AI technology is everywhere these days and restaurants are no exception. A recent article from Restaurant Business shows that 73% of surveyed restaurant operators plan to increase their spending in AI over the next year.
And with AI-powered tech becoming more affordable and accessible all the time, even small and independent restaurants have an opportunity to benefit from the latest restaurant technology trends.
In fact, you may already be using AI tools in your restaurant, whether you know it or not. As Back of House restaurant tech expert Spencer Michiel explains, “A lot of the big players in the industry have already incorporated AI tools and features into their top products. The big question is, are you taking full advantage of these tools and features?”
To help you answer that question, we’re taking a closer look at some of the ways that restaurants use AI. Read on to be sure you’re making the most of these advanced features.
5 AI Tools for Restaurants That You May Already Be Using
Most restaurants that are actively using AI tools have reported generally positive results. During a recent Back of House webinar about AI in restaurants, Gordon Food Services Head of Marketing Kathleen White pointed out, “Sixty percent of those who already have [adopted AI tools], have reported that it has been critical in their improvement.”
But how exactly are restaurants using these tools, and how might AI already be making an impact on your business? Here are a few ways that we’re already seeing AI in restaurants.
1. Advanced Data Analytics
“If you’re wondering whether or not you already have access to AI-powered tools, the first place to look is your POS [point of sale] system,” Spencer advises. “Today, these all-in-one, workhorse POS systems come with all kinds of sophisticated AI-based functions already included.”
Today, the leading POS systems do a lot more than just take orders and process payments. As the central hub for your transactions, a POS system is also the central hub for your data, including sales figures, profit margins, historical performance, and much more.
In fact, there’s so much data in your POS that it would be pretty much impossible for a human being to connect all the dots. This is where the AI-powered data analytics features included with your POS really have a chance to shine.
“All of these data points are incredibly valuable,” Spencer notes, “but as human beings, we don’t necessarily have the ability to draw the complex connections between these data points. Your POS system, on the other hand, can pull this information together in order to draw some meaningful conclusions, the kind that can help you refine menu pricing, identify promotional opportunities, spot underperforming dishes, and a whole lot more.”
2. Loyalty Programs
“Customers want more personalized experiences,” Spencer explains. “More and more, AI-powered tools are helping restaurants provide these experiences. Your loyalty program is one of the best examples.”
If your restaurant uses a third-party provider for your loyalty program, there’s a good chance you are already benefiting from AI. Your loyalty program may be embedded into your POS system, or you may work directly with an independent loyalty program vendor.
Either way, your loyalty program makes it possible to collect volumes of valuable data on customer preferences, visiting patterns, check sizes, and more.
AI-powered data analytics make it possible to draw deeper insights from these data points. If you’re taking full advantage of your loyalty program, you should be able to turn these insights into more individualized and targeted experiences for your customers.
Spencer points out, “These data-based insights can help you upsell certain items to specific customers, reach out to customers with promotions based on individual preferences, or attract repeat customers with personalized specials during your slower shifts.”
3. Staffing Solutions
Staffing is a pain point for a lot of restaurants. From last-minute call-outs and unpredictable foot traffic to high turnover and persistent staffing shortages, it can be difficult to make the right day-to-day decisions. Understaffing a shift can damage the customer experience, but overstaffing is a waste of precious resources.
“In the past, there has been a lot of guesswork involved in staff scheduling,” Spencer acknowledges. “The best scheduling platforms are designed to solve that problem, and most of them are leaning heavily on AI to do it. I think that’s a good thing because it really does take so much of the guesswork out of scheduling.”
AI tools are already being used to analyze sales patterns, customer flow, and employee performance and draw out detailed insights so you know exactly how many servers, prep chefs, and dishwashers to schedule for every shift.
If your staffing tools provide this type of predictive insight, you’re probably already using AI. If your staffing tools don’t provide these insights, it may be time to explore an upgrade.
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4. Waste Reduction
If you’re using advanced food inventory management technology, there’s a good chance that you’re enjoying the benefits of a few AI-powered tools. This is likely true whether you’re using an independent third-party provider for your inventory management system, or you're using an add-on provided by your POS system. Today, most competitive inventory management systems rely on AI for predictive analytics.
“Your historical data is rich with insights,” says Spencer. “Inventory management software uses AI to pull out these insights and use them to inform future inventory decisions.”
This means you get more precise demand forecasting, which in turn prevents stock overordering, underutilization, and spoilage. In short, AI tools give your inventory management system a data-driven approach to minimizing kitchen waste.
As a bonus, some of the leading edge inventory management systems can also use these same insights to provide real-time inventory monitoring and automated reordering.
5. Customer Experience
According to a study from Deloitte, 60% of casual dining owners and operators say the biggest benefit of AI in restaurants is its enhancement of the customer experience. As we mentioned earlier, some of this enhancement comes courtesy of your loyalty program, which makes it easier to personalize customer experiences.
But AI is also being used to power automated chatbots, voice ordering systems, self-ordering kiosks, voice-activated drive-throughs, and more. As Spencer points out, “Each of these innovations is designed to improve the speed and convenience of the customer experience, whether your customers are dining in, placing an online order, or calling in to make a reservation.”
Some of these functionalities may already be integrated into the package provided by your website builder. If you process orders through a third-party delivery service, it’s also likely that some of your customers are finding you with the help of an AI-powered customer service agent.
And of course, if you wish to take steps on your own to enhance the customer experience with the help of AI, many excellent independent third-party providers specialize in emergent technology like AI phone answering systems and automated reservation services.
Get Proactive About Integrating AI Tools In Your Restaurant
You may already be familiar with some of the AI solutions highlighted above. You may even be taking full advantage of these resources with the help of your POS provider or inventory management system. But as more restaurants invest in these cutting edge technologies, now may be a good time to get proactive about AI.
Of course, you only want to implement solutions that make sense for your business. It’s not just about adopting cool new technologies. It’s about solving problems that you actually have. If you’re ready to dig a little deeper and find the right AI tools for your restaurant, reach out and schedule your free consultation with Spencer or another of our in-house experts.
