Restaurant and retail tech trends 2025 to improve customer experience, process automation and security

Before we take a look at current trends in foodservice and retail, let's take a look at what 2025 will look like. According to Incisiv research:

The battle for customer attention is getting tougher, and the cost of making a mistake is getting higher. In this article, we'll explain which solutions are having the most remarkable impact on both restaurant operators and diners. You’ll learn:

It is no longer enough for restaurants and retailers to offer attractive deals to increase reach and drive revenue: customers and guests are becoming increasingly selective. While Denny's will close around 50 locations in 2024 and plans to close a further 100 restaurants by the end of 2025, digital-savvy businesses continue to thrive in this new era. Potbelly is a prime example, with 40% of its total sales coming from digital channels. Its success shows how technology has changed the map of the restaurant industry.

According to Zendesk Benchmark data, 73% of consumers will switch to a competitor after multiple bad experiences, and 3 out of 4 consumers will spend more with companies that provide a good customer experience. That's why it's important to not only innovate in foodservice, but to do so intelligently.

The MoldStud research shows that 60% of consumers are more likely to return to a store that prioritises ease of use. Services such as QR code menus, voice-activated and digital payments allow customers to order and pay without waiting for staff, reducing service time and improving the dining experience. It also makes services accessible to a wider range of customers, including those with disabilities or limited technical skills.

Here are some insights into consumer preferences and behaviours that restaurant owners and retailers should be aware of in 2025:

These findings underscore the growing consumer demand for contactless services and the critical role convenience plays in influencing purchase decisions and brand loyalty. And here are the most common solutions for implementing these technologies.

QR codes are generated using encrypted data encoding algorithms that connect to cloud-based platforms. Customers scan these codes with their smartphones, triggering API calls that access relevant data such as menus, product details or payment gateways. Advanced QR solutions can be integrated with point-of-sale (POS) systems, loyalty platforms or CRM systems to create a consistent user experience.

The United States, Canada, Mexico, the United Kingdom, Australia, Singapore, the Netherlands and India have already seen a significant increase in the creation and adoption of QR codes. As a result, global usage of QR codes has skyrocketed, with scans in over 50 countries increasing by a staggering 57%. Experts predict that this trend will continue, with a further 22% increase predicted by 2025.

The most common use-case of QR codes in restaurants is allowing customers to view dynamic menus tailored to availability or preferences and pay instantly without staff interaction. But our experience shows that its value can be more deep and widespread. While building the restaurant aggregator app Foodclick we’ve laid out a complete user journey in QR-codes: pre-order, access to advanced functionality, flexible bar menu display.

In retail chains, QR codes have been used to improve self-checkout and allow customers to explore detailed product specifications or promotions. But in 2025, they can be used as a complete element of the sales funnel and as an offline and online integration tool, because they can be placed anywhere:

Once we launched a loyalty programme mobile app for a large seafood retailer and it got the top places in the category “Food and Drinks” in the App Store a few weeks after launch. Read the full success story here.

Biometric systems use advanced pattern recognition technologies such as machine learning (ML) and deep neural networks to analyse and validate unique physiological or behavioural characteristics. These systems often use secure enclave technologies to store biometric data locally, minimising security risks. For example, facial recognition systems process visual input using convolutional neural networks (CNNs), while voice authentication relies on spectrogram analysis to identify vocal nuances. According to GrandView research, the global market for biometric technology is expected to grow at a compound annual growth rate of 20.4% from 2023 to 2030, reaching a value of USD 150.58 billion by the end of the decade.

In 2024, biometrics will be widely used in digital payment systems to ensure data security. These solutions are designed to comply with standards such as PCI DSS and GDPR, increasing trust and security.

But in 2025 biometrics will become a part of inclusion and equality policies inclusive, making services accessible to a broader range of customers, including those with disabilities or limited technical knowledge. This capability is also reflected in the design of interfaces. We talked about how UI/UX is using biometrics to create native user experiences in our author's review of current web design trends for 2025.

That's why the technology is already being used by leading restaurant and retail chains around the world.

KFC China uses AI-driven facial recognition to recommend menu options based on customer profiles. And Amazon Go's palm scan system leverages AI and encrypted edge computing for seamless checkout experiences.

AI is becoming the backbone of modern restaurant operations faster than ever. Smart AI systems now handle tasks that previously needed extensive manual oversight and decision-making.

Remember your first annoying experience interacting with standard chatbots? Previously, a user had to follow rules to get help from a bot, such as formulating a request according to a script and following a logic of providing information step-by-step. This format took more time and required additional clarification from the customer, rather than irritating them. In many cases, chatbots could not handle atypical tasks and involved real people in their solution.

Traditional chatbots, limited to a specific list of tasks, are being replaced by intelligent assistants. Today, generative artificial intelligence systems with voice recognition can actually replace communication with a support specialist. Such an AI assistant flexibly reads data from a user's request, interprets the essence of the request and recreates the answer as a human would give it. Especially for such remote formats as self-service kiosks and drive-thru.

Such speech-enabled systems are powered by Natural Language Processing (NLP) and Speech-to-Text (STT) algorithms that convert spoken words into actionable commands. These systems integrate with dialogue management modules that analyse intent and context to ensure accurate responses. Advanced setups use AI-driven predictive analytics to personalise responses based on previous interactions.

For restaurants and retail environments, these solutions often integrate with cloud-based APIs, point-of-sale systems, and inventory databases. They are optimised for noisy environments with noise-canceling microphones and multi-channel audio input to ensure clarity.

This solution is already being used by Wendy's – the fifth largest fast food chain in the US, which is actively using Fresh AI, its partnership with Google Cloud, to improve customer support. One of the solutions implemented last year was an extension that recognises the customer's language. When ordering from a self-service kiosk, there is no need to go into the interface settings. Just start a conversation with the device and the virtual assistant will respond in your native language through a microphone. This solution is suitable for chain stores located in popular tourist areas.

Another inspiring example is Taco Bell, which has 7,400 locations nationwide and has already deployed AI in more than 100 outposts across 13 states. The company plans to double its use of artificial intelligence to take drive-through orders by the end of 2025, and reports more efficient and faster service, improved order accuracy, shorter wait times and greater profits.

Menu engineering involves the strategic design and optimisation of menus based on data insights and AI-driven analytics. Advanced tools such as machine learning algorithms analyse sales data, customer preferences and even seasonal trends to identify high and low performing items. Natural language processing (NLP) tools evaluate customer feedback, while predictive analytics forecast demand for specific items.

Emerging technologies such as virtual reality (VR) and augmented reality (AR) enhance the process by enabling dynamic and interactive presentations of menus and product catalogues. Customers can visualise dishes in 3D or virtually 'try on' an outfit before purchasing, bridging the gap between physical and digital experiences. According to Research Gate Insights, retailers using AR/VR reported a 25% reduction in product returns and a 20% increase in conversion rates.

AR/VR can also provide an immersive customer experience and could be a fantastic promotional tool for your restaurant or retail business in 2025.

And here are the core effects that restaurant and retail will get after implementing menu engineering in their processes.

With 73% of consumers preferring businesses that offer personalised recommendations, according to a study by Accenture, restaurants and retailers need to increase the speed of their offers. Instant recommendation systems rely on AI-powered recommendation engines that use customer data and contextual inputs to suggest products or menu items in real time. These engines use collaborative filtering, content-based filtering, and deep learning algorithms to analyze customer behaviors, preferences, and demographics. This solution is particularly important for companies looking to expand into new markets.

Advanced systems integrate with IoT devices, mobile apps or digital signage to deliver hyper-personalised recommendations throughout the shopping or dining journey. Restaurants and retailers can use it to achieve the following benefits:

Under the coverage of modern robotic assistants there are complex systems that rely on advanced sensors, AI algorithms, and precision hardware. Robots in restaurants and retail settings typically use LiDAR (Light Detection and Ranging), cameras, and ultrasonic sensors for navigation and obstacle avoidance.

AI enables them to adapt to environmental changes, such as re-routing to avoid obstacles or recalibrating tasks such as replenishment. Some devices also integrate with Internet of Things (IoT) platforms for seamless communication with other devices, ensuring that tasks such as stock updates or order tracking are synchronised in real time.

The global retail robotics market is forecast to reach $249.3 billion by 2033, representing a compound annual growth rate (CAGR) of 28.73%. One of the reasons for this trend is the need to reduce retail labour costs, which can account for up to 70% of total business costs, according to the US Bureau of Labor Statistics.

By application the robotics market is divided into four main categories: delivery robots, inventory robots, in-store service robots, and other types. Among these categories, inventory robots accounted for the largest market share of 49.5%. This trend is expected to continue in the forecast period from 2025 to 2033.

In 2025 robotics will still be used to create a wow effect and attract customers to get unique experiences. Like this cozy waiter in Nairobi restaurant.

New restaurant technologies bring major challenges that businesses must handle with care. And reality shows that most establishments still use old legacy applications that no longer serve their purpose well.

Many restaurants and retail businesses still rely on legacy systems – outdated point-of-sale (POS) systems, inventory software, or customer databases. These systems may not support seamless integration with AI-driven analytics, AR/VR platforms, or IoT devices. Problems include:

To avoid such potential failures you may use the followinf solutions:

As an experienced food tech development company we provide different ways of partnership, you can find here.

The most common security challenges for hospitality and retail development include the following risks

The most important thing to do is to think about global cybersecurity measures and choose technologies that comply with data protection regulations, such as GDPR, and prioritise user privacy from the outset. You can also implement advanced encryption protocols, regularly update systems and invest in intrusion detection software. Many modern businesses are also implementing blockchain technology to ensure secure, tamper-proof transaction records. For example, blockchain can track every step in a supply chain or ensure that customer data is stored securely.

Loss of sales due to late deliveries is not just a problem for 2025, but for the food tech industry as a whole. Issues include:

However, managing end-to-end supply chains is becoming increasingly complex with AI-driven systems and the solutions they provide:

We also recommend choosing suppliers that provide access to shared personal accounts, where both parties can monitor order logistics and receive real-time updates. We offered such a solution to our customer Polymertorg, which improved transparency in the supply chain.

Who will win the race for customer loyalty and engagement? The restaurant or retail chain that is first to integrate new technologies to enhance their offering through immersive customer experiences and process improvements. According to Gartner research 82% of businesses take 1 to 6 months to evaluate software.

Be the one to overtake your competitors.