The Food Service Industry’s Digital Transformation Journey Heading into 2025

The modern restaurant industry has always moved fast, but the pace continues to accelerate. 

Consumer demands are changing at a rapid rate. Macroeconomic conditions cycle quicker and quicker. Supply chains, while showing more stability, are fraught with uncertainty. And yet, the modern restaurant is thriving. The food service industry is forecast to reach $1 trillion in sales this year.

We’re seeing younger buyers investing in dining experiences that blend food, convenience, and atmosphere with their values as shoppers. At the same time, QSRs and fast casual establishments are turning to technology to improve operations and customer interactions as they continue to increase output. With that comes a stronger reliance on data which helps nimble restaurants stay ahead of change.

With 2025 quickly approaching, now is the time to evaluate the industry’s digital transformation journey over the last nine months to better understand growth opportunities for restaurants heading into the new year. 

Better Order Accuracy Equals More Satisfied Customers 

If a customer has a good experience at a restaurant, it will influence their decision to return. Technology is one way to make this happen. Take fast casual and drive-thru for example. Data shows that order accuracy, fueled by improving technology, received top marks from satisfied consumers. There are notable touchpoints that impact order accuracy which are driving this success.

For drive-thrus or call ins, can you accurately hear the order? Is it crisp, clear, and are you able to articulate a short, sharp conversation without the need to guess, ask the guest to repeat their order, or slow down the experience in general? Investing in high quality audio and headset equipment makes this possible, whether dealing with a noisy drive-thru or taking a call from a busy kitchen. For fast casual and QSRs, is your menu up to date? Are you showing the latest available menu items? Are you taking advantage of showcasing sales or deals at optimal times? Are people ordering things that aren’t currently in stock? Moving from static to digital menu boards gives restaurants the ability to update menus in real time.

These are the margins in which technology investment is correlating to improved experiences and more dollars. So, look for opportunities to empower customers and staff with the technologies that promote order accuracy. 

Shifting Consumer Patterns Require Restaurants to be Data-driven and Nimble

2024 has already seen shifts in how and when consumers make a purchase. Breakfast sales continue to change as more people return to the office. Consumers are showing favor toward snacking (including healthy snacking), which is trending. Dinner continues to evolve with work from home and hybrid work, with food carryout and delivery growth expected. The data reveals that consumer eating, dining, and take out patterns are constantly changing and in flux. Restaurants of all shapes and sizes cannot afford to lose the pulse of the customer – and, just as importantly, they cannot be slow to react once a shift has been noticed. 

The digitization of the store, from a kiosk to the menu boards to the POS at the counter, continues to provide data about dining experience.

Restaurants must understand their customers and move with speed to put that intelligence back into their operations. For example, updating menus and kiosks at certain times of the day means patrons know what is available and when, and restaurants can prioritize certain items. There are digital solutions that help restaurants meet this need. By moving to digital signage and dynamic menu board options, restaurants can update options with speed and make ordering experiences personalized. This even includes showing wait times for orders as restaurants accommodate dine in, pick up, and delivery all at once. Furthermore, over time, as data is gathered about ordering preferences through these digital touchpoints, restaurants can optimize the back of the house to be prepared for spikes. This helps restaurants maintain order accuracy, promote available menu items, and connect the dots between what types of items may be ordered together and provide that upsell recommendation. 

The digitization of the store, from a kiosk to the menu boards to the POS at the counter, continues to provide data about dining experience. Restaurants that are nimble in response will gain opportunity in the years to come.  

Artificial Intelligence (AI) and Automation Is Coming 

One of the more interesting conversations bouncing around the industry is the role of AI and automation within food service. The benefit is twofold. 

On one hand, it increases the speed with which restaurants can act on data and turn information into intelligence. According to the National Restaurant Association, predictive analytics is a fit for forecasting customer demand, optimizing inventory, and improving menu planning. We are starting to see this in the content creation space, for example, where content (menu items, food advertising, etc.) is becoming real time and personalized based on steady streams of information. Content can update without heavy levels of human oversite, based on factors including order history, the weather, and the time of day.

On the other hand, by using AI solutions for data-heavy or repeatable tasks, staff are freed up to better serve the needs of patrons. For guests that want minimal engagement, the tech is there. However, for those that may need or just want a higher touch engagement, like those with allergies or unique dietary considerations, that option is there too. This will also help recruit and retain workers while simultaneously overcoming a labor gap, a challenge the industry has had trouble with amid a fluctuating economic environment. In fact, 45 percent of restaurant operators say that they need more employees to meet the surge in customer demand.

A technology powered workplace with tools to streamline tasks while also freeing up staff to do a better job, leading to upsell, positive emotional engagement, and higher tips? Sounds appealing. Empowering workers with the right technology to maximize their potential is trending – and here to stay.

As we head into 2025…

The restaurant industry is back, and it is exciting to see continued investment in both the customer and employee experience.  

The steps organizations take today to digitally transform will better position them to navigate change, deliver the best experiences, and optimize operations in the years to come.