Global Restaurant Digitalization Market By Component (Software and Hardware), By Restaurant Type (Cafes, Fast Food, and Dining), By Application (Contactless Payment, Online Ordering Systems & Delivery Apps, Automated Inventory Management Software, Digital Kitchen Boards, Marketing, Other Applications), By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: March 2024
- Report ID: 101122
- Number of Pages: 365
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Report Overview
In 2023, the Global Restaurant Digitalization Market was valued at USD 7.9 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.
Restaurant digitalization refers to the integration of digital technologies and solutions into various aspects of restaurant operations, including ordering, payment processing, customer engagement, inventory management, and data analytics. This transformation allows restaurants to streamline processes, enhance customer experiences, improve operational efficiency, and gain valuable insights from data. The restaurant digitalization market encompasses the technologies, products, and services offered by vendors to support the digital transformation of restaurants.
The restaurant digitalization market is experiencing significant growth as the foodservice industry embraces technology to enhance operations, improve customer experiences, and stay competitive in a digital era. Digitalization solutions are transforming various aspects of restaurant operations, including online ordering, mobile payments, customer engagement, kitchen automation, inventory management, and data analytics.
One driving factor behind the restaurant digitalization market is changing consumer preferences. Customers now expect the convenience of online ordering, mobile apps, and personalized experiences. Restaurants are responding by adopting digital solutions that offer seamless and user-friendly interfaces, allowing customers to easily place orders, customize their meals, and provide feedback.
Operational efficiency and cost optimization are also key drivers in the market. Digitalization streamlines processes, automates tasks, and reduces errors, resulting in improved efficiency and reduced labor costs. Inventory management systems enable better control over stock levels, reducing waste and optimizing supply chain operations. Data analytics tools provide valuable insights into customer behavior, allowing restaurants to make data-driven decisions that enhance profitability and operational effectiveness.
The rise of food delivery services has further fueled the demand for restaurant digitalization. Restaurants are integrating with third-party delivery platforms or developing their own delivery systems to meet the growing demand for food delivery. Digital solutions facilitate efficient order management, real-time tracking, and seamless coordination between the restaurant, delivery personnel, and customers.
Key Takeaways
- The Restaurant Digitalization market is expected to reach a valuation of USD 29.6 billion in 2032, with a remarkable Compound Annual Growth Rate (CAGR) of 16.3% from 2023 to 2032.
- The U.S. is home to 749,000 restaurants, including 138,560 single-location full-service establishments.
- There was a 5.7% increase in new restaurants in 2023, with 10,608 new openings.
- 58% of restaurateurs identified inventory management as a significant financial challenge in 2023.
- The average debt for full-service operators was $51,863.20 in 2023.
- An impressive 94% of full-service restaurants planned to expand in 2024.
- The U.S. foodservice market is expected to reach $1,767.54 billion by 2030.
- The U.S. saw a rise in ghost kitchen businesses, totaling 8,105.
- Total restaurant sales were projected to reach $997 billion by the end of 2023.
- Full-service restaurants averaged $2,599,514.50 in revenue in 2023.
- The average profit margin for these establishments was 9.3%.
- 84% of diners check menus online before choosing a restaurant, underscoring the digital trend.
- 29% of customers ordered takeout or delivery at least once a week.
- 42% of restaurants intended to incorporate more locally sourced ingredients in 2024.
- 82% of restaurants reported shortages in at least one position, with dishwashers in high demand.
- Restaurants could afford an average minimum wage increase of 3.1%.
- The turnover rate in full-service restaurants was 28%.
- 72% of operators have a website, and 81% use Facebook for marketing.
- Two-thirds of restaurants offer loyalty programs to retain customers.
- 89% of operators incorporate some form of AI, with cloud-based POS systems being prevalent.
- The quality of food (68%) and location (55%) are the top factors influencing diner choices.
- The software segment is expected to grow significantly due to the emerging trend of Industry 4.0 and increasing demand for digitalization solutions.
- The fast food segment is leading the market due to on-the-go food ordering apps and food customization services.
- Online ordering systems and delivery apps are the key applications driving market growth.
- North America leads the global restaurant digitalization market, accounting for a major revenue share.
- Major players in the market include Digitory Solutions Pvt. Ltd., Oracle Corp., Panasonic Corp., and Cognizant Technology Solutions Corp.
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
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.
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
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 2023, Oracle: Oracle introduced the Oracle Hospitality Digital Assistant, an AI-powered chatbot designed for contactless dining, managing orders, processing payments, and addressing customer inquiries.
- In 2023, IBM: Introduced the IBM Food Trust blockchain platform, aiming to enhance food traceability and transparency, thereby ensuring food safety and confirming origin authenticity.
Report Scope
Report Features Description Market Value (2022) USD 7.9 Bn Forecast Revenue (2032) USD 29.6 Bn CAGR (2023-2032) 16.3% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component – Software and Hardware; By Restaurant Type – Cafes, Fast Food, and Dining; By Application – Online Ordering Systems & Delivery Apps, Contactless Payment, Digital Kitchen Boards, Automated Inventory Management Software, Marketing, and Other Applications Regional Analysis 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; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape 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., and Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What will be the market size for Restaurant Digitalization Market in 2032?In 2032, the Restaurant Digitalization Market will reach USD 29.6 billion.
What CAGR is projected for the Restaurant Digitalization Market?The Restaurant Digitalization Market is expected to grow at 16.3% CAGR (2023-2032).
List the segments encompassed in this report on the Restaurant Digitalization Market?Market.US has segmented the Restaurant Digitalization Market Market by geographic (North America, Europe, APAC, South America, and MEA). By Component, market has been segmented into Software and Hardware. By Restaurant Type, the market has been further divided into Cafes, Fast Food and Dining.
Which segment dominate the Restaurant Digitalization industry?With respect to the Restaurant Digitalization industry, vendors can expect to leverage greater prospective business opportunities through the Software segment, as this dominate this industry.
Name the major industry players in the Restaurant Digitalization Market.Digitory Solutions Pvt. Ltd., Oracle Corp., Panasonic Corp., International Business Machines Corp., Cognizant Technology Solutions Corp., Flipdish Ltd., Fourth Enterprises LLC and Other Key Players are the main vendors in this market.
Restaurant Digitalization MarketPublished date: March 2024add_shopping_cartBuy Now get_appDownload Sample - Digitory Solutions Pvt. Ltd.
- Oracle Corporation Company Profile
- 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
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