How Digital Transformation Is Changing The Restaurant Industry

How Digital Transformation Is Changing The Restaurant Industry

How Digital Transformation Is Changing The Restaurant Industry

Digital transformation has empowered every business by far, and the restaurant industry is no exception. From receiving orders online to on-time doorstep delivery, various advanced tools create space for restaurants to connect with their customers and fulfill their demands in a cost-effective approach.

The quick-service restaurant industry is witnessing tough competition; everyone strives for a significant market share. To stay ahead in the race, smart entrepreneurs update their business models by embracing innovative tech solutions.

The market size of online food delivery services globally was around 27 billion USD in 2020 and is forecasted to grow at a compound annual growth rate of 17% from 2021 to 2025. Factors like increase in smartphone users and lockdown for Covid-19 have contributed vastly to the growth.

How Modern Technology Is Disrupting Restaurant Industry

The lifestyles and preferences of consumers undergo fast changes, which are mostly driven by the impact of social media as well as widespread internet accessibility. Technology plays a big role in bringing up revolution in the food ordering and delivery industry. The credit goes to so many innovations that include the development of mobile food delivery apps, online payment, map tracing and so on.

Let’s look at a few trends associated with digital transformation that are reshaping the restaurant industry and making it better day by day.

  • Online Ordering

Today online ordering of foods is a genuine act in the restaurant industry. For better management of time, people love to order their favourite dishes rather than visiting the food centers. Taking the interests of customers into account, many restaurants offer home delivery services.

Creating a digital menu could be a great start. However, you can either opt for creating an online food ordering platform for restaurants or employ third-party app platforms like Swiggy and Zomato. This lets consumers search nearby restaurants for placing an order through an app or website, and make payment with various options given, and receive orders on their doorsteps in no time.

  • Social Media

Social media has been evolved as a potential marketing tool for restaurant businesses. It also becomes an ingrained part of our daily lives that help us be aware of the latest news and trends around. The restaurant industry takes advantage of the trend most. You can notice the activities of food delivery companies on major social media platforms such as Facebook, Instagram and Twitter.

As per a recent survey, about 36% of restaurant owners believe that their business growth is mostly propelled by social media. They engage with their potential customers via social media, and it will help them to drive both online and offline traffic to their restaurants. Sharing pics of dishes, offers and discounts enhances engagement and sales.

  • Self-ordering Kiosks

Almost all customers are comfortable in using self-ordering service. The food industry is taking advantage of this technology and providing digital solutions to improve the overall customer experience. You might have an idea on a self-ordering kiosk, a modern technology tool, that facilitates customers to place orders themselves.

With self-ordering kiosks, one can place and customize his/her orders and even can make the payment right at the place from the various options available there. The technology reduces rush during peak hours. It also offers useful insights about customer preferences, which helps restaurants to suggest menu items as per their interests.

  • Rise of Cloud Kitchens & Ghost Restaurants

Rapid changes in technology with consumer habits have brought the concept to the quick-service restaurant industry. People now prefer to have food while they are on their way to somewhere else. This is why many restaurants have implemented a new business model known as ghost kitchen, they can also be called dark kitchens and cloud kitchens. It has certain advantages over the brick-and-mortar restaurants. It too enables restaurants to thrive even during a tough phase.

Ghost kitchens usually concentrate on food quality and deliveries instead of creating a good ambiance. Such restaurants lack physical dining facilities to serve their customers but just prepare orders placed online through apps or websites. It can be anticipated that with the speed at which the restaurant industry is transforming, cloud or ghost kitchens are going to be the next big thing.

The adoption of modern technology has made the restaurant business players realize a couple of intangible advantages such as

  • Offering customers seamless food ordering experience
  • Cutting down of many forms of expenses
  • Smooth management of operations

These long list of reasons encourage more and more restaurants to leverage smart tools to improve customer service and help them achieve business goals.

Major Tech-Driven Food Delivery Services

Implementing modern technologies into their food ordering and delivery services help restaurants to augment their business significantly. Here are a few things that can boost your confidence to thrive in the food industry. Let’s take a look at the major food delivery companies with their revenue strength.

  • Just Eat Plc (Total revenue: 1.5 billion USD)
  • Doordash (Total revenue: 1.2 billion USD)
  • Deliveroo (Total revenue: 650 million USD)
  • Swiggy (Total Revenue: 350 Million USD)
  • Zomato (Total revenue: 250 million USD)
  • Glovoapp (Total revenue: 580 million USD)
  • Postmates (Total revenue: 530 million USD)
  • (Total Revenue: 510 million USD)
  • (Total revenue: 180 million USD)
  • Mr. D Food (Total revenue: 6 million USD)

*All the revenue amounts are the approximate/rounded values, not the exact. As these data are collected from various sources from the web available, we’re not responsible for any mismatch.


The modern generation expects digital channels to provide them with easy ordering and payment solutions. At this juncture, the restaurant industry is fast embracing the advanced technology to tap the tech-savvy millennials. The food delivery businesses are not leaving any stone unturned in order to offer quality products and services with greater customer experience.

Don’t you think the whole restaurant industry will be tech-driven soon? Yes, it will be. This sounds more like a warning bell for many who are still a mile away from blending technology into their food businesses. Not now means never.

Are you serious about food ordering and delivery solutions for your restaurant? No worries. We’re just a click away.

Share this post

Comment (1)

  • Code Herb Reply

    Without conversations!

    October 24, 2022 at 4:47 am

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.