As U.S. restaurant operators prepare for 2025, they face the challenge of balancing high food and labor costs with the financial strain many consumers have experienced since last year.
With guest engagement taking center stage, restaurants are looking for ways to create a better dining experience while remaining financially viable. Amid these pressures, AI has gained more traction as a key tool in optimizing hospitality and bridging labor gaps.
Whether it will rid us of the human touch that guests expect from a restaurant is still under question.
Even so, according to PopMenu, 34% of restaurant operators have already adopted AI technology, while 48% plan to do so this year. Whether streamlining the order-taking process, optimizing food preparation, or improving marketing and business operations, AI is playing an increasing role in how restaurants engage with their guests.
As Scott Gingerich, Vice President of Restaurant, Bars + Events at IHG Luxury & Lifestyle Americas, reflects, “If there is one thing the restaurant industry learned during the COVID-19 pandemic, it is that dining is not just about eating, but the important role human social interaction plays.”
While AI is undoubtedly transforming the way restaurants operate, some say it also holds the potential to enhance the social experience of dining by alleviating some of the pressures on staff and enabling more meaningful guest interactions.
From reducing food waste and creating smarter menus to choosing the best locations for new ventures, restaurants are increasingly relying on AI to optimize their operations. In this article, we want to highlight how modern chefs and restaurant operators are using this technology to rethink the dining experience.
Menu Design
AI is changing how restaurants approach menu design by providing chefs with innovative tools to create fun and exciting dishes that take into account new food trends and dietary preferences.
One chef making strides in this area is Nikky Phinyawatana, the owner and chef of Asian Mint. Across her multiple Dallas-Fort Worth locations, Phinyawatana leverages AI, particularly ChatGPT, for creative inspiration and strategic support.
With ChatGPT, Phinyawatana can brainstorm seasonal specials, menu item names, and promotions quickly and efficiently. A recent example is the “longevity duck khao soi,” a dish she introduced as part of the restaurant’s Lunar New Year festivities.
With the help of AI, she refined the concept, ensuring it matched the occasion and aligned with customer preferences to create a memorable, timely special.
Phinyawatana has also used AI to adapt her recipes to changing tastes and dietary preferences. For example, her restaurant’s Thai Tea Extravaganza includes multiple creative iterations of Thai tea, catering to the growing demand for unique and customizable beverage options.
Answering Calls and Managing Reservations
The integration of AI in booking systems is already well underway, and many restaurant-goers may have interacted with AI without realizing it. From managing reservations to answering basic queries, AI is helping restaurants streamline their operations while improving customer service.
Take Matt Ho, the owner of Bodega SF, for example. He experienced firsthand the constant flood of calls during service hours, many of which were for basic inquiries that could quickly be answered on their website.
“The phones would ring constantly throughout service,” Ho recalls. “We would receive calls for basic questions that can be found on our website.”
To tackle this, Ho turned to Maitre-D, an AI-powered reservation platform that quickly proved the right fit. Bodega SF became one of the platform’s early adopters, and Ho even assisted with trial and error testing before the platform officially launched.
AI’s role in the future of reservations is also evident.
As Paul Denamiel, chef/owner of Le Rivage in New York City, says, “AI will undoubtedly revolutionize reservations taken both by POS and phone/email/website.” With AI handling routine calls and booking inquiries, restaurants can free up their hosts to focus on the dining experience.
Companies like Slang, a voice AI startup that pivoted to focus exclusively on restaurants during the COVID-19 pandemic, are making this prospect a reality.
In 2023, Slang announced a $20 million funding round and quickly gained traction in key markets like New York and Las Vegas. Their AI-driven platform works with major players, from major restaurant groups like Chick-fil-A to fast-casual chains like Slutty Vegan.
According to Alex Sambvani, the founder of Slang, in-demand establishments receive around 900 calls per month, making the need for AI-driven assistance more pressing than ever.
Managing Inventory
AI also has the power to change how restaurants manage inventory, offering a more efficient way to deal with back-end operations. David Caceres, the executive chef at Casa Gianna in Miami, is a prime example.
Caceres utilizes Craftable, a cutting-edge AI-driven hospitality management platform, to manage inventory, ordering, and vendor communications. The platform allows him to easily track inventory levels, place orders, and manage supplier relationships in real time.
With Craftable’s AI technology, Caceres can forecast needs, reduce waste, and optimize purchases based on historical data and trends.
One of the most significant advantages of AI in inventory management is its ability to gather real-time insights. With the right system, restaurants can track every item in the kitchen, ensuring they only order what’s necessary and make smarter decisions about what to stock.
This real-time data helps prevent over-purchasing and under-purchasing, which can lead to unnecessary costs or menu shortages.
AI tools can also offer a deeper analysis of sales trends, which helps chefs and managers anticipate what will be in demand, especially during peak seasons or special events.
Improving Sustainable Sourcing
The plant-based movement is nothing new.
However, what many once saw as a passing trend has now become a fundamental shift in consumer behavior. According to a report from Whole Foods Market, 65% of Gen Z consumers are increasingly adopting plant-based diets and looking for sustainable food options that align with their values.
As diners become more conscious of their environmental footprint, restaurants are having to embrace sustainable sourcing as well.
The co-founder of Holey Grail Donuts, Hana Dreiling, has integrated sustainability into her restaurant’s ethos by leveraging AI tools to enhance her sourcing practices.
The AI-driven solutions have helped her fine-tune the supply chain, shift to a quarterly menu, and drastically reduce waste. Dreiling’s restaurant focuses on taro root, a core ingredient that’s hand-harvested in Hawaii, and she has found that AI tools are an invaluable asset in supporting the local farming community.
Dreiling sees AI as a tool to empower local farmers, helping them grow more sustainably while also respecting the traditional methods that make taro so unique.
Final Thoughts
Human hospitality isn’t going anywhere. It’s simply evolving alongside AI. From refining menu designs and improving reservations to managing inventory and sourcing sustainably, it’s clear to see that AI has the power to transform how restaurants operate.
At EMERGING, we recognize that innovation is key to staying ahead in today’s competitive food and beverage landscape. As the leading growth equity firm for restaurant and entertainment concepts, as well as restaurant technology, we understand the challenges and opportunities that come with embracing new technologies.
Our acceleration platform provides strategic resources, mentorship, and access to an extensive network of industry insiders, helping businesses scale sustainably and efficiently.
If you’re ready to take your restaurant or hospitality business to the next level with cutting-edge technology and expert guidance, EMERGING is here to help.
