Square has recently released its fifth-annual Future of Commerce Report, offering insights into the restaurant, retail, and beauty industries in the U.S., Canada, U.K., and Australia. The report highlights the increasing trend of businesses, especially restaurants, turning to innovative technology solutions to address the challenges of high inflation, shrinking consumer wallets, and the need to raise prices.
According to Square’s research, 89% of restaurant leaders in Canada are planning to invest in technology to improve their businesses in 2025. As costs rise and industry challenges persist, more than three-quarters of these leaders are dedicating more time to business operations. The focus is on leveraging technology such as AI and automation to enhance efficiency and deepen customer relationships.
Automation is a key area of interest for Canadian restaurant operators, with a significant portion planning to invest in loyalty or reward programs to retain customers. Loyalty programs have been shown to drive revenue growth, with a majority of restaurant leaders acknowledging the positive impact on order size, repeat visits, and return on investment. Additionally, many businesses are exploring new services and offerings, such as in-store events, subscriptions, memberships, and merchandise.
Despite consumers cutting back on restaurant spending, Canadian restaurants are planning to increase prices to offset rising costs in the supply chain. However, the overall sentiment among restaurant leaders remains positive, with the majority expressing optimism about their businesses. Many are also looking to expand their operations in 2025, with plans to increase the number of locations and expand their menu offerings.
Ming-Tai Huh, head of Food & Beverage at Square, notes that restaurants in 2025 are navigating the balance between automation and hospitality. With economic pressures persisting, businesses are investing in growth and experimentation to streamline operations and deliver exceptional customer service. The use of time-saving and experience-enhancing technology is becoming increasingly important in achieving these goals.
In conclusion, the Future of Commerce Report sheds light on the evolving landscape of the restaurant industry in Canada and beyond. By embracing technology, investing in loyalty programs, and exploring new service offerings, businesses can adapt to the challenges of the current market while maintaining a focus on growth and customer satisfaction. As the industry continues to evolve, staying ahead of trends and leveraging technology will be essential for success in the competitive market.
