Top Restaurant Technology Trends 2023

Charu Sharma • January 11, 2023

The year 2022 has been nothing less than a rollercoaster ride! We've been through a lot of things, experimented, struggled and got through them all. It is safe to say that we at least tried to go through all of these issues, whether it was inflation, supply chain challenges, or labor shortages, and guess what was constant in all of them that helped us get through? It's tech! Technology has always been by our side for us to improve and get through the difficult times that we faced.

And let's face it, all these issues are not going away anytime soon; hence it is important, not only for the restauranteurs but for people in every industry to be familiar with the tech trends before planning their strategies for the next year. Here, we have talked about the top 5 tech trends to watch out for in 2023.

#1 Online Ordering

Not only because of the pandemic, which forced numerous restaurants to discontinue dine-in service, but also because of the convenience of online ordering, it is expected that online ordering and delivery will grow even more. People nowadays want their favorite foods delivered right to their door. To begin, a decent website and app provide a firm foundation to build. Allowing customers to pay for online purchases directly on your website would simplify the process further. Customers will love the convenience of ordering and paying for food from their computer or mobile device.

According to a report by Statista, the revenue of online food delivery is estimated to expand at a 13.68% annual rate (CAGR 2022-2027), resulting in a market volume of US$1.45 trillion by 2027.

Restauranteurs should focus on taking help from in-house online ordering platforms, such as FoodKonnekt, which minimize the high margins charged by third-party delivery platforms and also enhance customer experience.

#2 Ghost/Virtual Kitchens

According to current data, meal delivery orders increased by more than 150 percent from 2019 to 2020, and UBS predicts the food delivery company to grow more than tenfold in ten years, from $35 billion to $365 billion. More restaurant operators and food entrepreneurs are turning to cloud kitchens as a feasible business solution as the demand for meal delivery develops.

Restaurants rent space in virtual or "ghost kitchens," which are centrally located, licensed commercial food production facilities, to create menu items that are optimal for delivery. They are essentially kitchens without a dining area; food is only prepared for delivery. Under one roof, a single restaurant may manage multiple brands or virtual eateries, or the kitchen may serve as an incubator for other suppliers.

As the demand for meal delivery grows, many restaurateurs have turned it into full-fledged businesses, and this trend seems likely to continue into the next year. The market for ghost kitchens is anticipated to reach $1.05 billion in value by 2023.

#3 Loyalty Programs

The next trend is the technology that goes into establishing and implementing loyalty programs. We all know that the oncoming recession will make life more difficult in the following year. Consumers are spending less on products they don't necessarily use in their daily lives as costs rise. As a result, as a restaurant owner, you must optimize revenues despite the possibility of a recession.

This is where a loyalty program comes into play. It is well-known that new clients are harder to target than regulars. The cost of acquiring new consumers is significantly more than the cost of retaining existing customers. Therefore, now is the optimal time to target your loyal customers. This can be easily done with a proper loyalty program in place.

Freekwent is a digital loyalty program that we at mKonnekt operate for our clients across several locations. It is an excellent approach to treat your regulars to fresh deals and discounts that you may choose to run. In these difficult times, it will help you retain those extra dollars.

#4 Automated Inventory Software Management System

The marketplace is becoming more competitive. Those who identify present demands and react accordingly will thrive long-term. The world is becoming more frantic and digitally reliant. Customers want better efficiency, prompt service, and high-quality products. An automated inventory system is a modern solution to the myriad challenges associated with human inventory systems. Because inventory systems are automated, they are more efficient and straightforward to manage, allowing management to handle activities more effectively and at a faster pace.

It helps restaurants manage their ingredient purchase orders, stock levels, menu, and recipes expenses. The best inventory management software systems for restaurants integrate with or are built into point-of-sale (POS) systems, minimizing administrative time. These services cost between $99 and $129 per month. Some tools, however, are free and have limited functionality.

Furthermore, to enhance restaurant operations, says Dirk Izzo, President and General Manager of NCR Hospitality, they are using data for more accurate forecasts.

#5 Restaurant Marketing Automation and Smart Tech

Customers and restaurant businesses are embracing AI, from robots that flip hamburgers to those that handle order taking. McDonald's acquired AI company Dynamic Yield in 2019 to enhance customer experience at drive-thrus with automated personalization. Menu choices are shown according to the time of day, the weather, the volume of customers dining now, and what's trending on the website. It even makes meal suggestions based on customers' past decisions.

The need for third-party delivery services grew as a response to the COVID-19 pandemic; however, restaurants still have a chance to enhance delivery. This is the food aspect of AI. Moreover, digital interactions between customers and businesses from social media to chatbots to websites generate first-party customer data that can be analyzed for marketing.

An astute marketer can do much with this information, and this is where technology and analytics will play a prominent role in the upcoming year. For example, order data can be segmented to send targeted messages to consumers who haven’t ordered in a specified timeframe.

Wrap-up

Those in tune with changing conditions are winners in any industry. Here, we addressed the biggest restaurant innovations that will come to power in the following year, so get ready!