In recent years, AI has gone from a futuristic concept to a technology that’s shaping industries across the board. The restaurant industry is no exception.
As of 2024, the market for restaurant AI is valued at $9.68 billion, and over the next five years, it’s projected to skyrocket to $49 billion over the next five years. With rapid changes in consumer expectations, limited supply chains, and new operational demands, restaurants have had to adapt quickly to stay competitive.
However, for operators, the number of AI-driven tools and software options can feel overwhelming. The reality is that investing in AI now is essential to staying ahead of the curve. Those who embrace this tech will find new ways to boost profits and efficiency, while those who don’t risk getting left behind.
The Support for AI from Restaurant Operators
More restaurant operators are starting to explore how AI can benefit their operations. While currently less than one-third of restaurants are using AI, over 54% believe it will have a positive impact on the industry.
And it’s not just talk. In fact, over 71% of operators are planning to adopt AI in the near future. With so many businesses gearing up to integrate this technology, it’s clear that AI is on the horizon and ready to revolutionize the restaurant sector.
How Restaurants are Using AI
If you’re a restaurant operator looking to grow your business with AI, it can be tough to know where to start. The good news is that AI might already be part of your day-to-day operations without you even realizing it.
From automated scheduling systems to data-driven inventory management, many of the tools you’re already using have AI baked in.
But AI is capable of doing much more than that.
Let’s take a look at the different ways restaurant owners are using AI to improve everything from customer service to back-of-house efficiency and beyond.
Handling Guest Calls
One of the biggest bottlenecks in the hospitality industry is handling phone calls, especially during peak hours. It’s all too easy for reservations to slip through the cracks or for calls to go unanswered when the staff is busy. That’s where AI-powered phone answering services come in.
By using AI to field incoming calls, restaurants can make sure no call gets missed, even during the busiest times. This frees up your staff to focus on the tasks that need their immediate attention, while AI ensures more bookings and fewer missed opportunities.
Streamlining Operations
Running a restaurant means juggling countless logistics, from managing staff schedules to handling inventory, payroll, and customer service. It’s a lot to keep up with, which is why many operators are turning to AI to automate those mundane but necessary tasks.
AI can take care of wages, banking, and payroll, or streamline customer relationship management (CRM) systems, so your team can focus on more strategic work.
Big brands like Panera Bread are already using AI in exciting ways. They’ve partnered with OpenCity AI to power drive-thru voice ordering, and they’re using Miso Robotics to control coffee quality and temperature.
With tools like these, the possibilities for automating and improving restaurant operations are nearly endless.
Expediting the Hiring Process
The labor market in 2024 has been especially volatile, and the restaurant industry is feeling it, with turnover rates sitting at around 79.6%. Every restaurant operator dreams of hiring great people and reducing turnover, but to make that happen, it’s essential to invest in the right tools.
Using an applicant tracking system combined with an SMS service, for example, can help speed up the hiring process by automating job postings, communication, and scheduling interviews.
AI takes this a step further by filtering through applications to highlight the most qualified candidates. Software like Harver and Fountain are designed to do just that, making the process faster and more efficient.
Is AI the Future of Hospitality?
Running a restaurant isn’t for the easily discouraged.
In fact, about 60% of restaurants fail within their first year. It’s a tough business, but having the right tools can make all the difference between just surviving and truly thriving. That’s why AI is so important in today’s hospitality industry.
Cutting Costs
Managing phone calls, processing orders, and handling reservations are all touchpoints that take time, money, and manpower. These also pull staff away from more important tasks.
With phone or POS system AI technology, however, many of these tasks can be automated. This means you’ll need fewer staff members to handle the day-to-day, ultimately cutting down on labor costs.
Reducing Human Error
When tasks are automated, the chances of human error drop significantly. In fact, data entry alone can have an error rate of up to 4%, meaning 400 potentially wrong data entries for every 10,000. AI can correct that.
In fact, AI tools are especially helpful for minimizing mistakes with orders and reservations, which are often riddled with human error. Using AI to handle these tasks not only makes day-to-day operations smoother but also makes for happier customers. Fewer errors mean a better overall experience for your guests.
How EMERGING Can Help
AI is not a passing trend. It’s here to stay, and the data backs that up. As it becomes more common across the restaurant industry, staying ahead of the curve is essential. That’s why so many people turn to EMERGING.
We specialize in leveraging AI, data science, and strategic growth tools to help restaurants thrive. We’ve already helped hundreds of insiders scale their businesses and we’d love to do the same for you. Get in touch with us to learn how EMERGING can help take your restaurant to the next level with the latest AI technology.
