State of the industry: How much does technology really improve restaurant operations?State of the industry: How much does technology really improve restaurant operations?

The National Restaurant Association’s 2025 State of the Industry report makes one thing clear: while operators see technology as a crucial investment, it’s no panacea for operational challenges, and can’t replace the traditional in-person restaurant experience.

According to the data presented in this report, technology investment in restaurants presents a somewhat contradictory double-edged sword. While the majority (83%) of operators say that the use of technology in a restaurant provides a competitive advantage, only 28% of operators say that investments in technology have improved their restaurant’s profitability.

Restaurant operators seem to be most likely to see a difference in productivity from investments in technology, rather than the overall experience of both employees and customers. Among operators that have invested more in technology over the last two to three years, 69% of operators say it made their operations more efficient and productive. However, only four in 10 operators say that technology has improved customer satisfaction, and only 30% of operators say it improved employee training.

While operators are not seeing much of a difference in customer satisfaction, on the consumer side, the availability of technology has increasingly become important to customers. Unsurprisingly, the younger a customer is, the higher their demand for technology options. However, even 65% of Baby Boomers say that technology is important when ordering food delivery. For an in-person dining experience, there is a substantial gap between Gen Z and all older generations. While 71% of Gen Z demand tech options for full-service dining, only 48% of Millennials do the same.

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Since technology investment has been somewhat of a mixed bag when it comes to usefulness for operators and the customer experience, restaurants are not looking to replace their employees with automation anytime soon. According to the State of the Industry report, just under half of operators say that technology can help with labor challenges, but 74% of operators say that technology integration will supplement or augment, rather than replace, human labor.

Operators’ and consumers’ responses to increased technology investment seem to dovetail with the growth of on-premises dining. While operators and analysts in 2020 seemed to think that the pandemic would signal the death of full-service dining, in 2025, operators are looking to boost on-premises experiences, even when balancing the demand for off-premises channels.

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For example, while ghost kitchens were a significant trend four years ago, according to the report, only one in five operators thinks ghost kitchens will become common in their segment. On the consumer side, only 53% of limited-service customers say that technology availability factors into their decision to choose a quick-service restaurant, coffee shop, or snack place, as consumers look to restaurant technology to improve or augment their restaurant experience—not replace it.

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