Debbie Carson, RTN Staff Writer-6.20.2025
As the restaurant industry navigates labor shortages, rising costs and evolution of customer expectations, major chains are turning to artificial intelligence (AI) as a key component of their digital transformation strategy. Leading this week's rates are Applebee and IHOP, two of America's most iconic dining brands, and are now leveraging AI to streamline both the front and back operations.
According to Wall Street Journal In a report published today (June 20), both chains' parent company Dine Brands deploys a wide range of AI-powered tools in 300 franchisees and over 3,500 stores. In an interview with WSJJustin Skelton, chief information officer at Dine Brands, described AI as a fundamental change. “AI is moving quickly.
One of the first tools being deployed is an AI-powered technical support system that allows field technology staff to interact with company databases using natural language queries. Rather than digging into manuals and documentation, employees can ask questions conversationally and receive immediate answers. This is a simple yet powerful enhancement of operational efficiency.
On the customer-friendly side, Dine Brands is introducing a new AI-driven “personalization engine.” This technology uses historical order data to create personalized recommendations, provide targeted promotions to guests, improving both upselling opportunities and customer satisfaction. Plans are underway to expand the personalization engine to in-store tablets used by both servers and customers.
The company is also exploring AI-powered cameras that can alert staff when they need to clear the table. Additionally, an AI-driven management app is under development, helping restaurant managers with staffing decisions and other daily tasks.
IHOP has already immersed the spatula in the AI space. In August 2023, the company announced a partnership with Google Cloud, integrating Google's recommendation AI into the digital ordering experience. This allows IHOP to offer smarter suggestions for items that guests are likely to enjoy, creating a more seamless and intuitive online ordering journey.
At the time, IHOP said the initiative was designed to help guests “find their favorite items easily and discover new items related to their interests.”
The Dine brand's movements reflect broader trends across the restaurant industry. According to a recent PYMNTS Intelligence and American Express report, 67% of restaurants already using automation said they have brought measurable improvements to their customer experience. Technology is increasingly seen as a way to reduce costs, but also as a way to enhance hospitality at scale.
In another recent example, Chipotle reported a 75% reduction in employment hours after adopting an AI-powered recruitment platform. Soundhound AI, leader of Voice AI, also said in November that its technology has been rolled out in seven of its top 20 quick service chains.
With AI quickly integrated into everything from customizing menus to scheduling employees, it's clear that chains like Applebee and IHOP are experimenting, as well as being the proof of the future. For a meal brand, AI is not a side dish. It is becoming the main course on the Technology Roadmap.
With other restaurant groups weighing similar movements, the question is not whether they will adopt AI anymore, but how quickly they can expand, and how creatively they can apply to enhance both the operational and the dining experience.
