It’s safe to say that hospitality tech is a 🔥 hot topic 🔥 right now:
- Advancements are regularly hitting the scene, with AI and automation leading the fray.
- Existing restaurant tech is getting funding to develop these features even further.
- The food tech market is expected to exceed $360 billion dollars by 2028.
All of this tells us one thing:
That integrating restaurant tech is no longer an option — it’s essential for success.
Restaurant owners are seeing the value of technology, and there’s no going back.
But how exactly can you integrate technology into your current restaurant operation? And what’s the best way to go about it?
We’re answering these questions (and a few others) in this article. Keep reading to find out what’s happening with restaurant tech, why you need it in your business, and how to integrate it successfully.
The current state of hospitality technology
Hospitality technology is on the rise. More and more restaurant operators are using technology to increase efficiency, boost productivity, enhance the customer experience, and strengthen cyber security.
Look at how investments in these technologies have grown from 2023 to 2024:
The interest in restaurant tech doesn’t stop there:
- 52% of restaurant operators plan to use back-office technology (such as payroll, finance, and tax and food safety compliance) in 2024.
- 52% also plan to invest in inventory management systems.
- 47% say that using technology and automation to help with the current labour shortage will become more common.
The result of using all this technology? 73% of operators say that their restaurant is more efficient and productive than it was before the pandemic.
In fact, the pandemic likely fueled a lot of this technology adoption. When restaurants were forced to switch up their operations and provide food to go, many had to use technology to keep their business afloat.
But the hospitality industry hasn’t always welcomed technology, especially artificial intelligence (AI). Conor Sheridan, the founder of Nory, talks about this in an interview with The Currency:
“When we went out to market first and said we had an AI operating system, everybody nearly jumped away from us and said, I don’t want AI in my business. It is going to take jobs and business. We’re now seeing a complete 180 on that.”
Conor Sheridan, CEO at Nory
Since then, the adoption of technology has evolved. It serves restaurants of all shapes and sizes and for different functions. Reservation systems, digital ordering platforms, and point-of-sale (POS) technology are a few of the common examples.
3 common barriers to tech integration in hospitality
Here are some of the hurdles restaurants can face when implementing new tech — and how they might not be as challenging as you think.
Cost
For a lot of hospitality businesses, the thought of spending more money on technology is not appealing. Especially given the struggle that many businesses are facing in the current climate.
But what if you think about it like this:
The money you invest in the right technology can improve your business.
With the right software, you can identify ways to cut costs, increase profit margins, and improve your bottom line. So yes, you will have to pay a fee to use the system — but isn’t it worth it if it improves your financial performance in the long run?
Complexity
Wrapping your head around new technology isn’t always easy, especially if you have an entire team of restaurant staff that also needs to use it.
But integrating technology doesn’t have to be difficult. Choose a platform that works for you and your business, opting for something with a simple interface.
Take a look at Nory as an example. Our system is intuitive, user-friendly, and easy to use, so it won’t take long to figure out how to navigate it. We also pull key data and insights into dashboards and charts, making it easy for you to visualise the most important information in a single glance.
Resistance to change
Implementing new restaurant tech can be challenging. It can impact your daily operation, cause friction with your processes, and prevent you from delivering a seamless customer experience.
Or does it?
In all honesty, it depends on the software you’re implementing and your existing tech stack. You need technology that speaks to each other, or it’ll be tricky to integrate it successfully. Find out more about creating a seamless restaurant tech stack here.
The support you get from the tech provider can also help you overcome resistance to change.
At Nory, for example, we prioritise customer support. Our experts take the time to walk you and your team through every step of the onboarding process, ensuring you know exactly how to use Nory to its full potential.
“The level of service we’ve received from Nory has made implementing the system so much easier. Whenever we have questions, we get quick and helpful responses from the team.”
Kallie Kocourek, Vice President of the UK Market at Roasting Plant Coffee.
What are the core benefits of tech integration for hospitality businesses?
Now that we’ve outlined some of the challenges, let’s take a look at some of the reasons hospitality businesses are thriving with technology.
Streamline operations
With the right technology, you can streamline your entire restaurant operation.
From handling customer orders to scheduling shifts, technology (like Nory) can automate key processes to speed up your operations.
Nory can also handle workforce and HR management, taking another weight off your shoulders. You can manage payroll, create demand-based schedules, and automate tip management so your hard-working team gets the tips they’re owed.
Make data-driven decisions
Restaurant tech provides valuable insights about your performance. Nory, for example, tracks the following information:
- Real-time business intelligence, like sales and performance data
- Labour productivity
- Customer demand, preferences, and other behaviours
- Menu profitability
- Inventory usage and food waste
With all these insights, you can make informed and data-backed decisions about how to increase revenue and boost profit margins. For example, you can figure out how to optimise your menus, update your pricing strategies, and personalise the customer experience for the best results.
Nory success story 🥳 Find out how Roasting Plant Coffee reduced labour costs by 18% with Nory! Using real-time sales and performance insights, the cafe chain was able to predict demand and optimise staff schedules accordingly.
“Our general managers love Nory for the ordering, the forecasting, and the workforce planning. They all have only good things to say.”
Kallie Kocourek, Vice President of the UK Market at Roasting Plant
Enhance the customer experience
When you have access to data about customer behaviour and preferences, you can improve the entire dining experience.
Think about it — if you know what your customers enjoy eating the most, you can create a menu tailored to their preferences. Or, you can offer personalised discounts that appeal to their desires.
Plus, technology improves order accuracy and streamline the ordering process, ensuring diners get the food they order sooner rather than later.
Increase profit margins
Hospitality tech gives you deeper insight into your costs, budgets, and profit margins. As a result, you can identify ways to reduce restaurant costs and improve margins across the business.
Take a look at Clean Kitchen as an example.
Using Nory’s real-time sales and performance insights and POS integration, the plant-based restaurant chain increased its gross profits by 4%. How? By tracking daily performance, even breaking it down hour-by-hour, to make quick and informed decisions
“Having that visibility and insight and being able to instantly adapt to what’s happening within the business is massive. We can make quick decisions to control our costs and ensure we’re delivering consistently good-quality food to our customers.”
Adam Jefferies, Head of Operations at Clean Kitchen.
5 simple steps to begin your tech integration journey
Wondering how to get the ball rolling and integrate new technology into your restaurant operation?
Here are five simple steps:
- Review your current tech stack. Start by reviewing the current tech you have in place. This will help you identify what needs improvement and where new technology can fill the gaps.
- Identify the tech you need. Figure out what technology you need, as well as the features that tech must have. Are you looking for an operating system that can automate payroll? A POS platform that tracks customer preferences? Digital ordering software that will be clear about exactly what you need. This will make it easier to find software that fits the bill.
- Trial some options. Try a few different options to help you find a platform with the features you need (and with an interface that’s easy to navigate). Most will offer a free trial or demo so you can see how the system operates before committing and spending any money.
- Ensure new tech integrates with your current tech stack. When you’ve chosen a platform that suits your needs and budget, make sure it integrates with any current tech that you have in place.
- Train your staff. Make sure your staff are happy using the new technology by training them effectively. Depending on the tech you use, the provider may offer this training for you. That’s what we do at Nory! We won’t leave you in the lurch trying to figure things out for yourself. We spend the time training and onboarding your entire team so everyone’s confident using the tech.
“There was a real feeling that the Nory team wanted to get us up and running quickly. Not so that they completed their job, but so that we could start seeing the benefits. They didn’t just give us a tool, they provided us with the training to leverage it properly and run a more efficient business.”
George Hartshorn, Food & Beverage Director at Hartshorn-Hook.
Ready to take the step into tech? Add Nory to the top of your list
Integrating technology is vital for restaurant success —there’s no way around it. Fail to keep up, and you risk falling behind the competition and missing out on key growth opportunities.
But the good news is that a lot of the myths surrounding implementing new tech aren’t totally true. With the right system, you can easily integrate new technology into your operations and start seeing the benefits ASAP.
If you’re thinking about integrating new restaurant tech, take a look at Nory. Our software is tailored for hospitality businesses, helping you track valuable data to improve your operations and increase your bottom line.
Plus, we have a wide range of specific features that support tech integration, such as real-time analytics and workforce management functionalities. And we already integrate with some of the industry-leading POS systems, like Toast or Vita Mojo.
If you want to find out more, book a call with the team. We’ll find out more about your business and give you a free demo of the software! 👋
Or, head to our product features to uncover more about our solutions and how we help restaurants enhance their operations capabilities.
FAQs about restaurant tech
What is restaurant tech?
Restaurant tech covers any digital tools that support restaurant operations. This includes POS systems, online ordering platforms, reservation management software, kitchen display systems, and customer relationship management tools.
What is restaurant management technology?
Restaurant management technology streamlines operations and improves efficiency for hospitality businesses. Inventory management, staff scheduling, table reservations, menu engineering, and sales reporting are a few examples.
Take a look at Nory to find out more about how restaurant management software works!
What new technology is emerging in hospitality?
One of the biggest trends in the industry right now is AI. With AI-powered platforms like Nory leading the way, restaurants are seeing what’s possible when they use AI to improve their operations and inform their decisions.
The demand for personalised experiences is also influencing the influx of AI. Why? Because it’s helping restaurants better understand what their customers want and how to improve the dining experience.
