Restaurant Operators Expect to Automate Up to 51% of Store Tasks by 2025

Rhea-AI Summary

The 2023 Connected Restaurant Experience Study, conducted by Incisiv in partnership with Verizon Business and Cisco, highlights the growing complexity in restaurant operations due to increased digital ordering. It reports that 83% of customers plan to utilize mobile order-ahead services in 2023, and 72% of restaurant operators find it challenging to meet these rising customer expectations. Only 52% of quick-service and 41% of full-service restaurants are satisfied with their digital offerings. Key areas for technology investment include fulfilling digital orders, enhancing kitchen efficiency, and speeding up checkouts. Automation is expected to rise, with quick-service restaurants anticipating 51% of tasks will be automated by 2025.

Positive

• 83% of customers plan to use mobile order-ahead services in 2023, indicating a strong trend in consumer preference.
• The report notes an increase in investment in technology to enhance restaurant efficiency, signaling growth opportunities.
• Automation is expected to rise significantly, with quick-service restaurants anticipating 51% of tasks will be automated by 2025.

Negative

• 72% of restaurant operators feel it is becoming harder to meet customer expectations due to digital ordering complexities.
• Only 52% of quick-service and 41% of full-service restaurants are satisfied with their current digital experiences, indicating a gap in market performance.

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- The recent 2023 Connected Restaurant Experience Study by Incisiv, conducted in collaboration with Verizon Business and Cisco, shows that customers' rapid adoption of digital technologies is increasing the complexity of managing restaurant operations.

The COVID-19 pandemic significantly accelerated the adoption of digital ordering, and the change in customer behavior persists. Customers value the convenience and control digital ordering gives them. According to the study, 83% of customers plan to use mobile order-ahead when dining at a quick-service restaurant in 2023.

72% of restaurant operators believe it is becoming harder to meet customer expectations because of the increase in digital ordering. Only 52% of quick-service restaurants and 41% of full-service restaurants are satisfied with their restaurant’s digital experience. Brands recognize that they need to increase their technology investment to support the new normal.

Improving restaurant efficiency will be the primary driver of technology investments in 2023 and beyond. The top three areas where operators will invest are:

• Supporting the fulfillment of digital orders
• Improving kitchen operational efficiency
• Improving checkout speed

“Restaurants need to prioritize digital execution to remain competitive,” said Gaurav Pant, Chief Insights Officer of Incisiv. “Customers value the convenience and control provided by digital ordering, and the industry needs to invest in technologies to improve the end-to-end digital experience.”

The move towards efficiency will also accelerate the adoption of automation. Automation of routine tasks is also imminent in the restaurant industry as quick-service restaurants expect 51% of tasks will be automated by 2025 and full-service restaurants expect to automate 27% of tasks.

“As restaurants continue to expand their automation efforts, they need faster and more reliable connectivity, which can be achieved through the use of 5G, LTE, and fixed wireless access (FWA),” said Scott Lawrence, Senior Vice President Global Solutions, Verizon Business. “These types of networks are beneficial for restaurants as they eliminate the need for cables and manage their peak traffic more efficiently.”

About Incisiv

Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital maturity, impact and profitability. Learn more at www.incisiv.com.

About Verizon

Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $136.8 billion in 2022. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230328005290/en/

Catherine Seeds (for Incisiv)

Ketner Group

512.947.4062

catherine@ketnergroup.com

Carlos Arcila

908-202-0479

carlos.arcila@verizon.com

Source: Incisiv

FAQ

What does the 2023 Connected Restaurant Experience Study reveal about digital ordering?

The study indicates that 83% of customers plan to use mobile order-ahead services, highlighting a growing trend in the restaurant industry.

How are restaurant operators responding to the challenges of digital ordering?

72% of restaurant operators believe it is becoming harder to meet customer expectations due to complexities in digital ordering.

What areas are restaurants investing in according to the study?

Key investment areas include supporting digital order fulfillment, improving kitchen operational efficiency, and enhancing checkout speed.

What is the expected impact of automation in restaurants by 2025?

Quick-service restaurants expect to automate 51% of tasks by 2025, reflecting a significant shift towards efficiency.

What percentage of restaurant operators are satisfied with their digital offerings?

Only 52% of quick-service and 41% of full-service restaurants are satisfied with their digital experiences.