7 Ways AI is Revolutionizing Restaurants

Table of Contents

1. Introduction
2. AI Phone Answering
3. Voice Ordering
4. Kiosks that Personalize Customer Experiences
5. Integrated Inventory and Purchasing
6. Optimizing Staff
7. Optimized Delivery Processes
8. Data-Based Insights and Predictions
9. Pros and Cons of AI in Restaurants
10. Conclusion

AI in Restaurants: Streamlining Operations and Boosting Profits

Artificial intelligence (AI) is transforming the restaurant industry, and it's more than just kitchen robots. AI has virtually limitless potential to streamline operations, reduce costs, and boost profits. While multinational quick-service restaurant chains have invested heavily in AI technologies, such as kitchen robots like Flippy and Domino's drone delivery in New Zealand, this is an exception for the restaurant industry, not the rule. Here are seven ways that all restaurants can incorporate AI into their operation.

AI Phone Answering

A survey conducted by Pop Menu found that 83% of restaurant-goers will move to a new restaurant if their phone call isn't answered. That's why many restaurants are adopting technology that helps them avoid missing customer calls. AI phone answering technology can take messages, make reservations, add a guest to the waitlist, or even answer commonly asked questions. For example, if a guest asks, "Can I bring my dog on the patio?" an AI phone answering service can be programmed to pick out keywords like "dog" and "patio" and respond, "Our patio is dog-friendly."

Voice Ordering

In a recent report, Global Web Index found that 27% of the global online population is using voice search on mobile. To take AdVantage of this, restaurants are making it easier for customers to order through voice ordering. But this technology has even more applications than just ordering on guests' personal devices. Voice ordering could be implemented at self-service kiosks or in drive-throughs, allowing guests to place orders conversationally and without touching anything - a measure that was accelerated during the pandemic age due to its touchless nature. For example, Uber has announced the integration of voice ordering with Google Assistant that allows customers to personalize their orders with voice comments like, "Ok Google, order my favorite burrito from Chipotle," without having to say Type or add anything else.

Kiosks that Personalize Customer Experiences

While order kiosks are nothing new, some restaurants are finding new ways to enhance the customer experience. KFC is experimenting with kiosks that can recognize customers using facial recognition software and tailor their experience based on their past orders and preferences. This can help build customer loyalty and quicken up the ordering process.

Integrated Inventory and Purchasing

One area of restaurant operations where AI is starting to have a major impact is by integrating inventory and purchasing systems with your point of sale system. AI-enabled software can track historical inventory and purchasing and make real-time recommendations to optimize inventory levels. This can help cut down on food waste by tailoring purchasing to only meet inventory needs without buying excess that your restaurant won't be able to use before it expires.

Optimizing Staff

Using AI software, restaurants can determine the number of staff needed for optimum efficiency and profitability. This is traditionally one of the trickiest parts of management and can now be completely automated and optimized by the power of AI. The more data that it collects, the more accurate the AI software can be. Quinix is an example of such software. It decreases overstaffing up to 50% and understaffing up to 40% and ensures all labor laws are followed. It even takes employee preferences into account when creating the roster.

Optimized Delivery Processes

Restaurants have turned to AI to help take full advantage of the food delivery boom. Platforms like DoorDash and UberEats use AI in a number of ways. Firstly, AI is used to integrate with map data to find the best routes and help drivers avoid traffic congestion. It also keeps customers informed about where their food is and when it will be delivered up to the minute.

Data-Based Insights and Predictions

By analyzing all the historical data at restaurants' fingertips, AI can help Create data-based predictions. McDonald's were using AI predictions as far back as 2019 with their drive-throughs. McDonald's stores could anticipate rushes and even predict what dish would be most popular at different times of the day. By incorporating AI for cases, they were able to reduce wait times by 30 seconds, on average. Considering fast food orders are using delivered in minutes already, that is a considerable time saver and allows them to process more orders at peak times, leading to higher revenues in these franchises.

Pros and Cons of AI in Restaurants

Pros:

• Streamlines operations
• Reduces costs
• Boosts profits
• Enhances customer experience
• Optimizes inventory and purchasing
• Optimizes staff
• Optimizes delivery processes
• Provides data-based insights and predictions

Cons:

• High upfront costs for some AI technologies
• Potential job loss for some restaurant staff
• Privacy concerns with facial recognition software

Conclusion

AI might seem intimidating; however, it's becoming clearer that it will play a central role in the future of the restaurant industry. By incorporating AI into their operations, restaurants can streamline processes, reduce costs, and boost profits. From AI phone answering to optimized delivery processes, there are many ways that restaurants can take advantage of AI technologies.