Restaurants continue to see a lot of value in technology: Eight out of 10 say it gives them a competitive advantage, according to the National Restaurant Association’s newly published State of the Restaurant Industry report.
But how restaurants choose to deploy that tech is changing a little.
The association’s annual bird’s-eye view of the industry is based on surveys of restaurants and consumers. Each year, operators are asked how they plan to spend their tech budgets.
For 2026, a majority of restaurants (60%) say they’re focusing on tech that improves the customer experience. That includes 62% of limited-service restaurants and 57% of full-service restaurants.
It’s the most popular area of investment. By comparison, 54% of restaurants are investing in tech for the front-of-house; 48% are looking at the back-of-house; and 44% plan to boost their cybersecurity defenses.
It’s a bit of a shake-up from last year, when interest in front-of-house, back-of-house and cybersecurity tech was up.
But it shouldn't surprise anyone that restaurants are honing in on customers right now. Diners have become a bit distant in recent years as inflation has made eating out harder to afford. About 40% of consumers said they used restaurants less last year, and about 60% of operators reported softer traffic, according to the report.
Restaurants continue to be anxious about the economy. About a quarter of operators said the economy is their top worry for 2026.
Food and labor costs are also a concern. Both are up about 35% since 2019. Restaurants’ profit margins are razor thin—just 2.8% last year for FSRs and 4% for LSRs.
That brings us back to technology, which, at its best, can help restaurants operate more efficiently while also pleasing customers with faster and more convenient service—a win-win.
The report highlights a few pieces of customer-facing technology that have been particularly effective.
Over the past two to three years, operators said on-premises ordering and payment technology has had the biggest impact of any technology. That could include things like handheld server tablets, kiosks or even AI voicebots in drive-thrus.
Digital marketing and advertising and tools for collecting customer feedback were also highlighted as impactful. Both could improve the customer experience if used correctly.
And when asked about how they’re using artificial intelligence, operators are also looking outward: 17% said AI has been most useful for marketing purposes.
All told, 65% of operators said they think tech improves the customer experience.
Customers, however, feel a bit differently.
Overall, they are more mixed on whether technology improves their experience. Just over 40% of them said it does, 38% said it does not, and 21% said it has no impact, per the report.
In other words, most people are not going out to eat for the tech.
But some of that depends on what type of technology is being used and who is using it.
Most people (74%) are comfortable using a mobile app to order and pay, for instance. Sixty-eight percent are cool with kiosks. And when ordering takeout or delivery, digital options are a virtual must.
Even during a sit-down meal, most are OK with some tech: Sixty-seven percent said they’d be comfortable ordering and paying on a tablet at their table.
With newer technology, however, restaurants should tread more lightly. Less than half of consumers (46%) said they’d like to order online by interacting with an AI chatbot. Even fewer (39%) said they’d want to order from an AI “persona” on a video screen.
Not surprisingly, younger consumers are generally more open to technology, while older generations—particularly baby boomers—are more resistant.
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