5 Trends Transforming Restaurant Operations

While the essence of restaurants remains the same—great food and excellent service—the approach to achieving this is constantly evolving.

Changes in customer expectations, advancements in technology, and staffing challenges are prompting restaurant owners and managers to rethink how their establishments operate.

In this article, we’ll explore five key trends in restaurant operations that can help set the stage for your future success.

Developing Different Strategies to Increase Traffic 

This trend emerged as many restaurants struggled with a drop in traffic, primarily caused by customers limiting their spending due to global inflation.

For example, fast food chains in the US are recording lower traffic because most of their typical guests simply can’t afford more frequent visits or larger orders due to price hikes.

This shift in consumer behavior is highlighted by a 2024 LendingTree survey of 2,000 American adults, as illustrated below.

Illustration: Tablein / Data: LendingTree

The situation is not very different in many other countries around the world.

In response, restaurateurs are not sitting idle. 

They are coming up with different ways to increase traffic by providing more value to the customers and creating a better experience for them overall.

Of course, the specific strategies vary depending on the type and size of the restaurant.

Many restaurant chains have taken the route of revamping their menus to attract more customers and increase traffic.

For instance, following the brand research that determined customer preferences, IHOP introduced its biggest menu update in history in April 2023, rolling out changes across its breakfast, lunch, and dinner menus.

As a result, IHOP reported a 2% increase in restaurant sales.

In the words of John Payton, CEO of IHOP’s parent company Dine Brands:

Illustration: Tablein / Data: Restaurant Dive

Another traffic-boosting initiative implemented by IHOP is its loyalty program.

On that subject, Payton says that their mobile app is being downloaded over 8,000 times a day, and they’re just beginning to leverage the loyalty program’s ability to increase traffic and sales.

Generally, loyalty programs can take diverse forms, from collecting loyalty points to offering time-bound rewards or freebies for return visits.

Likewise, there are other special offers that can help attract guests, from buy-one-get-one-free deals and combo meals to special occasions, and seasonal and holiday promotions.

You can also couple such promotions with incentivizing customers to reserve their tables online.

An increased number of online reservations simplifies your day-to-day operations—staff spends less time dealing with phone and email bookings and more time focusing on already present guests.

So, why not address both objectives at once?

By offering an incentive for online bookings, you can streamline your restaurant operations and increase traffic at the same time.

Source: Nepal on Facebook 

Of course, this traffic-increasing strategy can work only when you have an online booking system.

If you don’t, consider our Tablein.

Source: Tablein

That way, your team gets streamlined, no-fuss reservation management, and your guests get the convenience of easily booking a table at any time. 

With Tablein, you can also keep notes on your guests (birthdays, allergies, etc.) and build a mailing list that can help you implement other strategies to boost traffic.

Source: Tablein

To recap, to overcome current struggles caused by rising prices, restaurants are developing different strategies. 

What’s important is to take action and strategize to keep your business afloat. From value offers and loyalty programs to reducing operating costs, there are things to be done. 

Introducing Smart Technology for Smoother Kitchen Operations

This trend is driven by several key factors, from labor shortages and staffing challenges to customers’ demand for speed and consistency.

In other words, restaurateurs are introducing smart technology to organize back-of-house operations in an effort to maintain high-quality service standards that meet evolving guest expectations. 

For example, smart technology can help kitchen staff with the following:

• monitor inventory in real time,
• forecast demand more accurately,
• optimize ingredient usage and reduce waste.

Some of the most often used tools are kitchen display systems (KDS), whose main role is to streamline communication between the restaurant’s front- and back-of-house.

This ensures that food orders are promptly fulfilled and served to the guest.

 Source: Square

Such solutions are most often used in conjunction with electronic point-of-sale (POS) systems, which take orders from wait staff or customers and send them to the kitchen.

However, some restaurants with an efficient in-restaurant ordering system already in place need KDS to help them manage orders from multiple channels, such as digital ordering platforms.

This allows them to automate order processing and optimize kitchen workflows, allowing the back-of-house to handle online orders alongside in-house dining.

A KDS displays orders as they come in and can show specific guest requests (such as "no salt"), both of which reduce potential mix-ups and improve customer service.

Another smart technology for enhancing kitchen operations is real-time inventory management systems.

Source: Supy

These systems monitor inventory levels, giving you real-time visibility into the stock on hand, its value, and minimum stock holding requirements.

Additionally, you can receive automated alerts (reorder or restock notifications) when inventory levels fall below the minimum level.

This way, you can ensure your restaurant always has an ideal amount of stock. 

Of course, determining and maintaining optimal stock levels is a complex process.

It involves calculating ingredient quantities based on historical usage data while considering factors such as:

• the average usage rate of menu items,
• stock delivery schedules,
• the restaurant’s storage capacity, and
• anticipated demand.

Due to this complexity, many restaurants are turning to AI-driven demand forecasting systems.

Source: Apicbase

This software predicts demand based on your restaurant’s past sales data, recipe information, and inventory levels.

Combining these components leads to more accurate demand and inventory forecasts, which help you minimize food waste and reduce food costs.

Overall, by leveraging smart technology, restaurants can streamline their kitchen operations.

The result? Better service quality, less waste, and more cost savings.

Investing In Tableside Technology 

This shift is driven by guests’ growing desire for convenience and personalized service, which tableside technology can provide while optimizing restaurant operations.

Starting with the basics, one popular tableside technology solution is handheld POS devices. 

These devices allow the waitstaff to take orders and process payments directly at the table.

Source: Lightspeed

The benefits of using handheld POS devices, which are compact enough to fit into a server’s apron or pocket, are numerous:

• staff can enter orders on the spot, reducing the risk of errors,
• orders are automatically communicated to the kitchen (via KDS or other systems),
• staff can process payments and split checks seamlessly at the table.

Now, there are even solutions that will turn your waitstaff’s smartphones into handheld POS devices.

As a result of the convenience such solutions provide, the adoption of tap-to-pay payment methods in restaurants is on a constant rise.

These methods involve using a contactless debit or credit card, or a mobile phone with payment apps like Apple Pay or Google Wallet installed.

As for mobile payments, a recent NMI Research Study of U.S. and UK consumers revealed a

strong preference for tap-to-mobile payment options, especially in restaurants.

Illustration: Tablein / Data: NMI

Despite this high demand, another survey showed that only 41% of full-service and 42% of limited-service restaurants are planning investments in contactless payment solutions in 2024.

So, this can be a chance to get ahead of your competition by investing in tableside technology that will soon become the norm in the restaurant industry.

Of course, tap-to-pay devices aren't the only tableside technology you can consider. 

QR codes, for example, can serve as gateways to digital restaurant menus, offering more convenience and interactivity.

Digital menus offer several advantages, namely:

• easy menu updates (pricing, specials, etc.) without reprinting physical menus,
• additional info available to guests, such as ingredient details, nutritional facts, and pairing suggestions.

Some restaurants even invite guests to use QR code menus to place orders and make payments.

Source: Evergreen

Just be aware that, while these order-and-pay options can be convenient for customers of quick-service restaurants, they may reduce human interactions between staff and guests.

Therefore, it’s crucial to find the right balance between enhancing efficiency with technology and maintaining the traditional hospitality standards that many guests consider an essential part of their dining experience.

Placing More Importance on Sustainability 

This trend is largely driven by a shift in consumer preferences towards eco-friendly, locally sourced food. 

However, that's not the only reason.

Restaurants are also recognizing that sustainable practices can reduce costs, improve operational efficiency, and enhance their brand image.

We already explained how real-time inventory management and demand forecasting tools can maximize ingredient usage and minimize food waste, making operations more sustainable and cost-efficient.

Another effective way to boost sustainability and reduce costs is by replacing outdated equipment with more energy-efficient counterparts.

That can significantly lower a restaurant's overall energy consumption.

Simply, restaurants spend more than two-thirds of their energy on cooking, refrigeration, and space heating.

Illustration: Tablein / Data: EIA

Given this fact, investing in more energy-efficient equipment and systems can lead to substantial savings and a smaller environmental footprint.

Similarly, restaurants sourcing ingredients locally will reduce the environmental impact associated with long-distance transportation and also support the local economy.

Although the initial costs of locally sourced ingredients might be higher, this approach is successfully used by many restaurants to enhance their reputation for quality and sustainability.

For instance, Noma, a renowned restaurant in Copenhagen, Denmark, has gained global recognition for its commitment to locally sourced ingredients, which are often foraged or produced by nearby farms. 

Source: @nomacph on Instagram

This not only minimizes environmental impact but also creates a unique dining experience that reflects the region's natural resources.

All in all, the trend of prioritizing sustainability reflects a growing understanding that environmentally responsible practices both align with customer values and contribute to more efficient restaurant operations. 

Prioritizing Employee Well-Being

The trend of prioritizing the well-being of employees has emerged due to several factors that continue to contribute to staffing shortages and high turnover rates in restaurants.

Here are just a few of these factors:

• the restaurant industry’s traditionally low wages and demanding hours,
• widespread changes in the workforce caused by the recent pandemic,
• abundance of other equally or better-paid gig economy jobs.

As a result, restaurants looking to retain their staff and reduce the constant cycle of hiring and training new employees have started investing more in their employees.

This aligns with findings from numerous studies on what workers consider important in an employer.

For instance, a Wellable study showed that 93% of workers value employers who care about their well-being as much as they value having a decent salary. 

Similarly, the APA's 2023 Work in America survey found high percentages of workers emphasizing the importance of various aspects of well-being and respect in the workplace.

Illustration: Tablein / Data: APA

While these surveys covered workers across various industries, the restaurant industry is not an exception, where high employee turnover is a well-known challenge.

So, to significantly alleviate turnover issues and enhance the overall quality of operations, it's crucial to prioritize the well-being of your employees, namely:

• fair compensation,
• good benefits, and
• a safe and healthy work environment.

Moreover, equipping staff with the right tools and technology to perform their jobs more easily and efficiently also contributes to employee satisfaction.

Therefore, showing genuine care for employees aligns well with the growing awareness and concern for employee treatment among consumers, giving your restaurant a valuable reputation boost.

Conclusion 

The future of your restaurant is shaped by the choices you make today.

Embrace innovation, challenge the status quo, and lead with a vision that goes beyond just serving food.

By leveraging these trends, you can improve your restaurant operations and build a strong, positive reputation that will help ensure your restaurant’s long-term success.

So, take inspiration from this article, mix and match the suggested strategies, and tailor them to fit your restaurant’s unique needs and goals.