For years, industry experts have been predicting how AI would go about redefining many markets, and today, most of those predictions have come to life in the restaurant industry.
As 2024 draws to a close, there are few restaurants and chains that haven’t leveraged AI to improve their operations or offer customers a better experience. The data speaks volumes.
At the present moment, the market value of AI within restaurants already stands at a value of USD 9.68 billion, although this is projected to increase exponentially as high as USD 48.99 billion by 2029. That’s a 400% increase in just five years.
To date, AI has been a differentiator in this field and holds considerable advantages for restaurant owners/operators across the world. As continuously evolving technology, it is rapidly reshaping how we define customer service, ordering, and even food preparation. For those in the restaurant business, AI is a tangible way towards growth and efficiency and offers such a competitive advantage that it’s impossible to look away from.
The Different Types of AI
Before discussing how AI functions in restaurants, let’s get a clear idea about what artificial intelligence is. Here are the four major types of AI and their roles in the restaurant industry:
- Artificial Intelligence (AI): In its most basic form, AI is designed to perform tasks that generally would require human intelligence. AI-powered tools can revolutionize restaurant operations by offering greater efficiency, minimizing food waste, and studying consumer consumption patterns for a better dining experience.
- Generative AI: This subcategory of AI is meant to create something new, from images to text, by learning the patterns of already existing data. This may allow restaurants to explore innovative recipe development, create custom menus, or make visually stunning digital marketing materials targeting specific audiences.
- Conversational AI: This includes technologies like chatbots and virtual assistants that support conversation-like interactions. In restaurants, conversational AI may enable the automation of reservation systems, handle inquiries on placed orders, and even place orders via chat interfaces.
- Predictive AI: Predictive AI analyzes historical data to make forecasts about future outcomes. In the restaurant industry, predictive AI can help optimize inventory, predict demand fluctuations, and adjust staffing levels to align with expected customer flow.
AI is quite broad, and there are other places to learn about it online. For this article, though, a general understanding of these pivotal types is all you need to understand their overall impact on the restaurant world.
Ways Restaurants are Successfully Integrating AI
Inventory Management
Food waste in the U.S. comprises 38% of all produced food not sold or eaten. To reduce waste, many restaurants have started to adopt AI to optimize inventory management and food preparation lines.
Chipotle, for instance, partnered with PreciTaste to create its “cook-to-needs” kitchen management system. This AI-powered solution uses sophisticated machine learning to always keep track of ingredient quantity in real-time.
In doing so, it can notify team members when and how much to prep or cook to make sure the food being made is maximally efficient and fresh without overproduction. These kinds of smart readjustments with waste avoidance in mind can help restaurants like Chipotle deliver an outstanding experience for their guests.
Customer Service
Customer service can make or break a restaurant, yet it’s a challenge when 60% of customers are unwilling to wait on hold for more than a minute. Owners know just how important prompt service is, which is why many of them are leveraging AI.
Del Taco, for example, partnered with Presto to address this very need. The ultimate aim was to streamline drive-thru operations. Presto’s AI-driven voice assistant greets customers, takes orders with remarkable accuracy, and even suggests upselling items automatically.
Data and Analytics
AI has also made it possible to leverage customer data in a more efficient way than ever before, changing how restaurants understand and connect with their guests. Chili’s, for instance, partnered with Presto to implement an AI solution that analyzes customer data and creates personalized marketing based on specific guest preferences.
Beyond personalized messaging, this level of AI-powered data and analytics can support a range of other functions, from retargeting campaigns and advertisement strategies to staffing and scheduling.
With deeper customer insights, restaurants can also personalize experiences on mobile apps and self-service kiosks, so that each guest interaction feels more relevant and engaging.
Virtual Ordering
Wingstop has consistently been a leader in restaurant technology, pushing boundaries with innovative digital experiences. From launching a Twitch extension that allows users to order food while streaming to aiming for 100% digital transactions, Wingstop has set a high standard for tech-driven dining.
Recently, Wingstop announced a partnership with ConverseNow to take their virtual ordering capabilities to the next level. This virtual ordering assistant is always on hand, designed to ease employee workload by handling multiple orders simultaneously.
It’s also multilingual, ensuring customers from diverse backgrounds can communicate easily!
Beyond just taking orders, ConverseNow’s assistant makes personalized recommendations and transfers calls to a human team member whenever additional support is needed.
How You Can Leverage Restaurant AI with EMERGING
After seeing how leading brands are using AI to transform their operations, you might be wondering how you can do the same. By partnering with EMERGING, you get the resources and connections to stay ahead of technological trends and leverage partnerships that make scaling your business easier and more effective.
With EMERGING, you get access to industry-leading resources, strategic growth support, and the expertise that comes with having helped so many top food and beverage brands scale, offering invaluable insights to drive your success.
Ready to explore how EMERGING can help you bring AI into your restaurant? Contact us today to learn more.
