20 Ways the Restaurant Industry Has Changed in 20 Years

Let’s rewind

The year is 2005. Smartphones don’t exist, social media is in its infancy, and ordering food online seems theoretical. This is a time where “going digital” means having a basic website with your menu and hours, if you’re ahead of the curve. Most restaurants consider advanced technology to be a point-of-sale (POS) system. Having reliable Internet in your restaurant is rather unusual. 

Maybe you experienced this pre-digital world. Even then, the foundation was being laid for mobile ordering—that’s where our story at Olo begins. On June 1, 2005, we launched text message ordering. What started as simple concepts like “press 1 for coffee, 2 for a bagel” would eventually evolve into the digital ecosystems that serve millions of guests every day. 

Fast forward to the present day, and the world has changed dramatically. The past 20 years were about meeting guests where they are—the next 20 are about making them feel known. In celebration of how far we’ve come, let’s break down 20 ways the restaurant industry has changed over the past two decades.

20. Paying the bill

Then: Cash or card handed to a server

Now: Contactless payments, digital wallets, and frictionless checkout

Twenty years ago, paying the bill meant waiting for a server to bring a check, handing over a credit card, waiting again for the card to be processed, and signing a paper receipt — and let’s not talk about the math of tip calculation and splitting the check. Today's payment options also include digital wallets like Apple Pay and Google Pay, QR code payments, and even facial recognition systems. Given that a satisfying checkout makes a consumer more likely to return, it makes sense that closing your tab has gotten easier. 

19. Delivery

Then: Reserved for your local pizza or Chinese restaurant

Now: Who doesn’t have delivery?

Twenty years ago, restaurants offering delivery maintained their own driver fleets and typically operated within confined delivery boundaries. After the pandemic shifted consumer expectations, delivery has been democratized for virtually every restaurant type. Restaurants have also had to reimagine their operations—creating dedicated assembly areas, specialized packaging, and delivery-specific menu items designed to travel well.

18. Reservation systems

Then: Calling the restaurant and speaking to a host

Now: App-based booking with personalization and special requests

Making a restaurant reservation once meant calling a host who wrote your information down in an actual book. Guests can now view real-time availability across thousands of restaurants, make reservations instantly at any hour, and specify detailed preferences and special occasions. For restaurants, these systems provide valuable guest profiles showing visit history, spending patterns, and preferences, creating opportunities for personalized hospitality that wasn't possible before. 

17. Waitlists

Then: Writing a name down at the host stand

Now: Joining the waitlist remotely from your phone

Today’s waitlist has evolved beyond the plastic buzzers vibrating when your table is ready. Digital waitlist platforms allow guests to add themselves to the queue from anywhere, receive accurate wait time estimates, and get text notifications when their table is ready, and gives restaurants powerful tools to manage flow, collect guest data, and improve table turnover. 

16. Kitchen display systems

Then: Paper tickets and verbal call-outs

Now: Integrated digital systems with machine learning-powered timing

Machine learning has made its way into the kitchen. Twenty years ago, most kitchens relied on printed—or even handwritten—paper tickets and gut instinct on when to fire orders to each station. Kitchen display systems can now predict cooking and assembly times based on current kitchen conditions, aggregate order volume, and even specific staff members working each station so food arrives fresh for everyone at the table.

15. Loyalty programs

Then: Paper punch cards

Now: Digital engagement platforms with personalized rewards

A day-ruining problem in 2005 was losing your full punch card just as you were getting ready to redeem your free sandwich. Loyalty programs have gone digital, integrating seamlessly with online ordering platforms, automatically tracking purchases and offering tailored incentives based on individual order history. What was once a simple frequency program is now a robust relationship management system—one that’s much less likely to get ruined in the dryer.

14. Social media influence

Then: Word of mouth and professional reviews

Now: Influencer partnerships and viral TikTok menu items

In 2005, restaurants built their reputations through professional reviews, advertising, and word of mouth. Today, a single viral TikTok video can create hour-long lines and nationwide demand for specific menu items (just ask Chili’s) and chains even develop limited-time offerings specifically designed to dominate social media feeds. 

13. Direct-to-consumer retail 

Then: Branded merchandise available in-store

Now: Integrated e-commerce platforms and big-box stores selling restaurant products nationwide

For many brands in 2005, the extent of restaurant retail was a cozy section of t-shirts, mugs, and assorted tchotchkes. Today’s online restaurant shop might include proprietary spice and sauce blends or limited-time merchandise to stoke social media attention like Chili’s Triple Dipper bedding collection or Shake Shack’s crinkle cut fry body pillow.  

12. Chef star power 

Then: Culinary talent largely unknown to the public

Now: Celebrity chefs, cooking shows, and widespread fascination with restaurant operations

Although Anthony Bourdain’s Kitchen Confidential caused ripples when it came out in 2000, the inner workings and people of professional kitchens were still largely unknown. Today, chefs are A-list celebrities, and what was once behind kitchen doors is showcased like art like Chef’s Table, featured on hit shows like The Bear, walked through on YouTube, and of course, made fun of on TikTok.  

11. Pickup-only locations

Then: Drive-ins were just about the only dedicated pickup concept

Now: Purpose-built pickup-only stores from major chains

In 2005, the idea of a restaurant without dine-in service (other than traditional drive-ins) was almost unheard of. Today, chains like Dutch Bros and Cava recognize many guests value speed and convenience over the dine-in experience, and are investing heavily in pickup-only locations designed specifically for digital order fulfillment, with multiple pickup lanes, dedicated parking spots for mobile orders, food lockers, and conveyor systems that deliver orders directly to guests' vehicles. This format reduces real estate costs while increasing throughput, representing a fundamental rethinking of what constitutes a "restaurant" and where guests want to dine in the digital ordering age.

10. Front-of-house technology

Then: Staff-facing—mostly point-of-sale (POS) and payment terminals 

Now: Digital menu boards, tableside ordering tablets, and integrated payment systems

In 2005, restaurant guests were rarely the ones interacting with computers when dining out. Today, paper menus have evolved into rotating, dynamic digital displays. Self-service kiosks have become increasingly common in quick-service restaurants, reducing wait times and enabling greater order customization. 

9. Drive-thru

Then: Single lane with basic speaker system

Now: Multiple lanes with AI voice ordering and geolocation technology

What was once a single lane with a crackling speaker has, in some instances, transformed into sophisticated multi-lane operations with AI-powered voice ordering systems understanding natural language and making personalized recommendations. 

8. Open concept kitchens

Then: Back of house meant, well—back of the house

Now: Culinary takes center stage

The "back of house" has moved front and center over the past two decades. Where kitchen operations were once carefully hidden from guests, today's restaurants often feature open kitchen designs showcasing food preparation as performance art. Guests now want to see how their food is prepared and connect with the people making it. 

7. Nutrition transparency

Then: Limited nutritional information available upon request

Now: Comprehensive digital details on ingredients, allergens, and dietary compatibility

Beyond the legally required nutrition information, today’s guests expect immediate access to extensive information about what’s in their food—and even details on suppliers and sources. Digital ordering platforms now provide detailed ingredient lists, allergen warnings, and compatibility with various dietary preferences from keto to vegan. 

6. Virtual brands

Then: What’s that?

Now: Thousands of digital-only restaurant brands operating from existing kitchens or commercial shared spaces

The concept of a restaurant existing solely in the digital realm with no physical storefront would have been unimaginable in 2005. Today, thanks to ghost kitchens, restaurants can now operate multiple concepts from a single location, each with its own distinct online presence and menu. Major chains have launched their own virtual offshoots, while dedicated platforms help independent restaurants create and manage delivery-only concepts. 

5. Sustainability in technology

Then: Basic recycling programs

Now: Comprehensive systems monitoring environmental impact

Environmental consciousness in restaurants was fairly limited 20 years ago, focusing primarily on basic recycling and perhaps some energy-efficient lighting. Now, guests may opt for a restaurant based on their sustainability commitments. 27% of Gen Z and millennials say they are more likely to dine at a restaurant that cares about its impact. The technology driving these efforts seems like early 2000s science fiction: ultrasonic wave fryers that use significantly less electricity and oil, real-time AI food waste monitoring, and more will become table stakes as younger generations assume the purchasing power of the future. 

4. The omnichannel experience

Then: “Dine in or takeout?”

Now: Multiple ordering and engagement platforms—all integrated and tied into a single source of truth

In 2005, interacting with a restaurant brand typically meant visiting in person or calling ahead for takeout. Today's restaurant experience spans dozens of potential touchpoints, all requiring consistent quality and brand experience. Guests might discover a restaurant on Instagram, browse the menu on the brand’s website, order through a third-party delivery app, track their order on the restaurant's own app, and leave a review on Google—all during a single transaction. This omnichannel environment has influenced restaurants to maintain brand consistency and operational efficiency across platforms. 

3. Data-driven decisions

Then: Gut instinct and basic sales reports guide restaurant operations

Now: Advanced analytics drive everything from menu engineering to staffing

Restaurant operators once relied primarily on experience and basic sales figures to make critical business decisions. Today, sophisticated analytics platforms track everything from ingredient-level profitability to weather-based demand forecasting. Modern restaurant management systems can predict optimal staffing levels for any day of the week, identify menu items ripe for promotion, and optimize inventory control to reduce waste. 

2. Personalization

Then: The Cheers effect—servers remembering regular guests’ orders

Now: Then, but at scale

I can still remember my regulars from when I worked as a delivery driver for Pizzaman in Newton, MA, and can tell you exactly what they ordered every Friday night. That connection still exists in restaurants today—and is amplified at scale by the technological capabilities at our fingertips. Brands can track individual preferences across thousands of guests, analyze ordering patterns, and deliver hyper-personalized recommendations in real-time. Digital ordering platforms dynamically adjust menu displays based on past purchases, weather conditions, and time of day. Loyalty programs automatically trigger offers tailored to specific behaviors. Even in-store experiences have been enhanced with technology alerting staff to regular guests and their preferences as they arrive. This shift to data-driven personalization has created more relevant experiences for guests while increasing average check size and visit frequency for restaurants. 

1. Online ordering

Then: “You could always just do it the old-fashioned way and stand in line.”

Now: Branded ordering platforms and mobile applications

The above quote is real—check out this clip for a true throwback to the early days of Olo.

The single biggest change in the restaurant industry over the past 20 years—and the one that best exemplifies Olo's contributions to the space—is the complete digital transformation of the ordering experience. In 2005, ordering food meant calling a restaurant during business hours, waiting on hold, verbally communicating your order to a staff member, and hoping nothing got lost in translation. Today's digital ordering experience bears no resemblance to the process of the past. Restaurant-specific mobile apps and online ordering platforms allow guests to browse dynamic menus with high-resolution images, customize items with precise specifications, and place orders with perfect accuracy at any hour. These systems integrate seamlessly with kitchen operations, loyalty programs, and payment processing while collecting valuable data on guest preferences. The digitization of ordering has not only improved convenience but has fundamentally reshaped restaurant operations, making them more efficient, accurate, and responsive to guests’ needs.

Looking ahead to the next 20 years

As we reflect on these transformative changes in the restaurant industry over the past two decades, one thing becomes abundantly clear: technology has changed every aspect of the dining experience. From how we discover restaurants to how we order, pay, and provide feedback, digital innovation has created conveniences and capabilities that would have seemed like science fiction in 2005.

As Olo celebrates its 20th anniversary, we are grateful and unsatisfied. Grateful for the customers, partners, employees, guests, and investors who have trusted and believed in our role in this digital transformation journey. Unsatisfied because we are only at base camp. Our sights are set on the summit (and our mission): Hospitality at Scale™.