How digitisation across the restaurant sector is set to evolve in 2024

As we reflect on the last year, it’s fair to say that the restaurant industry has continued to go through unprecedented digital transformation, as innovation in the sector accelerates. While these changes have presented disruptions and challenges, they have also provided restaurants with the opportunity to get creative and find new, exciting ways to grow. As we continue to witness rapid advancements in technology and as consumer needs continue to evolve as a result, what does 2024 look like for the restaurant industry against this backdrop? And more importantly, how can restaurants ensure they’re staying ahead of the curve to achieve sustainable growth? How did we get here? Before we look ahead, it’s first important to briefly reflect on how the industry evolved over recent years as it relates to digitisation. It’s undeniable that the Covid-19 pandemic significantly fast-tracked the digital transformation of the food industry. Undoubtedly consumer habits and expectations were impacted and restaurants were forced to adjust and adapt to keep pace and compete. In the years that have followed, the industry responded to the wider repercussions of the pandemic, including high-inflation and labour turnover. Digital measures enabled restaurants to not only meet these challenges head-on, but to grow and thrive. For instance, last year a global consumer survey indicated that people were ordering three takeaways per week, in place of restaurant in-dining, as inflation soared. This habit formed through the pandemic and it stuck. People continued to crave small ways to treat themselves, even as they watched their wallets. But alongside this, the results emphasised the importance consumers place on convenience, ease and menu variety. Technology enabled and continues to enable restaurants to meet these demands in a cost-effective manner, reducing errors and improving efficiency. Technology trends for 2024 With this in mind, we can explore what restaurants should consider as it relates to digitisation as it responds to future external changes and developments through 2024 and beyond. Data, data, data With slow economic growth predicted into the new year, leveraging data-driven insights will be more important than ever. Data is undoubtedly one of the most important tools a restaurant has in their arsenal. From helping you reflect on sales patterns, peak dining times, and footfall to preparing adequately, from staff scheduling to stock management and creating visual reports on sales performance, data allows you to plan, shift priorities, make the right changes on the fly and personalise experiences. With the right data, success doesn’t need to be left to chance, and this will be even more imperative as we head into 2024, with consumers expecting more than ever. Robotics in the restaurant Industry The hospitality robots market is estimated to reach $3bn (£2.3bn) by 2030, so it’s expected to continue to have robotics play a part in the restaurant and delivery space, with many companies making strides here across 2023, from Co-Op to Amazon. Interestingly, a recently conducted consumer survey found that UK consumers remain somewhat hesitant on the role robotics will play in restaurants, with less than half of people (34%) feeling comfortable with delivery drones and robots carrying out food preparation (35%) or customer service (38%). However, as we’ve seen this year with the incredible rise of Generative AI and ChatGPT across society, consumers can often come round to new technologies once they see the positive impact they can have on their overall experience, which was also seen with a lot of technology introduced as a result of the pandemic. Based on initial responses to emerging technology over the years, it’s possible - and probable - that this feeling of unease could begin to fade as such offerings become more commonplace and we see them in our everyday worlds, particularly for younger generations. Ongoing growth of food delivery, powered by digitisation On-demand delivery is no longer an option but a lifestyle for many, and implementing and strengthening such delivery services is set to become even more of a non-negotiable as we head into the new year. When used alongside real-time delivery tracking, both elements are a deciding factor in purchase consideration and an important way for brands to meet consumer expectations. There are no signs of this trend waning in 2024 as customers get increasingly accustomed to ordering food online and having it delivered right where they are. In fact, according to Statista, the global online food delivery market is estimated to be $130.2bn (£103bn) and is expected to grow to $223.7bn (£178bn) by 2027. Uber Direct recently found that 94% of consumers feel that a positive delivery experience makes them more likely to order from the retailer again and 92% agree it makes them more likely to recommend the retailer to others, supporting the fact this is an absolute must for brands to prioritise. Strengthening your digital brand With The Food Institute predicting that 2024 will be the year of innovation, it’s important to partner with the right tech company, who can help streamline every touchpoint your consumers have, while making everything feel like it’s part of the same ecosystem. Recent research supports the fact that digitisation is imperative in driving consumer loyalty, with ease of use and access to reviews and ratings scoring 56% and 35% respectively, when it comes to ordering through a delivery app. Menu details (47%) and easy to use navigation (36%) were also key features that are best valued in a restaurant’s app or website, further proving just how valuable digital elements are from initial discovery to repeat purchases. From boosting your restaurant's presence and visibility on delivery apps with Marketplace Optimisation (MPO) and optimising menus and websites to maximise engagement and orders, restaurants will rank higher and ultimately attract more customers. In light of ongoing economic challenges, the importance of restaurant brands maintaining consistency, and offering compelling experiences to stand out in a competitive market is more important than ever, and will continue to ring true next year and beyond. Ultimately, creating a strong digital presence is reflective of the overall brand offering, and cannot be underestimated when it comes to sustaining growth, building loyalty and staying ahead of the competition.