The restaurant industry is experiencing a seismic shift driven by the rapid advancement of Artificial Intelligence (AI) technologies. In this era of innovation, two significant developments are poised to transform restaurant operations and prepare the industry for a dynamic AI-driven future.

DoorDash, a prominent player in the food delivery landscape, is spearheading a groundbreaking initiative that promises to redefine customer service in the restaurant sector. Their AI-powered phone answering system is designed to streamline order processing, reservations, and customer inquiries, creating unparalleled efficiency. Here’s how this innovation can benefit restaurant operators:

• Operational Efficiency: By automating phone interactions, restaurant staff can redirect their focus from managing orders to delivering exceptional in-house dining experiences. This newfound efficiency leads to shorter wait times and faster service, improving customer satisfaction.
• Order Accuracy: AI systems excel at understanding and processing orders with remarkable precision, significantly reducing the likelihood of order errors, which can tarnish a restaurant’s reputation.
• 24/7 Accessibility: With AI, customers can place orders and make inquiries at their convenience, even outside regular business hours. This accessibility can enhance customer loyalty and drive revenue.

However, restaurant operators must be prepared to address integration challenges and customer privacy and data security concerns. Embracing this innovation can position restaurants as industry leaders in customer service and operational excellence.

 

Preparing for an AI-Driven Future

Do you feel the urgency to adopt AI-driven solutions to thrive in the quickly changing industry landscape? AI has the potential to optimize various aspects of restaurant operations, including:

• Menu Engineering: AI can analyze customer preferences and ordering patterns to optimize menu offerings, ensuring that restaurants offer items that resonate with their target audience.
• Demand Forecasting: AI-driven algorithms can predict fluctuations in customer demand, enabling operators to adjust staffing and inventory accordingly, reducing waste and costs.
• Inventory Management: AI can monitor inventory levels in real-time, automating reordering processes and preventing stock outs or overstocking.
• Customer Engagement: AI-powered systems can personalize marketing efforts, providing customers with tailored promotions, offers, and recommendations based on their preferences and past interactions.

Understanding AI’s capabilities and limitations will be crucial for restaurant operators looking to harness its full potential. Investing in employee training and adapting existing workflows to accommodate AI-driven tools will be essential steps in preparing for an AI-driven future.

AI emerges as a formidable ally as the restaurant industry navigates a transformative technology period.  DoorDash’s AI phone answering system and the broader AI-driven landscape offer restaurant operators a unique opportunity to enhance efficiency, improve customer experiences, and stay competitive. By embracing AI technologies and proactively addressing challenges, restaurants can position themselves for long-term success in an industry where innovation is the key to thriving.

The restaurant industry is constantly evolving, and we’ll likely see new technologies emerge that will change how restaurants operate and serve customers. Here are some potential technologies that we might see in the coming in the future:

1. Robotics and Automation: We may see more restaurants adopt robots and automation to perform cooking, cleaning, and serving tasks. This can help reduce labor costs and increase efficiency.
2. Virtual and Augmented Reality: Virtual and augmented reality technologies can help restaurants create immersive dining experiences for customers. For example, customers can take virtual tours of a restaurant’s kitchen or view a 3D rendering of a menu item before ordering.
3. AI-powered Personalization: Artificial intelligence can create personalized dining experiences based on customer preferences and previous orders. This can help restaurants improve customer loyalty and increase sales.
4. Contactless Ordering and Payment: With the ongoing COVID-19 pandemic, contactless ordering and payment methods have become increasingly popular. In 2023, we may see more restaurants adopt technologies such as QR codes, mobile ordering, and mobile payment options.
5. Internet of Things (IoT) Devices: IoT devices can help restaurants automate inventory management, food safety monitoring, and equipment maintenance. This can help reduce costs and improve efficiency.
6. Voice-activated Assistants: Voice-activated assistants such as Alexa and Google Assistant can take orders and answer customer questions. This can help reduce labor costs and improve customer service.
7. Blockchain-based Supply Chain Management: Blockchain technology can be used to create a transparent and secure supply chain, allowing restaurants to track the origin of their ingredients and ensure food safety.

 

 

 

 

The restaurant industry is poised for continued technological innovation in 2023 and beyond. Restaurants that adopt these new technologies will be better positioned to compete in a rapidly evolving marketplace and provide superior customer experiences.

Artificial intelligence technology has been increasingly adopted in the restaurant industry to improve efficiency, accuracy, and customer experience. Here are some ways that restaurants are using AI technology:

1. Chatbots and virtual assistants: Chatbots and virtual assistants can assist customers with placing orders, answering frequently asked questions, and making reservations. This technology can help restaurants reduce wait times and improve efficiency. They can provide 24/7 customer support without the need for human intervention.
2. Menu Personalization: AI can help restaurants personalize their menus for each customer by analyzing their order history, preferences, and dietary restrictions. This can help restaurants increase customer satisfaction and loyalty.
3. Inventory Management: AI can help restaurants optimize inventory management by analyzing sales patterns, weather data, and other factors to predict demand and minimize waste.
4. Smart menus: AI-powered menus can display personalized recommendations based on customer preferences, previous orders, and dietary restrictions. They can also suggest wine pairings and highlight specials.
5. Voice-activated ordering: Voice-activated assistants like Amazon’s Alexa can be integrated into the ordering process, allowing customers to place orders by speaking to the device.
6. Kitchen automation: AI-powered kitchen automation systems can track food preparation and cooking times, alert staff when dishes are ready, and help chefs optimize their workflow.
7. Fraud detection: AI algorithms can detect fraudulent transactions and prevent chargebacks, helping restaurants reduce financial losses.
8. Predictive Maintenance: AI can help restaurants identify equipment that is likely to fail, enabling preventive maintenance to be carried out before a breakdown occurs. This can help reduce downtime and save money on repairs.
9. Marketing: AI can analyze customer data to identify trends and preferences, enabling restaurants to create targeted marketing campaigns that resonate with their audience.

 

Artificial technology can revolutionize the restaurant industry by improving efficiencies, order accuracy, reducing costs, and elevating the customer experience.

Let’s begin with defining convenience. Ten years ago, a quick service lunch meant going inside a restaurant, reviewing the menu, telling a staff member what you’d like, and waiting a few minutes before getting your tray and sitting down with other lunch-goers. Today, that sort of convenience is unrecognizable. According to QSR, completing orders through apps, relaying orders to touch screen kiosks, and picking up food from drive-thrus is the way of the “time-pressed” future. Digital cafes are popping up nationwide to help fit customers’ needs quickly and efficiently.

 

Big fast food chains are jumping aboard the digital train, like McDonalds, Taco Bell, and Wingstop, says The Street. Some have beefed up their technology, like apps, drive-thrus, and rewards, and some have gone further, eliminating dining space altogether. Last year, Wingstop, a chicken chain that began in Texas, opened its first “restaurant of the future.” With no register and no front staff, their zero-cash approach operates with ordering screens. According to the article, Wingstop’s eventual goal is to transition to online and app orders exclusively.

 

Chipotle, back in 2018, opened its first drive-thru-only restaurant, Chipotlane, with tremendous success, says RIS. Their no dine-in storefront offered food exclusively through their drive-thru service. Last year, they opened what they’re calling the Chipotle Digital Kitchen, which features a drive-thru, and walk-up ordering window for convenience. The restaurant will operate through an app, online, and delivery orders (like Urban Eats), but also have a small outdoor patio area for dining.

 

Fast food giant McDonald’s is also testing the waters with digitally-operated stores. Slower to embrace the full digital experience, McDonald’s created a more customer-forward store in Fort Worth, Texas, says The Street. Half the size of its regular stores, this one has a conveyor belt for online pick-up orders, shelves for delivery services, and kiosks for customers who haven’t looked at their phones in awhile. This solo restaurant serves as a guinea pig for the company to see how successful (or not) it is for their chain.

 

In 2021, Taco Bell opened its digital-only location in New York City’s Times Square. Eliminating contact completely, customers order through kiosks and grab their food from locked cubbies, says the New York Post. A hint of human existence appears as each order is made in an open kitchen, and then placed in a heated cubby with a lamp that turns pink when ready. With the entering of a code number on a touchscreen, customers can extract the order and be on their way, says the article.

 

Lunch has become a quick, efficient, and high-tech experience thanks to these chains. There are a lot of opinions about how much human interaction is being eliminated through these technologies. But the customer has spoken; digital cafes are gaining traction. Whether you’re out to lunch on your break, picking up an order for a customer, or simply trying out something new, lunchtime has come a long way. Keep up with restaurant technological trends on the Synergy Blog.

 

Technology has permeated every corner of the restaurant industry, from how we vet prospective hires to how our customers order their meals. The pandemic helped solidify this shift, forcing the last few “analog” diners to adopt digital ordering.

But how will the past few years of takeout and online orders influence restaurants in the future? Here are a few trends you need to know.

Gen Z Prefers Online Orders

If a restaurant owner wants their business to thrive for years, they need to keep an eye on what Gen Z is doing. This demographic makes up over 20% of the U.S. population, ranging in age from 10 to 26. As this group gets older, they’re likely to gain greater consumer influence and purchasing power – which means restaurants should adjust to suit Gen Z’s needs.

According to research from Technomic, Gen Z is the group most likely to order food online. About 9% of Gen Z-ers ordered food for pickup from a restaurant. In contrast, Baby Boomers (long considered the most powerful generation) only ordered online for pickup 4% of the time. As Gen Z and subsequent generations age, online ordering will likely become a significant portion of restaurant sales.

 

App Orders Reign Supreme

Online ordering increased substantially during the pandemic – but where are people placing their orders specifically?

According to research from Restaurant Technology News, nearly 60% of digital orders are placed through a restaurant’s mobile app. This is great news for restaurant owners; if diners order directly through your company’s app, you don’t have to worry about paying commission fees to apps like DoorDash and Grubhub.

Of course, if you don’t have a mobile app for your restaurant, you will miss out on this massive share of the online market! This is a major reason why restaurants should invest in their online presence through websites and apps.

A Breakfast Boom

Finally, restaurants have seen a significant shift in when diners place their orders. While 6 p.m. on Friday is still the most popular time for diners (both in person and online), breakfast orders – between 5 and 10 a.m. – have tripled between 2021 and 2022. This trend can impact a restaurant’s needs in a big way, from the number of employees they schedule during morning shifts to the quantity of breakfast ingredients they order.

If you keep a close eye on trends like these, you can make subtle adjustments that allow your restaurant to flourish in the digital age and beyond.

A mention of the word “technology” is usually associated with entertainment, phones, space travel and the like. It isn’t generally associated with brands like Chick-fil-A or McDonald’s. However, you probably should get used to it. A wave of creative adjustments and tech tweaks are making their way through restaurants to make the dining-out experience smoother, faster, and more fun.

Artificial Intelligence (AI) hasn’t been a stranger to our culture in the past decade, and it’s about to become even more familiar. In an article from cnbc.com published in March of this year, a new staff member named “Chippy” joined the Chipotle team to help season their tortilla chips. The company wanted to make their employees’ work more fun, less monotonous, and streamlined; thus, Chippy, the robotic arm from Miso Robotics, was born. Chippy makes the very popular side item the exact same way every time. Chippy is stationed in their Chipotle Cultivate Center in Irvine, California at the moment, with plans to roll out more Chippy’s throughout the country if all goes well. Chipotle also uses artificial intelligence on their website with Pepper, a concierge chatbot, and may be making progress with an automated delivery car in the future.

 

 

During COVID-19, restaurants suffered a tremendous amount. But for Chick-fil-A, the silver lining was their drive-thrus, accounting for over 8 million dollars in revenue for more than half the stores in the country, according to QSR Magazine. However, their popularity has recently made picking up food a little complicated. QSR Magazine wrote that the restaurant’s drive-thru system caused some problems last year, including zoning violations and major backups while waiting for food. To speed up the process of drive-thrus, Chick-fil-A has made an express drive-thru lane only for customers who have ordered ahead on their app. Their solution seems to be working; during testing, customers found their wait time to be less and enjoyed the experience of a separate lane where their food was already paid for and ready to go.

To further entice the app-using crowd, McDonald’s is introducing its virtual summer camp, Camp McDonald’s, on July 5. Loaded with weekly in-app performances, menu hacks, and merchandise, McDonald’s is only asks for a $1 per day admission fee, according to Restaurant Dive. When customers check the app, they will find a different offer each day, including a free McFlurry, or a free Happy Meal with purchase. They can unlock access to limited edition merchandise that they’ve dubbed a “Merch Drop,” collaborations according to Chewboom.com, like a front row seat to virtual musical performances featuring BIBI, Omar Apollo, and Kid Cudi.

In 2022 it shouldn’t be too much of a shock that the food industry uses technology to attract and maintain customers. It feels like second nature, as we’ve already gotten used to self-checkouts, contactless payments, QR codes, and even augmented reality menus. What makes a great restaurant these days has gone way beyond the food, it seems, to a broader sense of experience. Technology has helped to make a meal at a restaurant not only an experience, but an adventure.

The last two years have taken a toll on the restaurant industry. Operators have been forced to find ways to improve their operations, overcoming obstacles and challenges from the pandemic. We’ve heard the news about labor shortages that have impacted the ability to serve customers. According to recent data from the National Restaurant Association, four in five restaurants are understaffed.

Labor challenges, supply chain disruptions, and the continued growing demand for off-premise dining have brought robotics and artificial intelligence (AI) to the forefront of many operators’ minds. Certainly, the COVID-19 pandemic and associated challenges have accelerated this and forced operators to look at ways to automate and optimize their day-to-day business.

Recently, QSR Magazine shared an article about How Restaurants are Using Robotics and AI to Relieve Operations Headaches, highlighting ways robotics and AI can provide solutions to the problems restaurants face today. They share the example of Picnic, “a modular and configurable pizza assembly system…adopted by many restaurants to save time and money.”  The Picnic system can make up to 100 pizzas per hour with a single, unassisted operator.  Miso Robotics incorporates robots and AI in automating repetitive, back-of-house tasks, such as cleaning silverware and utensils. This technology helps provide impactful kitchen insights, aids in running more efficient kitchens, and frees up staff time.

 

 

But beyond robots, what is artificial intelligence?  Simply, it is intelligence that didn’t happen naturally, but rather by a human to allow a computer to mimic human behavior.  Siri and Alexa are good examples of AI. They can answer questions when asked; however, they don’t get to know their users over time or learn the wants or anticipate the needs of their users. Machine learning takes AI up a notch.  This technology allows computers to take in information and use complex algorithms to learn from it to make predictions about events or human behavior based on historical patterns. Netflix and Spotify use machine learning to identify your likes over time and suggest new content you might enjoy.

So what are some of the benefits of using AI in an independent restaurant? Our friends at Pop Menu highlight several common uses of AI to optimize your restaurant operations.

 

Front-of-House

• AI Phone Answering – technology that can take messages, make reservations, guests to a waitlist, or even answer commonly asked questions, freeing up your staff to provide on-premise service and avoid missed calls.
• Voice Ordering – Guests can use their smart devices to place restaurant orders on the go. This same technology can be implemented at self-service kiosks or drive-thrus, allowing guests to place orders verbally, without touching anything.
• Self-Serve Options – this includes customizing menu items utilizing a kiosk, allowing the splitting of the check, and paying from tableside tablets or even their device.
• Kiosks that Personalize Customer Experiences – KFC is experimenting with kiosks with facial recognition technology that can recognize repeat visitors and tailor their experience based on their past orders and preference. Commonly collected guest data from online orders and digital marketing can be used to provide personalized service, such as dish recommendations.

Back-of-House

• Integrated Inventory and Purchasing with your point of sale (POS) systems. AI-enabled software can track historical inventory and purchasing data and recommend quantities to order based on that data. It ensures you have enough inventory on hand and helps cut down on food waste.
• Smarter Staffing and Scheduling – AI-enabled software tracks staffing and sales data to determine trends or patterns in busy and slow times. This data helps to schedule staff appropriately for the expected traffic and sales during each shift.
• Optimized Delivery Processes – AI can help delivery drivers find the best and fastest routes for multiple deliveries, using map data to avoid traffic and other potential delays. AI can also keep customers aware of their order status by following along on a map or sending text notifications.
• Data-based Insights and Predictions – McDonald’s started using predictive AI technologies in drive-thru orders. By looking at the data of what customers ordered and when they were able to anticipate busy periods and could predict popular item orders.  Stores using this technology reduced their wait times by 30 seconds on average.
• Automated Marketing and Remarketing – many AI tools are available that use automation to send out marketing emails, social media posts, and targeted ads. AI marketing can also retarget recent guests, encouraging them to return for a visit.

 

AI technology in the restaurant industry will arguably be critical in moving the industry forward.  However, customers will expect some human interaction when dining – so it will be essential to find a balance between technology and human connections. While it may seem intimidating, AI technology is here to stay.

By David Lessin, Culinary Consultant

 

As technology advances all around us, it raises many questions regarding our future resources in the hospitality industry. So, we look for new and innovative equipment and technology that can help us mitigate using natural resources and give us more precision and consistency in our cooking and service at restaurants.

 

Many equipment manufacturers that we have come to know and rely upon throughout the industry are looking to add innovative new technology to kitchen appliances that operators are familiar with. The commercial induction range has become a rising star in that category. The induction range, which uses precision heat, has become an ideal commodity for many operators looking to scale down their kitchen footprint or prefer not to rely on natural gas. Induction ranges can be much easier to clean as well, which can reduce labor for some.

 

Also, as hiring becomes an increasing struggle for operators, many look to robotics. Companies like Richtech Robotics and Keenon Robotics have created a fleet of runner and busser bots to alleviate the strain restaurant owners are encountering in our country at this time. Do you think your business would benefit from the latest technology? Reach out to Synergy to learn more about options that would fit your business model.

Over the past year, restaurant owners have seen the industry go through massive ups and downs. We furloughed employees. We embraced UberEATS. A horrifying 17% of us closed our doors for good. And now, we’re facing yet another unique challenge: the future.

It shouldn’t be a surprise that many of the changes ushered in by the pandemic will stick around long after everyone removes their masks and resumes dining in our restaurants. This is particularly true of the latest restaurant tech — but what exactly is coming our way? Here are a few tech trends we think will be part of the “new normal,” as well as a few that might be on the horizon.

Online Orders

When the pandemic first hit and lockdowns began, any restaurant that didn’t have a robust online presence was at a distinct disadvantage. In fact, restaurants without an online presence were at a disadvantage even before COVID-19; online food orders have grown 300% faster than dine-in traffic for the past seven years!

 

If you want your business to succeed in 2021 and beyond, you MUST have an online ordering/delivery system that’s user-friendly and accessible. If you don’t, you’re missing out on a huge slice of the market!

Paperless Menus and Contactless Payment

If you go into a restaurant today, you’ll often find a QR code on the table so customers can access the menu or even pay their bill. This technology quickly became popular during the pandemic, but it appears that it has really resonated with diners. According to research from the National Restaurant Association, 21% of customers look for paperless and contactless options when choosing where to dine.

AI-Based Supply Chains

This may sound like something from a science fiction novel, but it’s true: restaurants are starting to use artificial intelligence to determine their supply chain. Every order your restaurant takes is the data point for these AI bots, and they use that data to predict how many 8-oz sodas you’ll need, how many chicken thighs, and countless other details they can then report to your supplier. According to early adopters, this AI-based system has a 92% accuracy rate — and that means it just might be the way of the future.

 

“Cloud Kitchens”

As food delivery becomes the norm throughout the restaurant industry, some restaurateurs are looking for a way to cut costs, even if that means getting rid of their restaurant space. Rather than rent or own a specific location, some restaurants are going rogue, becoming “ghost kitchens” or “cloud kitchens” that operate off-site solely for delivery. This trend is attractive for current restaurant owners and aspiring restaurateurs alike, as it is significantly cheaper to operate a cloud kitchen than a traditional restaurant. It may be that we start seeing cloud kitchens pop up all over the country as the pandemic recovery continues.

 

Of course, no matter what kind of kitchen you’re running, you will need to offer quality customer service to keep your guests coming back. And if you’re going to provide exceptional customer service, you need to manage your training and your staff effectively.

 

With the Synergy Sync training app, you can easily provide consistent training to your employees — even across multiple locations! This will help guarantee that your restaurant staff is always properly trained and giving your customers the best.

The hospitality industry is currently facing a strange and unprecedented crisis. The COVID-19 pandemic was particularly hard on America’s restaurants; over 110,000 businesses closed during the past year (many of them permanently), and nearly 2.5 million restaurant employees found themselves out of work.

After over a year without steady income, today’s restaurant workers should be champing at the bit to get back to their jobs. But as lockdowns and social distancing mandates end, restaurant owners are struggling to rebuild their workforce. Their reasons are vast – safety concerns, lack of childcare, desire for higher wages, or guaranteed sick pay – but the result is a massive labor shortage across America’s restaurants.

This shortage is incredibly frustrating for restaurant owners. After much hard work to build your business – and keep it afloat throughout the pandemic, why should you suffer now due to a lack of workers?

Some restaurant owners are flirting with automation to solve this labor shortage – but is this idea worth the investment? Here’s what you need to know.

Is Restaurant Automation Worth It?

In many ways, automation seems tailor-made for the restaurant industry. Automated ordering guarantees better accuracy. Robot cooks ensure consistency and speed. And a mechanical workforce means fewer employees to pay, decreasing your overhead!

However, we would be remiss in not pointing out the significant drawbacks that an automated restaurant could hold. Robotic cooks and ordering kiosks are expensive to buy and install, and they require technical maintenance to run at peak efficiency. Instead of paying a workforce of servers and cooks, you could end up with a new team of IT professionals on your payroll.

Additionally, the public still isn’t quite ready for a fully robotic restaurant. A 2020 study from Ball State University and the University of Nevada Las Vegas found that survey respondents had mixed feelings about automation in restaurants, citing a desire for the “human touch” throughout the dining experience. This is particularly notable in the aftermath of COVID-19, with so many people eager to regain the social interactions they lost during 2020.

 

What You Should Do

Automation, despite its definite potential, cannot become the driving force behind restaurants today. So, how can you combat the restaurant labor shortage and keep your restaurant fully staffed?

INVEST IN YOUR TEAM.

Proper training and support are the keys to building a competent workforce – and when you show you care and invest in your team, your staff is more likely to return and then stick around. Learn more about SynergySync today to check out our intuitive and affordable training system so you can build the restaurant team of your dreams.