Restaurant Management Software Market Size, Share & Trends Analysis Report By Software Type (Front End, Table & Delivery Management, Purchasing & Inventory), By Deployment, By End User, And Segment Forecasts, 2018 - 2025

Report Overview

The global restaurant management software market size was estimated at USD 2.0 billion in 2016. The market is anticipated to witness considerable growth in the coming years. restaurateurs nowadays are heavily relying on POS software for tracking sales, payment processing, and inventory management.

They are deploying customer interacting software that allows guests to order and pay at the table and data analytics solutions to facilitate business decisions. Growing transformation in restaurant technology is expected to be one of the key trends in escalating market growth.

Over the past few years, the market has witnessed several technological advancements. The latest innovations in order processing technique have helped restaurateurs to simplify their order managing and payment processing operation.

Moreover, the industry has also experienced the evolution of other software, which will facilitate restaurants to shift their streamline order processing to automating dining experience. To carry out back-end operations efficiently, vendors are coming out with innovative software solutions such as inventory management tools, staff scheduling, payroll, and others.

However, the unavailability of single seamless integrated software is one of the primary factors limiting the market from realizing its utmost potential. Currently, there is a wide number of fragmented solutions offered by different vendors intended to streamline restaurant operations. However, these solutions lack the ability of unified interactions with other systems deployed at the restaurant. As a result, restaurateurs are left with numerous systems that have limited connectivity with each other, which restricts information sharing between them.

Software Type Insights

The front end software segment accounted for the leading revenue segment in 2016. It is projected to dominate the market throughout the forecast period. Front end software solutions such as POS is a core restaurant tool, which allows them to easily manage ordering and payment processing. Surging demand for software solutions such as inventory management, customer management, recipe management, kitchen order taking, free accounting, along with POS solutions, is contributing to the growth of the market.

The table & delivery management segment is poised to register the highest CAGR of 16.0% over the forecast period. This type of software help in reducing waiting time, improving table turn over time, and automating the setup of the food delivery chain in order to improve customer satisfaction. These benefits are supplementing the growth of the segment.

Deployment Insights

The on-premise segment dominated the restaurant management software market in 2016. The trend is likely to continue over the forecast period owing to rising security concerns and the ability to control ownership of data. The cloud segment is estimated to rise at the highest CAGR over the forecast period. The ability of cloud-based systems to directly centralize information makes it feasible for the restaurant owners to access data virtually from any place.

End-User Insights

The full-service restaurants (FSR) segment was at the forefront of the growth of the market in 2016. FSRs are early adopters of any advanced technology catering to maintain their competitive advantage over other restaurants and to meet their changing customer needs. Restaurant management software allows FSR owners to automate their operations, such as table order and kitchen management, which improve accuracy and ensures fast ordering and checkout processes.

The quick-service restaurant (QSR) segment is anticipated to gain traction over the forecast period. QSR customers are increasingly demanding for omnichannel experiences, so these restaurants are heavily investing in advanced technologies to remain ahead in the competition. Benefits offered by restaurant management software to QSR operators help them automate their business operations. This, in turn, helps in meeting changing demands and remain ahead in the competition by providing speedy customer service and reducing the table turnaround time. Hence, QSRs are expected to remain one of the key end users of the software.

Regional Insights

The North America market was valued at USD 628.5 million in 2016. The North America region held the largest share in the overall market. Foodservice providers in the region are early adopters of restaurant management software solutions such as table management, menu management, kitchen management, employee scheduling, recipe management, and others.

However, Asia Pacific is poised to post the highest CAGR over the forecast period. The immense growth in the foodservice sector in countries such as China and India owing to favorable demographic conditions and increasing disposable income. Restaurants in these countries are adopting software technology that allows customers to order and pay at the table using their own smartphones and other devices. Burgeoning adoption of restaurant management software is likely to stimulate the growth of the regional market.

Key Companies & Market Share Insights 

The global arena has intense competition owing to the presence of a large number of market players. Some of the key players in the market are NCR Corporation; HotSchedules; Revel Systems Inc.; Touch Bistro; and ShopKeep. The current market is dominated by companies, which offer the POS landscape. However, new entrants with innovative solutions are challenging the position of these companies.

Vendors are coming out with innovative solutions such as inventory management tools, staff scheduling, and payroll. Apart from software required to carry out in-house operations smoothly, there is an emergence of new software or applications in the restaurant ecosystem such as Open Table, which allow diners to remotely book or reserve their seats in their favorite restaurants; hence, reducing in-store waiting time during peak hours.

Restaurant Management Software Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global restaurant management software market report on the basis of software, deployment, end user, and region:

• Software Outlook (Revenue, USD Million, 2014 - 2025)

  • Front End Software

  • Accounting & Cash Flow

  • Purchasing & Inventory Management

  • Table & Delivery management

  • Employee Payroll & Scheduling

  • Others

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)

  • Cloud

  • On-premise

• End-user Outlook (Revenue, USD Million, 2014 - 2025)

  • FSR (Full Service Restaurant)

    • Fine Dine

    • Casual Dine

  • QSR (Quick Service Restaurant)

  • Institutional

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa