“As the restaurant industry appears to be increasingly embracing AI, a full-scale change journey remains a work in progress,” said Deloitte's Ebert Gruyat, a leader in the restaurant and foodservice industry. “Using AI to create personalized experiences and creating deeper connections with consumers is an effective strategy. However, to unlock the possibilities of AI, leaders need to balance innovation and operations areas, strengthen governance, address capacity gaps, optimize business, boost margins, and maintain business both before and after business.”
How AI is revolutionizing the restaurant revolution is a Deloitte report based on a survey of 375 global restaurant executives from 11 countries that were presented in the fourth quarter of 2024, exploring how operators are using AI.
Among the survey results:
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Eight in 10 (82%) have planned to increase investment in AI technology next year, with enhanced customer experience (60%), improved restaurant operations (36%) and loyalty programs (31%) being cited as top-level results.
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The customer experience is the most common use case. Almost two-thirds of respondents (63%) reported using AI every day to enhance customer experience, with half of brands (52%) and 84% of operators saying these efforts have had a major impact.
In a conversation with Modern Restaurant Management (MRM) Magazine, Gruyaert explains that restaurant executives are significantly increasing their investment in AI, but challenges like risk management, identifying appropriate use cases, and lack of talent will slow down actual recruitment. He emphasizes that successful implementation relies on a balanced approach between innovation and operations.
Why do you feel there is a wide gap between AI investment and actual use, and do you expect this gap to decrease in the next few years?
82% of restaurant executives surveyed plan to increase their investment in AI next year. At the same time, there are up to two-thirds of business owners who say they use AI applications every day, such as customer experience (63%), inventory management (55%), customer loyalty (39%), employee experience (22%), food preparation (20%), or new product development (6%). So, it may seem like there's a gap between investment and use, but that's because of some use cases.
Consumers are looking for more than just a meal. They crave meaningful connections and seamless experiences from restaurants that combine convenience with real-world fun.
That said, our report found that managing risk around AI technology is the biggest consideration for many organizations (48%). In particular, considering the risks associated with AI implementation, intellectual property issues and misuse of client or customer data (16%) were most frequently cited. This is consistent with what we see overall for AI adoption, even outside of the restaurant industry.
Like other new technologies, these risks slow implementation as organizations understand how to mitigate them. At the same time, as seen with other disruptive technologies, these concerns decrease and implementation increases over time. The same is expected for the restaurant industry and AI.
Why are customer experience-related AI investments leading the way?
63% of restaurant executives report daily use of AI in enhancing customer experiences, with an additional 26% engaged in implementing a limited form of pilot or customer experience AI applications. This includes drive-thru voice AI to automate the ordering process.
This could be a number of reasons, but I think it's mainly because these types of customer experience use cases offer a huge return on investment and apply to today's environment where restaurants focus on attracting customers and improving the experience. This affects the tendency for consumers to look for more than just a meal. They crave meaningful connections and seamless experiences from restaurants that combine convenience with real-world fun.
What are the examples of AI implementations at restaurants now? And how do you think that will change next year? What investments do you think will give the operator the most value?
Some AI implementations are more obvious than others. Think about customer-friendly applications like audio AI and personalized offers while driving. Many are behind the house, such as AI used for forecasting and inventory management. Other AI-enabled use cases include the use of Internet of Things sensors that allow for automated data collection for real-time inventory tracking, and predictive analytics to minimize waste and optimize the disposal process. Together, these customer experiences and inventory management applications represent the “first wave” of AI adoption for the restaurant industry.
Having AI can help you find sweet spots with the number of appetizers ordered on a particular day, and giving an overview of restaurant order recommendations accordingly can be game-changing.
We look forward to seeing AI applications that will help customers loyalty and employee experience gain momentum in the future. Applications related to food preparation and new product development take time. This is mainly because the current adoption volume is low, so it will take time to catch up, so to speak.
That said, the investment that gives the operator the most value depends especially on your business model. Some people find the most value in leveraging AI to create personalized experiences and creating deeper connections with diners. Others will see more possibilities for how AI can optimize operations and streamline inventory. These years are about embracing AI. Then focus more on maximizing that investment.
How will the increase in AI implementation in restaurants change staff training?
There is a perception that AI is here to replace jobs. it's not. One up-and-coming use case the research has discovered is improving employee experiences, including AI-managed scheduling and enhanced labor forecasting and training. It also said that nearly half (46%) of restaurant executives pilot such programs.
However, restaurants and their employees must work with AI. Training, like any new technology, should focus on risk management, efficiency and safety.
Is there an economical way that operators can use AI to become more efficient?
Operators need to focus on use cases in which customers generate quick and meaningful returns to take advantage of the connections consumers are craving today. In doing so, there will be more experimentation and funding opportunities in future use cases purchased at all levels.
Inventory management is also a major opportunity here. This is one of those areas where many people are already seeing returns, especially in casual dining spaces. It combined it focused on the customer experience, perhaps due to the complexity of their menu. Having AI can help you find sweet spots with the number of appetizers ordered on a particular day, and giving an overview of restaurant order recommendations accordingly can be game-changing.
AI offers a great opportunity in the restaurant industry, but if you go all in at once without preparing, you run the risk of getting burns.
Employee experience is an opportunity to help AI improve efficiency, especially when it comes to schedules for everyday demand. It's more automated than before, and it's far from the days when managers made schedules by hand, but AI can take it even further.
Did the results surprise you?
One of the things that surprised me is the difference in adoption we see all over the world. There is a significant complexity for large global brands to expand these solutions in locations around the world, which can be attributed to slow adoption.
The other item that surprised me with this data was the differences between brands and operators. 52% (52%) and 84% of operators surveyed showed a high impact on customer experience. This is a big difference between these two perspectives.
In related memos, preparations for AI adoption appeared to differ between these two groups. Operators reported that they are more prepared for their strategy and operations overall, while brands are ready for their technology infrastructure. However, both groups had a relatively low level of confidence and preparation in terms of talent and risk governance. Ultimately, this highlights the need for close collaboration between brands and operators, creating an aligned roadmap for AI adoption that benefits both groups.
What should restaurant operators take away from reports?
AI offers a great opportunity in the restaurant industry, but if you go all in at once without preparing, you run the risk of getting burns. Leaders need to do something little to ensure that they balance the exponential potential of AI innovation with other priorities in their business, from people in both the kitchen and dining room, including the exponential potential of AI innovation and other priorities in their business. Ultimately, adoptions fall into a wave that is expected and should be embraced to actually catalyze long-term change and benefits.
How do you imagine that in five or ten years, AI will fundamentally change the restaurant industry beyond what we see today? What does a restaurant really look like, “powering AI”?
Imagine – you'll be raised to your favorite restaurant, and they already know you're coming. The system recognizes you, welcomes you warmly, and offers personalised suggestions – perhaps an appetizer you've tried last time and liked, or a drink you'll always order. The AI system was sending coupons early in the day to get appetizers again, so by the time you were sitting, you already had some, hyper-personalized touchpoints in the restaurant…and all you had to do appeared.
A truly AI-powered restaurant is a truly personalized experience.
Meanwhile, behind the house, the kitchen was running smoothly and I knew how much the inventory management system had on hand, so it was abundant enough, and the management system made sure there was enough line cooks and servers to manage the Friday night rush. The AI Ordering System offers real-time updates on dietary restrictions and preferences. This means that staff will ensure the perfect experience for each diner. In short, a truly AI-powered restaurant is a truly personalized experience. After all, AI can really become the brain of a restaurant.
