16 Proven Ways to Drive Business with AI in Restaurants

AI in Restaurants

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Think about being able to know precisely how much of each portion of steak you’ll need on Friday when you arrive at work on Monday morning, which shift will probably be vacant, and which customers have not shown up in the past three weeks without even trying. That’s what AI in restaurants can do, available today. 

The hospitality business is among the most challenging businesses on earth, with low margins, high turnover, fluctuating demand, and increasing food prices, leaving restaurateurs little leeway. Nevertheless, many restaurants are still relying solely on guesswork and spreadsheets.

In this guide, we will take you through 16 real-life applications of AI in restaurant business that can help increase your revenues and reduce your losses while delivering unparalleled experiences for your guests with the use of the outsourcing services with Global Teams AI.

Key Highlights

  • AI is capable of helping restaurants generate higher revenues through better upselling, dynamic pricing, and personalization.
  • Automation solutions such as AI virtual assistants can manage reservations, phone calls, and inquiries round-the-clock, enhancing productivity.
  • AI technologies help minimize food waste by 35% or more while improving other operational metrics.
  • AI facilitates all routine activities, from scheduling staff to executing marketing initiatives, saving operational costs.
  • AI outsourcing using Global Teams AI allows restaurants to implement AI solutions without costly hiring processes.

The State of AI in the Restaurant Industry

The role of artificial intelligence in the food service industry has risen drastically. While before this technology was restricted only to big brands like McDonald’s and Domino’s, today it is possible for independent brands, too.

Key Industry Statistics

  • $9.7B – Projected global AI in restaurant market size by 2032
  • 30% – Average reduction in food waste with AI inventory tools
  • 6x – Faster response with an AI virtual assistant vs. phone staff
  • 72% – Of diners would use AI-powered ordering if it sped up their experience

16 Ways AI in Restaurants Drives Real Business Growth

Way 01: AI-Powered Ordering Digital Menus

The AI-integrated self-service kiosk does not just place the order; it up-sells. It studies the contents of the cart, the trending products, and the orders placed by similar customers. The use of such up-selling logic within AI-powered kiosks has helped several restaurant chains achieve an increase in the average cart size of 15% to 30%.

Way 02: AI Virtual Assistant for Reservations and Customer Queries

The AI virtual assistant receives calls from customers, takes care of your bookings, replies to “what time do you close?” queries on Google and Instagram, and handles table bookings, all without any internal staff intervention at the other side. Available round the clock, it will never call in sick. During peak hours, when your staff cannot handle the phone calls, an outsourced virtual assistant could secure multiple bookings for you.

Way 03: Smart Inventory Management

AI-powered inventory management systems integrate with your point-of-sale system and supplier portals, monitor live inventory, and forecast future requirements based on past trends, weather conditions, local events, and seasonal factors. The benefits include no more emergency purchases, reduced wastage, and finally making sense of your food costs. On average, restaurants using AI-powered inventory management systems reduce food wastage by 25-35%.

Way 04: Dynamic Pricing and Menu Engineering

The airline industry has been practicing dynamic pricing for years. With AI technology, restaurants can implement this principle. Raise prices during rush hours, provide automated happy hour offers, or feature more profitable products on slower Tuesdays. Menu engineering using AI technology will help determine which items are profit centers, which should be dropped from the menu, and which should be highlighted due to their profitability.

Way 05: AI-Driven Staff Scheduling

Overstaffing internally leads to a loss of cash. On the other hand, understaffing results in poor delivery of services. Scheduling external professionals and applications takes into account past sales data and the number of reservations to generate an effective roster. In addition, they indicate when an employee’s shift is getting close to overtime.

Way 06: Customer Sentiment Analysis and Review Management

AI solutions scour Google, Yelp, TripAdvisor, and social media for real-time feedback, analyze sentiments, and highlight any immediate review notifications. Some even automatically draft customized responses for your consideration. Local restaurants, in particular, need to prioritize this service because just a few negative reviews can impact their customer flow significantly.

Way 07: Personalized Loyalty Programs

AI-driven loyalty platforms track the preferences of each guest in terms of what food they regularly eat, how often they visit the restaurant, and even what dietary requirements they have. An example would be sending a promotional message to a person who frequently orders spicy burgers from the restaurant yet hasn’t visited in three weeks, saying, “We miss you, get 15% discount on your favorite burger.”

Way 08: Predictive Food Prep and Kitchen Optimization

With AI Virtual assistants, you can estimate the number of covers you will receive in each half-hour slot during the Friday night service, and it’s incredibly accurate! Your kitchen staff can then prepare food according to their estimates, and this will help reduce your ticket time and minimize wastage. In some cases, there is an integration between the software and your kitchen display system.

Way 09: AI Phone Answering and Call Handling

Your phone is ringing, but you’re slammed. Your staff cannot answer. That call was from an eight-person party who wanted to make a reservation for Saturday. An outsourced live chat assistant can take your calls, confirm your bookings, handle questions on allergens and opening hours, and even leave messages.

Way 10: Automated Marketing and Social Content

The AI-based marketing tool used by the social media management professionals creates email, social media, and SMS campaigns for each week using data from your menu, future events, and segments of customers. The system tries different headlines, finds optimal times for delivery, and does A/B testing. This feature is extremely beneficial for smaller and local businesses lacking their own marketers.

Way 11: Fraud Detection and POS Anomaly Monitoring

AI is capable of detecting transactional behavior in real-time and identifying deviations, such as excessive voids, transactions with no tip information entered, or suspicious discounting patterns. In the past, this level of surveillance would have been costly to accomplish with the help of loss prevention experts.

Way 12: Delivery Route and Order Optimization

In the case of restaurants that offer deliveries, the AI routing will minimize the time spent driving, cut fuel costs, and ensure that meals arrive hot. By using AI demand forecasting alongside, you will be able to forecast when deliveries are likely to be at their highest and staff accordingly.

Way 13: AI-Powered Guest Experience Personalization

The moment that customer comes in and sits down, you can use your artificial intelligence software to bring all of that up on the server’s tablet: their food restrictions, preferred table, most recent order, whether it’s their anniversary, and more. This personalization is what sets the best hospitality businesses apart in the world today.

Way 14: AI-Assisted Hiring and Onboarding

Turnover in the restaurant business is usually above 70% per year. AI recruitment systems evaluate job candidates more quickly, align them with positions according to their capabilities and availability, and automatically deliver onboarding material. Some even employ chatbot technology to pre-screen candidates, saving managers’ time for qualified candidates only.

Way 15: Voice-Activated Kitchen Management

Barely enough hands to carry the plates? Voice-activated AI technologies allow the kitchen staff to verify their ticket counts, modify item 86s, and exchange order information without ever having to use a touchscreen. Combined with kitchen display systems, they provide flawless coordination at the back of the house.

Way 16: AI Outsourcing, Your Entire AI Stack, Managed for You

This is how the vast majority of restaurants will utilize AI. Not by hiring a Chief Technology Officer or piecing things together themselves, but through outsourcing their AI needs to an AI solutions company such as Global Teams AI, who manages all aspects of AI implementation for your restaurant, from selecting to integrating to managing the whole package.

Why AI Outsourcing Is the Smartest Move for the Restaurant Business

Restaurants operate on razor-thin margins where nothing can be wasted, not even expensive and inefficient back-end administrative functions. The annual salary expenses alone for hiring a social media manager, a bookkeeper, a payroll administrator, a tech expert, and a customer support representative would exceed $200,000, even before adding other costs.

In contrast, restaurant owners benefit from the power of AI outsourcing. Rather than assemble this administrative team, restaurant owners gain access to a professionally trained, AI-enhanced workforce via one company alone. Global Teams AI supplies the talent, the technology, and the process itself, leaving restaurant owners to reap the benefits.

Global Teams AI Services for the Restaurant Industry

All these methods mentioned below rely on these services. Here is a brief overview of Global Teams AI restaurant services:

AI Virtual Assistant

Call handling, booking and scheduling, and customer support 24/7

AI Interns

Support for performing tasks for data input, reporting, research, and content creation

Bookkeeping

Automatic POS reconciliation, cost of goods sold analysis, and financial reporting

Payroll Outsourcing

Tip calculation, payroll for multiple shifts, tax calculations, and other processes

Social Media Management

Content creation, scheduling, interactions, and review management

IT Outsourcing

POS, network support, software integrations, and security solutions

Web Development

Restaurant sites, online ordering, menu pages, and mobile-friendly design

Digital Marketing

SEO, Google Ads, e-mail marketing, loyalty programs, and local SEO

UI/UX Design Services

Menu designs, kiosk UIs, application design, and branded UI/UX design

HR Outsourcing

Talent acquisition, onboarding, compliance, performance, and retention management

Live Chat

Website chat provided by professional agents and artificial intelligence 24/7

Conclusion

AI is no longer a thing of the future or something that only billion-dollar brands can afford when it comes to restaurants. This is something that you can actually implement into your restaurant today to serve more customers, reduce food wastage, improve employee retention, and save money in the process.

Here, we’ve covered 16 different uses of AI in restaurants. These include a virtual AI assistant that will never ignore your calls, restaurant accounting services, that will close your accounts much faster than before, and a number of other things, all of which don’t require you to have any technical skills at all.

What does require however is to have someone on board that knows both AI and restaurants inside out. And that is exactly what Global Teams AI was created for.

Ready to bring AI into your restaurant? Book a free consultation at gteams.ai →

Frequently Asked Questions: AI in Restaurants

What is AI in restaurants?

AI in restaurants involves the application of artificial intelligence tools like virtual assistants, predictive analytics, automated order processing, and intelligent inventory management in the restaurant industry.

How can AI help local restaurants compete with chains?

Local restaurant owners can now use AI to level the field since it ensures that independent operators get access to similar data tools enjoyed by big chain operators over the past few years, at a fraction of the cost required by the enterprise solution. This is where companies such as Global Teams AI come into play for local restaurants.

What is an AI virtual assistant for restaurants?

Restaurant virtual assistant is a computer application that performs tasks such as receiving customer calls, making reservations, replying to customers’ inquiries via Google or social media sites, and communicating with loyal customers, among others, on an automated basis round the clock.

What is outsourced restaurant accounting?

This involves outsourcing the activities of keeping books, processing payroll, preparing taxes, and generating financial statements to a third-party entity. This process is further enhanced through the use of AI as is the case with the AI-driven restaurant accounting services provided by Global Teams AI.

How much does AI for restaurants cost?

The individual price of an AI tool for restaurants ranges from $50 to $500 monthly. The comprehensive outsourcing package of AI includes multiple options combined with support, generally designed such that the cost saving from labor, waste, and other efficiencies would exceed the cost in 90 days.

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