In 2024, AI has seemingly infiltrated every industry— the restaurant industry included. In fact, the current market valuation for restaurant AI is $9.68 billion and is expected to soar to $49 billion within the next five years.
Restaurant industry experts have been predicting for several years that one of biggest indicators of success is whether or not businesses embrace technology. Restaurant businesses have had to innovate and adapt quickly in the face of inflation, supply chain shortages, and changing customer expectations.
As a restaurant operator, it can feel overwhelming to decide which technology and software is best suited to adapt to these uncontrollable, external challenges.
Spoiler: investing in artificial intelligence (AI) is a smart move.
If you're a restaurant owner, operator, or manager, it's time to modernize your restaurant business or potentially get left behind.
What is AI? Before we dig into why this technology can be a game changer for restaurants, let's take a step back.
The concept of artificial intelligence dates back to the 1950s, when Alan Turing, known as the “Father of Computer Science,” envisioned a world in which machines could process information faster than humans.
The modern definition of AI—or artificial intelligence—according to McKinsey and Company is “a machine's ability to perform the cognitive functions we associate with human minds, such as perceiving, reasoning, learning, interacting with an environment, problem-solving, and even exercising creativity.”
Put simply, AI makes machines seem smart and even humanlike. However, AI isn't meant to mimic human thinking; it also uses machine learning to expand upon it in some ways.
Machines can process large amounts of data the human brain could never handle. The combination of processing vast quantities of data paired with humanlike experiences is what makes AI exciting and innovative technology.
You'd be surprised by how much it's already a part of our daily lives. When you think about it, AI is everywhere, such as:
Digital assistants like Apple's Siri or Amazon's Alexa. Content recommendation algorithms on social networks like Instagram, YouTube, and TikTok. Turn-by-turn direction apps like Google Maps give you real-time tips on how to get to your destination based on traffic or weather. All of these examples use AI technology to learn from the world around you and help you solve problems.
How Operators Feel About AI for Restaurants More and more restaurants are exploring AI for their operations, but the industry has a reputation to slowly adopt new technology more than others. To understand how operators feel about AI, we surveyed restaurant professionals in our AI in the Restaurant Industry study.
From owners to general managers to C-suite executives, the purpose of this study was to answer questions about how restaurant operators view AI, its potential benefits, barriers to adoption, and what the future holds for AI in restaurants. Here’s a breakdown of the key learnings after analyzing the data.
54% of operators think AI will positively impact restaurants. Less than one-third use AI in their operations currently. 71.6% of operators plan to adopt AI soon. Nearly 94% say that AI will be necessary to stay competitive. Despite fears of lack of human touch, 46%think AI can improve the guest experience. With a majority planning to adopt AI, the positive sentiment about its impact, and acknowledging its importance for staying competitive, the AI era on the horizon is poised to revolutionize the restaurant sector.
The State of Technology in Restaurants With AI being integrated into seemingly every type of business, it makes sense that it has a place in the dining experience, too. Personalized customer experiences, 24/7 availability, predictive analysis, and enhanced decision-making are just a few benefits that AI can bring to your restaurant business.
While AI on its own offers a multitude of benefits, it can, and should, be integrated with other restaurant technologies and software. This integrative approach will create an intelligent system that enhances all operations.happier customers and a more scalable, profitable business.
Let's examine some common tech you'll find at most modern restaurants.
1. Point-of-sale platforms Point-of-sale (POS) systems like Toast , Square , and Clover have become key technologies for smooth operations and a delightful customer experience.
POS systems help restaurants take and manage orders, maintain menus in real-time, manage tables, and facilitate a smooth payment experience for guests. They also help with online orders and are usually connected to the kitchen to create a seamless ordering experience.
2. Ordering software Whether touchscreen kiosks or QR code menus linking to websites, customers today have access to various ordering software. Toast, Square POS, Lightspeed Restaurant , and ChowNow are just some of the platforms built to improve the ordering process for customers and restaurant businesses alike.
3. Phone and customer service tools The experience for guests and customers extends beyond the walls of a restaurant. Before a customer even sets foot in an eatery, oftentimes they'll have visited the website to read menu descriptions or even made a reservation online.
For example, an AI-powered virtual phone agent for restaurants provides digital phone and customer service technology, like live chat software, SMS communication, voice search, and virtual assistants to help improve the customer experience.
4. Reservation and waitlist apps Not all customers want to make reservations over the phone; instead, they opt for online reservation technology. Reservations need to be seamless, whether on the web or through an app.
Tools like OpenTable , Resy , and TablesReady help restaurant managers manage reservations and waitlists while keeping customers informed about the status of their tables.
5. Marketing and branding tools Competition is fierce in the restaurant industry. Without a unique brand, it can be extremely difficult to stand out, and even harder to attract new business without targeted marketing campaigns.
Design tools like Canva , with their intuitive graphic design capabilities, can help restaurant owners create a brand or marketing collateral. MailChimp and Squarespace can also be used to create and maintain a standout online presence.
6. Inventory management and operations It's difficult to understate how much of an impact operations can have on a restaurant. Whether it's creating a seamless supply chain with vendors, controlling food waste, managing your inventory, or scheduling employees, there's a ton of logistics that go into running and growing a restaurant.
Tools like GloriaFood for food ordering and delivery, Marketman for inventory management, WhenIWork for employee scheduling and time management, and Parsley for culinary operations management and recipe sharing are just some of the ways modern restaurants are getting ahead and staying ahead.
So, where does AI fit in?
How to Use AI in Your Restaurant Business When you're looking for AI tools to help grow your restaurant business, you may not even realize you're looking for AI technology.
We mentioned a few ways AI is baked into restaurants' technology for an efficient back-of-house and delightful front-of-house. Let's explore how restaurant owners are using AI to improve their business.
Handle guest calls When it comes to the restaurant business, one of the biggest bottlenecks is phone calls. During busy hours, phone reservations can easily be lost and calls go unanswered, resulting in fewer satisfied customers and less potential profit. Using AI phone answering services like Slang AI means calls are guaranteed to be handled without taking staff away from other, more pressing work.
For example, the Genuine Hospitality Group needed a solution to help them manage incoming phone calls to free up their staff to focus on guests. After implementing Slang AI, they saw the following impact:
Slang AI facilitated 1.2k+ voice phone reservations in the last 90 days. 81% of calls were managed entirely by Slang AI, reducing the load on staff. 93.8% caller satisfaction rate was recorded in post-call surveys. With plugins connecting to popular reservation software, reservation bookings became more streamlined both for guests and the team. Speed up hiring The labor market is volatile, and the restaurant industry is no exception. When hiring and keeping great people is a top priority for most restaurant owners, investing in the best tools to attract and retain the best people makes sense.
Tools like applicant tracking systems (ATS) and short message service (SMS), or text messaging, can help speed up the hiring process by tracking applications for certain positions and sending clear, automated messages to candidates. AI builds upon these tools by using customer data and filtering out the most qualified candidates to save you time and hire the best.
Streamline operations and processes As mentioned, there are a lot of logistics involved in running a restaurant well. Some of the more mundane parts could potentially be automated using AI, freeing up staff for more important work.
Whether it's software that automates banking, wages, and payroll or a customer relationship management (CRM) system that tracks customer inquiries or requests, the possibilities for streamlining business operations and processes are endless.
Why AI in Restaurants is the Future of Hospitality Running a restaurant isn't for the faint of heart. It takes guts to get up and running and a lot of business know-how to thrive. AI can be used as a tool to make sure your business grows. Here are just some of the ways AI makes a difference.
Cut costs Whether it's taking reservations over the phone or taking orders, these touchpoints take time, energy, and manpower. AI technology in phone or POS systems automates many of those tasks, which means you can spend less money on staffing your restaurant , which will help lower costs in the long run.
Reduce errors When those tasks are manned by people, there's always the opportunity for human error. AI tools minimize errors in reservations, orders, and more which will not only make your operations run more smoothly but keep your customers happy.
Delight your guests AI isn't for Sci-Fi or academic papers, it's baked into our daily lives. We're used to asking our devices for help and expect information tailored to our experience. Incorporating AI into your restaurant operations—especially in the front-of-house—will help you deliver the top-notch experience your guests have come to expect.
The Power of AI in Restaurants AI is here to stay, and according to predictions, it’s only going to become more common. This is also true for the restaurant industry; AI will continue to accelerate the industry forward with its ability to streamline operational systems and create exceptional guest experiences.
Slang AI helps restaurants transform the experience of calling into one that is personalized and efficient and ensures that a call is never left unanswered. Our AI technology allows restaurants to improve staff productivity and guarantees that your phone line is always available for guests, increasing their loyalty and revenue opportunities.
Tl;dr - We're a digital phone concierge that answers questions, takes reservations, and provides personalized service that satisfies callers.
We embrace AI technology and help restaurant businesses do the same. With Slang AI, you can expect:
Increased profit from zero dropped calls. More 5-star reviews from happy guests. The ability to scale your restaurant at your pace Data insight for marketing, sales, and customer experience Overall efficiency with customer service, reservations, and FAQs A more productive staff that doesn't have to wait around the phones Want to see how Slang AI can save you labor costs and find new opportunities for revenue growth? Get in touch today to sign up for a demo.