Restaurant Artificial Intelligence: What Smart Owners Need to Know

Restaurant artificial intelligence is rapidly transforming the food service landscape, with the worldwide AI market expected to grow from US$235 billion in 2024 to over US$631 billion by 2028. This growth is no surprise when you consider that digital orders now account for approximately 50% of total sales across the restaurant industry.

We’re witnessing how artificial intelligence in restaurants is changing everything from customer experiences to inventory management. In fact, eight in 10 restaurant executives plan to increase their AI investments in the next fiscal year, clearly demonstrating the growing importance of AI in the restaurant industry.

How AI is being used in restaurants today

AI is currently revolutionizing restaurants across multiple operational areas. Voice assistants like Domino’s “Dom” (introduced in 2016) handle customer communication through chatbots that process reservations, answer menu questions, and take orders. These systems can reduce response time for guest inquiries by 27% and allow customers to make reservations in just a few clicks.

Behind the scenes, AI-powered forecasting helps restaurants optimize staffing and inventory. Lineup.ai delivers sales forecasts that are 35% more accurate than traditional methods, while AI scheduling tools can save managers over 330 hours annually. Furthermore, AI inventory management systems track stock levels in real-time, predict usage patterns, and automatically reorder supplies.

Notably, AI is making significant strides in reducing food waste. PreciTaste’s AI solutions have been proven to cut food waste by 50%, while Orbisk uses image recognition to automatically track what is wasted, helping kitchens save up to €70,000 annually.

Meanwhile, voice AI ordering solutions handle 95% of orders without human intervention, integrating directly with restaurant POS systems to stay updated with menu changes. Some restaurants have seen a 40% increase in phone orders after implementing these technologies.

What restaurant owners should consider before adopting AI

Before investing in restaurant artificial intelligence, smart owners should conduct a thorough assessment of their specific operational gaps. According to research, identifying the right use cases (48%) and managing risks (48%) are the top concerns holding restaurant leaders back from deploying AI.

Beyond technical implementation, consider how AI will impact your staff. With restaurant employee turnover rates soaring to 123% in quick-service establishments, AI-powered training tools can significantly reduce this burden. These systems deliver personalized, on-demand training that meets employees where they are—on their phones and in the kitchen.

Data privacy represents another critical consideration. As restaurants collect more customer information through digital reservations and loyalty programs, 74% of diners report concerns about their personal data security. Moreover, the average cost of a data breach in the hospitality industry stands at $2.94 million.

Restaurant owners should also evaluate their organization’s AI readiness. Surprisingly, only 21% of restaurant executives believe they have adequate risk and governance frameworks in place, and merely 27% feel prepared from a talent perspective.

Lastly, rather than replacing human interaction, effective AI implementation should enhance it. As one industry expert notes, “AI has the potential to create a golden age for hospitality—an age of SuperHuman Hospitality™”.

The future of AI in the restaurant industry

Looking ahead, the smart restaurant robot industry is projected to exceed $10 billion by 2030, creating a new landscape where AI systems work seamlessly with other restaurant technologies. Future AI solutions will process more diverse data types—including social media trends, local economic indicators, and cultural events—enabling them to predict customer behavior months in advance.

Investment in restaurant artificial intelligence continues to accelerate, with 82% of restaurant leaders planning to increase their AI spending next fiscal year. This growth is driving innovation across three distinct waves: first in core operations (where 63% use AI daily for customer experience), then in loyalty and labor (adopted by 70% of restaurants), and finally in food preparation (where 40% are in planning phases).

Perhaps most consequential will be the evolution of AI-driven loyalty programs that employ predictive analytics to anticipate customer needs. Indeed, personalized communication through AI-powered channels yields three times more digital engagement and a 6-10% revenue lift, transforming how restaurants connect with their customers.

Conclusion

Restaurant artificial intelligence stands at a critical inflection point in 2025. Smart restaurant owners must recognize AI not as a passing trend but as an essential business tool that drives efficiency and enhances guest experiences.

The evidence speaks for itself. AI voice assistants handle 95% of orders without human intervention, while inventory systems reduce food waste by up to 50%. These technologies free our staff to focus on what truly matters – creating memorable dining experiences for customers.

Restaurant artificial intelligence ultimately serves one purpose – enhancing the human connection at the heart of hospitality. When implemented strategically, AI doesn’t replace the personal touch but amplifies it, creating what industry experts call “SuperHuman Hospitality.” This balance between technology and tradition will define successful restaurants in the years ahead. If you want to lear more about it consider applying to our Master degree.

The restaurant industry has always evolved through innovation. AI represents the next chapter in this ongoing story. Restaurant owners who embrace these technologies today will undoubtedly find themselves better positioned to thrive tomorrow.

FAQs

Q1. How is AI currently being used in restaurants? AI is being used for voice-assisted ordering, chatbots for customer service, AI-powered forecasting for staffing and inventory, and automated inventory management. It’s also helping reduce food waste and streamline phone orders.

Q2. What should restaurant owners consider before adopting AI? Restaurant owners should assess their specific operational needs, consider the impact on staff, address data privacy concerns, evaluate their organization’s AI readiness, and ensure that AI enhances rather than replaces human interaction.

Q3. How can AI help reduce food waste in restaurants? AI solutions can cut food waste by up to 50% through predictive analytics and image recognition technology that tracks what is wasted, helping kitchens save significant amounts annually.

Q4. What is the future of AI in the restaurant industry? The future of AI in restaurants includes smart robot assistants, hyper-personalized pricing and loyalty programs, AI-driven sustainability initiatives, and advanced predictive analytics for customer behavior and inventory management.

Q5. How does AI impact customer experience in restaurants? AI enhances customer experience by enabling faster reservations, reducing response times for inquiries, personalizing communication, and allowing for more efficient ordering processes, ultimately leading to improved guest satisfaction and increased revenue.