Restaurant Management Software Market by Deployment, End-user and Geography - Forecast and Analysis 2023-2027

The restaurant management software market is estimated to grow at a CAGR of 15.85% between 2022 and 2027. The size of the market is forecast to increase by USD 4,507.94 million. The growth of the market depends on several factors, including the growth of the food service industry, the rise in the number of QSRs, and the rising need for large-scale client management. 

This report extensively covers market segmentation by deployment (on-premises and cloud-based), end-user (QSR, FSR, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Restaurant Management Software Market During the Forecast Period?

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Parent Market Analysis

The reports categorize the global restaurant management software market as a part of the global application software market within the global IT software market. The parent global IT software market covers companies that are engaged in developing and producing application and system software. It also includes companies offering database management software. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.

Restaurant Management Software Market: Key Drivers, Trends, Challenges, and Customer Landscape

The growth of the food service industry is notably driving the market growth, although factors such as system integration and interoperability issue may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Restaurant Management Software Market Driver

The growth of the food service industry is notably driving the restaurant management software market growth. Rapid urbanization across the world has increased the disposable income of people. It creates job opportunities, which encourages people from rural areas to migrate to urban areas. The migration of people from rural areas to urban areas increases their personal income. The demand for convenient and easy-to-prepare food products has increased because of rapid urbanization and the high participation of women in the workforce.

The growth of the urban population is resulting in exposure to and increasing the preference for a variety of food products that are specific to different regions. Factors such as changing lifestyles, customized diet preferences, increasing urbanization, and the adoption of nuclear families are driving the growth of the global restaurant industry. Exposure to different cultures and lifestyles has enabled people to experiment with different cuisines, which has also created opportunities for the growth of the global restaurant industry. Food service establishments focus on enhancing customer service, maximizing profits, and reducing costs. The use of restaurant management software solutions improves efficiency and reduces mismanagement. Hence, the growth of the restaurant industry will create growth opportunities for the global restaurant management software market during the forecast period.

Key Restaurant Management Software Market Trend

An increasing number of strategic alliances is a major trend in the restaurant management software market. Competition in the regional restaurant management software markets is moderate, owing to the presence of numerous local and global vendors that offer undifferentiated software solutions. Vendors that operate in the global restaurant management software market are focusing on developing new strategies to gain a competitive advantage and retain their dominant position. To gain a competitive advantage, improve their software solutions, and expand their customer base, they are focusing on partnerships. Vendors through several partnerships expand their business through product offerings via new distribution channels.

For instance, in 2021, Fiserv, Inc. announced that it had acquired BentoBox, a digital marketing, and commerce platform provider. The acquisition helped the company's Clover dining solutions to cater to better diner experiences from all kinds of restaurant management services. Such developments are expected to drive the market in focus during the forecast period.

Key Restaurant Management Software Market Challenge

System integration and interoperability issues are major challenges impeding the restaurant management software market growth.  The adoption of advanced technologies in the global restaurant industry is increasing significantly, which is causing system integration and interoperability issues. Integration issues are addressed with interfaces when systems are in the development phase. Numerous restaurants experience issues related to integration when deploying restaurant management software solutions. Hence, vendors must provide integrated IT solutions that can be combined effortlessly with the IT infrastructure of restaurants. Minor system glitches can also incur considerable costs to restaurants and reduce operational efficiency. Interoperability and system integration issues generally arise during the upgrade of the IT systems or the merging of IT infrastructure resources.

The use of multiple new restaurant management software solutions with traditional infrastructure can create system integration issues. Most restaurant management software solutions are available in standardized forms, which may not fulfill the needs of different restaurants. Many vendors cannot provide customized solutions to restaurants owing to the high cost of customization. Hence, issues associated with integration can discourage restaurants from deploying restaurant management software solutions during the forecast period.

Key Restaurant Management Software Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Restaurant Management Software Market Customer Landscape

Who are the Major Restaurant Management Software Market Vendors?

Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Fiserv Inc. - The company operates under multiple segments including acceptance, and fintech among others, with a high focus on acceptance. The company under this segment?offers a wide range of commerce-enabling solutions and serves merchants of all sizes around the world. These services include POS merchant acquiring and digital commerce services, mobile payment services, and security and fraud protection products. The company's key offerings include restaurant management software. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Block Inc.
• Cozy Infosystems Inc.
• Fishbowl Inc.
• Fourth Enterprises LLC
• GOFRUGAL
• i3 Verticals Inc.
• International Business Machines Corp.
• Jolt Software Inc.
• Lavu Inc.
• Lightspeed Commerce Inc.
• Microsoft Corp.
• NCR Corp.
• Oracle Corp.
• Restaurant365 LLC
• Revel Systems Inc.

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Restaurant Management Software Market?

The market share growth by the on-premises segment will be significant during the forecast period. On-premise is the traditional and preferred method of installation of restaurant management software solutions. Hence, the segment holds the largest share of the global restaurant management software market.

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The on-premises segment shows a gradual increase in the market share of USD 1,420.03 million in 2017 and continued to grow until 2021. On-premise deployments enable the real-time monitoring of restaurant management software solutions. Such deployments also ensure the complete security of enterprise data, such as source codes, version enhancements, and source code change histories, as they only require licensed or purchased copies of software solutions from independent software vendors. On-premise deployments provide a secure environment during regular software updates. However, the cost of on-premise software solutions is more than on-demand or cloud software solutions, as it includes the total cost of installation, which comprises the cost of in-house server hardware and IT support staff, as well as capital investments in software licenses. The integration of on-premise software solutions takes longer than the integration of other types of software solutions. Hence, the buyers prefer cloud software solutions, which will reduce the share of the segment during the forecast period.

Which are the Key Regions for the Restaurant Management Software Market?

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North America is projected to hold a share of 48% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The growth of the restaurant management software market in North America is driven by rapid urbanization, the well-organized nature of the food service industry, and the market penetration of vendors. Rapid urbanization and the increasing disposable income of the population drive the growth of the market in the region. The availability of job opportunities encourages people from rural areas to migrate to cities. People who have busy work schedules and hectic lifestyles seek convenient and easy-to-prepare meal options, which drives the growth of the food service industry in the region.

The early adoption of advanced technologies in several industries has made North America a lucrative market for restaurant management software solutions. The economy of the region is technologically mature, and the strong presence and penetration of key vendors drive the growth of the market in the region during the forecast period. Several pure cloud restaurant management software solution providers are based in the region. For instance, IBM offers application security solutions on the cloud. Several such vendors target small restaurant chains. Cloud-based restaurant management software solutions play an integral role in simplifying the flow of information technology and services with real-time tracking of customer demand.  The market started showing slow growth in 2021; with the initiation of COVID-19 vaccination drives, the demand for restaurant management software is expected to increase from 2022, thereby driving market growth in North America during the forecast period.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Deployment (On-premises and Cloud-based), End-user (QSR, FSR, and Others), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).

• Deployment Outlook (USD Million, 2017 - 2027)
  • On-premises
  • Cloud-based

• End-user Outlook (USD Million, 2017 - 2027)
  • QSR
  • FSR
  • Others

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil

Restaurant Management Software Market Scope
Report Coverage	Details
Page number	158
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.85%
Market growth 2023-2027	USD 4,507.94 million
Market structure	Fragmented
YoY growth (%)	14.7
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 48%
Key countries	US, Canada, Germany, France, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Block Inc., Cozy Infosystems Inc., Fiserv Inc., Fishbowl Inc., Fourth Enterprises LLC, GOFRUGAL, i3 Verticals Inc., International Business Machines Corp., Jolt Software Inc., Lavu Inc., Lightspeed Commerce Inc., Microsoft Corp., NCR Corp., Oracle Corp., Restaurant365 LLC, Revel Systems Inc., Technoheaven, Toast Inc., and TouchBistro Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Restaurant Management Software Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the  restaurant management software market between 2023 and 2027
• Precise estimation of the restaurant management software market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of restaurant management software market vendors

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