34% of Operators in Houston Have Implemented Service Charges

Like their peers across the country, restaurateurs from across Texas have been struggling with higher costs, particularly higher food and labor costs. But unlike their peers nationwide, some operators in Texas have been experimenting with service charges – sometimes referred to as “junk fees” – to make up for shrinking profits. 30% of operators in Austin and more than a third (34%) of operators in Houston report adding service charges to bills in the past year – though it remains to be seen the actual impact of these charges on the bottom line.

Cost of Third-Party Delivery Apps Cited as a Top Frustration in Texas

Similar to a trend observed nationwide, Texas’ takeout/delivery sector continues to see significant growth. A whopping 88% of operators in Texas said they had observed takeout/delivery sales significantly or slightly increasing in the past year, making it one of the most prominent Texas restaurant trends right now.

Despite growing sales, there seems to be some growing pains when it comes to how takeout/delivery orders are managed. In Houston, operators cited technical issues with online ordering apps or software as their biggest off-premise concern, while operators in Austin pointed to difficulties maintaining order quality. Across the state, the number one issue was the cost of using third-party delivery apps, which has long been a concern for independent operators running on slim profit margins. All of this suggests that while sales are growing, there’s a lot of room for optimization when it comes to off-premise order management and fulfillment at restaurants in Texas.

91% of Operators in Texas Feel Positive About AI in Restaurants

The Texas restaurant industry is undergoing a major restaurant tech revolution and part of that includes AI. Though the number of restaurants in Texas that have implemented automation and AI falls slightly below the U.S. average, it’s clear the technology is still quite popular and being readily adopted. Among those who have implemented automation, 44% report an increase in sales, 42% report more efficient FOH operations, and 41% report more productive staff.

Though the qualitative interviews conducted for our Texas restaurant report did reveal concerns around new technology, like high upfront costs and adding complexity to existing operations, operators across Texas overall reported feeling positive about the use of AI in restaurants. In fact, 91% of operators in Texas said they felt positive about the use of AI in restaurants, suggesting there’s strong interest in the technology, provided that concerns around issues such as cost can be addressed.