It’s not an easy time to be a restaurant owner, but Canadian restaurateurs are leveraging technology to adapt to challenges such as labour shortages and rising food prices. The good news is, there are plenty of opportunities ahead for those willing to experiment with new solutions.
Square surveyed 500 Canadian restaurant leaders and 1,000 Canadian consumers in the 2025 Future of Restaurants report to uncover some of the biggest trends in the industry.
Here’s what we found:
Restaurants are relying on technology to stay competitive
From automation to digitization, 2025 is all about solutions that improve both the front of house and back of house. In fact, 77% of Canadian restaurants surveyed by Square say they spend more time researching and implementing new tech than they did a year ago.
But leveraging technology to streamline operations and meet customers’ expectations is crucial amid a tough economy. According to Square data, 41% of mid-size Canadian restaurants are investing in tech in response to the rising cost of doing business and to remain competitive.
Get the full 2025 Future of Restaurants report.
Where are Canadian restaurant leaders investing their dollars?
Elevating the guest experience
To keep customers coming through the door, 86% of Canadian restaurant leaders are planning to invest in tech that improves the guest experience. Being short staffed during busy periods, for example, can compromise guest experience.
And Square data finds over 85% of Canadian restauranteurs are prioritizing tech which helps manage real-time capacity and optimizes workflow during service.
Enhancing order and payment processes
Speed is top of mind for most successful restaurateurs, as increasing tickets while smoothing out operations is a good way to grow. Therefore, it makes sense that 84% of Canadian restaurant leaders told us they plan to invest in technology that improves their ability to take orders and 87% plan to invest in technology that boosts their ability to accept payments.
Marketing and customer retention
Square data finds that customer loyalty efforts will be a major trend in 2025, with 72% of Canadian restaurant leaders saying they plan to increase their investment in loyalty or rewards programs.
And, considering that customers enrolled in a loyalty program spend 53% more and visit a business 40% more often, the ROI is real.
Get the full 2025 Future of Restaurants report.
Canadian restaurant owners are optimistic about AI and automation
AI and automation are changing the game in 2025, with 76% of Canadian restauranteurs feeling that AI and automation can provide considerable ROI, a figure which increases to 79% for leaders of mid-sized restaurants.
Eighty-percent of operators think AI or automation will improve order ticketing and payments over the next 12 months, while 78% think AI or automation will improve payroll, reporting and staff management (a figure which increases with business size).
Looking ahead in a competitive landscape
One thing is for sure: restaurants are going to have to do more to survive and thrive in the coming year. But thanks to technology, they can gain back time and work smarter to compete in a crowded landscape. Seventy-eight percent of Canadian restaurant leaders are already planning to spend more time this year managing finances and cash flow.
Additionally, building new revenue streams will be a notable path to growth – and consumers are already embracing it: 64% of consumers told Square they’re interested in purchasing items outside of a restaurant’s menu and 51% of them are already doing it.
Get the full 2025 Future of Restaurants report.
Get the full picture
Staying on top of trends and customer preferences in the restaurant industry will be key to success in the coming year. Get the full picture with actionable insights inside the 2025 Square Future of Restaurants report and adapt them to your unique business to get a leg up on the competition.
