Nearly nine in 10 restaurants looking to invest in AI and automation, research shows

Almost nine in 10 restaurants are looking to invest in AI and automation to enhance operations, recent research has shown.

 

The Future of Commerce report from technology payments company Square revealed 85% of restaurants are looking to invest in AI, with two-thirds of restaurant leaders in the UK believing AI or automation would improve their business in terms of staff marketing and promotions (77%), payments (76%) and menu optimisation (76%).

 

The report also showed almost 80% of restaurant orders come via online checkout or in-app payment methods.

 

It comes as three quarters (74%) of consumers surveyed stated they are “keen for automation to be embraced” when a restaurant isn’t fully staffed.

 

Restaurant owners have already been tackling multiple challenges in recent months and are due to face increases to employers’ National Insurance Contributions (NICs), business rates and minimum wage come April.

 

This has led to 73% of those surveyed admitting they have spent more time on hiring than a year ago, while another 75% revealed they have had to pull more resources into business operations. Over seven in 10 restaurants are also planning to increase their prices over the next year.

 

But with 63% of consumers confessing they have cut spending on restaurant purchases over the past 12 months, which is higher than retail (58%) and beauty (51%), concerns for hospitality remain.

 

This has not dimmed optimism for the industry, however, with 74% of restaurants stating they plan to increase the number of retail items, menu items or services in the next 12 months, while 34% said they are even planning to expand the number of sites.

 

Samina Hussain-Letch, executive director at Square UK, said: “As businesses continue to face economic pressures, we’re seeing them invest in growth and experimentation as they find new, streamlined ways to work and deliver exceptional customer service – particularly through using time-saving and experience-enhancing technology.

 

“At Square, we strive to be the best digital partner we can be to our portfolio of sellers, giving them the time back to focus on growth, and our ecosystem is here to support UK businesses as they innovate, adapt and expand in 2025.”

 

Square’s Future of Commerce survey was conducted by Bredin among business owners and consumers in the beauty, retail and restaurant industries in the US, Canada, UK and Australia, with 500 respondents allocated per industry per country.

 

Square is believed to be one of the largest business technology platforms, with over four million sellers using its systems.