Restaurant Management Software Market by Software Type (Front End, Accounting & Cash Flow, Table & Delivery Management, Purchasing & Inventory Management, Employee Payroll and Scheduling, Backstage Management, Forestage Management, and Others), Deployment (Cloud-based and On-premise), End-user (Full Service Restaurant, Quick Service Restaurant, Institutional, and Others), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031

The global restaurant management software market size was USD 2.3 Bn in 2022 and is likely to reach USD 6.94 Bn by 2031, expanding at a CAGR of 14.4% during 2023–2031. The market growth is attributed to the increasing restaurants and cafes across the globe.

Restaurant management software is a system, which is specially designed for managing several operations within the food & beverages industry such as bars, restaurants, bakeries, and cafes. It includes advertising, meal ordering, payment processing, and daily accounting.

Restaurant management software enables quick and easy scheduling, which enhanced the performance of the restaurants. It reduces staff retention and order processing mistakes. It simplifies the internal process by connecting all the stakeholders in the restaurant’s performance. It helps to preserve data and manage sales.

COVID-19 Impact on Restaurant Management Software Market

The market report finds that the COVID-19 pandemic positively impacted on the restaurant management software market. Many restaurants and food service companies were temporarily closed owing to the several limitations and restrictions and emergency lockdowns imposed by the government.

Restaurants and food service companies shifted their focus towards online channels for delivering food during the pandemic. However, the preference for online orders of groceries and food increased, which further boosted demand for restaurant-specific software for invoicing, payment handling, and tracking orders.

Restaurant Management Software Market Dynamics

The research report presents a complete market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global restaurant management software market report has up-to-date insights about market scenarios that can shape the overall market performance and condition during the forecast period, 2023 to 2031.

What are the Driving Factors of Restaurant Management Software Market?

Rising Adoption of Smart Devices along with Cloud-based Software

Rising adoption of smart devices is a key factor driving the growth of the market during the forecast period. Smart devices have made life easier as they be can controlled with a single touch. However, cloud computing technology enables connectivity and access to storage, software, files, and servers through internet-connected devices. The proliferation of mobile devices and apps that help restaurants to manage their operations boosts the market.

Increasing Requirement for Restaurant-specific Software

Increasing requirements for restaurant-specific software is another major factor driving the restaurant management software market growth. Restaurants rely on point-of-sale (POS) software for payment processing, sales tracking, and inventory management. This software automates the restaurant process and improves the dining experience. Moreover, the rising preference for online food ordering demands for restaurant-specific software.

What Restraints Restaurant Management Software Market?

High Maintenance Cost of POS System

PoS system requires high maintenance costs in case of technical failures, which hampers the growth of the market. Point of sale terminals are internet-enabled devices that require a strong internet connection. The connectivity and malfunctioning may disturb the system, which affects the overall operation and performance of the restaurant. Furthermore, increasing fraudulent transactions are expected to hinder the market growth during the projected period.

What are the Growth Opportunities for Restaurant Management Software Market?

Technological Advancement in Restaurant-specific Software

Technological advancement in restaurant-specific software creates a lucrative growth opportunity for key players competing in the market. Market players are focusing on new advanced technologies to launch innovative software solutions to streamline the payment process and manage orders.

The emergence of new features including menu designs, staff scheduling, payroll, inventory management, and customer relationship management helps restaurants to improve efficiency. Moreover, increasing internet penetration activities owing to digitization attributed to boosting the market growth during the forecast period.

Scope of Restaurant Management Software Market Report

The global restaurant management software market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Restaurant Management Software Market Segment Insights

Why is the Front End Segment More Prevalent than the Table & Delivery Management Segment?

Increasing Adoption of POS Software Fuels the Front End Segment

Based on software type, the restaurant management software market is segregated into front end, accounting & cash flow, table & delivery management, purchasing & inventory management, employee payroll and scheduling, backstage management, forestage management, and others. 

The front end software segment accounted for a major market share in 2021 and is expected to expand at a high CAGR during the forecast period due to the rising acceptance of POS software. These software solutions are POS-integrated and a core restaurant tool, which helps in payment processing and managing orders.

Increasing demand for innovative software solutions such as customer management, inventory management, kitchen order taking, recipe management, and free accounting coupled with POS solutions is estimated to drive the market.

The table & delivery management segment is projected to expand at a sustainable CAGR during the projected period. This segment helps in improving table turnaround time, reducing waiting time, and automating the setup of the food delivery chain to increase customer satisfaction. On the other hand, the backstage management segment contribute to the segment growth as it helps in various tasks including staff scheduling, time and attendance tracking, and payroll. It helps to keep track on inventory and kitchen staffs, which increases the operation of restaurants.

What Key Factors Contribute to the Rapid Expansion of the On-premise Segment?

Increasing Data Security Concerns Boosting the On-premise Segment

On the basis of deployment, the global restaurant management software market is bifurcated into cloud-based and on-premise. The on-premise segment held a major market share in 2021 and is anticipated to grow at a significant pace in the coming years. It enables real-time monitoring and has the ability to control ownership of data. It ensures security by backing up data in case of emergency. Thus, increasing data security concerns among consumers demand for on-premise software.

The cloud-based segment is projected to expand at a rapid pace during the forecast period. The capability of cloud-based systems to centralize information makes it available for restaurant owners to access data from anywhere at any time. The less expensive upgrades and low deployment cost encouraged consumers to adopt cloud-based softwares.

How is the End-user Segment Generating More Revenue Share in Restaurant Management Software Market?

Rising Demand for Automation from the Full Service Restaurants Accelerates the Growth of the Market

Based on end-user, the restaurant management software market is fragmented into full service restaurants, quick service restaurants, institutional, and others. The full service restaurant segment is anticipated to expand at a high CAGR during the assessment period. Full service restaurants consider the primary adopters of advanced technology, who are trying to maintain a competitive position over other restaurants and meet their customers changing needs.

Restaurant management software ensures fast ordering, and improves accuracy in checkout processes. It improves table turn time and reduces the labor cost. Rising demand for automation from the full service restaurants accelerates the market growth. The quick service restaurant segment is projected to grow at a rapid pace during the forecast period. QSR customers are gradually demanding for omnichannel experiences.

Therefore, these restaurants are majorly investing in advanced technology. Restaurant management software helps QSR to automate business. This, in turn, helps to fulfill the changing needs and stay ahead of the competition by offering quick customer service and minimizing table turnaround time. Therefore, QSR customers are estimated to be the major end-users of restaurant management software.

Why is North America Dominating the Restaurant Management Software Market?

Rapid Expansion of Small and Midsize Restaurants Boost the Market in North America

In terms of region, the restaurant management software market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the forecast period. Food service providers in the region use restaurant management software for menu management, table management, employee scheduling, kitchen management, recipe management, and others. Rapid expansion of small and medium size restaurants demands for the innovative software solutions to automate the process.

The market in Asia Pacific is anticipated to expand at a robust CAGR during the forecast period. The food service sector is increasing in developing countries such as India and China. Growth of the market in the region is attributed to increasing disposable income and favorable demographic conditions. Restaurants in the region are implementing software technology, which allows customers to pay and order from the table using smartphones. Increasing usage of restaurant management software is expected to boost the regional market.

Segments

The global restaurant management software market has been segmented on the basis of

Software Type

• Front End
• Accounting & Cash Flow
• Table & Delivery Management
• Purchasing & Inventory Management
• Employee Payroll and Scheduling
• Backstage Management
• Forestage Management
• Others

Deployment

• Cloud-based
• On-premise

End-user

• Full Service Restaurant
• Quick Service Restaurant
• Institutional
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Oracle
• NCR Corporation
• Block, Inc. (Square, Inc.)
• Clover Network, LLC
• Fishbowl, Inc. (Personica)
• HotSchedules.com, Inc. (HotSchedules, Inc.)
• Jolt Software
• OpenTable, Inc. (Booking Holdings Inc.)
• Revel Systems
• ShopKeep.com
• TouchBistro

Competitive Landscape

The competitive landscape of the restaurant management software market report provides key insights into the growth strategies and development initiatives implemented by the various players in the market.

Market participants competing in the global market are Oracle; NCR Corporation; Clover Network, LLC; Fishbowl, Inc. (Personica); HotSchedules.com, Inc. (HotSchedules, Inc.); Jolt Software; OpenTable, Inc. (Booking Holdings Inc.); Revel Systems; ShopKeep.com; and TouchBistro.

Some of these major companies adopt various business development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share. For instance,

• On November 9, 2022, Oracle introduced new Oracle MICROS Simphony mobile order and pay solution for restaurants, which runs on Oracle Payment Cloud Service. It enables restaurants an all-in-one solution to manage everything including menu creation and payment. It improves service, reduces administrative burdens, and increases security.
• On August 16, 2022, NCR Corporation entered into a strategic partnership with Wendy’s to provide data service through the NCR Commerce Platform. This platform permits Wendy’s to easily access, use, and manage the data captured through the NCR Aloha point of sale. This helps corporate users and franchisees to manage cash and leverage sales to maximize operational efficiency.
• On May 20, 2022, Revel Systems announced Revel Loyalty XT, an integrated loyalty solution powered by Como. It integrated with Revel’s point of sale (POS) platform, which is an affordable solution for small and midsize businesses. It offers a complete toolkit that engages customers in rich communication and offers rewards.