If you are a food business owner, knowing current trends in the restaurant industry is vital to understanding the general consumer and ensuring future success. Restaurant trends in 2024 are diverse but follow common themes, such as integration, efficiency, and variety in menu offerings.
The following restaurant industry trends showcase both consumer demand and operators’ efforts to streamline work efficiencies. See the top trends in the restaurant industry below and use them to guide your business decisions in the coming year.
Key Takeaways:
- Consumers still want to go out to eat, but deals and savings go a long way in where they decide to spend their money.
- Technology continues to be at the forefront of what restaurant operators invest in, but they look more into additive technology rather than automation.
- The labor market for full-service restaurants is struggling, but employee retention across the industry has improved.
Restaurant Technology Trends
In 2024, consumers are looking for efficiency and maximized value with their restaurant choices. On the operator side, focusing on low-cost technology that helps reduce costs and enhance guest experience seems to be the goal for 2024.
1. Electronic registers are out; tableside POS is in
The demand for paying tableside is twofold. Entering 2023, 52% of restaurants planned to offer tableside payments, with 23% of consumers reporting they prefer to pay tableside. These figures are expected to grow as restaurants seek to maximize labor in a tight market and offer a more efficient dining experience. At the same time, consumers get the benefits of speedy service and more transparency when paying their final bill.
2. Smartphone ordering is nearly the norm for delivery customers
Thanks to the likes of Uber Eats and DoorDash, customer adoption of ordering and paying through a smartphone app is now almost entirely the norm. Eight out of 10 delivery customers say they would place their order through a smartphone app now, making this piece of technology crucial for restaurants trying to capture delivery-based sales for their business. For restaurant owners, offering modern and efficient customer ordering apps is integral for better usability and overall ease of ordering.
3. Personalized recommendations are key in digital ordering
Over 80% of diners surveyed under the age of 40 noted that personalized recommendations are a key part of their digital ordering experience. Ensuring your app and digital ordering platform can recommend past orders or items a consumer may like will give you a step up on competitors with similar applications.
4. VR training of staff on the horizon
At the end of 2023 and the beginning of 2024, virtual reality (VR) training started to pop up on the radar of many foodservice professionals. VR training uses super-efficient training modules while also not pulling key labor from the business. As of this year, KFC started training its employees with VR technology, citing a controlled space and more engaging training modules. While it is more common among larger brands, VR training could be on the horizon for all types of restaurants.
5. Automated food delivery is more prominent
In 2023, Uber aimed to deploy around 2,000 sidewalk delivery bots on Uber Eats. In 2024, it launched its automated food delivery robots in Japan, citing success in the market and a plan to expand to other countries in the coming years. As automation takes hold of the food industry, expect trends such as automated delivery robots to start gaining traction in the latter half of this decade. The impact of this technology is starting now, and being an early adopter could help grow business, particularly in dense urban areas.
6. AI investment is coming
According to a recent survey, 41% of restaurants plan on investing in artificial intelligence (AI) technology in the next year to help with business forecasting and other managerial tools. From AI chatbots helping customers reserve tables to AI-driven systems reducing food waste, AI is being used to drive efficiencies in both the front and back of the house. With investment being planned from both independent and chain restaurants, being aware of how AI could your business is a must in 2024.
7. Order and pay technology helps increase customer spend
McDonald’s and other brands have introduced self-service kiosks and smartphone app ordering, allowing customers to pay on their own. Similar to delivery, customers are also finding success with this type of payment technology for in-person dining. A recent study shared that 61 percent of customers who order through kiosks specifically spend more money on their orders. Along with time and labor savings, revenue increase is a benefit for restaurants adopting self-service ordering and payment methods.
8. Restaurants look to technology to enhance customer experience
Business owners are looking to adopt technology that will improve their guests’ overall experience. Approximately 60% of restaurant owners are looking to implement technology to help improve customer experiences at their businesses. While the sentiment of automation is low for operators, other facets, such as AI recommendations and helping customers find better options, can be great investments that deliver a competitive edge in an extremely busy business sector.
9. Advanced cloud-based POS systems are the norm
Around 76% of point-of-sale (POS) systems used in restaurants will be cloud-based in 2024. These systems offer greater flexibility, especially across a variety of locations. They also require lower upfront costs and offer easier access to updates and data backups. It is the adoption of cloud-based POS systems with new, cutting-edge features that allow restaurant owners to manage the ever-growing demands of a tech-savvy customer base in 2024.
See more tech-focused trends and opportunities in our guide to restaurant technology.
Restaurant Consumer Trends
Because of tighter economic conditions—actual or perceived—diners are more conscious of where they spend their dollar. The key to attracting diners is offering value, even if it comes in the form of different revenue channels or off-peak business hours. The good news is that eating out, especially as a form of entertainment, is very popular in 2024.
10. Brand partnerships thrive with consumers
With a recent poll sharing that 71% of consumers enjoy co-branding partnerships, we believe this can be a major unlock for restaurants this year. Many operators think brand partnerships can only be done on a larger scale, but collaborating with popular businesses, such as a well-known bakery for bread or a distillery for exclusive cocktails, can be pivotal for boosting sales.
11. Consumers rely on loyalty programs to cut costs
Consumers find value in loyalty programs, especially those that help ease tight economic conditions. Power loyalty members, or members of restaurant loyalty programs that use these programs often, spend 33% more per visit at restaurants than other loyalty members. Finding your super fans and rewarding them with perks for dining at your business can pay you back as well, so be sure to account for the value you can add to consumers who are very financially conscious.
12. Savings rates are dipping for consumers
As of August 2024, consumer savings have decreased to points lower than before the pandemic. When customers choose your restaurant, they are doing so in a calculated and fiscally reasonable manner. Understanding this and respecting customer dollar capture is key to getting your customer base to return to your establishment.
13. Eatertainment is massively popular with diners
Post-pandemic diners are looking to bundle experiences in the entertainment and dining choices they make. Specifically, millennials are looking for these experiences, with 78% of these consumers expressing a preference for eatertainment, such as arcade rooms with dinner options, over casual dining and other dining options. If your restaurant offers a unique entertainment experience, then leaning into this will be advantageous.
14. Alcoholic beverage availability is still important
Although nonalcoholic beverages have gained massive popularity across the food industry, seven out of 10 consumers say the availability of alcoholic beverage options makes them more likely to choose one restaurant over the other. While it is trendy to ensure nonalcoholic options are available, many diners still look for alcohol with their meal, so ensuring your alc offerings are enticing can be the difference between a diner choosing your restaurant over another in 2024.
15. Dining out is back in demand
Although consumer wallets are tight, they still very much have the urge to dine out in restaurants. Food away from home spending constituted 56% of overall spending on food in 2022, and this number is expected to rise in 2024. With the demand for dining out still there for consumers, it is important to make every visit to your business count, as a more restricted consumer base still longs for quality restaurant experiences.
16. Value meals increase consumer satisfaction
Because of harsher economic outlooks for consumers, the addition of value meals or menu options has a positive outcome when restaurants implement them. For example, Olive Garden and Chili’s offered value propositions on their menus this year and saw a 4% rise in customer satisfaction. These small gains in restaurant satisfaction can capture more diners, so trying to add value when possible is important for consumer sentiment.
17. Demand for growth is driving restaurant expansion
Approximately 57% of restaurant owners surveyed in a recent study said that they planned on growing their brick-and-mortar location in 2024. If you are wary of growth during this time, consumer trends show that there is still enough restaurant demand to warrant expansion in many areas throughout the country. If you feel that it is time to expand your brand’s location offerings, then 2024 may be a great year to commit to this.
18. Across America, eating earlier is becoming the norm
Diners are increasingly eating earlier throughout the country. Yelp recently shared that 6 p.m. is now the most popular reservation time, and reservations at 4 p.m. have doubled year over year. This trend of earlier eating is due to earlier work-from-home schedules and a general need for more flexibility in dining times and scheduled eating.
19. Deals at off-peak times are valuable to diners
84% of adults say that they would use discounts offered at off-peak times of the day. This is interesting, as paired with earlier dining times, diners are more willing to eat at different hours of the day to save money. Offering deals at these times can drive sales for restaurants looking to fill their dining rooms or ordering queues during slower business periods throughout the day.
20. Diners are open to different restaurant sales channels
Another interesting data point amongst consumers is their willingness to spend money on different revenue channels offered by restaurants. For example, 75% of Gen Z adults shared that they’d buy fresh, uncooked menu items from their local restaurant that they would then prepare at home. Furthering this sentiment, 81% of millennials said that they would buy packaged home prep food items from their favorite restaurant if offered. Experimenting with different revenue channels could be lucrative for restaurants in 2024.
Restaurant Labor Trends
The restaurant workforce continues to be a mix of experienced and brand-new workers. Retaining talent and combating higher labor costs are super important to maintaining staffing levels that ensure your business can run smoothly. The full-service sector is still struggling to reach the staffing levels it had before the pandemic.
21. Restaurants continue to be key entry jobs into the workforce
Nearly 20% of jobs in restaurants were filled by employees for whom the restaurant job was the first job they have ever held. Knowing that restaurants attract first-time workers, owners can ensure that robust training and continued room for growth are available to retain this section of the labor market.
22. Employee retention focus has paid off
One of the most expensive factors regarding restaurant labor is turnover. Data from the early parts of 2024 suggest that employers have had success in reducing turnover in their teams. Only 3.8% of employees in restaurants and accommodation industries quit their jobs in June. This is the lowest monthly quit rate since May 2015, showcasing some of the best employee retention numbers in the last decade.
23. Higher state minimum wage can lead operators to automation
The minimum wage for the food industry and other business sectors rose by 25% in California, a sharp increase for restaurant operators. In states facing the same trend, restaurant operators must manage pricing and cut costs—presenting opportunities for automation. Many key agencies that work with food industry professionals believe automation can help alleviate the rising cost of labor in the food industry.
24. Recruiting and retaining talent is a top priority
Even though the quit rate is lower than ever, the rise in consumer demand for restaurants has led to a continued focus on talent retention. An astonishing nine out of 10 operators still see recruiting and retaining talent as a top priority for their business in 2024. With plenty of job openings still active in the food industry, attracting talent is more important now than ever before.
25. Full-service restaurants are still poorly staffed
With the pandemic ending, there was an increased need for filling jobs across the food industry. The one segment of the food industry that has struggled to gain employees back from prepandemic-level staffing is full-service restaurants.
This sector was down approximately 236,000 jobs by mid-2024 when compared with prepandemic levels. Because of the intensity of these jobs, the longer hours, and the nature of the work, full-service jobs are less appealing to many workers in the food industry. If you are a full-service restaurant, making your jobs as attractive to talent as possible is key for staffing your business.
Learn more in our guide to hiring restaurant staff and creating a positive culture.
Frequently Asked Questions (FAQs)
These are some of the most common questions I have heard about restaurant trends in 2024.
Last Bite
Between the prospect of expansion and sustained consumer interest in restaurant experiences, there is room for growth in the restaurant industry. This, paired with enhanced technology for operators, creates an opportunity for operators to attract customers with great dining experiences. Focusing on creating a great core team and an irresistible product is how restaurant operators will be successful in 2024 and the coming years.
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