Restaurant digital transformation is no longer optional—it’s essential for staying relevant and enhancing customer satisfaction in the food and beverage industry. Embracing restaurant digitization streamlines operations and opens doors to new opportunities for growth and efficiency.
In this article, we’ll explore key considerations to kickstart your journey toward a successful restaurant digital transformation.
- You will learn what are the benefits of restaurant digital transformation.
- You will see examples of innovative solutions you could implement in your restaurant.
- You will get to know tips on how to start digital transformation in your restaurant.
Digital technologies encompass various tools and systems that use digital data, computing power, and machine learning to perform various tasks.
By using different digital tools and leveraging customer data, restaurants can significantly enhance their operations, increase efficiency, reduce restaurant costs, foster customer loyalty, and drive revenue growth.
Key statistics
Before we discuss the benefits of using digital technology and our recommendations for implementing it in your restaurant business, let’s review some key statistics and facts.
- According to Statista, the online food delivery market is projected to generate revenues of US$1.22 trillion in 2024.
- The Restaurant Technology News mentions that over the past year, nearly 60% of digital food orders were placed through mobile apps.
- 70% of customers prefer ordering food online and having it delivered, according to AppMySite.
- The NRC states that digital ordering and delivery have increased 300% faster than dine-in traffic since 2014.
- According to the Publicis Sapient states, nearly 39% of diners prefer placing their orders through mobile apps or online platforms, emphasizing the critical role of digital channels in quick-service restaurants.
What are the benefits of using digital technologies?
The benefits of using digital technologies in the restaurant industry include the following:
1. Increasing operational efficiency
Using restaurant technology to do things faster reduces the risks of errors, saves time, and lowers labor costs.
By automating tasks such as order processing, inventory management, and payment handling, restaurants can streamline operations and focus more on providing exceptional customer service.
2. Improved customer experience
Digital menus for restaurants, online ordering systems, self-service kiosks, mobile apps for restaurant ordering, and contactless payments. What do they have in common? They all aim to provide a seamless and convenient customer experience, from ordering to payment.
Digital restaurants leverage these technologies to streamline operations, reduce wait times, enhance customer satisfaction, and drive business growth by making the dining experience more efficient and enjoyable for customers.
3. Making data-driven decisions
Restaurant analytics help restaurants understand customer behavior patterns and consumer preferences.
By analyzing this data from a restaurant CRM, restaurant owners can optimize inventory and improve menu offerings, leading to more informed business decisions.
4. Lowering restaurant costs
One of the key factors of running a successful restaurant is maintaining the right balance between revenues and costs to make the business profitable.
On the one hand, using restaurant inventory management systems to track stock levels and reduce food waste helps restaurants optimize ordering processes
On the other hand, restaurant owners need to focus on implementing ways to attract new customers, maintain repeat business (for example, with customer loyalty programs that increase customer engagement), and increase restaurant sales both on-site and from online ordering.
What digital solutions can I use in my restaurant?
Many digital solutions can be used in your restaurant in this digital era. Let us name and describe a few of the most popular ones to give you a brief picture of what to look for and what to start with.
1. Restaurant website with an online ordering system
According to Fundera, approximately 60% of American consumers opt for takeout or delivery at least once a week, and the online food delivery industry is projected to have 2.656 billion users by 2026.
When analyzing customer behavior and preferences, Fundera informs that approximately 31% of American consumers use third-party food delivery services at least twice a week.
However, according to Hospitality Technology, 70% of consumers prefer to order directly from a restaurant, ensuring their money goes straight to the establishment rather than a third-party service.
This is where your restaurant’s digital transformation begins.
The question is how to provide customers with the convenience of online ordering directly from your restaurant. The answer is building your own restaurant website with an online ordering system.
For that purpose, you can use a restaurant website builder to create a website and enable online ordering.
While building your website, remember to optimize it to improve its visibility in Google search. Here is a helpful guide that shows how to work on your restaurant SEO.
2. Mobile apps
People are increasingly accustomed to using apps for various tasks, including ordering food. While many rely on third-party delivery apps like DoorDash and Uber Eats, they can also order directly from a restaurant’s mobile app.
Restaurant owners can easily create their own iOS and Android apps using a simple restaurant app builder.
For example, UpMenu offers to build a restaurant mobile app integrated with an online ordering system. This allows restaurateurs to receive all orders from both the website and mobile app in a single admin panel.
From a restaurant owner’s perspective, using third-party delivery apps can be expensive due to high commission fees, and UpMenu provides a more cost-effective solution with a monthly subscription and no additional commissions.
3. Digital restaurant menu
Another technology we highly recommend is creating a digital restaurant menu. Why? Imagine accessing a restaurant website and downloading the menu as a PDF. It’s not easily accessible and hard to read.
Instead, you can create a digital restaurant menu that is intuitive and viewable on any device.
Moreover, you can also share it via a QR code. In other words, you will create a QR code menu, and your customers will scan it with their mobile phones and will see your menu. It’s already integrated with the online ordering system, so customers can also place online orders after scanning QR codes.
4. Targeted marketing campaigns
Enabling restaurant owners to send targeted marketing campaigns is another example of how digital channels can enhance customer engagement and drive sales.
You can send personalized marketing messages to your customers using your data analytics.
In UpMenu, you can use a marketing automation module to build customer relationships. You can send:
- Reminder messages: Automatically send reminders to customers who have not placed an order for a specified number of days.
- Loyalty messages: Set the number of orders required to trigger the message and communicate with customers who have placed several orders.
- Event-based messages: Send automatic messages for specific events, such as after account creation, order placement, or receiving a customer rating.
5. Contactless payments
Offering online payments in restaurants is essential for a successful business nowadays. It enables seamless and efficient payment processing, enhancing the overall dining experience.
With the rise of contactless ordering and digital payments, customers can enjoy a safer and more convenient way to complete transactions.
With UpMenu, you can offer contactless payments through your online ordering system. Your customers can pay
- online with
- Stripe,
- Apple Pay,
- Google Pay,
- PayPal,
- PayU,
- Adyen,
- with a credit card
- in cash.
Check out the integrations our system provides here.
6. Touch-screen kiosks
Touch-screen kiosks in restaurants are transforming business processes by offering innovative solutions for customer interactions.
These kiosks streamline ordering, reduce wait times, and enhance order processing accuracy.
They also allow customers to customize their orders easily and securely and complete transactions, improving overall satisfaction.
7. AI solutions
Artificial intelligence solutions are transforming restaurants through chatbots and predictive analysis.
Chatbots enhance customer service by handling reservations, answering questions, taking orders, offering instant support, and freeing up staff.
Predictive analysis helps restaurants forecast demand, optimize inventory, and create targeted marketing strategies based on customer behavior patterns, leading to more efficient operations and improved customer satisfaction.
Learn more about artificial intelligence in restaurants here.
8. Smart appliances and energy-efficient restaurant equipment
Smart appliances and energy-efficient restaurant equipment are key components of digital transformation, enhancing operational efficiency and customer service. Create a restaurant equipment list to save yourself many headaches in the future.
- Energy star-rated commercial ovens reduce energy consumption with improved insulation and advanced heating technology.
- Induction cooktops provide efficient heating and precise temperature control with minimal energy loss.
- LED lighting offers long-lasting, low-energy lighting solutions for kitchens and dining areas.
- Smart refrigerators monitor temperature and manage inventory levels.
- Programmable thermostats optimize heating and cooling based on usage patterns, reducing unnecessary energy expenditure.
Tips on how to start a restaurant digital transformation
- Tip 1. Assess your current state: Identify which areas of your operations, such as order management, inventory control, or customer engagement, can benefit the most from digital transformation. Gather feedback from your restaurant staff and customers to understand pain points and opportunities for improvement.
- Tip 2. Set clear goals: Establish what you aim to achieve with digital transformation. What will you focus on? Increasing operational or delivery efficiency and sales or enhancing customer experience? Learn more about setting up restaurant goals.
- Tip 3. Create a roadmap: Develop a step-by-step plan that outlines the implementation phases, resources needed, and timelines for restaurant digital transformation.
- Tip 4. Invest in the right technologies: Ensure you choose the right tools, like a food ordering system, restaurant management software, contactless payment options, a restaurant CRM, or a kitchen display system.
- Tip 5. Train your staff: Provide training to ensure your staff understands new technologies implemented in your restaurant.
- Tip 6. Monitor and optimize: Verify the performance of the digital initiatives you implemented. Are you achieving your restaurant goals now? Are there any areas of improvement? Based on restaurant analytics and customer feedback, make necessary adjustments.
- Tip 7. Stay updated on restaurant technology trends: Stay informed about the latest digital trends and technologies in the restaurant industry to keep your business competitive.
Key Takeaways
- Assess current operations: Evaluate existing processes.
- Set clear goals: Define objectives like improved efficiency, enhanced customer experience, or reduced costs.
- Develop a plan: Create a detailed plan that outlines the implementation phases, required resources, and timelines for executing your restaurant’s digital transformation.
- Implement innovative solutions: Integrate an online ordering system, mobile ordering, a digital restaurant menu, self-service kiosks, and/or other digital tools to streamline operations and improve customer convenience.
- Train staff: Ensure your team is trained to use new technologies effectively.
- Verify the performance of your digital initiatives: Assess if you are achieving your restaurant goals and identify any areas for improvement.
Frequently Asked Questions (FAQ)
What is digital transformation in the food industry?
Digital transformation in the food industry involves integrating digital technologies into all aspects of the business to improve efficiency, enhance customer experiences, and drive innovation. This encompasses various sectors, including food production, processing, distribution, and retail.
Why does restaurant digital transformation matter?
Restaurant digital transformation is crucial because it boosts operational efficiency, enhances customer experiences, and drives business growth. By following digital transformation trends, restaurants gain valuable data insights that help them reach more customers with targeted marketing campaigns and optimize their menus to boost sales and improve customer satisfaction. This strategic adoption of digital technologies is essential for staying competitive.
