing disposable incomes of individuals, rapidly increasing urbanization, and increasing adoption of digital services in the restaurant. These factors are driving the growth of the Asia Pacific market in the global restaurant digitalization market.

Key Regions and Countries:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share and Key Player Analysis:

The global restaurant digitalization market is fragmented into many small and big digital service offering companies. These companies are deploying strategies like collaboration and partnership to expand their market share and strengthen the company’s position in the market. Some of the major key players in the global restaurant digitalization market are Digitory Solutions Pvt. Ltd., Panasonic Corp., Cognizant Technology Solutions Corp., Oracle Corp., International Business Machines Corp., Clear Solutions, Fourth Enterprises LLC, Flipdish Ltd., Snappy Innovation Inc., ParTech Inc., MustHaveMenus Inc., etc.

Market Key Players:

• • Digitory Solutions Pvt. Ltd.
  • Oracle Corp.
  • Panasonic Corp.
  • International Business Machines Corp.
  • Cognizant Technology Solutions Corp.
  • Flipdish Ltd.
  • Fourth Enterprises LLC
  • ParTech Inc.
  • Snappy Innovation Inc.
  • MustHaveMenus Inc.
  • Clear Solutions
  • Other Key players

Recent Developments:

• In December 2021, Restaurant Brands International Inc. collaborated with Ant Group to digitalize its restaurants in the Asia Pacific region.
• In October 2021, IBM partnered with McDonald’s to upgrade the technology for their fast food business in on-the-go food chains, drive-through lanes, and upgrading ordering methods. As per the agreement, IBM will purchase the McD Tech Labs of Mcdonald’s and develop the automated order-taking technology (AOT) for them.

Report Scope: