Square’s fourth annual Future of Commerce report delves into how consumers are feeling about advancement in automation and generative AI. The report offers insights on how restaurants are shifting.
In collaboration with Wakefield Research, Square surveyed thousands of business owners and consumers on restaurants, retail, and beauty industry trends across the United States, Canada, the United Kingdom and Australia.
Oh Canada!
Decisively, 100% of surveyed Canadian restaurateurs say they plan to expand their businesses in the next 12 months through offering new products or opening additional locations, and 80% report feeling more optimistic about the future of their restaurants. At the same time, approximately three in four Canadian consumers say they expect to pull back on restaurant spending in 2024.
76% of Canadian consumers would prefer to place their food orders via self-serve kiosks. Customer satisifaction with self-serve ordering is strong; according to HT’s Customer Engagement Technology Study, 55% of consumers are very or somewhat satisfied with restaurant self-ordering technologies such as kiosks.
Canadian consumers are looking for a tech-forward approach from restaurants – 60% are supportive of local restaurants using AI-based tools.
All surveyed restaurateurs in Canada (100%) believe AI could solve some of their staffing challenges, particularly food prep robots (44%), voice ordering technology (42%), predictive ordering and inventory management (40%), and food prep and delivery management (38%).
Other key findings:
89% of restaurants say they’ll experiment in the coming year with non-core offerings like meal kits, subscriptions, events, and more. Restaurateurs say that right now, 19% of their revenue stems from products and services outside of their core restaurant offerings.
Restaurateurs are not only investing in AI to address labour challenges – more established automation tools are also on the agenda in 2024. 56% of surveyed owners plan to increase their spending on technology and automation tools in the next 12 months, and 76% of consumers want restaurants to invest in at least one area of automation when they’re not at full staffing capacity.
“Automation and AI are going to be key growth levers for restaurants in the coming year, though not in the way you may think,” said Ming-Tai Huh, General Manager of Square for Restaurants. “The vast majority of restaurants will be integrating AI into their operations in small, iterative ways – not through flashy robots but through automation in marketing or kitchen workflows – and these minor changes will add up to saved time and more profit.”
About Future of Commerce
The retail and restaurant surveys were conducted by Wakefield Research among 2,000 retail owners and managers and 2,000 restaurant owners and managers, with quotas set within each survey for 500 respondents per market in the U.S., Canada, the UK, and Australia between October 27 and November 8, 2023, using an email invitation and an online survey.
The consumer survey was conducted by Wakefield Research among 4,000 nationally representative adults ages 18+ in the U.S., Canada, the UK, and Australia, with quotas set for 1,000 respondents per market, between November 15 and November 28, 2023, using an email invitation and an online survey. Data has been weighted. Download the report here.