The Future of Point of Sale: Will Gen Y and Gen Z Drive New Tech Advances in Restaurants?
The restaurant industry is on the cusp of a significant shift as the next generation of consumers, Gen Y and Gen Z, become the dominant force in the market. With their tech-savvy nature and preference for convenience, these generations will likely demand new advances in restaurant technology, particularly in point-of-sale (POS) systems. In a recent episode of The Restaurant Report Podcast, host Paul Barron interviewed Savneet Singh, CEO of PAR, one of the innovative players in the restaurant tech space, to discuss the future of POS and the potential for PAR to outpace competitors like Toast.
The Rise of Mobile Ordering
One of the key trends driving the evolution of POS systems is the rapid growth of mobile ordering among Millennials. According to a study by the National Restaurant Association, 74% of Millennials have used a restaurant's mobile app to order food, compared to just 43% of Baby Boomers. This shift towards mobile ordering is expected to continue, with projections suggesting that mobile ordering will account for nearly 11% of all quick-service restaurant sales by 2020, up from just 3% in 2015.
As the demand for mobile ordering grows, restaurants must invest in POS systems that seamlessly integrate with their mobile apps, providing customers a smooth and efficient ordering experience. Companies like PAR have the potential to shine in this area as they focus on developing innovative solutions that cater to the industry's changing needs.
Slow Adoption of New Technology: Despite the clear benefits of embracing new technology, the restaurant industry notoriously slows down its adoption of new solutions. A recent survey found that 89% of restaurateurs agree that technology improves their restaurant's efficiency, yet only 38% plan to invest in new technology in the near future.
However, with the massive shift in consumer demographics towards Gen Y and Gen Z, restaurants may have no choice but to adapt. These generations have grown up with technology and expect seamless, digital experiences in every aspect of their lives, including dining out. As they become the primary target audience for restaurants, the industry will need to prioritize investments in new technology to meet their expectations.
The Potential for PAR
In this rapidly evolving landscape, companies like PAR are well-positioned to capitalize on the growing demand for innovative POS solutions. With a focus on developing cutting-edge technology that addresses the specific needs of the restaurant industry, PAR has the potential to outpace competitors like Toast, which has recently been a darling of the restaurant tech segment.
PAR's commitment to innovation and its deep understanding of the industry's unique challenges make it a strong contender in the race to dominate the future of restaurant POS systems. As the next generation of consumers drives the demand for new technology, PAR's ability to stay ahead of the curve will be crucial to its success.
The restaurant industry is on the brink of a significant transformation, driven by the changing preferences of Gen Y and Gen Z consumers. As mobile ordering becomes the norm and expectations for seamless, digital experiences grow, restaurants must invest in new technology to stay competitive. With their focus on innovation and industry-specific solutions, companies like PAR are well-positioned to take charge of the evolution of restaurant POS systems. As the industry adapts to the demands of the next generation, the future of dining out looks more tech-driven than ever before.
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