How Restaurants Use AI-Driven Technology To Improve Margins and Save Money
AI-powered technology is the next big thing in the restaurant industry. You might be surprised to know the number of ways it’s being used for restaurant management. From finance and accounting to marketing, every aspect of restaurant management can be improved with AI technology.
In this piece, we’ll take a look at how restaurants are using artificial intelligence to improve margins and save money. We’ll also discuss the potential benefits and challenges of implementing AI in the restaurant industry.
AI Can Help Automating Tasks
AI technology can help restaurants save money by automating tasks. Automation can help free up labor resources, which can then be used for other tasks or redeployed elsewhere in the business.
A voice AI-powered phone ordering system increases the number of orders that restaurants can process simultaneously. SoundHound’s voice AI system, for example, can handle multiple calls at one time, which assures almost any busy restaurant that it has capacity to serve customers fast, without requiring staff to spend their valuable time on manual and repetitive tasks.
Automating tasks can also help improve accuracy and consistency in task execution. For example, some restaurants are using robots to help with tasks such as food preparation, cooking and serving. Robots can be programmed to execute these tasks with a high degree of accuracy and consistency. This can help free up human resources that can be used for other tasks, such as customer service or sales.
Another way in which AI-driven technology can help automate tasks is by using it for predictive maintenance. Predictive maintenance is a type of AI that can help identify potential problems before they happen. This can help save on cost by avoiding or mitigating potential issues before they occur.
For example, some restaurants are using predictive maintenance to help identify when equipment needs to be serviced or replaced. By doing this, restaurants can avoid potential downtime that can occur when equipment breaks down.
In addition, predictive maintenance can help identify when ingredients are running low. This can help restaurants avoid potential shortages that can disrupt operations.
AI Can Help Improve Customer Experience
AI can help provide a personalized experience to customers. In addition, AI-driven technology can help restaurants proactively address customer needs and concerns.
Another way in which AI technology can help improve customer service is by using it for recommendations. Recommendations can be generated by using AI to analyze customer data. Based on this analysis, restaurants can recommend menu items or services that may be of interest to customers.
80% of respondents were more likely to do business with a company if it offers personalized experiences.
In addition, AI technology can help provide customer insights. Insights can be generated by using AI to analyze customer data. Based on this analysis, restaurants can identify trends and patterns that may be of interest to customers.
For example, some restaurants are using AI to identify when customers are likely to visit. Based on this information, restaurants can staff accordingly and prepare for peak periods.
Reduce Wait Times
Wait times can be reduced by using AI to predict when customers are likely to arrive. Based on this information, restaurants can staff accordingly and have food and drinks ready when customers arrive.
AI Can Help Save on Operating Costs
AI technology can also help save on operating costs by optimizing operations. This can be done by using AI to help identify inefficiencies and areas for improvement.
For example, some restaurants are using AI to help schedule employees. By doing this, restaurants can ensure that they are not overstaffed during slow periods and that they have the staff they need during busy periods. This will reduce labor costs and help improve efficiency. In addition, AI technology can help optimize inventory and reduce food waste. By using AI to track customer orders, restaurants can ensure that they have the right amount of inventory on hand. This can help avoid potential shortages and lost sales.
AI Can Help Improve Margins
Upsell and Cross-Sell
AI technology can also help improve margins by helping restaurants to upsell and cross-sell. This means that restaurants can use AI to recommend higher-priced items to customers that are likely to purchase them.
When voice AI solutions are used for placing orders as opposed to in-person or mobile ordering, data shows the average order value increases by 20-40% (Source: Forbes)
For example, the voice assistant could look through the menu items and suggest something that goes with the customer’s order. If a customer orders a burger, the voice assistant could say, “Would you like fries with that?” after the customer has placed their order.
Voice assistants are designed to recognize and act on these opportunities, unlike employees who may not keep this top-of-mind.
AI technology can also help increase efficiency. This means that restaurants can use AI to automate tasks that are time-consuming or that require a high degree of accuracy. For example, some restaurants are using solution such as SoundHound For Restaurants AI technology to automate the ordering process. By doing this, restaurants can save time and ensure that orders are placed accurately.
Voice AI Can Personalize Customer Experience
One of the newest applications of AI in the restaurant industry is voice AI. Voice AI allows customers to place orders using their voice. This technology is still in its early stages, but it has the potential to revolutionize the way restaurants take orders.
Voice AI can help restaurants provide a more personalized experience to customers. For example, some restaurants are using voice AI to help customers place orders. By using voice AI, restaurants can ensure that customers can place their orders quickly and easily.
Better Customer Support
Voice AI can be used to answer questions and provide information about menu items. In addition, voice AI can be used to make recommendations. For instance, some restaurants are using voice AI to recommend wine pairings. By doing this, restaurants can ensure that customers have a positive experience and are more likely to return.
Predictive Analytics Can Improve Menu Engineering
A lot goes into the decision of what to put on a restaurant menu. But there are some key things that restaurateurs must take into account: food costs, customer preferences and seasonality. An AI-driven system can help with all of these things.
First, when it comes to food costs, an AI system can help predict what ingredients will be in demand and when. This, in turn, can help a restaurant buy those ingredients at the right time so that they don’t have to pay more later.
Second, when it comes to customer preferences, an AI-driven system can help identify which menu items are most popular and which ones are not. This information can then be used to make changes to the menu so that it is more in line with what customers want.
Last, when it comes to seasonality, artificial intelligence can help identify which menu items are popular during certain times of the year. For instance, soup might be popular in the winter but not so much in the summer. Instead of guessing, restaurants can rely on data-backed analytics to make sure that they are offering items that are popular during the time of year when they are likely to be ordered.
AI Can Optimize the Supply Chain
Managing a supply chain is a complex task. There are a lot of moving parts, and things can quickly get out of hand if they’re not managed properly. That’s where AI comes in.
AI can be used to track supplier prices and identify opportunities for cost savings. In addition, AI can help identify inefficiencies in the supply chain so that they can be fixed.
AI can also help manage the inventory of a restaurant. By tracking the sales of menu items, AI can help restaurants predict when they will need to order more of an ingredient. This can help restaurants avoid running out of stock and losing money.
For example, if a restaurant knows that it will need to order more chicken in two weeks, it can place an order with its supplier now. This would allow the restaurant to get the chicken at a lower price and avoid running out of chicken and losing customers.
Track Supplier Quality
Further, artificial intelligence can help restaurants keep track of their suppliers. By tracking supplier performance, AI can help restaurants identify which suppliers are reliable and which ones are not. This information can then be used to make changes to the supply chain so that it is more efficient.
AI Can Set Up Efficient Food Delivery Systems
Food delivery is a growing trend, and it’s here to stay. Post the COVID 19 pandemic, the food delivery market has grown at an exponential rate. If you’re a restaurant owner, you should consider setting up a food delivery service. And if you do, AI can help.
AI can help restaurants set up food delivery in several ways:
Find delivery routes: AI can help identify the best delivery routes. For instance, AI can update delivery routes in real-time as customers place orders. This would allow restaurants to make the most efficient use of their delivery drivers.
Expand delivery locations: AI can help identify areas that are underserved by delivery. This would allow restaurants to expand their delivery area and reach more customers.
Track drivers: AI can help track delivery drivers. Let’s say two customers order food from the same restaurant but live in different parts of town. If the first customer’s food arrives late, the second customer’s food will likely be late as well. But if the driver’s route is tracked, the restaurant can see that the driver is running late and make adjustments so that the second customer’s food is not delayed. This information can be used to improve the efficiency of the delivery system.
Track customer orders: AI can help track customer orders by keeping track of what they order and when they order it. This information can be used to improve the accuracy of deliveries.
Optimize drive-through: AI can help identify the best way to set up a drive-through. For instance, AI can help identify the best location for the drive-through, the best time to open it, and the best way to route traffic.
Grow Your Restaurant with SoundHound for Restaurants
Voice AI can often sound like a far-off future technology, but it’s already here and it’s being used by restaurants all over the world. Voice AI is a form of artificial intelligence that allows users to interact with devices using natural language. With SoundHound for Restaurants, we help you build a voice interface for your restaurant so you can take advantage of this technology.
Some Quick benefits you should be aware of are:
Eliminate the need for customers to wait in line or fill out order forms
Keep track of customer preferencesIncrease operational efficiency
Redirect labor to increase restaurants’ total ROI
What’s more, SoundHound For Restaurants is constantly learning. As more people use it, SoundHound gets better at understanding natural language. This means that your voice AI will get better over time.