Restaurant Management Software Sees Market Uptick as People Dine Out Again

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As food establishments continue to recover from the impact of COVID-19, restaurateurs have turned to modern technology for help in running brick-and-mortar and online operations. Among the foremost applications being adopted are restaurant management systems, which provide end-to-end solutions. A report by UnivDatos shows the global restaurant management software market size expanding annually by 16% from 2022 to 2028, as these platforms enhance various aspects of food businesses.

The market’s impressive growth is driven by the increasing acceptance of restaurant service technologies. A report by the National Restaurant Association found that eight in 10 restaurant operators believe that food service tech enables brands to gain a competitive advantage. The onset of the pandemic introduced restaurants to technologies like contactless payment systems and digital menus, which then progressed to the adoption of more sophisticated platforms.

With two-thirds of food establishments adopting a POS system, the demand for restaurant management systems has significantly grown since these are designed to streamline backend workflows beyond the typical capabilities of point-of-sale applications.

Recent figures reveal that 90% of food establishments that leverage restaurant management platforms use them for inventory management, on top of other key features like accounting, task management, recipe management, and labor management. And their use has led to improvements in savings, customer satisfaction, and operational efficiency.

While the demand for new food service technology has stimulated the restaurant management software industry, there is an even more significant factor that fuels the market’s growth. In fact, it’s one of the main reasons why the demand for restaurant technology is high, to begin with.

The Return of On-Premise Dining

The COVID-19 pandemic kept people indoors for a good part of two years. Those who wanted to visit restaurants settled for food deliveries and curbside pickups, which do not replicate the dine-in experience. And so, when the threat of the pandemic was lowered, consumers immediately flocked to their favorite dining spots.

A 2022 study by Yelp found that online searches for indoor restaurant seating increased by a staggering 6,360% in the first quarter of 2022 compared to the same period in 2020. Searches for outdoor seating (1,060%) and reservations (107%) also saw massive increases. In addition, current figures show that 44% of diners visit restaurants at least once a week, and 78% dine out at least once a month.

This marks the formal return of on-premise dining, with the eagerness to dine out fueling restaurant revenues possibly beyond pre-pandemic levels for this year. The National Restaurant Association sees the United States restaurant industry attain sales of $898 billion in 2022, higher than 2019’s $864 billion.

Meanwhile, the popular food ordering methods during the onset of COVID-19 continue to be relevant. A 2022 survey from TouchBistro found that 27% of diners go for takeout or have food delivered at least once a week. Cloud kitchens are also still active, with 65.4% of food delivery companies relying on them, according to recent restaurant software statistics.

The large influx of customers would likely overwhelm restaurant staff as they deal with on-premise, online, and takeout customers, on top of kitchen requirements like segregating orders, manning stations, and tracking inventory. This stresses the need for food service technology, especially restaurant management software. After all, these platforms organize tasks, sort orders, improve communication, minimize errors, and offer inventory management tools.

Relevant Solutions to Dining Trends

After the onset of the pandemic, the general preferences of diners have changed. Today’s consumers place higher premiums on meal quality and food safety. According to the TouchBistro report, 68% of diners cited the quality of food as the leading factor when choosing where to dine, along with restaurant location (66%), customer service (64%), price points (62%), and food safety (61%). In addition, 73% of diners avoid food establishments that recently received a health inspection warning.

Meanwhile, Yelp’s report found year-over-year increases in reviews mentioning long waiting times (23%) and short staffing (229%). These underscore labor shortage issues hounding the US restaurant industry, exacerbated by high inflation. Moreover, new restaurant software trends detect increased price sensitivity from the dining public, with 22% stating that price increases significantly impact their dining choices and 45% admitting these would somewhat impact their choices.

Restaurant management systems help food establishments adjust to today’s dining preferences, given the various modules and features they bear. Recipe management modules enable chefs and cooks to standardize food preparation and food safety practices and monitor the sales of each item.

As for pricing concerns, these platforms allow users to properly set meal prices or apply pricing schemes that attract diners of various spending capacities. The algorithms of some systems can suggest and track margins per food item, so restaurateurs are able to adjust their meal rates accordingly, and release products that appeal to those with limited budgets.

Furthermore, top-tier platforms have labor management tools that set staff shifts, compute labor expenses, and ensure labor compliance. These tools allow food establishments to properly rotate and maximize their staff. As a result, restaurants can see how much they can stretch their employee pool and determine the number and types of staff they should hire.

Restaurant management platforms also typically integrate with the leading POS systems, so the front-end and back-end workflows of restaurant operations can be thoroughly streamlined. This leads to vastly improved operational efficiency and shorter waiting times for orders, resulting in pleasant customer experiences and potential enrollments in loyalty programs. After all, 41% of millennials and 40% of Gen Z diners have joined these.