Technology is the backbone of modern restaurants. From sensors to contactless payments, technology helps streamline operations and enhance the diner’s experience. But with an expanded digital footprint comes new risks and vulnerabilities that can directly impact restaurants’ bottom lines.

Unfortunately, many restaurants still see restaurant technology as a back-office IT issue. But managing restaurant risk is everyone’s responsibility. Many don’t realize that if something goes wrong, it can trigger a cascading chain of disruption: lost revenue, reputational damage or liabilities that insurance may not fully cover.

In reality, technology is an operational concern that touches all aspects of the business.

Operational risk in hospitality

What started with basic point-of-sales systems — now used by 97% of restaurants1 — has evolved into a comprehensive digital ecosystem.

Technologies that now define modern restaurant operations include:

  • Digital ordering platforms like kiosks, apps and QR code menus.
  • Smart kitchen devices that monitor food safety and track performance.
  • Integrated data systems for loyalty programs, staffing and safety/surveillance.

While each advancement offers clear benefits, it also introduces new risks:

  • Mobile ordering systems expand customer access, but third-party app vulnerabilities and data breaches extend beyond the restaurant’s direct control.
  • Smart kitchen alerts improve food safety, but ignored warnings can increase the restaurant’s liability and negligence risk.
  • Surveillance systems help track incidents, but recorded evidence of safety issues that aren’t addressed can create liability.
  • Loyalty programs strengthen diner relationships, but stored personal data is a prime target for cyberattacks.

Given the sensitive information these systems generate and store, there is an abundance of cyber threats that can arise. Restaurants are increasingly targeted for ransomware by hackers who lock down critical business systems and demand payment to restore access. Loyalty and online ordering platforms are especially attractive targets. The cost of a cyberattack can be substantial, averaging $3.3 million.2

Restaurant liability management: Staying one step ahead of risk

To implement effective risk management strategies, restaurants must view technology threats in the context of existing safety concerns and take a proactive, multi-layered approach that includes:

  • Thoroughly vetting vendors and their software and understanding what’s in the contract. Who is liable if something goes wrong? Review contracts to ensure the right to audit vendors and receive breach notifications. Build redundancy so if one system fails others aren't affected.
  • Establishing strong internal protocols. Staff should be trained in how to use critical technology systems and what to do in the event of a failure. Run tabletop exercises for scenarios like POS outages during peak service or data breaches and ensure teams know how to shift to manual operations to maintain business continuity.
  • Providing cybersecurity training. Restaurant owners should provide different levels of training depending on the staff position. For example, wait staff and other hourly workers could watch short safety refreshers at clock-in terminals at the start of each shift.

Utilize cyber insurance and broker resources to protect profitability

Cyber insurance is an essential tool for restaurants to help cover breach response costs and provide access to expert cybersecurity support. Having the right coverage can mean the difference between a swift recovery and lasting financial fallout.

Despite rising threats, many restaurants still rank cybersecurity as a low priority, according to a survey by the National Restaurant Association.3 However, those that follow cybersecurity best practices may be able to secure better insurance rates and broader coverage.

An experienced broker can help identify potential technology risks and insurance gaps and connect you with the right resources to ensure your technology investments don’t introduce new vulnerabilities.

Contact HUB International’s hospitality insurance experts to learn more about protecting your restaurant from technology risks.

1 TouchBistro, “2025 State of Restaurants Report,” accessed July 18, 2025.
2 California Restaurant Mutual Group, “Rising Incidence of Cyberattacks in the Restaurant Industry,” October, 24, 2024.
3 National Restaurant Association, “Restaurant Technology Landscape Report 2024,” March 27, 2024