Articles

Automating the Back of House: How Kitchen & Restaurant Tech Is Reshaping Canada’s Foodservice Sector

By Community Manager Unpublished

  
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Canada’s restaurant industry is caught in a structural squeeze. Labour shortages have left tens of thousands of foodservice positions unfilled—the highest vacancy rate of any sector in the country. More than half of operators are running at a loss or barely breaking even. Food costs have jumped 22% since 2022, and 7,000 Canadian restaurants permanently shuttered in 2025. For an industry that employs 1.2 million workers and generates over $100 billion in annual revenue, these pressures are existential. 

That urgency shows up in CFIN’s portfolio of funded projects innovating this space. Since 2021, Kitchen & Restaurant Tech has accounted for 14 percent of all program submissions and over $3.09 million in awarded funding—making it one of the highest-volume innovation domains across CFIN’s eight priority areas, trailing only NextGen Food & Ingredients in total applications. From autonomous robotic kitchens to AI-powered grilling systems, the technologies emerging in this space fundamentally reshaping how food gets prepared and served—and who (or what) does the work. 

 

Why the Back of House Is Breaking 

According to Restaurants Canada, 41 percent of Canadian restaurants were operating at a loss or barely breaking even in 2025. The foodservice sector continues to carry one of the highest job vacancy rates of any industry nationwide. Restaurants remain the country's fourth-largest employer with nearly 1.2 million workers, but operators have been adapting by cutting hours on slow days, reducing menus to limit waste, and shifting from dinner service toward lower-margin breakfast and lunch dayparts. Food and labour costs remain the sector's dominant pressure points. 

Meanwhile, consumers are pulling back. More than a third of Canadians report eating out less frequently, with per-capita restaurant spending still below pre-pandemic levels—$1,035 at full-service restaurants in 2025 versus $1,165 in 2019. Younger Canadians are driving the shift: Gen Z are the most likely to cut back on quick-service visits, even as they account for the majority of impulse delivery orders. And food waste across the restaurant sector continues to cost an estimated $4.4 billion annually—part of a broader $58 billion national problem. 

These converging pressures have made automation and operational technology not a luxury, but a survival strategy. The global restaurant technology market was valued at approximately $59 billion in 2024 and is projected to exceed $314 billion by 2033. The kitchen automation and robotics segment is growing at nearly 14 percent annually. Across the sector, operators are increasingly clear-eyed about the challenges. The question for Canada isn't whether the sector will automate—it's whether Canadian companies will be the ones building the tools. 

 

The Frontier of Canadian Kitchen & Restaurant Tech 

Four of CFIN’s inaugural Foodtech Frontier 25 honourees are working in Kitchen & Restaurant Tech. Together, they offer a revealing cross-section of where the sector is headed—from full kitchen automation to smart beverage dispensing to tech-enabled foodservice platforms. 

Appetronix (Toronto, ON) designs and builds fully autonomous robotic kitchen kiosks that prepare made-to-order meals with zero onsite staff. Their flagship RoWok™ system prepares Asian stir-fry dishes autonomously, delivering over 60 meals per hour from a roughly 100-square-foot footprint. A second product line—developed in partnership with U.S. pizza chain Donatos—uses robotic arms to prepare, bake, slice, and box pizzas in approximately four minutes per order. The company holds an exclusive Canadian partnership with Compass Group Canada and launched its first revenue-generating autonomous pizza kitchen at John Glenn Columbus International Airport in June 2025, operated by HMSHost. 

Dispension Industries (Dartmouth, NS) builds secure, intelligent self-service kiosks that use biometric verification and AI to dispense age-restricted products without human supervision. Their foodservice application—SmartServ™—is an automated beer and canned beverage kiosk designed for stadiums and large venues. The system scans government-issued ID, compares the photo to the customer’s face, and completes transactions in under 60 seconds. Critically, it integrates Intoxivision™, a patent-pending contactless intoxication detection system that uses thermal imaging to screen patrons in real time. 

Gastronomous Technologies (Oakville, ON) builds the ChronoGrill®, an autonomous AI-powered charbroiler purpose-built for quick-service restaurant kitchens. Rather than replacing entire kitchens, the ChronoGrill retrofits into existing kitchen lines, automating the specific task of flame-grilling. The company reports an 85 percent reduction in labour attendance, a 50 percent increase in speed of service, and 75 percent less natural gas consumption per unit. CEO Kevork Sevadjian previously grew automotive manufacturer Summo Corp to 300+ employees and $60M+ annual revenue before its acquisition. The founding team’s insight: the way QSR food is prepared is fundamentally a manufacturing process—and should be automated like one. 

Kitchen Hub (Toronto, ON) operates Canada’s first virtual food halls—compact, multi-brand shared kitchen facilities where customers can order from multiple restaurant brands in a single transaction for delivery or pickup. Each location houses 6 to 13 kitchens in spaces like office lobbies, apartment buildings, and grocery stores, delivering the variety of a traditional food hall at a fraction of the footprint and cost The company now operates four locations, with plans to expand across North America. Its proprietary KitchenHub OS platform is evolving the company from operator to technology provider, enabling landlords to add multi-brand ordering to existing food halls and food courts. 

Investment Momentum in Kitchen & Restaurant Tech 

These four companies are signals of a broader market shift. Kitchen & Restaurant Tech is one of the most active categories in CFIN’s innovation portfolio, and catalytic public funding is playing a clear role in accelerating commercial traction. 

Since 2021, CFIN’s $23.3 million in early-stage funding and other programming support has helped unlock over $82 million in follow-on private investment across its portfolio. In kitchen and restaurant tech specifically, that momentum includes: 

  1. Appetronix closing over $10 million in total seed funding in November 2025. The round, led by Donatos Pizza founder Jim Grote, will help the Toronto startup expand its partnership with Donatos and work with other partners on robotic kitchen tech.  

  1. Gastronomous Technologies which received $1.92 million through CFIN’s Food Innovation Challenge in 2022 to advance commercial kitchen automation, went on to close a pre-seed private investment round led by Redstick Ventures, validating the company’s commercial trajectory and positioning it for scale. 

 

The broader market is reinforcing that momentum. The global kitchen robotics and automation segment stood at approximately $3 billion in 2024 and is projected to reach nearly $10 billion by 2033. Globally, restaurant tech funding fell to $1.3 billion in 2024 from peak-era highs—but within that correction, automation and AI-focused companies are attracting a growing share. The signal is clear: investors are becoming more selective, but the companies solving real operational pain points are still raising capital. 

 

What’s Still Holding Kitchen & Restaurant Tech Back? 

Despite clear demand signals and growing adoption, scaling kitchen and restaurant technology in Canada faces persistent hurdles: 

  1. Razor-thin operator margins of 3–5 percent leave little room for technology experimentation, even when long-term ROI is favourable 

  1. High upfront capital requirements for hardware-based solutions like robotic kitchens and automated cooking equipment, which require manufacturing scale to bring per-unit costs down 

  1. Regulatory fragmentation across provinces—particularly for automated dispensing of age-restricted products like alcohol, which requires navigating different liquor control frameworks in every jurisdiction 

  1. Cultural and adoption barriers in a sector that has historically been slow to digitize—where 76 percent of operators acknowledge technology gives them a competitive advantage, yet fewer than half have made significant investments 

  1. Cautionary market signals from the global ghost kitchen correction—where high-profile failures like Kitchen United ($175M raised, closed all locations) and CloudKitchens ($850M raised before significantly retrenching) have made investors more cautious about capital-intensive foodservice models 

 

These frictions mean that even the most compelling technologies can struggle to move from pilot to platform. Canada has a well-documented productivity challenge—and the foodservice sector is no exception. 

 

Building What Comes Next 

Kitchen & Restaurant Tech represents not just new tools for existing kitchens, but new models for how foodservice operates—autonomous kiosks that run 24/7 without staff, smart grills that bring factory-grade consistency to QSR lines, biometric dispensing systems that remove the need for a bartender, and platform models that let restaurants scale without opening new locations. 

The market need is structural and growing. Canada’s foodservice labour shortage predates the pandemic and will outlast it. Technology that can deliver meals with significantly less labour, operate leaner kitchens, or enable brands to reach new customers at a fraction of the cost of a traditional buildout addresses an urgent, measurable gap. 

If the current momentum holds—and if the right investments in infrastructure, regulation, and adoption continue—these ventures will help form the foundation of a more productive, resilient, and globally competitive Canadian foodservice economy.