Technology

The biggest restaurant tech stories of 2024

AI, kiosks and delivery apps were the big winners. Loyalty programs and dynamic pricing had a weird year.
Kiosks catching on in restaurants. | Illustration by Nico Heins/Midjourney

There's no such thing as a slow year in restaurant technology. But 2024 in particular gave us a lot to think about. Some trends took off like a rocket, like AI and kiosks, while others, like dynamic pricing, came to a screeching halt. And third-party delivery apps continued to be a source of discussion, and frustration. Here's a look at the highlights. 

AI takes hold

Artificial intelligence was everywhere in the restaurant industry this year. From mom-and-pops to giant chains, restaurants are betting big on AI’s ability to automate tasks done by human workers, and maybe even do them better. That includes taking orders in the drive-thru, writing marketing copy, predicting sales and more.

Further reading: At FSTEC, a glimpse of restaurants’ AI-powered future

Loyalty looks for an identity

It was a weird year for restaurant loyalty. Seemingly every restaurant chain on the planet either launched a program this year or revamped an existing one. All this launching and re-launching suggested two things: Restaurants see a lot of promise in loyalty, but few have nailed it yet.

Even Starbucks, whose Starbucks Rewards is the gold standard for restaurant loyalty programs, is doing some soul-searching on the subject. New CEO Brian Niccol said Starbucks’ marketing has focused too much on its nearly 34 million loyalty members at the expense of its more casual customers, which has contributed to flagging sales.

Further reading: The year of restaurant loyalty programs ends with a whimper 

Wonder acquires Grubhub

This deal was notable for so many reasons. Grubhub’s value plummeted by 90% in four years. Wonder showed it was serious about its “super app” ambitions. And the third-party delivery landscape got a formidable new player in Marc Lore. 

At the end of the day, Wonder made a big bet on a struggling company that, at first glance, is a good-but-not-great fit with its business model. And I am very curious to see how it plays out. 

Further reading: 6 thoughts on Wonder’s acquisition of Grubhub

Delivery apps keep winning

For the non-Grubhub delivery apps, 2024 was a very good year. DoorDash and Uber Eats continued to make themselves essential for consumers by offering new perks, better tech and, most importantly, lower prices. Customers continued to flock to them, which made the apps increasingly essential for restaurants as well. 

The apps also won some key court battles in New York and California that will allow them to keep operating more or less as usual.

But their growth also raised some new frustrations for restaurants, like discounting, order batching and fraud. 

Further reading: How third-party delivery became indispensable 

Dynamic pricing becomes a touchy subject

A brief comment by Wendy’s CEO may have ended dynamic pricing in restaurants as we knew it. In February, Kirk Tanner said that the burger chain might test demand-based pricing in the drive-thru in 2025. The media spun that into “surge pricing,” and all hell broke loose. Wendy’s later said it never planned to use dynamic pricing to raise prices. 

The idea, which had been gaining momentum, became more divisive after the Wendy’s incident. In August, one of the leading providers of dynamic pricing, Juicer, stopped offering it, saying operators were scared of angering customers.

The practice of adjusting prices based on demand is not a bad one, and it is not entirely dead. But the phrase “dynamic pricing” probably is. 

Further reading: Dynamic pricing a divisive topic at National Restaurant Show

Kiosks finally catch on

Kiosks helped restaurants check several boxes in 2024. They can streamline the ordering process, generate higher tickets, and turn more transactions digital. And they can make workers’ jobs easier by freeing them up to do other things. 

The self-service machines are now a common sight at many large fast-food chains, and will likely continue to spread as brands pursue a more digital-centric strategy. 

Further reading: Kiosk ordering provider Bite raises $9M as kiosks hit ‘inflection point’

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