Augmented Reality (AR) in Foodservice – Thematic Research
The global Augmented Reality (AR) market was worth nearly $7 billion in 2020. The market is expected to grow at a CAGR of more than 35% during the forecast period. AR is a technology that allows the user to see the real world overlaid with digital data. Furthermore, AR technology will be most valuable to foodservice companies in its capacity to drive consumer purchases and improve operational efficiency.
Adoption of AR for use in the workplace has been slow across the foodservice industry. The few use cases existing are primarily for remote collaboration, spurred on by COVID-19 restrictions and the changing nature of working practices. AR devices can also be used for independent training, inventory management, and improving health and safety standards in food preparation. Foodservice companies deploying these solutions will see greater operational efficiency and improved profit margins.
Global AR market overview
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What is the impact of AR on the foodservice industry?
Foodservice can use AR to improve ESG strategies by reducing food waste and cutting carbon footprints. For example, providing visual information on menu items using AR can help reduce food waste, as the consumer can see an accurate representation of portion sizes and order the amount suitable for them.
Dine-in services were hit more severely by the pandemic than takeaway. AR solutions can complement other health and safety measures, such as social distancing, and help restore consumer confidence in dine-in services. AR-enhanced menus remove the need for physical menus and support contactless ordering when combined with a digital payment solution through an app or on the web.
AR will be a key technology in the future of work in food service, supporting operational efficiency and increasing productivity. Geographically distributed teams can join shared virtual experiences through AR solutions. Remote collaboration platforms will provide various benefits.
Investment in AR can help the foodservice industry reduce labor costs and improve workplace efficiency. The availability of AR menus, often combined with digital payment services, removes the need for a waiter to take the order and reduces the chance of mistakes. AR devices in food preparation can also help reduce food waste and, therefore, losses. Alongside reducing the number of staff on the restaurant floor through AR menus, staff could also be relocated to prioritize the quick production of menu items, improving the service to the consumer.
AR is also an enabling technology for the metaverse. Foodservice companies can invest in AR technologies to keep up with the metaverse hype. Partnerships with gaming companies running AR platforms with characters in virtual worlds can increase brand awareness.
What are the different value chains of AR market?
The value chains of AR market can be divided into five segments: semiconductors, components, devices, platforms, and apps & content.
Semiconductors
Semiconductors are one of the key battlegrounds in AR today. Chipmakers are now striving to improve their existing capabilities to suit the evolving requirements of AR, mostly around screen resolution, frame rates, processing speed, and connectivity.
Components
Much of the major action in AR components is around 3D sensors, cameras, audio, displays, and batteries. These components come together for positional tracking, motion tracking, gesture recognition, and machine vision.
Devices
AR-enabling hardware comes in various forms, including smartphones, eyewear (AR smart glasses), and AR headsets. For consumer AR applications, smartphones are the most used platform, while enterprises typically prefer AR headsets and AR smart glasses, which offer a broader range of functions.
Platforms
Building an AR ecosystem by incorporating both hardware and software is essential for the long-term success of any company in this market. The five prerequisites for a successful AR ecosystem are application programming interfaces (APIs) & SDKs, AR engines – games, AR engines – enterprise, AI, and application delivery networks (ADNs) & content delivery networks (CDNs).
Apps & Content
Content is a major area of concern for AR companies. Snap, Meta, Tencent, and ByteDance have merged AR and eCommerce into their social media platforms, offering users the ability to try on products virtually. The ease of viewing products online, coupled with the ability to interact with those products, gives users a novel and immersive shopping experience.
Which are the key foodservice companies associated with the AR theme?
The key foodservice companies associated with the AR theme are Dine Brands Global, Domino’s, McDonald’s, Restaurant Brands International, Sodexo, Starbucks, Wendy’s, and Yum! Brands.
Which are the specialist AR market vendors in the foodservice industry?
The specialist AR market vendors in the foodservice industry are Diner, HoloLamp, Neosentec, NSF International, peAR Technologies, Poplar Studio, The Glimpse Group, and The Village Co.
AR Market Report Overview
| Market size (Year – 2020) | Nearly $7 billion |
| CAGR (Growth Rate) | >35% |
| Forecast period | 2020-2030 |
| Value chains | Semiconductors, components, devices, platforms, and apps & content. |
| Key foodservice companies | Dine Brands Global, Domino’s, McDonald’s, Restaurant Brands International, Sodexo, Starbucks, Wendy’s, and Yum! Brands |
| Specialist AR vendors | Diner, HoloLamp, Neosentec, NSF International, peAR Technologies, Poplar Studio, The Glimpse Group, and The Village Co |
Scope
- Foodservice will use AR as a utility and as an entertainment tool.
- Investment in AR will drive brand exposure and engagement.
- AR will play an important role in the future of work.
Reasons to Buy
- Position yourself for success by understanding how AR can help to solve the major challenges for the foodservice industry, such as COVID-19, ESG, and economic uncertainty.
- Source the leading, and specialist vendors of AR technologies for the foodservice industry. Discover what each vendor offers, and who some of their existing clients are.
- Quickly identify attractive investment targets in the foodservice industry by understanding which companies are most likely to be winners in the future based on our thematic scorecard.
- Gain a competitive advantage in the foodservice industry over your competitors by understanding the potential of AR technologies in the future.
Key Players
Table of Contents
Frequently Asked Questions
The global AR market was worth nearly $7 billion in 2020.
The global AR market is expected to grow at a CAGR of more than 35% during the forecast period.
The value chains of AR market can be divided into five segments: semiconductors, components, devices, platforms, and apps & content.
The key companies associated with the AR theme are Dine Brands Global, Domino’s, McDonald’s, Restaurant Brands International, Sodexo, Starbucks, Wendy’s, and Yum! Brands.
The specialist AR market vendors in the foodservice industry are Diner, HoloLamp, Neosentec, NSF International, peAR Technologies, Poplar Studio, The Glimpse Group, and The Village Co.
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