Restaurant Management Software Market Size, Share, & Trends Analysis Report By Software (Front-end Software, Purchasing & Inventory Management, Accounting & Cash Flow), By Deployment, By End Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global restaurant management software market was valued at USD 4.08 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 15.8% from 2022 to 2030. The industry’s growth can be attributed to the increasing number of restaurants worldwide along with the widening usage of cloud-based technology. The outbreak of COVID-19 pandemic impacted the business of the restaurant sector due to temporary shutdowns and lack of dine-in customers. However, the adoption of Point of Sale (POS) solutions provides contactless payment modes, which has helped restaurants survive the pandemic. Due to the pandemic, many packaged food services and other restaurants shifted to online sales channels to fulfill consumer needs. Thereby, the added advantage of installing POS systems to exact insights related to customer preference, and sales trends is expected to augment the market growth.

The technological advancements in the restaurant industry and the rising need for restaurant-specific software such as billing and payment, inventory management, and table management are expected to foster the growth of the market. Several latest innovations in order processing techniques have helped restaurateurs simplify their order management. For instance, various restaurants use Kitchen Display System (KDS), a digital menu board for kitchen staff that displays orders automatically according to priority and flags any special dietary requests. This system is directly linked to the restaurant’s POS system, tracks meal delivery times, and monitors inventory to signal when a product is out of stock. It also ensures better communication and provides sustainable kitchen operations.

Restaurants, bars, and foodservice providers highly rely on POS technology to track sales, products, operations, and inventory. Along with POS solutions, software vendors are also offering solutions that include the Hotel Property Management System (PMS) so that the owners of restaurants can attain fully- integrated technology capabilities. These systems help in providing a digital presentation of the food and drink specifically for a particular day and specific food accommodating food allergies, wine lists, and nutritional information, as well as accepting Europay, Mastercard, and Visa (EMV) card payments on the tableside. The growing integration of POS technology to improve restaurant operations is anticipated to drive the growth of the market in the times to come.

The increasing competition in the restaurant sector, coupled with a growing number of quick-service restaurant chains has resulted in an increasing focus on an efficient supply chain and order quality. This is expected to fuel product demand. However, the unavailability of single seamless integrated software is one of the primary factors limiting the market from realizing its utmost potential. These solutions lack the ability of unified interactions with other systems deployed at the restaurant. As a result, the POS software system gives mobility to restaurant operations by helping them improve kitchen efficiency, the quality of service and food, and reduce the chances of errors.

Several key players in the foodservice industry, such as HotSchedules and NCR Corporation, provide digital payment solutions to enhance processes and gain a competitive advantage in the market. This has necessitated the need for restaurant management software to facilitate the smooth operation of digital payment solutions. The software also helps restaurants understand the customers’ eating patterns, favorite meals, and drinks, and ordering patterns by harnessing associated data. Restaurant owners can also leverage this information to explore new opportunities to retain and expand their customer base. Such benefits offered by restaurant management software is likely to increase the adoption of these solutions and create a positive impact on the industry expansion.

Software Insights

The front-end software segment accounted for a market share of over 35% in 2021. The segment growth can be attributed to the surge in demand for software solutions such as customer management, recipe management, kitchen order taking, and POS solutions. These solutions are POS-integrated, allowing restaurants to manage ordering and payment processing easily. For instance, in February 2021, Paydoo, a technology company that provides integrated payment solutions announced the collaboration with PAX Technology, a POS software, and hardware manufacturer to launch the PAX E-Series of all-in-one POS and payment solutions for retail and hotel industries. This growing integration of the POS technology to improve restaurant operations is anticipated to drive the growth of the front-end software segment.

In addition to above, the table & delivery management segment is anticipated to grow at a CAGR of 18.3% due to the restauranteurs’ increasing adoption of table and delivery management strategies to reduce waiting time, improve table turnover time, and automate the setup of food delivery chain. With these management systems, restaurants can increase brand value and enhance brand image. Moreover, it allows staff members to keep track of all the tables without errors and reduce time-to-serve. This software also allows restaurateurs to manage and track the orders for food delivery, improve operational efficiency, and enhance the customer experience.

Deployment Insights

The on-premise segment accounted for a market share of over 45% in 2021. The segment growth can be attributed to the rising data security concerns and the ability to control ownership of data. It enables real-time monitoring of restaurant management software solutions and ensures complete security of enterprise data, such as source codes, version enhancements, and source code change histories. Furthermore, it increases the restaurateur’s responsibility in retaining both hardware and software, making upgrades, making the data available as needed, and backing up the data in case of disaster or emergency.

The cloud segment is anticipated to register a significant growth of 19.2% over the forecast period. The cloud-based solutions are easy to deploy as they use the readymade platform, which is already designed and verified by the software vendors. The ability of cloud-based systems to directly centralize information makes it feasible for restaurant owners to access data virtually from any place. Moreover, low deployment cost and less expensive upgrades to cloud software makes it suitable for new restaurant owners to adopt this technology. These benefits will supplement the growth of the segment during the period in focus.

End-use Insights

The Full-service Restaurant (FSR) segment accounted for the largest market share of over 35% in 2021. The segment growth can be attributed to the growing global food & beverage industry and rising per capita spending on food services. For instance, during the COVID-19 pandemic, consumers were increasingly using online services and changed their way of consumption and suppliers’ interactions.  FSRs have advanced technologies to improve table turn times and reduce labor costs, by which they can offer better customer service according to the demand of the customers.  Additionally, lower cost and casual dining full-service restaurants have gained increasing momentum, especially in developing economies, amid the spike in the working population and rapid penetration of the dine-out culture. These factors are expected to propel the growth of FSRs in the global market.

The Quick Service Restaurant (QSR) segment is expected to register a significant growth of 17.5% from 2022 to 2030. The segment growth can be attributed to the digitization of payments, POS systems, and the rise in disposable income. Several benefits offered by restaurant management software to QSR operators help them automate their business operations. For instance, the POS software used in the QSR industry includes features such as drive-thru module, kitchen display system integration, customizable display features, order accuracy, inventory management, and employee management. This software helps in meeting changing demands and remain ahead of the competition by providing speedy customer service.

Regional Insights

North America held the major share of over 35% in 2021 of global market. The regional industry is propelled by rapid urbanization, increasing disposable income, the well-organized nature of the foodservice industry, and the high market penetration of vendors. Moreover, the presence of popular QSR chains and extensive availability of a variety of cuisines has helped in the development of the QSR market in the region. For instance, in November 2021, McDonald’s, announced a partnership with DoorDash, an online food delivery platform, to drive the growth of McDelivery in the U.S. and globally. This partnership is designed to enhance operations at the restaurant level and make McDelivery more accessible to customers in the U.S. and around the world.

The Asia Pacific is expected to emerge as one of the fastest-growing region over the forecast period at a CAGR of 18.1%. The increasing need for enhanced customer experience and increased utilization of POS software are the major drivers supporting the growth of the regional market. Furthermore, restaurants in the countries such as China, India, and Japan, are adopting software technologies that allow customers to order and pay at the table using their smartphones and other devices. In addition to this, several restaurants are offering cash-back offers, and discounts on plastic card payment options have lured consumers towards cashless spending. This adoption is likely to stimulate the growth of the regional market.

Key Companies & Market Share Insights

Restaurant management software market players are focusing on investing in research & development activities to support growth and enhance their internal business operations. Companies can be seen engaging in mergers & acquisitions and partnerships to further upgrade their products and gain a competitive advantage.  Moreover, they are effectively working on new product developments, and enhancement of existing products to acquire new customers and capture more market shares.

For instance, in November 2021, NCR Corporation announced a partnership with Starbucks EMEA, to streamline the technology management and increase store operations visibility. With the help of NCR Digital Connected Services, Starbucks operates its business, across software, hardware, and services. Additionally, these services provide real-time monitoring, remote resolution, and maintenance & reporting to run store operations from end to end. Some prominent players in the global restaurant management software market include:

• Clover Network, Inc.

• Fishbowl Inc. (Personica)

• HotSchedules

• Jolt

• NCR Corporation

• OpenTable, Inc.

• Oracle Corporation

• Revel Systems

• Square Capital, LLC

• TouchBistro

Restaurant Management Software Market Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global restaurant management software market based on software, deployment, end use, and region:

• Software Outlook (Revenue, USD Million, 2017 - 2030)

  • Front-end Software

  • Accounting & Cash Flow

  • Purchasing & Inventory Management

  • Table & Delivery Management

  • Employee Payroll & Scheduling

  • Others

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • Cloud

  • On-premise

• End-Use Outlook (Revenue, USD Million, 2017 - 2030)

  • Full-service Restaurant (FSR)

    • Fine Dine

    • Casual Dine

  • Quick Service Restaurant (QSR)

  • Institutional

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)