Technology Spend vs Revenue in Restaurants (UK & Europe, 2020–2025)

The past five years have dramatically reshaped how restaurants view technology investments in relation to revenue. Once a cautious area of spend, tech is now recognised as a lifeline for growth and efficiency across both independent eateries and major chains. This post examines pre-pandemic attitudes, the digital transformation sparked by COVID-19, the technologies adopted, their impact on revenue and operations, the challenges of tech adoption, and what the future holds for tech spend in UK and European restaurants.

Pre‑Pandemic Tech Skepticism (Before 2020)

Minimal Investments: Before COVID-19, many restaurants – especially independents – were hesitant to pour money into new tech. A 2019 study on independent restaurants in the UK found low rates of innovation adoption, citing barriers like cost, limited space, language barriers, and a desire to maintain human-centric hospitality . In fact, restaurants on average spent under 2% of annual revenue on tech before the pandemic, treating it as a luxury rather than a necessity. The typical tech stack was often limited to a basic point-of-sale (POS) system and perhaps a reservation book or rudimentary website.

Independent vs Chain Approaches: Large chains were marginally more progressive with technology pre-2020. Some pioneered mobile apps for loyalty and online ordering, but the majority of smaller operators lagged behind. Many independents resisted ICT adoption to retain the human touch in service and due to tight margins. This meant that heading into 2020, the restaurant industry in the UK and Europe was largely under-digitised, with fragmented uptake of tools and a lot of untapped potential.

The Pandemic’s Digital Wake-Up Call (2020–2021)

Survival Through Digital Channels: The COVID-19 pandemic forced an overnight shift. With dining rooms closed or capacity severely limited, restaurants had to pivot to takeaways, delivery, and contactless experiences – or perish. Lockdowns accelerated digital adoption at breakneck speed. For example, Deliveroo data showed that by mid-2020, Friday and Saturday night takeaway orders were up 40% in the UK compared to pre-lockdown levels . Across Europe, even consumers who had never ordered online before were trying delivery for the first time (3–4% of consumers in major countries). Many diners got used to scanning QR code menus and placing orders from their phones as staying in became the new going out .

Rapid Tech Implementations: Practically, this meant restaurants scrambled to implement online ordering systems, integrate with delivery platforms, and enable digital payments. “Click and collect” (order online, pick up in person) tripled in Europe in 2020–2022 – growing from €3 billion in 2019 to nearly €9 billion in 2022 . Independent UK restaurants that had barely considered delivery pre-2020 were suddenly signing up with apps like Deliveroo, Just Eat, or Uber Eats. In the UK, 91% of restaurants expected to earn revenue from takeaways in 2022, with 1 in 5 predicting delivery and takeout would comprise the majority of sales. This was a remarkable shift from the dine-in focus of years prior.

Embracing Contactless & Remote Tech: The pandemic also normalised technologies that improve safety and efficiency. Contactless card payments and smartphone wallets became default. By 2022, about 84% of UK diners were using QR codes to view menus or pay for meals – a trend virtually nonexistent before. Restaurants adopted reservation and queue management apps to control customer flow under social distancing. Kitchen display screens and order aggregation tools (like Deliverect) were introduced to handle the surge of online orders from multiple delivery platforms, reducing error-prone manual re-entry. In short, COVID-19 condensed a decade of digital transformation into a matter of months, and restaurants – both independents and chains – finally invested in tech en masse as a means of survival.

Post-Pandemic Tech Adoption Boom (2022–2023)

As restrictions eased, restaurants didn’t abandon these new tools – they doubled down on them. Diners had grown accustomed to the convenience of digital options, and operators saw the benefits to their top line. In a Deloitte survey, 55% of consumers in early 2023 said they dine out as often or more than before COVID, while 69% continued to order takeout/delivery at equal or higher frequency  . This sustained demand for off-premise service kept restaurants focused on omnichannel technology strategies.

Uptick in Tech Spend: By 2022, UK restaurants were allocating about 9% of their total sales to technology – a huge jump from pre-pandemic levels. A Q3 2022 survey of UK hospitality businesses found tech ranking alongside food and labour as a major cost center, roughly on par with occupancy costs. Crucially, a majority of operators planned to increase their tech budgets further. SpotOn’s 2022 Restaurant Tech report (largely reflecting US and global independents) noted that 3 in 4 independent restaurateurs were likely to adopt new technology in 2023 and 71% intended to boost tech spending . The UK market mirrored this trend, with 85% of UK restaurant leaders planning new tech investments for 2025 according to Square’s research.

What Tech Was Adopted: Restaurants expanded their toolkits in several areas:

• Modern POS Systems: Cloud-based POS with integrated payments became the norm, replacing legacy tills. In late 2022, 81% of small operators still had old-school POS , but many began upgrading to systems like Toast, Lightspeed, or Square that offer unified analytics, remote management, and add-ons.
• Online Ordering & Delivery Integration: Having an online ordering channel on the restaurant’s own website became important to regain margin from third-party apps. By 2023, about 24% of independent restaurants had in-house online ordering (with many more planning to add it) . Virtually all major chains built or enhanced their own mobile ordering apps to capture customer data and avoid aggregator fees.
• QR Codes and Digital Menus: From pub grub to fine dining, QR code menus and ordering systems saw widespread adoption for both convenience and hygiene. UKHospitality reported roughly 72% of restaurants planned to invest in QR menu/order/payment systems by 2025, driven by customer demand .
• Delivery and Driver Management: The rise of “dark kitchens” and delivery-only brands pushed restaurants to invest in delivery-specific tech. Platforms to manage multiple delivery services from one device (integrators), as well as route optimisation software for those running their own couriers, became common in chain restaurants and ambitious independents.
• Reservations & Capacity Management: With consumer demand high for eating out once venues reopened, reservation platforms (e.g. OpenTable, TheFork) and digital waitlists helped maximise seat utilisation. Around 63% of restaurateurs planned to invest in reservation or waitlist management tech going into 2023 .
• CRM & Loyalty Programs: Capturing guest data for repeat business became a priority. Over half of independent operators in one survey aimed to invest in CRM or email marketing tools and loyalty programs . Many restaurants launched or upgraded loyalty apps to engage customers between visits. Notably, 83% of UK restaurant leaders said their loyalty program boosted order sizes, repeat visits, and delivered ROI.
• Automation & AI: While still emerging, automation made inroads. Quick-service restaurants explored kitchen robotics (from automated fryers to drink dispensers) and AI-drive-thru pilots. Chatbots and AI assistants began handling routine customer inquiries (like phone orders or reservation confirmations) to free up staff. Consumers aged 18–38 are 16 percentage points more likely to return to restaurants using automation, hinting at a growing acceptance of robotics and AI in dining . Fast-casual and fast-food brands especially took note, testing everything from robot kitchen assistants to AI scheduling tools.

Independent vs Chain Dynamics: Larger chains generally led the way in adopting expensive innovations (for instance, McDonald’s experimenting with AI order takers, or Chipotle testing a robotic tortilla chip maker). Independents focused on affordable, high-ROI tech – e.g. adopting integrated POS and online ordering that solved immediate needs. Importantly, user-friendly solutions became more available for small operators, often via software-as-a-service (SaaS) models with low upfront costs. This democratized access to tools that were once the preserve of big brands.

Impact on Revenue, Efficiency & Experience

Technology adoption from 2020 to 2025 has yielded tangible improvements in revenue, customer experience, and operational efficiency in UK and European restaurants:

• Higher Sales & Order Volumes: Embracing delivery and online channels created new revenue streams. Industry analyses show restaurants using integrated online ordering see notable sales lifts – SpotOn clients, for example, saw a 9% increase in total sales after a year of using QR code ordering . Digital ordering often leads to larger check sizes due to easy upselling and more time for customers to consider add-ons. (Many operators have observed online customers adding extra items, desserts, or sides at higher rates than in-person orders.)
• Resilience and Revenue Growth: In the face of lockdowns and then inflationary pressures, tech has helped restaurants recoup and grow revenue. By late 2022, European foodservice spending was rebounding to 2019 levels , and by 2023 one in five meals eaten at home was coming from restaurants  – an enduring shift enabled by delivery tech. Restaurants that diversified channels fared better financially. It’s telling that 78% of restaurateurs reported improved profit margins in 2022 vs 2021, with nearly a third saying profits grew by double-digits . Industry leaders attributed a significant part of this comeback to digital solutions that drove incremental sales while streamlining costs .
• Improved Operational Efficiency: Internally, tech has cut waste and labour inefficiencies. Modern POS systems with all-in-one handheld devices let servers input orders and take payments tableside, saving countless staff hours. William Connors, IT Director of Noble Restaurant Group in the UK, noted that adopting handheld POS terminals eliminated time wasted “queueing at tills” and reconciling receipts, allowing servers to spend more time with guests and speeding up close-out at day’s end. These efficiency gains translate to quicker table turns and happier customers. Likewise, kitchen display systems reduce errors and improve ticket times, while inventory management software (often linked to POS) helps managers keep food costs in check by providing real-time stock and price fluctuation insights.
• Enhanced Guest Experience: Technology, when used right, has elevated the customer experience. 73% of diners believe restaurant tech improves their guest experience – for instance, through convenient online booking, digital loyalty rewards, or faster service via handheld ordering. During the pandemic, tech also catered to heightened safety expectations (contactless menus, payments, etc.), which in turn built trust and brought customers back. The key has been using tech to complement hospitality, not replace it: by offloading administrative tasks from staff (e.g. automating reservations, waitlists, or order entry), employees are freer to focus on food quality and personal service.
• Staff Productivity and Retention: With chronic labour shortages across hospitality, tech has stepped in as a force multiplier for lean teams. Scheduling software and forecasting tools help managers optimise shifts, reducing overspend on labour while avoiding staff burnout. Some restaurants introduced AI-powered phone assistants to handle incoming calls (answer FAQs or take simple orders). This addresses a real pain point – nearly half of customers say they might not patronise a restaurant if calls go unanswered. By using AI to field calls, restaurants keep guests happy and lighten the load on staff, effectively doing more with fewer employees. Many operators also report that younger staff enjoy using modern tech (like handheld order pads or self-service kiosks) as it makes their jobs easier and more engaging, aiding retention.
• Real-World ROI Data: Industry studies are increasingly quantifying the ROI of tech tools. In addition to the sales and profit margin boosts mentioned, consider loyalty programs: UK restaurants have found that well-run loyalty schemes drive higher spend per visit and frequency, delivering a clear return. Another example: adopting self-order kiosks or table ordering apps in fast-food and casual venues has been shown to increase average transaction size (patrons tend to order more via screen, possibly due to no perceived judgment!). While exact figures vary, numerous case studies echo the theme that digital investments pay for themselves through a mix of higher revenue and lower costs.

The Other Side of the Coin: Challenges & Tech Fatigue

For all the gains, the tech revolution hasn’t been seamless. Restaurant operators have faced significant challenges in managing and optimising their new digital ecosystems:

• Fragmentation of Platforms: A common complaint by 2022 was that “restaurant technology is everywhere — but it’s disjointed and makes life harder”. Many restaurants ended up with a constellation of separate apps and systems (one for POS, another for delivery orders, another for reservations, etc.) that didn’t talk to each other. Juggling multiple tablets and re-entering data from one system to another became a daily headache, particularly for independents who lack IT departments. This fragmentation eats up time and introduces errors – an issue highlighted when 325 UK restaurants surveyed ranked vendor management and integration as a top pain point.
• Rising Costs and Unclear ROI: Despite spending more on tech, not all operators immediately saw profits rise. According to the National Restaurant Association’s 2025 report, 83% of operators agree tech provides a competitive advantage, yet only 28% say their tech investments improved profitability. There can be a lag between adopting a system and fully leveraging it to boost revenue or cut costs. Additionally, subscription fees, hardware costs, and training expenses add up. Especially after the rush of pandemic tech buying, some restauranteurs felt the pinch of high monthly SaaS bills. Cost remains the #1 barrier to tech investment for many, with operators cautious about chasing every shiny new gadget . Nearly half of independents say they prioritise effective support and ROI over just the cheapest price when evaluating tech  – indicating a desire to spend smart, not just spend more.
• Tech Fatigue: By 2023, a bit of a tech backlash emerged. Some high-profile operators actually hit “pause” on certain innovations. For example, McDonald’s halted its AI drive-thru voice assistant pilot after considerable investment, deciding it wasn’t yet delivering the desired return. Fast-casual chain Sweetgreen tempered expectations on automating salad production, acknowledging not every store would benefit equally. The industry learned that tech for tech’s sake can be a costly mistake. “Fewer operators are testing new technologies, and they’re pulling them quickly if they’re not working,” observed Jeremy Julian of Custom Business Solutions, noting that restaurants are becoming more discerning after the COVID tech explosion. This tech fatigue has led some to refocus on fundamentals and ensure any new system truly aligns with their concept and customer expectations.
• Integration & Training Hurdles: Even when funds are available, implementing tech can strain a business. Training staff – especially in an industry known for high turnover – is an ongoing battle. Roughly 29% of operators cite staff training on new tech as a top concern . A tablet or software is only as good as its users’ comfort with it, and not all hospitality staff are digitally savvy. Additionally, making disparate systems work together (integrations) can require technical expertise or third-party middleware. Independent restaurants may struggle here, although companies like Toast, Square, and others are pushing more “all-in-one” solutions to simplify things.
• Maintaining the Human Touch: There’s also a cultural challenge – ensuring that increased automation doesn’t erode the personal service that defines hospitality. Some restaurateurs, particularly in Europe’s fine dining circles, deliberately keep tech invisible to guests. For instance, a fine French bistro might still handwrite orders or process payments discreetly so the diner experience feels old-school, even if behind the scenes they analyse data with modern software. Striking the right balance between efficiency and ambiance is an art. The best operators involve their teams in choosing tech that augments service rather than replacing it, so staff buy in to the changes. As one restaurant owner put it, “We invest in tech to alleviate back-of-house tasks, not to remove our front-of-house smiles.”

Future Outlook: 2024 and Beyond

Looking ahead, technology spend in the restaurant sector is expected to continue rising across the UK and Europe – but with a strategic, value-focused lens. Here are some forward-looking perspectives:

• AI and Predictive Analytics: Restaurants are gearing up for an AI-driven future. In the UK, 85% of restaurant leaders are eyeing AI or automation tools in 2025. The applications range from predictive analytics for inventory and staffing (forecasting sales to schedule just the right number of staff and stock the optimal ingredients each day) to AI-driven personalised marketing (using customer data to tailor promotions, recommend dishes, or even dynamically price menus). AI chatbots may handle more customer interactions, and machine learning could help analyse feedback or social media to inform menu improvements. Early adopters of AI in restaurants are optimistic that these tools can uncover efficiency gains not attainable through manual analysis.
• Unified Commerce Platforms: The frustration with fragmented tech is driving a push toward unified platforms and consolidation in the tech vendor space. Industry experts predict a wave of mergers among restaurant tech providers in 2025–2026 to offer end-to-end solutions. The ideal scenario for an operator is one dashboard to manage everything – from in-house sales and online orders to inventory, staff, and guest CRM. Companies like Toast (expanding into the UK) and Lightspeed, or even Oracle’s Simphony, are all vying to provide that single source of truth. Open APIs and integrations are also improving, enabling restaurants to plug in new modules without starting from scratch. In Europe, this could also mean more pan-European solutions that handle multi-language, multi-currency operations as restaurant groups expand across borders.
• Continued Digital Engagement: Consumer behavior suggests digital convenience is here to stay. By 2025, 70% of UK consumers expect digital interactions with restaurants to be more important than in-person ones . This doesn’t mean people won’t dine out (indeed, there’s pent-up demand for experiences), but it means that the ease of browsing menus, ordering, and paying via devices will underpin those experiences. Restaurants will likely invest more in their mobile apps, websites, and loyalty programmes, since customers gravitate to brands that offer seamless digital journeys . Expect more personalised offers via apps, mobile pre-ordering for dine-in (to minimize waiting), and even AR/VR experiences for marketing (some venues let you see a 3D image of a dish before ordering, for instance).
• Automation with Caution: Automation will advance, especially in back-of-house roles – think robotic prep cooks, automated dishwashers, and perhaps automated pizza or burger assembly in QSR settings. Europe has been somewhat cautious but is catching up; for example, robotic baristas or autonomous pizza vending machines have appeared in some cities. Given the ongoing labour shortages and cost pressures (wages rising, etc.), automation can fill gaps. Two-thirds of UK restaurant leaders believe AI/automation can improve key areas like inventory, marketing, payments, and menu optimisation. However, the adoption will be pragmatic. We will likely see hybrid models where human staff work alongside AI or robots – leveraging the consistency of machines and the creativity and warmth of people. Also, any front-of-house automation will be carefully tested to ensure it truly enhances the guest experience (no one wants a repeat of failed experiments that frustrate customers).
• Data-Driven Decisions: With more tech comes more data. Restaurants that succeed will invest in analytics to turn all that data into actionable insights. This could mean real-time dashboards for multi-unit operators to compare performance across locations or using guest data to drive menu engineering (identifying which dishes drive profit and which don’t). The mindset is shifting to view technology spend not as an expense line, but as an investment in intelligence that informs every part of the business – from kitchen prep to marketing strategy. As David Hulme of MarketMan noted regarding UK hospitality, coping with rising costs means knowing your numbers intimately; “As long as [restaurants] understand what rising food costs are and how it impacts margins, they can control it… That’s where technology comes in”.
• Sustainability and Tech: European consumers are increasingly eco-conscious, and tech will play a role in meeting those expectations. We may see greater spend on tools that help reduce food waste (smart inventory systems, AI that predicts demand spikes to avoid overstocking), energy management systems in kitchens to save electricity, and even blockchain for supply chain transparency (to prove sourcing and sustainability claims). These investments don’t directly boost revenue, but they protect the bottom line and strengthen the brand in customers’ eyes – an indirect revenue benefit.

Conclusion

Between 2020 and 2025, restaurants in the UK and Europe journeyed from skepticism to full embrace of technology, driven largely by necessity and ultimately by opportunity. Pre-pandemic, tech spend was small and cautious. The COVID crisis then forced rapid digital transformation, making online ordering, delivery integration, and contactless service standard practice virtually overnight. In the aftermath, tech adoption accelerated, with restaurants investing in everything from POS upgrades and loyalty apps to AI assistants – all with the goal of enhancing revenue, improving efficiency, and elevating the customer experience.

Real-world data and operator stories show that when implemented thoughtfully, these technologies have indeed boosted sales, streamlined operations, and helped eateries weather a turbulent period. However, it hasn’t been without challenges: fragmentation of too many platforms, high costs, and occasional tech fatigue have reminded the industry to focus on smart tech spending rather than jumping on every bandwagon.

Going forward, the trajectory points to even more integration of tech in restaurants – but with a sharper eye on ROI and guest experience. Independent restaurants and chains alike are expected to continue upping their tech budgets, investing in AI, automation, and unified systems that can drive growth in a sustainable way . In a sense, the industry has matured: the wild rush to digitize is giving way to a more measured approach where tech spend is aligned closely with revenue impact. The restaurateurs of 2025 know that technology can be a game-changer – if it’s embraced with clear objectives and integrated seamlessly into the restaurant ecosystem.

Ultimately, the past five years have proven that tech investment is no longer optional for restaurants – it’s critical to staying competitive and delighting guests. As one Deloitte expert aptly said, the restaurant sector now has “a menu full of opportunities” ahead, served by advanced technologies and evolving consumer demands . The winners will be those who choose the right innovations that deliver real value, both to the business and to the diner. Bon appétit to the digital age of dining!

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