Automation in Restaurants: Enhancing Service, Not Replacing It

Restaurants are going all in on automation. According to the Square Future of Restaurants Report, 85% of restaurant leaders plan to invest in automation within the next year, because they believe it will enhance efficiency and improve operations. However, customers have mixed feelings. While more than 75% of restaurant leaders are optimistic about AI and automation, diners remain skeptical. They don’t want technology to replace human interaction.

The good news is consumers and restaurant operators are not completely at odds. Consumers agree that automation has its place when it fills gaps left by staffing shortages. Nearly three-quarters of consumers (74%) say they’d like to see automation used in at least one area when restaurants are short-staffed.

The takeaway? Customers prefer knowledgeable staff over technology-driven interactions. The best use of automation isn’t to replace people but to empower them. When done thoughtfully, automation can enhance hospitality by streamlining operations and allowing staff to focus on what they do best — delivering a memorable dining experience. Here’s how to do just that. 

How restaurants can use automation to improve customer experience

Reducing wait times without losing the human touch

Consumers appreciate faster service, but they don’t want it at the expense of human interaction. The right automation tools can help restaurants improve efficiency while maintaining a warm and welcoming atmosphere.

Self-service kiosks and mobile ordering apps, for example, allow customers to place orders quickly, especially for takeout and fast-casual dining. However, these tools should complement front-of-house staff rather than replace them. Staff should be available to assist with special requests, dietary needs, or any other customer concerns.

Oakberry Açaí, a smoothie brand with more than 700 locations, introduced a self-service kiosk to streamline ordering. The results? Shorter lines, increased sales, and happier customers. “Ordering through Square Kiosk means customers can build their açaí bowl exactly to their own tastes,” said Maverick Bides, general manager at Oakberry Açaí Vancouver Canada.

[Using Square Kiosk] we’ve also seen shorter lines, less waste, and an increase in the average order, because it’s so fast and easy for customers to add on extra items, like a coconut water or an Oakbar.”

Maverick Bides → General manager at Oakberry

Beyond ordering, automation can also improve the waiting experience. Reservation systems like OpenTable (which integrates with Square) and digital waitlist management tools provide accurate wait times and instant notifications. Instead of hovering anxiously at the entrance, customers can relax knowing exactly when their table will be ready.

Enhancing personalization instead of standardizing service

While automation often conjures images of impersonal, robotic experiences, it can actually enhance personalization. When implemented correctly, automation can help restaurants offer tailored recommendations and customized service, ensuring every guest feels valued.

One way to do this is through order history tracking, integrated with loyalty programs. This can help restaurants recognize repeat customers and suggest their favorite dishes or new menu items based on past orders. Instead of asking the usual, “Have you dined with us before?” staff can offer thoughtful suggestions like, “Would you like to try our new seasonal version of your favorite dish?”

TokyoTaco, a Sydney-based restaurant, thrives on such personal connections with its customers. “Our brand has always been heavily reliant on word of mouth and positive experiences,” said co-founder Jordan Hajek. “You really need to concentrate on building that local customer base and honing down and understanding who they are, what they want, where they come from, and how we get to meet those people and build connections with them.”

Automation can also assist with personalized upselling. Point-of-sale (POS) systems can prompt staff with relevant add-ons based on what a customer orders, making the experience feel thoughtful rather than pushy. For business owners willing to experiment, chatbots can handle reservations and answer FAQs instantly, ensuring customers receive timely assistance. However, human support should always be available for more complex requests.

Empowering staff through automation

Customers are more likely to welcome automation when it makes staff more efficient and attentive. By automating back-end tasks, restaurants can free up employees to spend more time engaging with guests.

A prime example is kitchen display systems (KDS), which improve workflow by reducing errors and ensuring orders are prepared efficiently. Scaffidi’s Restaurant & Tavern transitioned from a paper-based system to a digital KDS, resulting in a 57% reduction in voids due to out-of-stock items and a 35% decrease in customer refunds.

Scheduling software is another way automation helps staff. Tools like Square Staff ensure managers create optimized shifts, keeping the right number of employees on duty during peak hours. Offset Coffee in Los Angeles uses Square Payroll to manage schedules seamlessly. “With Square Payroll, the team has the Square Team App where they can make timecard adjustments if they forgot to clock in or out. All payroll is run seamlessly through that,” said Vernon Lindholm, co-founder of Offset Coffee.

Automation can also help with inventory management by tracking ingredient usage, and sending automatic restocking alerts, as automation tools did for Scaffidi’s. Restaurants can avoid stockouts and food waste, and ultimately, you can create a smoother experience for both staff and customers.

Optimizing payments without removing human support

No one enjoys a slow or complicated checkout process. While customers want fast, frictionless payment options, they still appreciate the option to get help when needed.

Contactless payment systems, including mobile wallets and tap-to-pay options, have become the new standard, reducing checkout times and making transactions more convenient. Split-bill features simplify group dining, allowing customers to divide payments effortlessly without relying on a server to calculate each person’s share.

Restaurants that use mobile POS systems benefit from increased efficiency and customer satisfaction. Scaffidi’s, for example, adopted Square for Restaurants Mobile POS, which allowed staff to spend more time on the floor rather than behind a register. CEO Frankie DiCarlantonio noted that this shift led to a higher repeat customer rate. “The biggest upside of Square for Restaurants mobile POS has been keeping my staff on the floor more of the time, which has led to greater customer satisfaction.” The restaurant’s repeat customer rate increased to 1.9x, meaning almost every new customer dines at least twice.

Digital receipts and automated tipping suggestions further streamline the payment process while giving customers control over their transactions. Instead of waiting for the check, customers can quickly review their bill and tip accordingly, making the entire dining experience more seamless.

Automation can actually make your business more personal

The restaurants that will win customer loyalty are those that strike the right balance between automation and hospitality. Automation should be used to improve speed, convenience, and personalization while maintaining the warmth of human interaction. The goal isn’t to turn restaurants into faceless, tech-driven establishments, but to create a hybrid model where technology handles repetitive tasks and allows staff to focus on delivering exceptional service. When done right, automation will not replace human touch, but enhance it. And restaurants that recognize this will be the ones that keep their customers coming back, time and time again.