As we navigate through 2025, the restaurant technology space is experiencing a significant shift, one that has been gaining momentum since 2023. Dubbed the ‘Borg effect,’ this trend sees large vendors acquiring smaller tech companies, much like the Borg from Star Trek, which assimilated other species to enhance its collective intelligence. This episode of the Constrata Minute delves into the implications of this trend for restaurant operators and the industry at large.

The consolidation of technology providers offers both potential benefits and drawbacks. For brands with limited resources, partnering with a large vendor can provide compatibility and certainty, removing the need to painstakingly curate a technology stack. However, this convenience might come at the cost of reduced flexibility and innovation. As these large vendors expand, there’s a risk they might prioritize their own offerings over collaborating with other tech providers, potentially stifling the innovation often found in smaller, emerging companies.

The Restaurant Technology Network (RTN) has been working to address these challenges by promoting industry standards. These standards are designed to level the playing field, reduce friction, and encourage innovation. Despite their efforts, adoption by operators and suppliers has been lukewarm. The episode highlights the importance of supporting these standards, not just in words, but through time and purchasing decisions. By doing so, the industry can ensure that both single vendor and best-of-breed approaches remain viable, fostering a diverse and dynamic technological landscape.

Ultimately, the episode argues that the restaurant technology industry should be able to have its cake and eat it too. By embracing both the stability offered by large vendors and the innovation driven by smaller companies, the industry can thrive