Restaurant Management Software Market Overview
The Restaurant Management Software Market Size was estimated at 17.81 (USD Billion) in 2022. The Restaurant Management Software Industry is expected to grow from 19.16 (USD Billion) in 2023 to 37.07 (USD Billion) by 2032. The Restaurant Management Software Market CAGR (growth rate) is expected to be around 7.61% during the forecast period (2024 - 2032).
Key Restaurant Management Software Market Trends Highlighted
Key market drivers for Restaurant Management Software include the increasing need for efficient operations, the growing adoption of mobile devices and cloud-based solutions, and the demand for improved customer experiences. Significant opportunities exist in the integration of artificial intelligence and machine learning to automate tasks and enhance decision-making. The recent trend towards contactless ordering and payments is expected to continue, driving innovation in mobile ordering and payment solutions. Restaurant Management Software is also expanding into new markets, such as fast-casual and fine dining, as businesses seek to streamline operations and enhance customer satisfaction.
Figure 1: Restaurant Management Software Market Size, 2024-2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Restaurant Management Software Market Drivers
Rising Demand for Streamlined Operations
In the rapidly growing, the restaurant industry becomes more competitive day by day. To keep up, restaurants need to find fast and easy solutions to optimize their work. Restaurant management software can help to do this by automating such tasks as order taking, inventory managements, and scheduling. This would give some extra time for the staff to focus on providing a high-quality service and increase sales. Also, restaurant management software can provide a restaurant with information on how it is performing at the moment and what can be done better.
By providing the needed information, restaurant management software helps the restaurants make better decisions that could boost their profit. The restaurant management software market size was valued at USD 19.16 billion in 2023 and is expected to expand at a compound annual growth rate of 7.61% from 2023 to 2032. The market growth can be attributed to the growing popularity of cloud-based solutions, the need for efficient restaurant operations, and increasing online food orders.
North America is expected to hold the biggest share of the market all through the period, due to a great number of restaurants and an early conclusion of managers and owners to take advantage of technology.
Growing Adoption of Cloud-Based Solutions
At present, cloud-based restaurant management software is becoming more and more popular. There are several reasons for that, to include that they are more affordable and more scalable. First, they are more cost-effective as they do not require the restaurants to own hardware and software. Second, they are more scalable and can provide more flexibility to meet the requirements of all restaurant sizes. Restaurants can turn off the features they do not need and easily add others.
In addition, such systems can be accessed from any location in which there is an internet connection. Cloud-based restaurant management software will be the major growth driver for the Restaurant Management Software Market Industry. The reasons for that are already specified: they are less expensive and provide more flexibility and increased scalability as compared to the on-premise solutions.
Increasing Demand for Mobile Ordering
Mobile ordering is now very popular and there are a lot of people who use their smartphones for this purpose. With the help of the restaurant management software, this demand can be met and mobile ordering can be easily provided. In such a way, customers will be able to make orders directly from their smartphones and save their time since it is a very convenient option of ordering. Moreover, the ability of customers to order food with the help of smartphones will also help restaurants earn more money since it will be much easier for people to make an order.
Therefore, one of the drivers of the growth of the given industry will be the increasing demand for mobile ordering. A lot of people use their smartphones on a daily basis, which is why it is very convenient for them to make orders with their help. In general, mobile ordering is very timely and it advantageously differs both for restaurants and customers from traditional types of ordering due to increased convenience, time-saving, and increased sales.
Restaurant Management Software Market Segment Insights
Restaurant Management Software Market Deployment Type Insights
The Restaurant Management Software market is segmented based on deployment type into cloud-based and on-premise. The cloud-based segment is expected to dominate the market with a larger revenue share in 2023 and is projected to continue its dominance throughout the forecast period. The growth of the cloud-based segment can be attributed to the increasing adoption of cloud computing technology by restaurants of all sizes. Cloud-based restaurant management software offers several benefits over on-premise software, such as lower upfront costs, increased flexibility and scalability, and automatic software updates.
On the other hand, the on-premise segment is expected to witness a steady growth rate during the forecast period. On-premise software is typically preferred by large restaurant chains and enterprises that have the resources to invest in and maintain their own IT infrastructure. On-premise software provides greater control and security over data, which can be an important consideration for restaurants that handle sensitive customer information. Overall, the cloud-based segment is expected to continue to gain market share over the on-premise segment in the coming years, as more restaurants adopt cloud computing technology.
However, the on-premise segment is likely to remain a viable option for large restaurant chains and enterprises that require greater control and security over their data.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Restaurant Management Software Market Enterprise Size Insights
Division of the Restaurant Management Software Market The Restaurant Management Software Market is divided into two enterprise sizes, namely Small and Medium-Sized Enterprises and Large Enterprises. Over the forecast period, SMEs are likely to dominate the market since these organizations increasingly leverage technology to enhance their operational efficiency and customer service. Large enterprises are expected to witness the strong growth of their customer-related functions and attempts to optimize operations with the help of emerging restaurant management software solutions.
In 2023, SMEs generated around 60% of the Restaurant Management Software Market revenue, which is expected to reach $16.5 billion by 2032, displaying a CAGR of 7.2%. In 2023, large enterprises held approximately 40% of the overall market and, over the forecast period, are expected to demonstrate a stronger CAGR of 8.0% and drive the restaurant management software market towards $20.6 billion.
Restaurant Management Software Market Restaurant Type Insights
The Restaurant Type segment of the Restaurant Management Software Market is expected to exhibit significant growth over the forecast period. Fine Dining Restaurants are projected to hold the largest market share due to their focus on providing a high-end dining experience and need for efficient management of operations. Casual Dining Restaurants are expected to grow steadily, driven by the increasing popularity of casual dining concepts and the growing demand for convenience. Quick-Service Restaurants (QSRs) are anticipated to witness robust growth due to the rising popularity of fast food and the increasing adoption of technology to enhance customer experience.
Restaurant Management Software Market Functionality Insights
The Restaurant Management Software Market is segmented by functionality into Reservation Management, Order Management, Inventory Management, Payment Processing, and Customer Relationship Management (CRM). Among these segments, Reservation Management is anticipated to command a significant market share over the forecast period. The growing need for efficient table management, real-time availability updates, and online reservations is driving the demand for this segment. The Order Management segment is also expected to witness robust growth due to the increasing adoption of mobile ordering, self-service kiosks, and online ordering platforms.
Inventory Management, which helps restaurants optimize their stock levels, reduce waste, and improve profitability, is another key segment poised for growth. Payment Processing is crucial for seamless and secure transactions, and its segment is expected to grow in line with the overall market. Lastly, Customer Relationship Management (CRM) enables restaurants to manage customer data, track interactions, and provide personalized experiences, making it an essential segment for building long-term relationships and increasing customer loyalty.
Restaurant Management Software Market Pricing Model Insights
The Restaurant Management Software Market is segmented by pricing model into subscription-based, perpetual license, and pay-as-you-go. The subscription-based pricing model is expected to hold the largest market share during the forecast period. This is due to the increasing adoption of cloud-based restaurant management software solutions, which are typically offered on a subscription basis. The perpetual license pricing model is expected to decline in popularity as more and more restaurants adopt cloud-based solutions. The pay-as-you-go pricing model is expected to grow in popularity, as it allows restaurants to pay for software usage on a per-transaction basis.
Restaurant Management Software Market Regional Insights
The Restaurant Management Software Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2023, owing to the presence of a large number of restaurants and increasing adoption of advanced technologies. Europe is expected to be the second-largest market, followed by APAC. The APAC region is expected to witness significant growth in the coming years, due to the rising number of restaurants and increasing disposable income. South America and MEA are expected to be the smallest markets, but they are expected to grow at a steady pace.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Restaurant Management Software Market Key Players And Competitive Insights
Major players in Restaurant Management Software Market strive to maintain a competitive edge by offering innovative solutions, strategic collaborations, and acquisitions. Key players in the industry include Oracle, SAP, Toast, Inc., and TouchBistro, Inc. These leading Restaurant Management Software Market players focus on providing comprehensive solutions that streamline operations, enhance customer experiences, and optimize business performance. The Restaurant Management Software Market industry is characterized by ongoing development to meet evolving market demands, such as increasing adoption of cloud-based solutions, mobile optimization, and analytics capabilities.
Toast, Inc., a leading provider of restaurant management solutions, has established a strong presence in the market. The company's cloud-based platform offers a comprehensive suite of features, including point-of-sale (POS) systems, online ordering, and inventory management, catering to the needs of various restaurant concepts. Toast's customer-centric approach, combined with its focus on innovation, has contributed to its growth and recognition in the Restaurant Management Software Market.
A notable competitor in the Restaurant Management Software Market is Oracle. The company's Oracle MICROS Simphony solution offers a robust platform for restaurant operations management. Oracle's focus on providing enterprise-level solutions, including integrated payment processing and loyalty programs, positions it as a key player in the market. Oracle's strong brand recognition and extensive industry experience contribute to its competitive position in the Restaurant Management Software Market.
Key Companies in the Restaurant Management Software Market Include
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Clover
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Revel Systems
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Oracle
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Fourth
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Square
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OpenTable
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7shifts
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Upserve
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Toast
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ADP
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Micros Systems
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Quandoo
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Zenput
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TouchBistro
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NCR
Restaurant Management Software Market Industry Developments
The Restaurant Management Software market is poised to experience significant growth in the coming years, driven by the increasing adoption of digital technologies in the restaurant industry. The market is expected to reach a valuation of USD 23.64 billion by 2032, expanding at a CAGR of 7.61% from 2024 to 2032. Recent industry developments include the strategic partnership between Oracle and Aloha to offer a comprehensive suite of restaurant management solutions. Additionally, the acquisition of Toast by Square in 2022 highlights the growing consolidation trend within the market.
Key market players are focusing on cloud-based solutions, mobile applications, and AI-powered features to enhance operational efficiency and improve customer experiences. The integration of online ordering, inventory management, and customer relationship management capabilities is becoming increasingly important as restaurants seek to streamline operations and gain a competitive edge
Restaurant Management Software Market Segmentation Insights
Restaurant Management Software Market Deployment Type Outlook
Restaurant Management Software Market Enterprise Size Outlook
Restaurant Management Software Market Restaurant Type Outlook
Restaurant Management Software Market Functionality Outlook
Restaurant Management Software Market Pricing Model Outlook
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Subscription-Based
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Perpetual License
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Pay-As-You-Go
Restaurant Management Software Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
17.81(USD Billion) |
| Market Size 2023 |
19.16(USD Billion) |
| Market Size 2032 |
37.07(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
7.61% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Clover, Revel Systems, Oracle, Fourth, Square, OpenTable, 7shifts, Upserve, Toast, ADP, Micros Systems, Quandoo, Zenput, TouchBistro, NCR |
| Segments Covered |
Deployment Type, Enterprise Size, Restaurant Type, Functionality, Pricing Model, Regional |
| Key Market Opportunities |
Cloudbased solutions Mobile integration Selfservice kiosks Automated inventory management Data analytics |
| Key Market Dynamics |
Technological advancements cloudbased adoption rising demand for data analytics emergence of AI and ML growing need for customer engagement |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Restaurant Management Software Market is expected to reach a valuation of 19.16 billion USD in 2023.
The Restaurant Management Software Market is projected to grow at a CAGR of 7.61% from 2023 to 2032.
North America and Europe are expected to be the key regions driving the growth of the Restaurant Management Software Market.
Restaurant Management Software is used for various applications such as order management, inventory management, customer relationship management, and analytics.
Key competitors in the Restaurant Management Software Market include Oracle, SAP, and NCR.
Emerging trends in the Restaurant Management Software Market include the adoption of cloud-based solutions, the integration of artificial intelligence, and the use of mobile applications.
Challenges faced by the Restaurant Management Software Market include the high cost of implementation, the need for skilled IT staff, and the integration with legacy systems.
Opportunities for growth in the Restaurant Management Software Market include the increasing adoption of technology by restaurants, the growing demand for cloud-based solutions, and the expanding market for mobile applications.
The Restaurant Management Software Market is expected to reach a valuation of 37.07 billion USD by 2032.
Key factors driving the growth of the Restaurant Management Software Market include the increasing need for efficiency in restaurant operations, the growing adoption of cloud-based solutions, and the increasing demand for mobile applications.
