Executive Brief

Position your restaurant to turn technology into customer loyalty and growth

Innovate and manage rising costs through network modernization.

Faced with soaring costs and a rapidly evolving digital landscape, restaurateurs must rethink how they operate and interact with customers. What once centered primarily around food and in-person hospitality now demands a seamless integration of technology, data and experience-driven service.

Inflationary pressure is hitting both sides of the counter, driving up the cost of food, labor and operations while simultaneously impacting how consumers choose where and how they dine. As prices rise, so do customer expectations. In a market where diners are more selective with their spending, offering great food isn’t enough. Today’s tech-savvy, cost-conscious consumer expects efficient, personalized and digitally enabled experiences that fit their needs and lifestyle. At the same time, as restaurants evolve their digital capabilities, they must maintain the human connection that supports long-term customer relationships.

To remain competitive and profitable in this environment, restaurant operators need to invest in a modern, scalable IT infrastructure that ensures performance and reliability across every touchpoint — online and in person. Brands need an updated approach to managing their networks and IT that enables them to achieve new efficiencies and increase the ROI when adopting new technologies.

Consumers and restaurants are both looking for savings

Inflation has reshaped the financial outlook for restaurants and their patrons. From family diners to fine-dining establishments, restaurateurs are seeing operating costs rise sharply and customers grow increasingly price sensitive. The wholesale cost of vegetables rose 48% YOY,¹ while coffee climbed 26%² and alcoholic beverages jumped 8%.³ These price hikes put pressure on restaurants’ already narrow profit margins — and the increases aren’t happening in isolation. Costs for energy, transportation and packaging have also increased, leaving restaurateurs with few options but to adjust the prices they offer customers.

Labor costs represent another critical pain point. Amid a tight job market and rising living expenses, restaurant owners have been forced to raise wages. More than 80% of restaurateurs reported increasing staff wages in 2025.⁴ In an attempt to keep up with rising wages — and ingredient costs — 56% of restaurants raised menu prices in 2025.⁵

69% of consumers cite the rising cost of restaurant meals as their reason for cutting back on dining out.⁶

However, restaurateurs understand that price hikes aren’t a long-term solution. With consumers tightening their own budgets, restaurants risk losing business if their offerings become too expensive. Restaurants that raised menu prices by more than 10% in 2025 were most likely to report lower profits.⁷ Many patrons are already shifting from full-service options to more affordable casual or quick-service restaurants (QSRs) — or they’re choosing to stay home altogether. As the cost of dining out climbs, the perceived value of the experience becomes key.

This changing behavior has made the restaurant market more competitive than ever. To stand out and stay profitable, brands must tightly manage costs while simultaneously investing in enhancements to the customer experience that distinguish them from their competitors. The aim of this balancing act is to build loyalty, encourage repeat visits and spur sustained growth.

Technology is reshaping customer expectations

The steady introduction of new technologies is changing how restaurants operate — and redefining what customers expect. Mobile apps, loyalty programs, digital ordering and self-service options have graduated from being novelties to becoming operational necessities. Today’s diners anticipate a level of convenience that matches what they experience in other areas of life. Whether they’re placing a to-go order from their phone or checking into a loyalty program via an app, consumers increasingly interact with restaurants through digital channels. Delivery continues to be in high demand as well, with more consumers than ever ordering directly from restaurant websites or apps.

Loyalty programs are another area where digital transformation is driving customer engagement. Over 80% of restaurant leaders say their loyalty program successfully drives up order size and repeat visits,⁸ and 50% of restaurants are actively investing in their marketing and loyalty technology.⁹ To build on the success of these programs and increase revenue, many restaurateurs are looking to leverage the power of AI to enable greater personalization.

80% of customers say technology influences where they choose to eat.¹⁰

The top three benefits restaurants hope to achieve with AI:¹¹
Enhance customer experience – 60%
Improve restaurant operations – 36%
Enhance loyalty programs – 31%.

76% of restaurant operators say that technology provides them with a competitive edge.¹²

Optimizing the brick-and-mortar dining experience

Technology is just as vital inside the restaurant. Self-service kiosks have jumped in popularity, with the majority of customers (over 60%) using them at least occasionally and 26% using them frequently.¹³ These systems speed up ordering, increase accuracy and empower customers to personalize their meals, improving satisfaction while reducing demands on staff. Even full-service restaurants are embracing digital tools, with 65% of diners saying they’d use a tablet to pay at the table while 60% would use it to place an order.¹⁴ This kind of offering enables operators to enhance convenience and control by accelerating checkout and smoothing table turnover.

Meanwhile, point-of-sale (POS) systems have become more critical than ever, playing a crucial role in delivering a positive customer experience and sharpening operational efficiency. Restaurant leaders rate POS systems as the top target for their upcoming technology investments.¹⁵ Focusing on the speed, reliability and integrated functionality of the POS system is essential.

Restaurants are also improving their entertainment technology systems. For example, with 68% of US sports fans saying they watch live sports via TV or online streaming,¹⁶ enhancing the in-venue TV experience with premium sports programming, centralized control and synchronized video is an important tool for bars and restaurants to build customer loyalty and grow revenue.

As technology scales, restaurants need to prepare

Dining has become more connected, more personalized and more reliant on technology than ever before. These advances have the potential to increase sales and make operations more efficient — but only if the restaurant’s IT infrastructure can keep up with growing demand and complexity. Restaurateurs must invest in reliable restaurant connectivity, modern networking solutions and cloud capabilities that can scale with their business needs.

Unfortunately, many restaurants lack the resources to take advantage of fast-evolving consumer preferences. This disconnect between consumer expectations and most restaurants’ current capabilities presents a serious threat. Those brands unable to bridge the gap may see their customers choose other options. For those willing to commit time and resources to network modernization, the present inflection point offers a massive opportunity for differentiation and growth.

How restaurant operators view their technology use:¹⁷
23% – Lagging in technology adoption
13% – On the leading edge compared with peers

Internet connectivity

The digital tools that improve customer satisfaction and business performance — such as POS systems, mobile ordering apps, loyalty platforms, kitchen management software and customer WiFi — depend on uninterrupted internet connectivity. A dropped connection can lead to missed orders, delayed payments and damaged customer trust. Disruption to smart cameras or environmental sensors brings other potentially serious consequences, from an elevated building security risk to food safety violations and spoilage. Restaurants are also using video analytics to improve operations, relying on intelligent camera systems for incident detection, queue monitoring, workforce allocation and insights that enhance efficiency and the customer experience.

As restaurants add more connected devices and touchpoints, their bandwidth needs will continue to grow. Ensuring reliable, high-speed internet at each of your locations is now an operational — and competitive — necessity.

Networking

From inventory management systems to cloud-based scheduling technology and Internet of Things (IoT)-enabled kitchen equipment, the digital load on restaurant networks is expanding. Restaurants with multiple locations or limited IT teams need a scalable, easy-to-manage network infrastructure that allows centralized oversight and remote troubleshooting. Local and wide area networks need to be scalable and simple to manage to prevent disruptions to service, which can be costly in lost revenue and customer loyalty.

Cloud connectivity

The network traffic that organizations must manage isn’t confined to headquarters and store locations. Many applications that restaurants rely on for day-to-day operations live in the cloud, and investments in modernization need to ensure those connections are reliable and secure. These solutions include everything from online ordering platforms to restaurant management software, and they all require secure, consistent cloud connectivity to operate smoothly and reliably. Restaurants that prioritize a modern network architecture are better positioned to scale, respond to trends and introduce new technologies that enhance operations and customer satisfaction.

Reshape the restaurant experience with Spectrum Business®

Even amid rising costs and a rapidly changing marketplace, restaurants have a chance to thrive — when they can adapt to meet customers where they are. Today’s diners expect speed, convenience and personalization, presenting restaurateurs a unique opportunity to innovate. Self-order kiosks, mobile apps, loyalty programs and AI-powered personalization are more than just tools — they’re business drivers. Those brands willing to invest in the right solutions stand to differentiate themselves by delivering digital-forward experiences that add value and streamline service.

Spectrum Business offers a broad suite of managed services and enterprise-grade products designed to help you build an IT infrastructure that’s ready for your restaurant’s future. As your managed services provider, we offer peace of mind by ensuring critical systems stay up and running, no matter how complex the technology stack becomes. We also make it easier to scale across multiple locations, implement updates and manage security. Through it all, we have your back with industry-leading service-level agreements and 100% US-based support, available 24/7. Explore how Spectrum Business can customize solutions for your unique business needs, whether it’s one location or many.

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