Restaurant Management Software Market Size (2024 – 2030)

The Global Restaurant Management Software Market was valued at USD 4.64 billion and is projected to reach a market size of USD 13.11 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 16%.

A special kind of point-of-sale (POS) software created for restaurants, bars, food trucks, and other businesses in the food service sector is known as a restaurant management system. In the past, the usage of this software was limited. It was mainly used for tracking orders, inventory and other basic service. However, with technological advancements and comprehensive solutions, this market is seeing an upsurge. Shortly with a focus on artificial intelligence, sustainable practices, growing populations, and global expansion, this market is set to see significant growth. During the forecast period, this market will see considerable development.

Key Market Insights:

Using dedicated restaurant inventory management software can help reduce inventory mistakes and overstocking by 17%.

71% of food businesses believe that digital transformation is a crucial factor for business agility, higher than the share of rapid decision and learning cycles (50%), empowered teams (27%), and entrepreneurial culture.

After POS technology and payment processing, the most popular back-office technologies were accounting software (52%, up from 31% in 2018) and payroll software (50%, up from 28% in 2018).

Restaurant Management Software Market Drivers:

Rising adoption of the software is paving the way for the market to grow.

Restaurant management software is known to improve operational efficiency and help with tasks like sales tracking, ordering, payment processing, table management, inventory, accounting tasks, etc. They help in maximizing productivity and reducing errors, and costs. Additionally, enhanced security is offered. These advantages help in improving customer experience and improve reporting. To support these advantages, restaurants have started to implement this software. Few surveys have shown that more than 85% of restaurants will implement this technology by 2023. Companies are tailoring specific solutions along with investing in the dineries to help in the generation of revenue thereby aiding the market to develop.

An increase in online ordering is boosting the market.

Over the past decade, there have been significant changes in lifestyle and consumer preferences. Urbanization and the rising middle class have contributed to the change as well. After the pandemic, digitalization was observed. There has been an increase in online food ordering helping the sales. People prefer to order food from the comfort of their houses. Online ordering is associated with benefits like discounts, memberships, subscription boxes, a wider range of options, and local and international food. Additionally, customer satisfaction is prioritized. Moreover, there is an upsurge in the number of restaurants, fast food chains, hotels, etc. Some of these offer customized menus. Others offer delicacies from different regions. The younger generation is keen on exploring and experimenting with their food. This piqued curiosity calls for the need for software for efficient management.  These software are extremely important for ensuring a smooth process that is coupled with accuracy.

Restaurant Management Software Market Restraints and Challenges:

Cost, integration difficulty, cybersecurity, and internet connection are the main restraints that the market is experiencing.

One of the biggest barriers in the market is the price associated with the software. Installation, maintenance, and training can cause a financial drain. Smaller restaurants, cafes, and other eating places can face challenges in this aspect. Secondly, complexity can be faced with data transfer, compatibility, and upgrading of older systems. Thirdly, data breaches and security can be hacked. This can cause huge losses to the company and weaken the economy of the nation. Furthermore, these software rely on internet connectivity. This becomes a hindrance in remote areas and villages leading to malfunctioning.

Restaurant Management Software Market Opportunities:

Online ordering and delivery services have been providing the market with an ample number of opportunities. Logistics and user-friendly features are being looked upon to ensure customer contentment. Advancements in technologies like data analytics, artificial intelligence, machine learning, blockchain, and cloud-based solutions will help in market enlargement. R&D activities are being carried out in these fields to further broaden human understanding. Data privacy and security are being given importance to avoid damage. Furthermore, sustainability is being prioritized. Studies are being carried out to reduce the carbon footprint and develop alternative eco-friendly choices.

RESTAURANT MANAGEMENT SOFTWARE MARKET REPORT COVERAGE:

Restaurant Management Software Market Segmentation: By Software

• Front End

• Accounting & Cash Flow

• Table & Delivery Management

• Purchasing & Inventory Management

• Employee Payroll and Scheduling

• Backstage Management

• Forestage Management

• Others

Based on software, front front-end segment is the largest in the market holding a share of around 35%. This is owing to enhancing customer management, sales, recipe management, assisting and answering queries, taking orders, and processing payments. They are cost-effective, flexible, and have user-friendly features. Purchasing and Inventory Management is one of the fastest-growing categories. This helps to minimize food loss, aids vendor management, and tracking of raw materials, increases profits, optimizes ordering, and ensures customer satisfaction.

Restaurant Management Software Market Segmentation: By Deployment Mode

• Cloud-based

• On-premise

Based on deployment mode, the cloud-based segment is the largest and fastest growing in the market. It holds a share exceeding 70%. This is due to cost-effectiveness, scalability, flexibility, easy maintenance, automatic updates, and a hassle-free process. Moreover, many major companies provide cloud-based solutions helping the segment to enlarge.

Restaurant Management Software Market Segmentation: By End User

• Full-service Restaurant (FSR)

  • Fine Dine

  • Casual Dine

• Quick Service Restaurant (QSR)

• Institutional

• Others

Based on end users, Full-service Restaurant (FSR) is the largest segment in the market with a share of around 54%. Full-service Restaurant (FSR) provides a table service experience. They provide an ambiance ranging from casual to luxury. This means these restaurants take care of customer needs, food options, a serving of beverages and food orders, and other related services. With economic developments, there has been an increase in the number of Full-service Restaurants. They are a major source of income for the hospitality sector owing to top-class customer satisfaction. Furthermore, they are known for their technological advancements and expertise. Quick Service Restaurant (QSR) is the fastest-growing segment. Reasons like easier takeout options, customer experience, affordability, customized menus, online payments, and vibe are contributing to the market's success.

Restaurant Management Software Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Based on region, North America is the largest growing in the market. This is because of technological advancements, software availability, the presence of key companies, economic strength, the greater number of restaurants, and global operations. Countries like the United States and Canada are among the leading. North America is estimated to hold a total share of around 34%. Europe is also showing a tremendous growth rate with countries like Germany, the Netherlands, and the United Kingdom at the forefront. However, Asia Pacific is considered to be the fastest growing owing to growing population, urbanization, rising incomes, emerging players, innovative startups, economic stability, technological expertise, investments, and an upsurge in the number of eateries. Countries like India, China, Australia, and Japan are emerging rapidly in this market. Asia Pacific holds an approximate share of 24%.

COVID-19 Impact Analysis on the Global Restaurant Management Software Market:

COVID-19 led to the shutting down of restaurants, hotels, food chains, and other eateries. Additionally, since there was a lack of labor, a greater number of diners started adopting these software solutions. A shift towards online retail was observed. POS systems were used to gain insights into customer preferences and sales patterns. Online ordering and payment helped the dineries to generate revenue. As per Statista, in 2021, the highest revenues of online food delivery in 2022 was in China with an estimated $181.776 billion, followed by the US ($34.256 billion), India ($14.408 billion), the United Kingdom ($13.489 billion), and South Korea ($7.799 billion).

Latest Trends/ Developments:

Companies in this industry are driven to increase their market share using a variety of tactics, including alliances, investments, and acquisitions. Along with maintaining competitive pricing, businesses are paying much to advance existing technologies and find new ones. This has also led to greater enlargement.

A recent trend in this market includes the adoption of contactless payment. This gained prominence after the COVID-19 pandemic. The main reason for the demand for seamless transactions and easy ordering. As per a Datassential report in 2020, 81% of customers feel safer with it and 82% feel the same about contactless payments.

Key Players:

1. Toast

2. Square

3. OpenTable

4. Lightspeed Restaurant

5. TouchBistro

6. Revel Systems

7. ShopKeep

8. Squirrel Systems

9. Fourth Enterprises LLC.

10. Revel Systems

In January 2023, Deliverect, a global scale-up that simplifies digital orders for restaurants, announced that it has joined the Toast Partner Ecosystem so restaurants can manage online orders from their Toast point of sale (POS) with ease.

In November 2021, Toast, the all-in-one platform built for restaurants, announced several new products at Spark, its restaurant innovation event. Designed to help restaurants succeed as the industry undergoes a rapid digital transformation, additions to the Toast platform addressed increasing challenges of accessing sales faster, profitably managing takeout and delivery with third parties, and retaining employees.

In December 2020, Lightspeed, a leading provider of cloud-based, omnichannel commerce platforms, announced that it had acquired Upserve Inc., a leading restaurant management cloud software company based in Rhode Island and a Vista Equity Partners portfolio company. The acquisition strengthened Lightspeed's position as an industry leader with high-performing restaurateurs across the United States as those restaurants refined the digital dining experience.