STUDY: Restaurants Poised to Add More Tech to Gain Efficiencies, Improve CX

One in four (25%) restaurant operators say using just-in-time workers to fill staffing will become common in their segment in 2024, according to the National Restaurant Association’s Restaurant Technology Landscape Report 2024.

Limited-service operators (29%) are somewhat more likely than their full-service counterparts (21%) to view this as a viable option.

National Restaurant Association executives discussed key findings of the study, which polled both restaurants and consumers, in a March 28 webinar. 

This year, restaurants plan to invest in technology: 63% of all restaurant operators surveyed plan to devote resources to digital marketing/location-based marketing.  47% of operators plan to use technology and automation to help with the current labor shortage, and it will become more common within their segment (44% full-service, 49% limited service.)

Help Wanted: Gig Workers 

The move towards more gig workers comes as hospitality continues to face a labor shortage. In California, the minimum wage increased to $20/hour for fast food workers effective, April 1. The Fast Act requires fast food chains with 60 or more locations nationwide to meet the wage increase.   

Technology can help address labor challenges by automating recruitment and scheduling systems, improving productivity in the kitchen, and providing opportunities for temporary workers. ​ However, operators believe that technology will augment rather than replace human labor in the restaurant industry. 

Meanwhile, consumers are becoming more accustomed to using technology in their daily experiences, said Hudson Riehle, Senior Vice President of Research and Knowledge for the National Restaurant Association. There are generational differences, however. 

Generational Differences

When asked how likely they’d be to interact with a tablet at the table, a majority of Gen Z adults, millennials and Gen Xers say they’d use these options but fewer than half of baby boomers said they would.

Compared with full-service and limited-service options, the use of technology in the delivery segment is already baked into consumers’ expectation. They expect to be able to access, order, customize and pay for delivery orders through their computers or smartphones and if they can’t, they’ll order from somewhere else.

• According to HT’s Customer Engagement Technology Study, 55% of consumers are very or somewhat satisfied with restaurant self-ordering technologies such as kiosks. 

"The data clearly show that restaurant operators and owners are rapidly embracing technology and integrating it into their daily operations," said Riehle. "Understanding which technologies customers in each segment would like to have, really want, and consider essential, provides operators with substantial opportunities to enhance the customer experience, amplify marketing and operate more efficiently."

Key Takeaways

• More than 3 in 4 operators say technology gives them a competitive edge
• 55% of operators are planning investments to improve their service areas, while 60% are looking for technology that will enhance the customer experience.
• 16% of operators plan to invest in AI integration (including voice recognition) in 2024.
• 82% of Gen Z adults are comfortable placing an order at a limited-service restaurant with a smart phone app.
• 65% of all adult consumers would be comfortable paying their check at a full-service restaurant with a computer tablet at the table.
• 57% of operators plan to invest in loyalty/rewards
• 5% of operators plan to invest in robotics
• 3% of operators plan to invest in drones/autonomous delivery
  
   

Download the Restaurant Technology Landscape Report 2024, supported by Dell Technologies and SpotOn.