The Future for Restaurants is Bright (and Tech-Driven), TD Bank Survey Finds
Following recent industry challenges, appetite for expansion and investment in mobile apps and artificial intelligence grows
Continued technological advancements, better value meal strategies, as well as a better interest rate outlook are driving optimism. In fact, respondents believe lowering interest rates will have the greatest impact on the restaurant industry in the next 12 months (
Franchise 2.0: Prioritizing Investments in Mobile Apps and Artificial Intelligence
Looking ahead, restaurant operators and financial professionals are focusing on investments that drive revenue and simplify operations – especially mobile apps. When asked about their predictions for the top three revenue drivers for restaurants over the next 12 months, more than three-fourths (
“The push for convenience and efficiency to improve customer and employee experiences is driving the industry's focus on mobile ordering,” said Mark Wasilefsky, Head of Franchise Finance, TD Bank. “The continued focus on mobile apps and online ordering tools signals a demand to better accommodate changing consumer expectations and employee needs.”
Meeting these consumer expectations and employee needs is pushing restaurant franchises towards artificial intelligence and automation. The survey found
Ultimately, mobile apps and automation are key growth areas over the next 12 months, with
2025: The Year of M&A Growth
As lowering interest rates and technological innovation boost optimism, restaurant franchise leaders are turning their attention to mergers and acquisitions. Over the next 12 months,
“Restaurant franchising as an industry is gearing up for an exciting time, with improved profitability and a better interest rate outlook offsetting moderating traffic and portending a reemergence in dealmaking and franchise expansion,” said Wasilefsky. “Despite 2024's challenges with foot traffic and AUVs, a few factors are coming together to bolster the outlook – including the careful application of value menus, confidence in technology from AI driven efficiencies and continual improvement in the digital experience. Together, they are creating an optimistic outlook for revenue, margins and overall industry performance."
Survey Methodology
This study was conducted at the 2024 Restaurant Finance and Development Conference held in
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TD Bank
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Source: TD Bank