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6 Ways AI Can Improve Your Restaurant Operations

Written by Hilary Young | Feb 22, 2024 5:00:00 AM

Updated July 22, 2025

Artificial Intelligence (AI) is perhaps one of the biggest and most widely adapted technology trends of 2025. Like any new technology, however, it can be confusing figuring out how to use it and implement it effectively, especially in a restaurant.

Luckily, we’ve done the hard work for you, so that you don’t have to. From streamlining operations to personalizing the guest experience, these AI-driven advancements are designed to make your life easier and your business more efficient. Here’s how it’s already making an impact and why now might be the right time to get on board.

 

What Is AI Technology?

AI is a type of computerized intelligence made to mimic the human brain, including learning as it goes. According to McKinsey, AI is “a machine’s ability to perform the cognitive functions we associate with human minds, such as perceiving, reasoning, learning, interacting with an environment, problem solving, and even exercising creativity.”

Taking it a step further, machine learning is a process where the AI program can learn from each interaction and generate smarter responses or actions with each input. When applied to the business world, this kind of machine learning has the ability to help us make sense of data, be more efficient, and ultimately, become more profitable.

While some worry that AI might edge humans out of jobs, the reality is that this type of technology is meant to enhance what humans are capable of doing.

In restaurants, where it feels like there’s never enough time in the workday, AI can be especially helpful. From allowing your employees to focus on more meaningful tasks to providing a better customer dining experience, AI enables you and your team to shift your work priorities to what matters most.

 

Types of AI Used in Restaurants

Artificial intelligence covers a variety of technologies, each serving a different purpose in restaurant operations. Understanding the different types of AI can help you identify which tools are right for your restaurant business needs. 

 

Predictive Analytics

AI-powered predictive analytics helps restaurants anticipate future demand by analyzing historical sales data, weather patterns, and local events. This can forecast staffing needs, manage inventory more efficiently, and reduce food waste. 

It might predict a spike in lunchtime orders during a rainy weekday and adjust prep schedules accordingly.

 

Computer Vision

Computer vision uses AI to interpret visual data from cameras. In restaurants, this can be applied to monitor kitchen stations for food safety compliance, track foot traffic in the dining area, or even gauge customer reactions. Some systems can detect empty tables or alert staff when a customer has been waiting too long, improving service and efficiency.

 

Chatbots

AI-powered chatbots handle customer interactions via website chat windows, text messaging, or social media. These bots can answer frequently asked questions, assist with reservations, and even take online orders. They offer 24/7 availability, freeing up staff for more complex guest interactions while enhancing customer experience.

 

Robotics

Robotics combined with AI is being used to automate repetitive tasks in the kitchen or the front of the house. Think burger-flipping robots, robotic arms that plate food, or automated kiosks that handle ordering and payment. These tools can help address labor shortages and improve consistency and speed in service.

 

Natural Language Processing (NLP)

NLP enables machines to understand and interpret human language. In the restaurant industry, this technology is used in voice ordering systems, transcribing customer reviews, and analyzing sentiment on social media. We’re talking voice-activated ordering at drive-thrus or AI that interprets online reviews to highlight trends in customer preferences.

 

6 Ways AI Can Improve Your Restaurant Operations

You’ve probably heard the buzz about implementing AI in restaurants, but what does it actually do for your day-to-day? Turns out, a lot! From saving time in the kitchen to making smarter staffing decisions, AI tools are changing the game for restaurateurs. 

 

Streamline Inventory Data

Let a computer help you with inventory management. AI solutions like OpenAI’s ChatGPT can make it easier for you to collect, monitor, and change your inventory (so long, paper inventory sheets). It can also take human error out of the equation.

AI-enabled software, like FourTop, can create a centralized data hub, integrating your inventory into your current POS system to make real-time recommendations for purchasing ingredients and supplies.

 

Analyze Spreadsheets Faster

Lots of smaller operations still use spreadsheets to track a variety of important data and metrics, including labor costs, food and beverage costs, and profits and losses. Being able to keep track of all of these numbers helps you make smarter, future-facing operating decisions.

An application like ZohoSheet comes equipped with an AI-powered data analyst and data cleaning to help make your spreadsheets more accurate every time.

 

Generate Social Media Captions

AI has been helping businesses boost their marketing efforts in a variety of ways, one of which is by taking the guesswork out of creating social media captions. If you feel overwhelmed about having to manage your social media accounts for your restaurant, ChatGPT can help.

One bit of advice: be very specific about what you tell your AI app to create, and keep asking the software different questions until you get the social media captions that feel right for your brand. There can be a steep learning curve for AI when it comes to sounding like a human in your marketing campaigns.

 

 

Find the Right SEO Keywords for Your Website

ChatGPT has also been helpful on the search engine optimization (SEO) side of marketing by helping restaurant owners identify the best keywords to incorporate into their website copy. SEO is a great way to ensure that customers can find your restaurant in a Google search. Without it, you’ll have to invest in other forms of marketing to get your name out there.

 

Automate Your Phone Answering Service

When the place is packed and it’s all hands on deck, who’s answering the phone in a timely fashion? The answer is now AI. Software like Loman.ai and Kea.ai  takes the pressure off your staff to pick up the phone when the restaurant gets busy. They make for a smoother customer experience by taking orders, booking reservations, and answering menu inquiries.

These conversational AI apps allow for a seamless customer experience while reducing labor costs and increasing the average check size per order.

 

Quickly Write Menu Descriptions

Instead of spinning your wheels trying to find new ways to come up with menu item descriptions, AI can help. This is, again, where a service like ChatGPT can really shine. It can help you write mouth-watering menu descriptions that are likely to be more enticing to your customers.

You can have the app customize your descriptions based on the existing tone and style of your restaurant menu, ensuring that you’ll have consistency across the board.

 

Cost vs. ROI of AI Implementation

Like any new technology, incorporating AI into your restaurant can come with a hefty upfront investment, but the long-term payoff can be well worth it. Understanding costs and the potential return on investment (ROI) can help you make smart, informed decisions.

 

What Does AI Cost?

The cost of AI tools varies widely depending on the type of technology and the size of your operation. Here’s a rough breakdown:

  • AI-powered scheduling tools: Starting around $50–$150/month per location
  • Predictive analytics for inventory or sales: $100–$300/month, depending on features
  • AI chatbots for online ordering or customer service: Often $50–$200/month
  • Computer vision or robotics: These require larger upfront investments, sometimes $5,000–$20,000+ for equipment, plus ongoing maintenance and software fees

Some vendors charge flat monthly rates, while others use tiered pricing based on volume or usage. Many also offer free trials or demos, so you can easily test before committing.

 

When Will You See ROI?

For most food industry establishments, the return on investment (ROI) comes in the form of reduced labor costs, fewer errors, less food waste, and better forecasting. Many restaurant chains report seeing results in 3 to 6 months, especially when the AI tool is focusing on high-cost areas like staffing or inventory.

For example:

  • An AI scheduling tool might reduce overstaffing by 10–20%, saving thousands over the course of a year.
  • Predictive ordering tools can help cut food waste by 15–30%, depending on your current processes.

If you’re already operating on thin margins, even small improvements can make a big difference. AI won’t replace your team, but it can make their jobs easier and your business more profitable. Think of it as an investment in long-term efficiency, with tools that keep getting smarter the more you use them.

 

AI Onboarding Tips

If you’re considering implementing an AI-powered solution to improve your restaurant operations, there are a few things you should think about before diving in:

  • Be thoughtful about which technologies you want to use. Although all of the new AI-powered platforms might be helpful, you don’t have to implement all of them right away. Prioritize based on your most important needs and goals, and make sure the platform you use is right for your restaurant and your team.

  • Allow time for training. With any new technology, learning how to use it properly can be challenging. This is especially true for a program like ChatGPT, where there’s both a human and a machine learning curve before the AI understands exactly what you want. Build in extra time to play around with it and make sure you get the right results before using it.

  • Know that you’ll have to double-check the data. When first getting started with AI, you need to be pretty hands-on, especially when it comes to data input. Be sure to check the quality, quantity, and variety of the data being used to ensure that your AI-powered platform has exactly what it needs to work optimally.

 

Checklist: Is Your Restaurant Ready for AI?

Thinking about adding AI to the rest of your restaurant technology? Before diving in, figure out if your business is in a good position to adopt these tools effectively. Answer these quick yes/no questions to see if you’re ready:

  1. Do you currently track key performance metrics like sales, labor costs, and inventory levels? AI tools rely on data to function properly. If your restaurant already gathers and organizes data, you’re off to a strong start.
  2. Is your team open to adopting new technology and changing workflows? AI implementation may require adjustments in daily routines. Having a flexible, tech-positive team makes the transition much smoother.
  3. Do you face recurring challenges with staffing, forecasting, or customer service? If you’re struggling in these areas, AI could offer targeted solutions, from smarter scheduling to automated customer interactions.
  4. Do you have a reliable point-of-sale (POS) system or tech infrastructure in place? AI integrations often connect with your existing tech stack. A modern POS or cloud-based system is key for compatibility.
  5. Are you willing to invest time and resources into training and implementation? While AI can save time in the long run, there’s a learning curve. Successful adoption requires up-front planning and staff buy-in.

 

How Have You Been Using AI?

Have you already started using AI-powered programs to help streamline your business? If so, we’d love to hear from you! Has it saved you time? Helped cut costs? Changed how your team works together? 

Shoot us a quick email at hilary@backofhouse.io and let us know how AI has improved your restaurant operations.