Enjoy complimentary customisation on priority with our Enterprise License!
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. The market is experiencing significant growth, driven by the expansion of the foodservice industry and the increasing adoption of digital payment solutions. The foodservice industry's growth is attributed to factors such as changing consumer preferences, urbanization, and an increasing number of foodservice establishments. Digital payment solutions are gaining popularity in the foodservice industry due to their convenience, security, and contactless features, which are particularly relevant in the current pandemic situation. However, the transition from traditional systems to restaurant management software comes with complications, including high implementation costs, training staff, and ensuring data security. Despite these challenges, the benefits of restaurant management software, such as improved operational efficiency, enhanced customer experience, and increased revenue, make it a worthwhile investment for foodservice businesses.
The market is witnessing significant growth due to the increasing priority given to digitalization in the foodservice industry. The adoption of digital menu boards, touchscreen ordering solutions, and mobile POS systems are becoming essential for restaurants to enhance customer experiences and streamline operations. With the rise of food delivery websites and internet penetration, restaurants are investing in IT budgets to implement cloud-based solutions for managing meal delivery times and special dietary requests. The integration of artificial intelligence, virtual assistants, IoT, and voice-activated ordering systems is transforming the industry. Smartphone usage and disposable incomes are driving the demand for advanced front-end software segment offerings, including Android and iOS-based software and cross-platform technologies. The market is expected to witness continued growth as restaurants leverage technology to improve operational efficiency, enhance customer engagement, and stay competitive in the digital age.
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.
The on-premises segment is estimated to witness significant growth during the forecast period. Restaurant management software has become a priority for establishments seeking to enhance customer experiences and streamline operations. Digital menu boards, a key feature of such software, enable dynamic pricing and real-time menu updates. Special dietary requests are easily managed through integrated systems, improving customer satisfaction. POS systems facilitate meal delivery times and touchscreen ordering solutions boost efficiency. IT budgets and investments in mobile POS systems, online food delivery websites like GrubHub, PostMates, and Zomato, and restaurant review sites are essential for staying competitive. Smartphone penetration and disposable incomes fuel the demand for advanced technologies such as artificial intelligence, virtual assistants, and the Internet of Things.
Cloud-based solutions, including those from KFC, Pizza Hut, and Domino's, offer flexibility and cost savings. Voice-activated ordering systems and chatbots are front-end software segments gaining traction. Android and iOS-based software, along with cross-platform technologies, cater to diverse user needs. Administrative and promotional elements, order management, and customer retention rate are crucial aspects of these systems. ParTech, Inc, Jolt, and Brink POS are notable providers in this market.
Get a glance at the market share of various segments Request Free Sample
The On-premises segment accounted for USD 1.60 billion in 2018 and showed a gradual increase during the forecast period.
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.
For more insights on the market share of various regions Request Free Sample
Restaurant management software plays a pivotal role in streamlining internal processes and enhancing customer experience in the foodservice industry. This software facilitates payment processing through secured cards and digital transactions, ensuring daily reconciliation for accurate financial reporting. Business organizations leverage these solutions to manage sales, labor, and inventory data in real-time. The shift in consumer trends towards individualized and customized services has led to the adoption of point-of-sale (POS) technology on web applications and mobile devices. POS systems enable quick order taking, menu customization, and contactless payment options, contributing to improved customer satisfaction. Data security features are essential in restaurant management software to protect sensitive customer and business information.
The software enables businesses to maintain internal control and adhere to industry regulations, ensuring a secure environment for digital transformation. By automating routine tasks, professional service automation (PSA) and providing real-time insights, restaurant management software contributes significantly to the overall efficiency and success of foodservice businesses.
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 foodservice industry is the key driver of the market. The restaurant industry has witnessed significant growth due to the increasing urban population and disposable incomes. With more people moving to cities for job opportunities, there is a higher demand for convenient and easily prepared food options, particularly in the fast-food sector. The preference for a diverse range of regional cuisines has also increased, driven by globalization and the ease of access to information through the Internet. To cater to these evolving consumer needs, restaurant management software has become a priority for businesses. Digital menu boards, touchscreen ordering solutions, and mobile POS systems are increasingly being adopted to enhance customer experiences and improve order management.
Furthermore, special dietary requests are easily accommodated through these systems, ensuring customer satisfaction. IT budgets have seen significant investments in cloud-based solutions, artificial intelligence, and virtual assistants, such as voice-activated ordering systems and chatbots, to streamline operations and improve efficiency. The front-end software segment, including Android and iOS-based systems, dominates the market, while cross-platform technologies are gaining popularity for their flexibility. Administrative and promotional elements are crucial features of these systems, with order management being a key focus area for customer retention.
Moreover, the cloud segment is expected to grow rapidly due to its cost-effectiveness and scalability, while the on-premise segment continues to cater to the unique needs of certain establishments. The integration of the Internet of Things and advanced technologies, such as AI and virtual assistants, is revolutionizing the restaurant industry, offering new opportunities for growth and innovation.
The growing use of digital payment solutions in foodservice industry is the upcoming trend in the market. The global foodservice industry is witnessing a significant shift towards digital transactions, driven by the increasing popularity of contactless payments and the rise in online food ordering. With digital payments projected to account for nearly 90% of transactions in Canada by 2030, restaurant owners are integrating online ordering systems into their POS terminals to cater to the growing demand for delivery and takeaway services. Digital transactions offer numerous benefits, including operational ease, security, and reliability. Moreover, the rise of touchscreen ordering solutions, mobile POS systems, and food delivery websites such as GrubHub, PostMates, and Zomato have made it essential for restaurants to adopt digital technologies to meet customer expectations.
Furthermore, the integration of artificial intelligence, virtual assistants, and the Internet of Things into restaurant management software is further enhancing the customer experience. Restaurant management software solutions are increasingly being adopted to manage special dietary requests, meal delivery times, and priority seating. The market for restaurant management software is segmented into front-end software, which includes digital menu boards and touchscreen ordering solutions, and back-end software, which includes administrative and promotional elements. Cloud-based solutions are gaining popularity due to their cost-effectiveness and ease of use, while some restaurants still prefer on-premise solutions for security reasons. With increasing IT budgets and disposable incomes, investments in restaurant management software are expected to continue growing, driving the market's growth.
The complications associated with transitioning from traditional systems is a key challenge affecting the market growth. In the dynamic world of restaurant management, prioritizing the adoption of advanced technologies such as digital menu boards, touchscreen ordering solutions, and POS systems is crucial for enhancing customer experiences and managing special dietary requests efficiently. However, the transition from conventional systems to these technologies comes with its challenges. One of the primary hurdles is the appointment of a dedicated team to oversee the implementation and management of these systems. This includes senior executives, IT personnel, customer service teams, and end-users, which incurs additional costs in the value chain. Another challenge is the implementation of defined processes and clear security measures to ensure the correct use of these technologies and protect sensitive data from unauthorized access.
Furthermore, after the process is implemented, it must be realigned with the team's culture to ensure smooth adoption. The use of artificial intelligence, virtual assistants, and the Internet of Things is also on the rise. The front-end software segment, including Android and iOS-based software, and cross-platform technologies, are gaining popularity due to their flexibility and ease of use. The cloud segment is expected to dominate the market due to its cost-effectiveness and scalability. Administrative and promotional elements, such as order management and customer retention rate, are critical aspects of restaurant management software.
In conclusion, the market is witnessing significant growth due to the increasing use of technology in the foodservice industry, the rise of disposable incomes, internet penetration, and the growing popularity of food delivery websites. However, the transition to these advanced systems comes with challenges, including the appointment of dedicated teams, the implementation of processes, and software management. Despite these challenges, the benefits of these technologies, such as improved customer experiences, increased efficiency, and enhanced data analytics, make them a worthwhile investment for restaurants.
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 analysis strategies.
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 Restaurant Management Software solutions for various applications.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 is witnessing significant growth due to the increasing priority given to digitalization in the food industry. The adoption of dining out option with the new digital menu boards, touchscreen ordering solutions, and mobile POS systems are becoming essential for restaurants to enhance customer experiences and manage special dietary requests efficiently. IT budgets and investments in technology are on the rise as restaurants aim to keep pace with the growing trend of food delivery through websites like Grubhub, Postmates, and Zomato. The use of artificial intelligence, virtual assistants, and voice-activated ordering systems are becoming common in the industry, driven by the increasing internet penetration and disposable incomes.
Furthermore, cloud-based solutions and IoT technologies are gaining popularity due to their flexibility and cost-effectiveness. The front-end software segment, including Android and iOS-based software, is witnessing significant growth due to the widespread use of smartphones. The market is segmented into cloud-based solutions and on-premise solutions, with cloud-based solutions expected to dominate due to their ease of use and scalability. Partech, Jolt, Brink POS, and other players are offering innovative solutions to address the administrative and promotional elements of restaurant management.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.77% |
Market growth 2024-2028 |
USD 6.02 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.56 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 47% |
Key countries |
US, Canada, Germany, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, 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, market forecast, 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 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. Get in touch
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
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.