After a multi-year growth fueled by the rise of supply apps and the broader digital transformation of the restaurant trade, enterprise capital flowing into restaurant tech has sharply slowed, in response to a new report from PitchBook.
The report, titled Q2 2025 Tech Panorama: Restaurant Know-how, reveals that whole VC funding within the house dropped to only $1.3 billion in 2024, down from a peak of $14.5 billion in 2018. Restaurant tech accounted for under 12% of whole meals tech enterprise funding in 2024, in comparison with a commanding 60% in 2018.
Restaurant tech’s shrinking share of meals tech funding isn’t solely stunning, given the maturation of supply marketplaces, a sector that drew a wave of generalist buyers through the 2010s. As once-scrappy startups like DoorDash, Deliveroo, and Grubhub advanced into established gamers and alternatives within the supply house dwindled, lots of these vacationer buyers moved on.
Nonetheless, PitchBook sees pockets of alternative in restaurant tech, notably round AI and automation. The report highlights rising instruments that use AI for personalised advertising and marketing, demand forecasting, and operational effectivity. AI-powered, human-language interfaces are additionally gaining traction, with corporations like Hello Auto, ConverseNow, and Slang AI bringing automation to drive-thrus and phone-based ordering. Main chains equivalent to Wendy’s and Yum! Manufacturers are doubling down on these methods, whilst McDonald’s not too long ago pulled again from its AI ordering pilot and its experimental beverage-focused model.
PitchBook is cautiously optimistic about robotics and automation in eating places, a sector that has seen high-profile flameouts like Zume. In keeping with the report, the market has shifted from startups attempting to construct full-stack methods to extra focused level options being examined and deployed by established gamers. Corporations like Hyphen and Miso Robotics are amongst these offering modular automation instruments now being adopted by operators.
On the consumer-facing aspect, startups centered on visitor administration and loyalty platforms have additionally emerged as vibrant spots for buyers. Blackbird Labs and Dorsia every raised $50 million in early 2025, whereas SevenRooms introduced a notable exit with a $1.2 billion acquisition by DoorDash.
Wanting forward, PitchBook expects deal movement to stay measured. The restaurant trade’s notoriously skinny margins—mixed with ongoing financial uncertainty—will seemingly hold vacationer VCs on the sidelines. Nonetheless, startups that leverage AI and automation to drive operational effectivity are anticipated to proceed drawing investor curiosity.
