The COVID-19 pandemic has pushed the restaurant industry to utilize technology platforms more than ever before. This has led to increased M&A activity and interest across the restaurant technology sector, from omnichannel ordering solutions to software focused on supply chain management. We explore some of the key factors driving restaurant technology M&A today.
- Historically, restaurants have been technology laggards, often taking customer orders or managing their supply chains by pen and paper. The COVID-19 pandemic provided a dramatic wake-up call for the industry, forcing many restaurants to adopt omnichannel order-taking software as fast as possible to maintain revenue. As a result, integrated phone, text, and web-based ordering platforms are becoming must-have solutions.
- Leading technology platforms are developing next-generation solutions to meet the unique needs of foodservice operators from SMB to enterprise. M&A activity in the space will continue to be robust as winners emerge to serve restaurant businesses of every size.
- Labor issues are driving innovation in restaurant and foodservice tech. Many restaurants are utilizing new technology platforms to better meet workers’ demands. Solutions include pay-on-demand software that allows workers to cash out their earnings and tips from each shift, as well as technology for recruiting and scheduling workers.
- The COVID-19 pandemic has resulted in massive pent-up demand in personal and B2B events that will likely result in unprecedented capacity shortages in coming quarters. We expect venues from hotels to concert halls to see a surge in bookings that will require companies to adopt new technologies to manage demand. We anticipate that this will drive further dealmaking in event management, destination marketing, and catering software companies.