Reach out for a copy of this report or for a custom research report. Email Me: ravisingh@digitalpresence.co.in
Summary
Table order apps and websites are part of the overall Frontend Restaurant Management Software market, growing at a CAGR of 13.3%. The table order technology also referred to as in-venue order, on-table order, etc., includes Apps (Native or Aggregator) and QR Codes.
With the onset of Covid-19, many people, want social distancing, and so there is a massive surge in the usage of table order tech, including QR Codes. As per a report by But.ly, QR code downloads have soared 750% over the last 18 months. The total addressable market for the Table App Tech is $12.25B, and the market size (i.e., SAM) is $2.4B. The US is the largest market, with a market share of 32%. China, Japan, and India follow this with respective market shares of 20%, 13.1%, and 6.2%. Israel is a relatively more minor market with a TAM of only $24M and a market size of only $4.5M.
As per a few reports, the key benefits of a table app are an increase in revenue, fewer errors, better operation, and high table turnover time; however, challenges like Cybersecurity and connectivity are also cited.
The table order app/QR Code market is flooded with several small vendors, with StoreKit, GoodTill, TabTable, and Dines being popular. None of the competitors is an exclusive QR Code/App provider. Instead, they offer a suite of frontend platforms/modules for restaurants. Most vendors in this space offer a transaction-based cost structure. The average charge per transaction is 1.7% (of this, an average of 1.3% is paid to the credit card companies). Some vendors also offer caps on the total transaction cost per month, which becomes their value proposition.
The Funding Trend in the table order app/QR Code market is negligible, and most of the companies identified are not funded. Hence there is a challenge for a new company to convince investors about the prospect of this market.
MARKET SIZE: RESTAURANT MANAGEMENT SOFTWARE
Table Order is part of the overall restaurant management software market. The global restaurant management software is a $3.5B market and will reach $6.5B by 2026 at a CAGR of 13.3%. Israel is 1% of the global software market and will be worth $65M in 2026.
MARKET SIZE: FRONTEND RESTAURANT MANAGEMENT SOFTWARE
The frontend software segment accounts for the majority of this market, with a projected share of 58% by 2025.
This segment includes software for “food ordering, billing, payment processing, customer interaction, tracking sales, order management reporting, and marketing.”
WHY THIS IS THE RIGHT TIME FOR A TABLE ORDER TECHNOLOGY
As the threat of Covid is subsiding, many customers are now going out to restaurants; however, the restaurants are facing an acute shortage of staff. The reason for staff shortage include:
- Hard to rehire workers: The establishments, which were forced to shut down or shift to takeout-only during the lockdowns and had put their workers on unpaid leave or fired them, are now finding it hard to get them back.
- The emergence of alternative jobs: Others found jobs, such as food delivery, that pay better and have flexible hours
- Jobs in other sectors: Some workers also found jobs in other sectors, such as delivery services, construction, or nursing care, that continued to operate during the lockdowns.
- Furlough: Several people were put on furlough, making them eligible for unemployment benefits nearly equal to what they were making. This furlough policy, however, is backfiring, some say, with many young workers preferring to stay unemployed rather than go back to a job that pays not much more than what they get from the government. The Employment Service Bureau warned that according to its figures, workers age 34 and under were choosing not to go back to work even as demand for workforce in sectors they typically work in, such as the hospitality sector, which includes restaurants and hotels, saw a surge in the first quarter of the year.
Reach out for a copy of this report or for a custom research report. Email Me: ravisingh@digitalpresence.co.in
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