![\"Grocery](\"https:\/\/www.getcraver.com\/wp-content\/uploads\/2025\/06\/Grocery-Store-Self-Check-out.png\")
<\/figure>\n\n\n\nTech-powered automation (like self-checkouts) was adopted in America\u2019s grocery stores as early as 1986<\/span><\/a> \u2014 years<\/em> before the world had other popular tech like smartphones<\/span><\/a> or fully digital cameras<\/span><\/a>. <\/p>\n\n\n\n You might be surprised to learn that grocery stores beat restaurants to the tech adoption punch, too; the restaurant industry wouldn\u2019t see its first self-service kiosk until Panera launched theirs in 2016<\/span><\/a> (which is four whole decades later, <\/em>by the way). <\/em><\/p>\n\n\n\n Now, in 2024, we\u2019re seeing more and more restaurants \u2014 especially QSRs \u2014 focus on tech adoption, with new automation<\/span><\/a> solutions and AI partnerships<\/span><\/a> popping up almost every day. <\/p>\n\n\n\n Regardless of the restaurant industry\u2019s valiant catch-up efforts, though, grocery stores have always<\/em> adopted new tech faster than restaurants have\u2026 and here\u2019s why. <\/p>\n\n\n\n There are two reasons for the restaurant industry\u2019s \u201cslower-than-a-grocery-store\u201d tech adoption. <\/p>\n\n\n\n Restaurant technology is more important now than ever before\u2026 but not if it\u2019s at the expense of human connection.<\/p>\n\n\n\n In their 2018 \u201cFuture of Customer Experience\u201d survey, PwC reported that 59%<\/span><\/a> of consumers \u201cfeel companies have lost touch\u201d with the human elements of business. And, because of this perceived lack of human connection, 82%<\/span><\/a> of respondents said they want more human interaction from businesses\u2026 even as<\/em> tech-powered service improves.<\/p>\n\n\n\n How does this craving for human connection differ between restaurants and grocery stores?<\/p>\n\n\n\n For restaurants, offering human connection while reaping the rewards of tech-powered automation requires an incredibly delicate balance. For example, Square found that 49% of customers<\/span><\/a> want contactless payment methods\u2026 yet FSR found that 50% of customers<\/span><\/a> want table-side servers to process their payments. <\/p>\n\n\n\n The only way restaurants can balance both (seemingly opposing) demands is to take a slow approach to tech adoption, allowing time for experimentation and adjustments to satisfy as much of their customer base<\/span><\/a> as they can. <\/p>\n\n\n\n For grocery stores\u2026 the importance of human connection is a little less dire. Online grocery spending is at an all-time high<\/span><\/a>, with 2023 rates exceeding those from the middle of the pandemic. 25% of shoppers<\/span><\/a> have also started using grocery store apps, turning to their phones for lists, store maps, and coupons. <\/p>\n\n\n\n The existing consumer preference for digital-first grocery shopping allows the grocery industry to adopt tech much faster than restaurants (especially while battling constantly competing consumer preferences).<\/p>\n\n\n\n \u201cIn an era when companies see online support as a way to shield themselves from \u201ccostly\u201d interactions with their customers, it\u2019s time to consider an entirely different approach: building human-centric customer service through great people and clever technology. So, get to know your customers. Humanize them. Humanize yourself. It\u2019s worth it.\u201d \u2014 Kristin Smaby<\/span><\/a><\/p>\n\n\n\n Restaurant margins are definitely not what they used to be, forcing restaurant owners to tread far more carefully with their financials. <\/p>\n\n\n\n In January 2024, TouchBistro released its annual \u201cState of Restaurants<\/span><\/a>\u201d report, exploring some of the many<\/em> challenges the restaurant industry has been facing as of late. <\/p>\n\n\n\n Respondents reported an overall hit on profit margins<\/span><\/a>, falling from 10.6% in 2022 to 9.3% in 2023. Of those experiencing financial strain, 58% said food costs were their greatest financial stressor, while 68% reported looming debts with climbing interest rates.<\/p>\n\n\n\n And, because of this industry-wide financial strain, restaurant owners are being forced to choose between shiny, new tech adoption and non-negotiables like keeping the lights on. While 30%<\/span><\/a> of respondents said they\u2019re cutting tech providers to reduce expenses, 37%<\/span><\/a> say \u201chigh upfront costs\u201d is why they haven\u2019t implemented automation in the first place. <\/p>\n\n\n\n Grocery stores, on the other hand, don\u2019t have to think about profit margins in the same way as independent restaurant owners do \u2014 especially over the past few years.<\/p>\n\n\n\n As an essential service, grocery stores were less affected than restaurants by the past few years of health-related closures. In fact, grocery stores like Walmart and Kroger saw revenue increase<\/em> during the pandemic, with 2023 profit reaching peaks<\/span><\/a> the past decade has yet to see. <\/p>\n\n\n\n (The U.S. Federal Trade Commission has also <\/em>been investigating the grocery industry since 2021<\/span><\/a>, digging into the sky-high prices afflicting the entire country \u2014 restaurants included.)<\/p>\n\n\n\n So, with restaurants (understandably) taking a far more cautious, and margin-oriented approach to tech adoption than grocery stores, it\u2019s not surprising that they\u2019ve been slower to take the plunge on often-expensive tech.<\/p>\n\n\n\n \u201cBusiness has been good. I would say we still get lots of growth in terms of people coming from different states to visit our place on their vacation. Miami’s a very touristy place and so I haven\u2019t really seen a drastic decline, which is a good thing. However, what I am noticing is the drastic increases in food prices. Even for the cleaning supplies, everything has gone up almost 25%. So overall, we\u2019re not up. Maybe like a 5% increase in sales, but everything is so expensive that it\u2019s kind of the same as before.\u201d \u2014 General Manager, Bakery & Cafe in Miami<\/a><\/p>\n\n\n\n Before we move on, it\u2019s worth noting that by saying restaurants are generally slower to adopt tech than grocery stores, we\u2019re not crowning one industry as \u201cbetter at tech\u201d than the other. As we just illustrated, different industries have different priorities guiding what they do and when they do it, whether that means adopting tech slower, later, or not at all.<\/p>\n\n\n\n However\u2026 <\/em><\/p>\n\n\n\n It still doesn\u2019t hurt to take some pointers from the industry that did it first, right? <\/p>\n\n\n\n As mentioned earlier, grocery stores have been actively adopting tech for decades.<\/p>\n\n\n\n That 40-year head start has given the grocery industry lots of time to figure out what tech to adopt, how to integrate it efficiently, and how it can lead to a better customer experience. <\/p>\n\n\n\n So, to inspire your next restaurant tech strategy session, check out these three note-worthy (and<\/em> restaurant-adaptable) grocery store tech innovations.<\/p>\n\n\n\n At Kroger, paper price tags and color-coded sale flags are out, and smart shelves are in<\/em>.<\/p>\n\n\n\n In May 2023,<\/span><\/a> Cooler Screens announced an expansion of its digital smart screen technology to 500 Kroger\u2019s across the United States. Cooler Screens\u2019 digital screen technology presents a new and interactive approach to merchandising, using \u201cAI, a network of sensors, and data science<\/span><\/a>\u201d to analyze customer behavior and create hyper-targeted marketing campaigns. <\/p>\n\n\n\n \u201cJust as search engines and e-commerce sites know what consumers are interested in when online and serve them relevant content, we now can do the same inside brick-and-mortar stores,\u201d said Arsen Avakian<\/span><\/a>, co-founder and CEO of Cooler Screens. \u201cBy understanding shoppers’ intent and activating marketing content that is most relevant to consumer experience, we drive sales growth for retailers and brands.\u201d <\/p>\n\n\n\n How it can work in your restaurant <\/span>\u2192 A smart digital menu<\/span><\/a> or table can display real-time menu availability, special promotions, and nutritional info for your diners. This helps to manage customer expectations, leaving no questions about what\u2019s in stock and what isn\u2019t. <\/p>\n\n\n\n Walking out of a grocery store with a full cart and no receipt is usually<\/em> frowned upon\u2026 unless you\u2019re using tech like Amazon Go.<\/p>\n\n\n\n First opened to the public in 2016<\/span><\/a>, Amazon Go is a \u201cfull-size, [cashier-less] grocery store<\/span><\/a>.\u201d Amazon\u2019s Just Walk Out<\/span><\/a> technology monitors what shoppers take off the shelves and adds the correct items to their virtual cart, allowing them to just walk out<\/em> when they\u2019re done. Then, everything in their virtual cart is automatically charged<\/span><\/a> to their Amazon account\u2019s linked credit card \u2014 no receipt needed. <\/p>\n\n\n\n \u201cI think what we\u2019re trying to do here\u2026 is really work [backward] from the customer, and deliver some differentiation,\u201d said Cameron Janes<\/span><\/a>, VP of Amazon\u2019s physical retail division. \u201cAmazon Go stores are meant to serve bustling business districts during the breakfast and lunch hours, [like] a neighborhood market [of sorts].\u201d<\/p>\n\n\n\n How it can work in your restaurant <\/span>\u2192 Adding an automated checkout system<\/span><\/a> to your restaurant means your diners can eat, pay, and leave on their own. This not only speeds up your in-house service, but it also removes the need for other older tech like handheld credit machines. <\/p>\n\n\n\n In the past few years, tons of restaurants have developed stellar loyalty programs<\/span><\/a>, with some testing out membership and subscription models<\/span><\/a> too. <\/p>\n\n\n\n However, one non-restaurant business has maintained the #1 spot in the membership department \u2014 Costco Wholesale. <\/p>\n\n\n\n The Costco model we\u2019re used to started out back in 1976<\/span><\/a> as Price Club. Price Club was \u201cthe world\u2019s first membership warehouse club<\/span><\/a>,\u201d catering exclusively to business members. But, Price Club\u2019s membership model was so successful that it inspired a similar retail model to open its doors in 1983<\/span><\/a>: the Costco Wholesale we now know and love.<\/p>\n\n\n\n \u201cThe best at customer loyalty is Costco,\u201d says Michael Lasser, UBS analyst<\/span><\/a>. \u201c[There are] two ways that retailers are driving customer loyalty. Implicitly, through things like membership fees\u2026 and Costco does that very well. The other way is through more subtle means, like doing well at assortment, service, value, and convenience. Costco really excels at both of those.\u201d<\/p>\n\n\n\n How it can work in your restaurant<\/em> \u2192 Consider ramping up your restaurant\u2019s loyalty or membership models with Costco-inspired exclusivity. Priority reservations, exclusive items and discounts, and invitations to special events are all great places to start! <\/p>\n\n\n\n Now, before you get too excited about the new, grocery-inspired tech solutions you want to adopt, there\u2019s something you should know:<\/p>\n\n\n\n Adopting new tech becomes a lot<\/em> more difficult <\/em>if you don\u2019t have the right digital infrastructure.<\/p>\n\n\n\n Craver can help you build the digital foundation you need to start doing more with the tech you have (while prepping for the tech you want<\/em> to adopt in the future).<\/p>\n\n\n\n Working with Craver means:<\/p>\n\n\n\nWhy Restaurants Are Slower<\/h2>\n\n\n\n
1. Restaurants Want to Maintain Their Human Connection More Than Grocery Stores Do<\/h3>\n\n\n\n
2. Restaurants are More Focused on Margins Than Grocery Stores Are <\/h3>\n\n\n\n
3 Things the Restaurant Industry Can Learn From Grocery Stores<\/h2>\n\n\n\n
1. Smart Screens and AI-powered Merchandising<\/h3>\n\n\n\n
2. Automated or No-contact Checkout Systems <\/h3>\n\n\n\n
![\"Amazon](\"https:\/\/www.getcraver.com\/wp-content\/uploads\/2025\/06\/Amazon-Go.png\")
<\/figure>\n\n\n\n3. Exclusive and Enticing Membership\/Loyalty Models <\/h3>\n\n\n\n
![\"Costco](\"https:\/\/www.getcraver.com\/wp-content\/uploads\/2025\/06\/Costco-Membership-Benefits-.png\")
<\/p>\n\n\n\nHow Craver Can Help<\/h2>\n\n\n\n
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