As the restaurant industry faces evolving consumer demands, economic challenges, and rapid technological shifts, companies like Square are stepping in to provide solutions that combine efficiency with personalized experiences. A leading technology provider for small and medium-sized businesses, Square identifies personalization and generative AI as pivotal trends driving growth in Canada’s restaurant sector.
Ming-Tai Huh, a James Beard-nominated restaurateur and Head of Square’s global Food and Beverage division, highlights the robust growth of Canada’s food and beverage industry, reporting a 20% year-over-year increase over the past five years. “The pandemic reshaped consumer habits, pushing businesses toward digitalization,” said Huh. “At the same time, people are eager to return to dining rooms for the social and experiential aspects of eating out. It’s a balance of embracing the old and integrating the new.”
Personalization: A Key to Winning Gen Z
Huh, who is also Partner with the Cambridge Street Hospitality Group in the Boston area, pointed to the rising importance of personalization, particularly among younger consumers like Gen Z.
“They want options tailored to their tastes,” he said. “A study from the University of California showed brands like Chipotle and Cava resonate with this demographic because they offer customization. Whether it’s dietary preferences or specific allergens, operators need to adapt to meet these expectations.”
For many restaurateurs, that shift toward personalization goes hand-in-hand with implementing advanced technology.
AI and Automation: Revolutionizing Operations
The integration of AI tools is another game-changer for the hospitality industry. From streamlining backend processes to enhancing customer experiences, AI is enabling restaurants to operate more efficiently.
“AI and automation are inevitable,” Huh emphasized. “Tasks like managing paperwork, legal documents, and inventory can now be handled with AI, freeing up operators to focus on high-value activities. For example, instead of reading a nine-page PDF, you can use tools like ChatGPT to summarize it in seconds.”
Square’s recently launched kiosk technology is a prime example of how automation is transforming restaurant operations. “Three out of four consumers prefer ordering online or at a kiosk rather than interacting directly with staff,” said Huh. “With Square’s Kiosk, businesses can reallocate staff from order-taking to tasks that enhance the guest experience, like hospitality or food preparation.
“With the evolution of technology in the hospitality industry, Canadians have come to expect
efficiency and convenience when ordering, and Square Kiosk delivers on that. Amid staffing challenges, growing costs and shrinking margins, Square Kiosk also gives operators the ability to staff up other areas of their businesses while busting lines and cutting down on wait time for customers.”
The Square Kiosk integrates seamlessly with an operator’s existing hardware, requiring minimal setup. “It’s as simple as downloading an app onto an iPad,” Huh added. “The barriers to adopting this technology have been significantly reduced, making it accessible even for small businesses.”
Challenges and Opportunities
While technology adoption offers opportunities for efficiency, restaurants still face ongoing challenges, including rising labor and food costs. However, Huh remains optimistic about the industry’s resilience and ability to innovate.
“Operators are cautiously optimistic,” he noted. “Many are exploring new revenue streams like catering, meal kits, and cooking classes. The desire to adapt and grow is evident, but success will hinge on embracing tools that make their operations more efficient and customer-centric.”
As the industry heads into 2025, technology’s role will only deepen. For restaurateurs, tools like AI, automation, and digital ordering platforms aren’t just optional—they’re essential to thriving in an increasingly competitive market.
Related articles:
