New restaurant tech comes out daily.
Customer preferences constantly ebb and flow.
And falling behind the digital curve can have devastating results
That’s why it’s more important than ever to consider how restaurant digital transformation fits into your business strategy (not if).
But, like most things that are “important but still kind of buzzword-y”...
There’s a lot of information out there about digital transformation, and not a lot of defining, explaining, or demonstrating.
That’s why we’re stripping “restaurant digital transformation” back and starting at square one. In this blog, we’ll take you through:
- What restaurant digital transformation is (and a few examples),
- The two reasons your restaurant should invest in digital transformation, and
- Three case studies that demonstrate digital transformation in “real life”
Ready for some actually actionable advice?
Let’s go.
What is Restaurant Digital Transformation?
Restaurant digital transformation isn’t just one “thing” or “event.”
It’s the result of adopting multiple new digital technologies that change and improve your restaurant’s operations, service, and customer value.
What technologies earn a spot on your digital transformation roster depends on your restaurant’s (and customers’) needs and wants… but here are a few common ones.
- Inventory and ordering automations
- Staffing and scheduling software
- Apps and loyalty programs
- Online ordering systems
- Touch-screen kiosks
- Digital menus
Explore the possibilities of restaurant digital transformation in our Restaurant Online Ordering Guide.
Why Should Restaurants Invest in Digital Transformation?
There are two simple reasons your restaurant should invest in digital transformation.
1 — Digital transformation is what your customers want.
As part of their “Future of Restaurants Report: 2024 Edition,” Square surveyed 4,000 customers around the globe, uncovering what people actually want from the restaurants they dine at.
The results?
- 76% of customers want restaurants to use automation and tech for better efficiency
- 49% of consumers prefer using contactless payment methods (like Apple Pay)
- 47% of customers prefer making reservations online or with a restaurant app
Similar digital-loving sentiments were shared by customers in The NRA’s “Restaurant Technology Landscape Report: 2024,” too.
Their survey revealed that:
- 80% of customers said they’d order delivery through a restaurant’s app
- 61% of customers are “game for variable pricing” (which is way easier to do digitally)
- 96% of customers enrolled in a loyalty program say it gets them “more bang for their buck”
So, these stats make it clear that customers want to see digital transformation in the restaurants they dine at… but what’s in it for you?
That’s a great question.
(And an even better segue into the second reason your restaurant should invest in digital transformation.)
2 — Digital transformation is what your restaurant needs.
Square and The NRA also surveyed restaurant owners and operators for their reports, exploring their opinions about (and experiences with) tech and automation.
And, as it turns out, digital transformation has proven to be a solid solution to industry-wide challenges like staffing shortages and operational efficiencies.
Of the 2,000 restaurant owners that Square surveyed:
- 100% said they use technology and automation to fill critical staffing gaps
- 80% said having a website or social media presence is “vital for survival and growth”
- 54% of restaurant owners plan to invest more in both tech and automation this year
And, of the restaurant owners and operators The NRA surveyed:
- 76% said technology gives their restaurant a “competitive edge”
- 57% said they plan to invest in loyalty/rewards technology this year
- 73% said tech has increased efficiency and productivity (compared to pre-pandemic)
Now, these stats make restaurant digital transformation sound good… in theory.
Don’t worry, though.
The next section’s case studies will show you how great digital transformation is in practice, too.
Ready to future-proof your restaurant with digital transformation? Reading our Restaurant Online Ordering Guide is the first step.
Mini Case Study 1: McDonald’s Digital App
You can’t talk about restaurant digital transformation without talking about McDonald’s.
From opening its first brick-and-mortar restaurant in 1955 to reporting $6B in digital sales in 2022, McD’s and digital transformation go together like nuggets and fries.
One of the main drivers of McDonald’s digital success has been its mobile app.
Launched in 2015, the McDonald’s app was originally just a handheld menu browser. Users could peek through their local restaurant’s offerings and redeem basic coupons… and that’s about it. In 2017, the brand launched new mobile ordering and payment options, designed to “cut transaction times, reduce errors, and free up workers” by automating more orders.
By the end of 2020, the McDonald’s app had been downloaded 81.9M times, a number destined to grow in 2021 with the launch of the brand’s new loyalty program – MyMcDonald’s Rewards.
Fast forward to 2023, and the McDonald’s app has 150M active users, over $20B in system sales, and no signs of slowing down. As part of its Accelerating the Arches growth strategy, McD’s wants to expand its “already-largest-in-the-world” loyalty program, working to reach 250M users and $45B in system sales by 2027.
For McDonald’s, the app has been — and will continue to be — a pillar of long-term digital transformation.
“We're creating an environment that embraces bold [creativity] and we're remaining connected to culture by tapping into the moments, memories, rituals, and behaviors that people have with our brand,” says Chris Kempczinski, McDonald’s President and CEO. “As we continue to attract millions of new loyalty members, we can get even smarter with our pricing methodology and tailor our digital offers to our fans, making them even more personalized.”
Mini Case Study 2: Chipotle’s Digital Kitchens & Chipotlanes
Another regular in the “restaurant digital transformation” conversation is Chipotle, a company that’s always found itself ahead of the digital curve.
The Mexican grill brand has already had a 15-year winning streak for digital transformation, having launched one of the industry’s first and (and best!) apps in 2009, integrating third-party delivery in 2015, and adding digital-only make-lines to restaurants in 2018.
Since then, the brand’s been “[pouring] the gas” on digital transformation through initiatives like Chipotlanes and Digital Kitchens.
Chipotlanes — pick-up windows dedicated exclusively to digital orders — were first introduced in 2018. Added to existing restaurants across the U.S., Chipotlanes perfectly married the more “traditional” dine-in experience with a new, “never-leave-your-car” one… and they generated 10-15% more in sales, too.
In 2020, with the success of Chipotlanes under its wings, Chipotle amped up its commitment to digital transformation with the introduction of Digital Kitchens.
Chipotle’s Digital Kitchen concept was designed to “[accelerate] digital business in non-traditional locations,” offering customers an easy way to pick up their digital orders without the massive footprint that a regular Chipotle location demands.
Three years ago, Tabassum Zalotrawala, Chipotle’s Chief Development Officer, about Chipotlanes, said innovations like Chipotlane’s were a “key growth strategy for the brand.”
Now, not much has changed.
Chipotle Chairman and CEO Brian Niccol says the brand continues to see “very strong results with Chipotlanes driving higher new restaurant productivity, margins, and returns.”
And, with plans to open over 300 new restaurants in 2024 — 80% of which will have Chipotlanes — it seems Chipotle’s avenue of digital transformation is working.
And it’s not going anywhere, either.
Mini Case Study 3: Rook Coffee’s Digital Ordering & Payments (with Craver)
Writing a piece on digital transformation without talking about the success of Rook Coffee?
That’s like ordering a “regular” Rook’s Cold Brew instead of a “bigger” one — it just wouldn’t happen.
Back in 2010, when Holly and Shawn founded Rook Coffee, they had one, simple goal: to foster genuine human connections through quality, simplicity, and experience.
And foster human connection they did.
Over time, Rook became more than just a place to get coffee. You went to Rook Coffee to have your order remembered, your name spelled right, and your heart warmed with genuine, authentic conversation.
But, despite Rook’s top-notch customer experience, operations fell short.
In-store payment and ordering had become bottlenecks, slowing down payments and hurting their reputation for efficient, streamlined service.
So, what’s the solution for operations that can’t measure up to your top-tier service?
Digital transformation, of course.
The Rook Coffee team reached out to Craver for a solution that integrated with their existing Square POS system, automated manual entry tasks, and streamlined order-to-payment workflows… and we created their perfect solution with a custom branded app.
With their new, Craver-powered app, Rook Coffee was able to:
- Free up staff from the register to focus on order fulfillment and customer service
- Increase sales by enabling customers to customize or add to their mobile orders
- Improve its value proposition, offering customers faster, more convenient experiences
Now, repeat Craver customers make up 48% of Rook Coffee’s total revenue, spending 3x more through the app than ever before.
“We're not just offering coffee,” says Holly Migliaccio, Rook Coffee Co-Founder. “[We're] offering a new level of convenience. That's the transformation Craver has brought to Rook Coffee.”
Ready to transform your restaurant like McDonald's, Chipotle, or Rook Coffee? Start your digital journey today.
Wrap Up
It’s no secret that restaurant digital transformation answers your customers' wants and your restaurant’s needs.
But, when you look at the big players like McDonald’s — and factor in the tech-forward trends we’re seeing year after year — we’re talking about something bigger than “wants” and “needs.”
The truth is that restaurant digital transformation is the future of our industry.
And, whether your restaurant embraces digital transformation to solidify your spot in a brand new restaurant industry…
Well, that’s up to you.
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