The days of AI being spoken about in theoretical terms are quickly becoming obsolete. In the restaurant industry, it’s a much more practical and everyday matter, according to new research from Deloitte.
Deloitte recently unveiled its State of AI in Restaurants Survey of 375 restaurant executives and its conclusions are apparent: AI is becoming as commonplace in operations as a spatula or cash register.
Eight in 10 restaurant executives surveyed say their investments in AI technologies will increase in the next fiscal year. They expect their investment to result in enhanced customer experiences, smoother restaurant operations, and more impactful loyalty programs.
That’s pretty good bang for the buck, if all shakes out as hoped. But that’s a big if. There have been well-known starts and stops with AI in restaurants, including awkward drive-thru experiences at Wendy’s, Taco Bell, and McDonald’s, where bacon was once famously added to an order of ice cream.
Yet the data from Deloitte speaks to confidence. And not just in customer-facing applications, but marketing and back of house tasks. Twenty percent of respondents believe AI will strengthen their digital marketing efforts, optimize food prep and waste management, enhance crew experiences, and help them develop new products and concepts.
There are distinctions based on industry sector. Casual-dining respondents reported a greater desire to achieve improved customer experience compared to their counterparts in the quick service, fast casual and café segments. Casual-dining brands also gave higher priority to such benefits as improved procurement and supply chain, as well as food prep and waste management.
The future is already here for many brands. Sixty-three percent are reporting daily use of AI and another 26 percent say they are engage in pilots or other forms of limited implementation. Voice AI in drive-thrus is already popular.
Fifty-five percent report they are using AI in inventory management, namely in forecasting, and in augmenting predictive analytics, which helps reduce waste.
If customer experience and inventory management represent the beta tests of AI, the next wave may rest on customer loyalty and employee experience. And following behind that is food prep and new product development. Some of the more promising pilots in these areas include real-time detection of food defects and contamination using computer vision, and flavor compound analysis enabled by machine learning algorithms.
What are the actual AI capabilities most commonly being used? Chatbots top the list, with restaurants using them as interactive interfaces for guests to place orders and make reservations, as well as to help employees resolve customer service issues. Sixty percent of respondents say they are using them daily, while 27 percent say such solutions are in the pilot stage. Machine learning is being used by slightly over half of the respondents, while intelligent automation and natural language processing are also in play.
Despite its potential and the buzz around it, generative AI is only being used daily by 9 percent of those surveyed.
Among regions of the globe, Asian restaurants exhibit higher adoption rates in almost all capabilities, with restaurants in the U.S. laggards when it comes to technologies such as intelligent automation. But U.S brands are ahead in deploying conversational voice AI.
With AI technology advancing almost by the second, many brands are still reporting an uneasiness with their preparedness. Only about 20 percent of the respondents believe they have the risk and governance in place to shepherd AI investments. And less than 30 percent say their organizations are prepared from a technology infrastructure and talent standpoint.
Perhaps the most revealing statistic is the comfort executives have with AI in general. The findings show that companies aren’t being constrained by a lack of executive commitment. Brands have mostly moved past getting leadership buy-in for AI investments. What is front of mind are practical considerations, such as selecting the right applications and staff to manage them.
