Annual Square Research Signals 2024 Will Be a Year of Long-Awaited Growth for Businesses
Business expansion and automation to address staffing challenges are top of mind for restaurants, retailers
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In 2024, business expansion and automation to address staffing challenges are top of mind for restaurants and retailers. (Photo: Business Wire)
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“For businesses, the future is looking cautiously optimistic, and business owners say they’re looking to grow despite diverging consumer economic sentiment,” said Matthew O’Connor, Head of Verticals and Platform at Square. “With Square’s ecosystem, businesses can easily expand – whether that means opening a new location or introducing new non-core offerings – while continuing to drive customer loyalty and engagement.”
Decisively, 100% of surveyed restaurateurs in
- Consumers are looking for a tech-forward approach from eateries – 73% of consumers surveyed are supportive of local restaurants using AI-based tools, and 78% would prefer to place their orders via self-serve kiosks. This bodes well for businesses where staffing is top of mind, as understaffing issues have persisted at restaurants for a reported average of 19 months. Nearly all restaurateurs (98%) believe AI will solve some of their staffing challenges, particularly around food prep and delivery management (42%), voice ordering technology (41%), predictive ordering and inventory management (39%), and food prep robots (38%).
- Restaurateurs are not only investing in AI to address labor challenges – more established automation tools are also on the agenda in 2024. 55% of surveyed owners plan to increase their spending on technology and automation tools in the next 12 months, and 80% of consumers want restaurants to invest in at least one area of automation when they’re not at full staffing capacity.
- As restaurant owners look to expand, 78% of those surveyed say they’ll experiment in the coming year with non-core offerings like meal kits, subscriptions, events, and more. Restaurateurs say that right now, nearly 20% of their revenue stems from products and services outside of their core restaurant offerings.
“Automation and AI are going to be key growth levers for restaurants in the coming year, though not in the way you may think,” said
Growth is top of mind for retailers in
- Offering compelling in-store experiences for customers is key for retailers this year to continue driving traffic into stores – consumers report they’re most likely to try offerings like in-person loyalty programs (56%), in-store dining options like a coffee or wine bar (43%), and interactive displays, kiosks, or activities (30%).
- AI-powered product recommendations is the top priority tool for retailers of all sizes to implement, especially for those planning to add more online options over the next year (42%).
- To compete in today’s marketplace, retailers are offering more choice and flexibility to reach new and existing customers – such as by implementing faster and easier communication channels with customers (42%) and providing Buy Now, Pay Later options like Afterpay (39%).
“Whether retailers are focusing on in-store or online shopping, it’s more important than ever to maintain communication with your customers,” said
The report also includes findings on beauty and how consumers approach finding (and sticking with) beauty care providers – 62% of those surveyed have a preferred provider, though 69% have switched due to factors like overly long wait times. Consumers have also signaled interest in turning to beauty or personal care providers for online tutorials (27%), in-person classes (26%), and at-home DIY boxes (23%).
For a full analysis of the top restaurant, retail, and beauty trends for 2024, industry data and insights from Square experts, and real-life examples from Square sellers, download the report here or reach out to press@squareup.com.
About Future of Commerce
The retail and restaurant surveys were conducted by
The consumer survey was conducted by
About Square
Square makes commerce and financial services easy and accessible with its integrated ecosystem of commerce solutions. Square offers purpose-built software to run complex restaurant, retail, and professional services operations, versatile e-commerce tools, embedded financial services and banking products, buy now, pay later functionality through Afterpay, staff management and payroll capabilities, and much more – all of which work together to save sellers time and effort. Millions of sellers across the globe trust Square to power their business and help them thrive in the economy. For more information, visit www.squareup.com.
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