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The restaurant management software market size is forecast to increase by USD 6.02 billion at a CAGR of 17.77% between 2023 and 2028. Market expansion hinges on various factors, notably the flourishing food service industry, which drives demand for innovative solutions to meet evolving consumer preferences. The surge in Quick Service Restaurants (QSRs) further fuels market growth, as these establishments require efficient and scalable technologies to streamline operations and enhance customer experiences. Additionally, the increasing need for large-scale client management solutions in various sectors amplifies market opportunities, prompting the development of robust platforms to manage client relationships effectively. Together, these factors create a conducive environment for the market's expansion, fostering the development of tailored solutions that cater to the unique requirements of businesses in the food service and related industries, ultimately driving innovation and growth in the market.
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In the dynamic and competitive restaurant industry, the implementation of advanced technology solutions has become a priority for businesses aiming to enhance customer experiences. The market is witnessing significant growth, driven by the adoption of digital menu boards, touchscreen ordering solutions, and mobile POS system. These technologies enable efficient meal delivery times, prioritize special dietary requests, and integrate with food delivery websites and restaurant review sites. IT budgets and investments in artificial intelligence, virtual assistants, and the Internet of Things are shaping the future of restaurant management. Voice-activated ordering systems, chatbots, and cross-platform technologies are revolutionizing front-end software segments, ensuring Android and iOS-based software support. Cloud-based solutions and advanced POS systems facilitate seamless operations, while the integration of smartphone and internet penetration, and disposable incomes, expand market opportunities. Overall, the market is poised for continued growth, offering innovative solutions to optimize customer experiences and streamline restaurant operations. Our researchers analyzed the data with 2023 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.
The growth of the foodservice industry is notably driving the market growth. The urban population's growth and increasing disposable incomes, driven by rapid urbanization and women's high labor force participation, have prioritized convenience in food consumption. This trend has led to a surge in demand for digital menu boards, touchscreen ordering solutions, and meal delivery times. IT budgets have seen significant investments in POS systems, mobile POS, food delivery websites, and apps like GrubHub, PostMates, and Zomato. With internet penetration and smartphone usage on the rise, restaurant review sites have become essential for customer experiences and retention.
Moreover, the market includes front-end software segments with Android and iOS-based solutions, cross-platform technologies, and cloud-based or on-premise systems. Key players like KFC, Pizza Hut, and Domino's have adopted artificial intelligence, virtual assistants, IoT, and voice-activated ordering systems, such as chatbots, to enhance customer experiences. Administrative and promotional elements are crucial in this market, with ParTech, Inc., Jolt, and Brink POS leading the way. Hence, the growth of the restaurant industry will create growth opportunities for the market during the forecast period.
The growing use of digital payment solutions in food service industry is a major trend in the market. In the rapidly evolving food service industry, digital transactions are becoming priority, with cashless payments projected to dominate up to 90% of spending in Canada by 2030. To stay competitive, restaurants are integrating digital solutions into their Point of Sale (POS) systems, enabling online ordering, touchscreen menus, and special dietary requests. IT budgets are seeing significant investments in digital menu boards, mobile POS systems, and food delivery websites like GrubHub, PostMates, and Zomato. With increasing smartphone and internet penetration, disposable incomes, and customer experiences, the market is thriving.
Moreover, key players like KFC, Pizza Hut, and Domino's are adopting advanced technologies such as artificial intelligence, virtual assistants, IoT, and cloud-based solutions. Voice-activated ordering systems, chatbots, and front-end software segments are gaining traction, with Android and iOS-based software supporting cross-platform technologies. Administrative and promotional elements, order management, and customer retention rate are crucial factors driving market growth. Notable companies include ParTech, Inc., Jolt, and Brink POS. Such developments are expected to drive market growth and trends during the forecast period.
Complications associated with transitioning from traditional systems are major challenges impeding the market growth. In the market, the priority is to enhance customer experiences through advanced solutions. Transitioning from conventional systems to new management tools presents challenges, such as the need for dedicated teams, process implementation, and software management. Digital menu boards and touchscreen ordering solutions are essential features, catering to special dietary requests and optimizing meal delivery times. IT budgets require significant investments in POS systems, mobile POS solutions, and food delivery websites like GrubHub, PostMates, and Zomato. Restaurant review sites and smartphone usage, driven by internet penetration and disposable incomes, necessitate artificial intelligence, virtual assistants, and IoT integration.
Further, cloud-based solutions, such as those offered by KFC, Pizza Hut, and Domino's, and voice-activated ordering systems using chatbots, are becoming increasingly popular. The front-end software segment includes Android and iOS-based solutions, while cross-platform technologies ensure compatibility. Administrative and promotional elements, order management, and security measures are crucial aspects of these systems. Market leaders like ParTech, Inc., Jolt, and Brink POS offer comprehensive solutions, catering to various restaurant needs. Hence, issues associated with integration can discourage restaurants from deploying restaurant management software solutions during the forecast period.
The market forecasting 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 market growth and forecasting strategies.
Market Customer Landscape
Companies 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 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 research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the on-premises segment will be significant during the forecast period. In the market, on-premise solutions continue to hold priority due to their real-time monitoring capabilities and enhanced security features. These solutions enable the management of digital menu boards, special dietary requests, and meal delivery times through POS systems and touchscreen ordering solutions. However, the higher IT budgets and investments required for on-premise deployments, including server hardware and IT support, distinguish them from cloud-based alternatives. Cloud-based solutions, such as mobile POS systems and food delivery websites like GrubHub, PostMates, and Zomato, have gained traction due to increasing smartphone usage, internet penetration, and disposable incomes.
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The on-premises segment showed a gradual increase in the market share of USD 1.60 billion in 2018. Artificial intelligence, virtual assistants, and the Internet of Things are transforming customer experiences, with voice-activated ordering systems and chatbots becoming increasingly popular. The front-end software segment, including Android and iOS-based solutions, and cross-platform technologies are essential for catering to diverse customer needs. Key players in the market, such as KFC, Pizza Hut, and Domino's, are investing in advanced technologies like voice-activated ordering systems and AI-driven promotional elements to enhance customer retention rates. Administrative and promotional elements, order management, and customer experiences are critical components of both on-premise and cloud-segment solutions. Companies like ParTech, Inc., Jolt, and Brink POS are leading the charge in this evolving landscape. Hence, the buyers prefer cloud software solutions, which will reduce the share of the segment during the forecast period.
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North America is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in North America is experiencing significant growth due to the food service industry's well-organized structure, market penetration of vendors, and urbanization. In the US, this market's expansion is fueled by the population's increasing disposable income and urban migration. Businesses in this sector prioritize payment processing and daily reconciliation for efficient internal processes. Data security features are essential for safeguarding sensitive information. Sales, labor, inventory data, and Point-of-Sale (POS) technology are integral components of restaurant management software. Customer satisfaction and experience are crucial in today's digital transformation, making web applications and mobile devices indispensable. Secured cards and shifting consumer trends towards individualized and customized and personalized services further drive market growth.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
In today's digital world, the market is thriving with innovative solutions that cater to the unique needs of the food service industry. These systems offer features such as Point of Sale (POS) technology systems, inventory management, delivery management, and customer relationship management (CRM). They help streamline operations, increase efficiency, and improve the overall customer experience. With the integration of cloud technology, restaurant owners can access real-time data from anywhere, making it easier to make informed decisions. Additionally, mobile POS systems enable staff to take orders and process payments tableside, enhancing the dining experience. The market for these systems is expected to grow significantly in the coming years, driven by the increasing demand for technology solutions in the food service industry. Some key players in this market include Posiflex, Toast, and Square.
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Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 17.77% |
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Market growth 2024-2028 |
USD 6.02 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
15.56 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 47% |
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Key countries |
US, Canada, Germany, France, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, Market forecasting, 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 Marketforecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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