Recently digital transformation has become imperative that organizations must embrace to cope with today’s digital world’s new demands. Previous research has been investigating the opportunities provided by digital transformation but still, there is a gap when it comes to digital transformation challenges. This thesis addresses the main challenges faced by restaurants during their digital transformation journey. A qualitative research method with semi-structured interviews has been used to investigate digital transformation challenges in the restaurant industry in the following countries: Sweden, Sri Lanka, Australia, and Korea. Our findings show that restaurants mostly face a lack of resources, culture change, and lack of knowledge. This study has a double contribution. On the one hand, this thesis provides practitioners with the main challenges restaurants face during their digital transformation journey, on the other hand, this study provides literature to fill the gap that exists in digital transformation challenges.