Tech-hungry restaurants serve up opportunities for AI players

More than 55% of Australian restaurants plan to implement new tech in the next 12 months to streamline operations
Companies like Square, LightSpeed, and Restoke.ai are set to capitalise on the surge in demand for AI-driven solutions in the hospitality sector
ASX-listed companies Tyro Payments and LiveTiles also stand to gain as restaurants prioritise automation and more efficient payment processing

Special Report: A major tech transformation is being plated up in the Australian restaurant industry, with over 55% of operators planning to adopt new technologies in the next 12 months.

That’s the forecast in newly released research from Mandalay Venture Partners – an Australian Venture Capital firm focused on food security, sustainability and ESG principles within agritech.

Mandalay partner Timothy Hui said the shift offered a massive opportunity for AI-powered platforms and fintech companies to capture a significant slice of the market.

“As hospitality businesses look to streamline operations, enhance customer experiences and adapt to new digital expectations many Australian companies are positioned to reap the rewards,” he said.

Back-of-house automation

One of the local frontrunners in AI servicing Australia’s $64 billion restaurant, cafe and takeaway scene is Restoke.ai, which automates back-of-house operations.

The Australian-based startup’s platform has already gained traction with more than 2,000 establishments worldwide thanks to how it simplifies inventory and staff management as well as compliance tasks using AI-powered tools.

Co-founder Assaf Stizki said: “Restaurants are under more pressure than ever to be efficient while maintaining quality. Our platform helps them manage the entire back-of-house operation seamlessly.

“With the restaurant industry increasingly turning towards automation to reduce operational costs, we believe we’re uniquely positioned to capitalise on this growing demand.”

Following its A$5.1 million funding round, led by Rampersand and Mandalay, the company is set to expand its presence in Australia and break into the huge US market.

Leading the Australian fintech push

Another key local player is fintech company Tyro Payments (ASX: TYR) Tyro provides payment solutions and banking services to more than 36,000 Australian businesses, many of which are in hospitality. With AI powering its fraud-detection tools, Tyro has also been helping restaurants improve transaction security.

In the past year, Tyro has expanded its capabilities with AI-driven transaction analytics and streamlined payment systems, making it easier for restaurants to track sales trends and reduce payment processing times.

ASX-listed LiveTiles (ASX: LVT) is also set to benefit from restaurants’ switch to more tech.

LiveTiles offers workplace software that uses AI to streamline operations, enhance collaboration and improve customer service.

While traditionally focused on office environments, LiveTiles has been increasingly entering the retail and hospitality sectors, offering solutions that help businesses better manage their staff and operational workflows.

The company’s AI-driven insights help businesses identify bottlenecks and boost overall operational efficiency, all of which are key concerns for restaurant operators in an increasingly competitive market.

US players in the mix

Square, a part of Block Inc. (NYSE: SQ), has long been a staple for Australian small businesses looking to simplify their payment systems.

Its ecosystem – which includes point of sale solutions, e-commerce platforms and financial management tools – is widely used across various industries, including restaurants.

As the sector looks to upgrade its tech, Square’s AI-driven insights and fraud detection capabilities also make it a strong contender for further growth.

Lightspeed Commerce Inc. (NYSE: LSPD, TSX: LSPD), which offers cloud-based commerce platforms for restaurants and retail, is another company well poised to benefit from the industry’s tech transformation.

Lightspeed’s AI-driven data analytics provide restaurants with actionable insights into customer behaviour, inventory optimisation and performance metrics, allowing them to operate more efficiently.

This article was developed in collaboration with Restoke.ai, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.