A lot has changed for restaurants over the last few years, including both how operators run their businesses and what customers expect when they dine out.
The pandemic set in motion unprecedented staffing challenges and created a greater need for automation and technology in restaurants. And while some of these lockdown-era changes are here to stay, new habits and expectations are also emerging.
To find out what trends will define the year ahead, TouchBistro recently surveyed more than 600 restaurant owners and operators for its 2024 State of Restaurants Report.
The annual report reveals just how much changed in the past year, how restaurants are adapting to an uncertain economic situation, and the top trends restaurateurs need to watch in 2024.
5 Restaurant Trends for 2024 & How to Implement Them
Embrace these current restaurant trends to stay ahead of your competitors and keep up with guest expectations in 2024:
- Automation and AI
- Comprehensive guest engagement
- Menu innovations
- Prioritizing staff retention
- Future-proof POS systems
An example of automation is inventory management software, which can now be done from mobile devices such as iPads.
1. Automation and AI
In 2024, automation and artificial intelligence (AI) will be critical to running a modern restaurant. The majority of restaurants are already using automation to make day-to-day operations more efficient, and this will only continue in the year ahead.
However, leaning into automation doesn’t have to mean completely overhauling operations. Instead of robot servers, start with software that takes over important but tedious tasks in your business, like staff scheduling or order taking.
You’ll be in good company, as 65% of restaurant operators have already automated inventory management and 70% have automated payroll, according to the State of Restaurants Report (SORR).
AI will also become mainstream in the restaurant industry in the new year. TouchBistro’s data shows that 89% of restaurateurs already use some form of AI in their business.
An easy way to experiment with AI is adding a chat bot to your website or leveraging AI tools built-into the software you already use, like DoorDash’s new AI-voice ordering solution.
You could even leverage ChatGPT to help write email marketing copy or social media posts.
2. 360-Degree Guest Engagement
Recent restaurant industry statistics reveal that there are nearly 750,000 restaurants in the U.S. alone. With so much competition, it takes more than word-of-mouth marketing to stand out.
In 2024, operators will need to take an omni-channel approach to guest engagement to ensure they’re top of mind from the moment customers discover your restaurant (which often begins online) until well after their meals.
Many restaurants are already taking a 360-degree approach to guest engagement.
In fact, 72% of food-service venues have a website, the majority maintain an active social media presence, and 67% offer loyalty programs, according to the SORR.
Future-proof your restaurant and increase discoverability by leveraging as many guest engagement platforms as possible.
Not sure where to start with this restaurant industry trend? Take inspiration from Dunkin’.
Despite being a household name, the coffee chain has developed a robust guest engagement strategy that includes fun social media posts on multiple channels, branded merchandise, compelling email offers, and a gamified loyalty program to keep customers engaged and coming back for more.
3. Innovative Menus
In 2021 and 2022, many restaurants played it safe and welcomed diners back with familiar favorites.
But as time has gone on, consumers have been craving innovation and restaurants have been delivering with out-of-the-box (and off-menu) ideas.
Now creative menu offerings are one of the most prominent trends in the restaurant industry, with nearly half of operators currently selling prepared foods to go, 42% offering grocery items, and 39% selling merch, according to research from TouchBistro.
If you’re not doing so already, expand on your menu by selling merchandise and packaged goods to make more revenue on-premises and online, reach new customers, and grow your brand.
Look to Olive Garden for inspiration. The Italian restaurant chain sells its viral cheese graters at its restaurants and grater-inspired holiday-themed merchandise online. The holiday gear was so popular that it sold out.
An example of restaurant business trends: Apparel from Olive Garden’s sold-out 2023 holiday collection. Photo courtesy of Olive Garden.
4. Prioritizing Staff Retention
It may be easier to find staff now than in the past few years, but keeping staff is still a challenge – just consider the wave of unionization that characterized most of 2023.
With the average staff turnover rate unchanged from 2022 at 28%, one of the biggest priorities for 2024 will be operators investing in staff retention to lower this figure.
And make no mistake: staff retention isn’t simply a restaurant business trend, it’s a necessity for treating workers well.
With many U.S. Starbucks workers fighting to unionize last summer, the coffee giant has made some attempts to retain staff, such as increasing wages and making it easier to accrue PTO.
Other staff retention strategies can include expanding benefits and offering more opportunities for professional advancement.
5. Future-Proof POS Systems
Though it can feel tough to invest in new technology when the economy is unstable and inflation is still high, investing in a modern, cloud-based POS system can deliver gains for years to come. Efficiency will be key to success in 2024 and cloud POS systems offer that efficiency.
Data from TouchBistro shows that the top three features restaurant operators look for in a POS system are ease of use, system reliability, and customer support – which are all things cloud systems and cloud providers offer.
If you’re stuck in the past with a legacy POS system, invest in your future by switching to a cloud POS. By embracing this trend in the restaurant industry and switching to a cloud-based system, Hale & Hearty Soups saw a 60-100% reduction in POS issues.
Change is the one constant you can expect from the restaurant industry. Learn more about these trends and how to future-proof your business by downloading the 2024 State of Restaurant Report for free today.
