Why Missed Calls Equal Lost Restaurant Revenue and How To Fix the Problem

Why Missed Calls Equal Lost Restaurant Revenue and How To Fix the Problem

Every day, countless missed calls cost restaurants opportunities to book reservations, take orders, and bring in new customers. But really, that’s just the tip of the iceberg. Every missed phone call is also a lost opportunity to gather data, understand customer demands, and enhance the customer experience.

In other words, your missed calls are resulting in lost revenue on multiple levels. On top of that, you may be missing more calls than you realize.

“According to the research, 43% of calls are going unanswered for small and independent restaurants. And in most cases, they don't even know there's a problem there,” says Stuart Lachovsky, VP of Partnerships for an AI-powered voice answering service called Sadie. Head of Marketing Ryan Sullivan points out that Sadie was designed to provide AI voice answering for restaurants and hotels, and was built specifically with the needs of the hospitality industry in mind.

But is an AI voice answering system right for your restaurant? Well, before you decide, let’s take a closer look at what all those missed calls are costing your business.

 

5 Ways Missed Calls Are Hurting Your Business

An article from the Nation’s Restaurant News reports that missed calls cost restaurants an estimated $20 billion in revenue per year! And much of this loss is affecting small and medium-sized restaurants. As Stuart explains, “The multinationals, the big guys, are already using AI to handle these calls.”

Smaller restaurants have not always had access to these tools. But today, rapidly advancing technology is making it possible for even smaller restaurants to automate their call answering services without sacrificing brand consistency or customer experience. Stuart notes, “Now we have a solution that could really address the needs of the independent restaurant.”

But let’s take a closer look at why it’s so important to address these needs in the first place.

 

1. Busy Shifts and Unanswered Calls

“Independent restaurants often don't have the staff to answer every call,” says Stuart. “You don't have your best people answering the phone, because the best people should be doing what they do best, which is addressing the guest experience. But of course, if you're too busy to answer the phones, you're missing money.”

How much money? Ryan points out that Sadie’s partners recoup an average of $76,000 in missed revenue per year simply by adding AI voice answering. It’s important to point out here that AI voice answering for restaurants represents a huge technological leap from the familiar and frustrating automated answering system (you know the drill — “Press 1 for reservations,” “Press 2 to place an order”).

Today’s AI voice answering systems are far more effective at answering customer questions, completing transactions, and even encouraging customers to spend more. At the most basic level, AI voice answering for restaurants can handle phone calls, provide information, take orders, and book reservations.

But as Ryan explains, “Because Sadie is AI, she is also always learning how to be a bigger help from an operational standpoint with things like cross-selling and up-selling.”

 

2. Loss of After Hours Business

If you don’t have a way to effectively engage your customers and address inquiries after hours, a lot of the revenue that you’re missing out on is likely happening after your employees have gone home.

“Who's making a reservation at midnight?” asks Stuart. “A lot of people, actually. But if I call your restaurant at midnight and no one answers, I'm going to go to the next restaurant.”

Just how much business are you losing overnight? Ryan says that Sadie’s clients lock in 25% of their bookings after hours, which amounts to roughly $19,000 per restaurant, per year. AI voice answering for restaurants makes it possible to engage with your customers at a more dynamic level even when your restaurant is closed. This means those late-night bookings don’t fall through the cracks anymore.

 

3. Gaps in the Data

Not only are you losing business every time you miss calls during busy shifts and after hours, but you’re also losing crucial bits of data about your customers. Every uncaptured call is a potential order or reservation. If you’re missing 40% of these reservations and orders, you are also missing out on an incredible amount of information about customer demand, preferences, and behaviors.

Unlike traditional automated answering services, AI-powered voice answering systems can gather information and share it with other key pieces of your tech stack. As Stuart explains, “With AI voice answering, you can handle all the basic questions — What time do you open? How do I get to your place? Can I park there? Do you have vegan options?”

“Now take that technology and embed it into a line of business applications like OpenTable, Yelp, and Libro – and integrate it with your POS system,” says Stuart. Suddenly, it becomes possible to fill in data gaps by painting a more complete picture of your customer base and their preferences, one that includes people who call during busy shifts and after hours.

This more complete picture can boost revenue by helping you make better-informed decisions about menu offerings, promotions, marketing outreach, and more.

 

4. Staffing Challenges

Most restaurants face staffing challenges. Turnover has always been high in this business. But today, it’s harder and more expensive than ever to keep your restaurant fully staffed. As Stuart points out, “There’s a big employment gap in the restaurant industry right now, which means that for smaller operations especially, there's just no one there to answer the phone.”

“That’s why I don’t see AI voice answering for restaurants as a replacement for your staff,” says Stuart. “This technology exists so your staff can focus on what matters, which is the customer.”

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When front-of-house team members aren’t pulled away to answer a constantly ringing phone, they can provide more efficient service, focus on engagement and up-selling, turn tables over faster, and ultimately help boost your restaurant’s revenue with improved service.

And perhaps most importantly, says Stuart, you’re also taking meaningful steps to reduce employee burnout and improve retention.

 

5. Diminished Customer Experience

If your phone is constantly ringing off the hook, chances are it's negatively impacting the experience for both the caller and the customer who is already in your dining room. Stuart paints a hectic picture of a busy restaurant without a voice answering service.

“It’s Friday night. You’ve got the phone ringing for Saturday reservations. You have guests coming in for happy hour. And because there's no staff, you’re also in charge of handling deliveries through DoorDash, Skip the Dishes, or ChowNow,” says Stuart.

“Now you’re not focusing on what you should be, which is serving the tables, making the cocktails, or greeting the customer,” says Stuart. “So your customers aren’t getting the service they expect. Meanwhile, you have callers waiting on hold or hanging up out of frustration.”

It’s difficult to quantify just how much potential revenue is squandered when you alienate prospective customers or discourage repeat visitors. This is why a lot of operators actually see AI voice answering for restaurants as a way to put the focus back on the customer experience.

 

Using Technology to Recapture Lost Revenue

Missed calls may be costing you more than you realize. But AI phone answering for restaurants are becoming more accessible, affordable, and easy to implement even for small businesses

That’s why, Ryan suggests, “Your balanced diet as an independent restaurateur in 2026 should include all the tools and tech that you have at your disposal, including a reliable AI phone ordering system.”

Wondering what other tech you could be using to boost your restaurant’s revenue? Schedule your free personalized consultation with one of our in-house restaurant tech experts to see how much revenue you’re missing.