AI in Restaurants: How To Use It To Grow Your Business

Marketing 21 minute read 10th August 2023

Artificial intelligence (AI) has just started and is revolutionizing many industries. While no one can predict the real effect of such technological change, it is clear that AI offer opportunities to businesses. The same is true for the restaurant industry, and this is why people talk about AI in restaurants.

AI technologies can find their way into various parts of restaurant operations that can significantly improve business efficiency. From streamlining ordering processes to enhancing customer experiences, there’s a lot you can do with AI. In other words, AI can be your ally. However, it can also be a threat if you do not adapt to this revolution.

This article explores the different applications and advantages of AI in restaurants. You will learn how it can reshape your operations and how to take advantage of it.

ai in restaurants 1

AI in Restaurants: How This Technology Will Change Everything

Let’s start with the basics. What is Artificial Intelligence (AI)?

AI refers to the development of computer systems that can perform tasks typically requiring human intelligence. These intelligent systems are capable of learning from experience, adapting to new information, and making decisions. However, understanding AI goes beyond this basic definition.

AI can blend with other technologies that might result in specific AI applications. The most prominent are:

  • Machine Learning (ML) allows computers to learn from data by using algorithms that recognize patterns and make predictions or decisions.
  • Natural Language Processing (NLP) enables machines to understand and interpret human language in a way that mimics human conversation.
  • Robotics deals with the design and construction of physical robots that can perform various tasks autonomously or semi-autonomously.

Given this, AI can be a transformative force in almost every aspect of any industry. From managing inventory and supply chain logistics to handling customer service and marketing, any business can take advantage of it. The same goes for AI in restaurants.

Imagine, for example, a restaurant that can predict exactly how much food to order from suppliers to reduce waste. However, the restaurant needs to ensure that they don’t run out of customers’ favorite dishes. With AI, this is possible. This will make them more efficient and capable of controlling the food cost of the restaurant.

Ultimately, AI restaurant solutions are about creating a business model that is more efficient, more customer-centric, and ultimately, more profitable. Let’s explore how.

ai in restaurants 2

Benefits of AI in the Restaurant Industry

Embracing AI in the restaurant industry brings along several benefits that can transform the way a business operates. Here are a few examples that underpin the main areas where AI can make a significant difference:

  • Operational Efficiency: AI in restaurants can streamline operational processes, from automating inventory management to optimizing staff scheduling. It can also help develop menus that match growing trends with enticing menu descriptions.
  • Customer Experience: From AI-powered chatbots to AI-driven recommendation systems, artificial intelligence can improve most restaurant operations. This can save a business time and money, allowing the staff to focus on improving the restaurant’s customer experience.
  • Revenues and Margins: By analyzing sales data and customer behavior, venues can gain valuable insights into every aspect of the business. This information can hint at issues with the restaurant menu, pricing, and marketing strategy.
  • Cost Control and Waste: AI can help predict order volumes, optimize portion sizes, and manage supply chains more effectively. This contributes to a more sustainable and effective business model.
  • Competitive Advantage: Incorporating AI into your restaurant operations can provide a competitive edge in your market. Moreover, it shows your commitment to innovation and can help attract curious customers.

As you can see, AI can do a lot for your business. Applying artificial intelligence might get you more reviews and higher ratings online. Furthermore, it can help you manage your restaurant, making it more efficient and profitable. Let’s have a look at a few applications of specific AI restaurant operations.

ai in restaurants 3

5 Applications That Show How AI Can Improve a Business

As mentioned, Artificial Intelligence has a multitude of applications that can significantly enhance a restaurant’s efficiency and margins. To make things more clear, let’s explore the five most significant applications of AI in restaurants. However, with the development of this and other technologies, other use cases might emerge.

ai in restaurants 4

Application #1 of AI in Restaurants: AI-powered Inventory Management

AI-powered inventory management is the first application of AI in restaurants that is worth knowing. It is like having a virtual operations manager who never sleeps and is always keen to work. Sounds like a dream, right?

Imagine a bustling restaurant on a Friday night, with orders coming and stock running low. An AI system can track these inventory changes in real-time and place orders depending on specific thresholds. The system can also predict the demand for the next week based on past trends, and automatically update orders with suppliers. This ensures that your kitchen is always stocked with the right ingredients. The days of “I’m sorry, we can’t serve it today” are gone.

ai in restaurants 5

Application #2 of AI in Restaurants: Chatbots for Customer Service

One of the most ubiquitous applications of AI in any industry is that of chatbots. AI in restaurants will slowly replace people that manage simple, redundant tasks. For example, answering queries that are always the same.

With their ability to function 24/7 and manage multiple interactions simultaneously, chatbots redefine customer service. They can elevate the dining experience, and foster customer loyalty for businesses. Let’s make a few specific examples of how this might happen:

  • Continuous Customer Support: AI chatbots offer tireless, stress-free exceptional customer service that human staff simply cannot match. For example, a diner who wants to enquire about a specific food can do that at any time. Instead of waiting for working hours to get a response, they interact with a chatbot. And it will work. This is a fantastic scenario for both customers and restaurant owners. Chatbots can also manage a multitude of queries without any lag in response time. This real-time response enhances the customer experience, encouraging them to choose your restaurant over others.
  • Personalized Customer Engagement: AI in restaurants can also accumulate and analyze vast amounts of data. Think of customers’ past orders, preferences, feedback, queries, etc. Imagine a regular customer who’s vegetarian and prefers gluten-free options. The AI chatbot can recommend new dishes that align with her dietary preferences. This will improve your restaurant’s customer service to an unparalleled level.
  • Seamless Integration with Other Platforms: AI chatbots can seamlessly integrate with various social media platforms, expanding your restaurant’s reach. In other words, customers will not need to download a new app or visit a different website. This makes interacting with your business simpler and might lead to more sales.

Application #3 of AI in Restaurants: Predictive Analytics for Sales and Marketing

The success of a new menu item in a restaurant is often a bet. But what if you could reduce the risk by using data? This is another application of AI in restaurants.

Suppose you are looking for vegan menu ideas and you decide to introduce a new burger. You can’t know how your customers will react, although you hope for the best. Predictive analytics tools analyze a multitude of data points to provide you with insights before deciding. These tools analyze past sales data, food trends from social media, and even customer reviews. By doing this, these tools can provide an accurate forecast of how well the new burger might be received by your customers. You will get the simplest sentiment analysis ever.

Additionally, predictive analytics can determine the best time to run marketing campaigns for the new item. The AI will find out when your customers are most receptive to new offerings or discounts, allowing you to schedule the promotion. This will make your advertising more effective, maximizing return on investment.

Moreover, these tools can automate customer segmentation and identify different guest profiles within your customer base. As a result, you can improve the experience at your venue while ensuring your restaurant advertising reaches the right people.

Application #4 of AI in Restaurants: Ai-Powered Phone Bots

AI-powered phone bots are a fantastic application for those businesses that rely on the phone for their orders and other tasks. As mentioned, AI in restaurants can cover operations in any area.

These bots can handle multiple phone calls simultaneously, taking orders, and providing information about menu items accurately and promptly. Let’s say a customer wants to know if you offer a vegan pizza. The AI phone bot can provide the answers instantly, without any hold time, making the ordering process quick and efficient.

What’s more, these bots can also upsell menu items, just like a real person would do. For instance, if a customer orders a pizza, the bot can suggest a popular complementary beverage or a special dessert. Moreover, these AI can adopt specific communication styles or techniques to deliver better results. This might increase the average order value and enhances the customer’s dining experience.

All in all, AI-powered phone bots can significantly improve the efficiency of your restaurant operations. Even Tesla is experimenting with these bots.

ai in restaurants - Thumbnail - 1080x1080

Application #5 of AI in fast food restaurants: Automated Cooking and Serving

Let’s close this list of AI in restaurants with fast food businesses. Fast food restaurants thrive on speed and consistency. AI in fast food restaurants, therefore, can scale the efficiency of the operations, making them faster. Imagine a robotic chef that cooks meals perfectly every time. Or else, imagine an automated serving system that delivers food to tables quickly and accurately. This improves service speed and ensures consistent quality.

As fast food customers have specific expectations, AI will be a game changer in the field. The more a business need to automate a repetitive task, the higher the chance that AI will do it instead of humans. So what’s left for humans? You will read this in the conclusion of the article. However, these examples demonstrate how AI applications can revolutionize a restaurant’s operations, providing practical solutions for common challenges. But how can you make the most of these AI solutions? Let’s find out.

How To Get the Most Out of AI for Your Restaurant Business

As with any new technology, it is hard to start and understand how it works. Implementing AI in a restaurant business is a significant step. Moreover, these technologies are quite new and prone to mistakes. Therefore, the first thing to do is to have realistic expectations and give yourself time to learn. Here are the most important steps to consider before bringing AI to your venue:

  • Identify Your Needs: Begin by identifying the areas where your restaurant could most benefit from AI. Is it inventory management, customer service, or marketing material? Just like with any other tool, you need to assess how it can help.
  • Start Small: As mentioned, this technology is still immature. Don’t rush to adopt every AI tool at once. Rather, focus on those that can deliver the best results and align with your needs. Once you’re comfortable with these, you can consider adopting new tools.
  • Take your Time: New technologies require a mental shift to understand how to use them properly. Give yourself the time to understand how these applications work and how to set up the right prompts.
  • Analyze and Adapt: Every now and then, you need to review the performance of your AI tools to see what real benefits they are providing. Are they improving efficiency? Boosting customer satisfaction? If not, you must change something.
  • Stay Informed: AI evolves quickly. Ensure to update your knowledge and get ready to change your assumptions.

Follow these suggestions, and you will be ahead of the curve. Let’s now conclude this article by answering the most common concerns around AI. Will artificial intelligence take your job or your business? Let’s find out!

How Not To Lose Your Job and Your Clients Due To AI

Let’s be clear. AI in restaurants can perform specific tasks faster and better than any human can. Overlooking this reality is not beneficial for anyone who intends to be competitive in the market. As seen so far, AI brings numerous benefits to businesses but also poses challenges. AI can be an order of magnitude more efficient than humans. Plus, it costs a fraction of an employee.

However, humans still have an edge; the human factor. And AI cannot do anything about that. As the word artificial says, AI is an emotionless automated system that can perform well in multiple areas. However, humans will still like emotions and humans.

As a paradox, AI might make people realize how human connections and interactions are significant. Emotions play a vital role in business interactions. Therefore the distinction is clear. Machines may be adept at analyzing data and providing efficient solutions. However, they lack the ability to empathize with clients’ emotions or respond with genuine human interest. Therefore, to survive the AI revolution, you need to nurture the human side of your business.

As seen in this article, AI in restaurants can really change the way you run your business. However, these technologies are far from perfect, and it will take time before they smoothly integrate with operations. If you want to grow your business now, consider integrating a WiFi marketing solution into your venue. With Beambox, you can automate your marketing task, get more online reviews and learn about your customers.

Start your trial today!

Get Started With Free WiFi Marketing

Beambox helps businesses like yours grow with data capture, marketing automation and reputation management.

Sign up for 30 days free

Grow your business and customer loyalty with guest WiFi!

Related posts