Workforce Challenges and AI Solutions in the Restaurant Industry

 


Restaurants such as Panera and Chipotle are embracing artificial intelligence (AI) to streamline food preparation and ordering processes. While the technology is still not widespread across major chains, it has the potential to automate tasks and enhance the interaction between restaurant workers and customers. One key advantage is addressing the challenges posed by a tight labor market. The National Restaurant Association predicts that by the end of 2023, the industry will have 500,000 job openings with only one job seeker for every two positions.

TD Cowen estimates that voice-enabled AI can increase sales by up to 15% through suggestive selling and reduce service times by 10 seconds. This adoption of AI in the restaurant industry parallels the emergence of third-party delivery services five years ago, where initial pilots eventually led to widespread implementation. However, there are still obstacles to overcome, such as getting franchisees on board and navigating language barriers and menu complexities that may pose challenges for AI systems.

Several pilot programs are already underway. CKE, the parent company of Carl's Jr. and Hardee's, plans to launch AI integrations nationwide through partnerships with Presto and OpenCity AI. Yum! Brands, including Pizza Hut, has been a leader in leveraging AI for operations, utilizing automation for kitchen flow, driver dispatch, customer order tracking, and recommended ordering. McDonald's sold McD Tech Labs to IBM to bring AI technology to drive-thru lanes, while Del Taco and Wingstop are using voice-activated AI for drive-thru and phone orders, respectively.

Panera Bread has invested in AI for both front-of-house and back-of-house operations. The company is collaborating with OpenCity AI for drive-thru voice ordering and Miso Robotics to improve coffee quality and temperature control. Panera aims to redeploy its workforce to focus on higher-value guest experiences, such as food preparation, quality control, and in-person interactions. Chipotle, known for its tech advancements, has partnered with Miso Robotics to introduce an autonomous kitchen assistant called Chippy, which makes chips using a robotic solution. Chipotle also utilizes AI on its app for suggestive ordering and employs camera systems to provide real-time data on product needs based on customer volume.

Both Panera and Chipotle view AI and robotics as tools to enhance human experiences, helping employees adapt to their roles while serving guests and maintaining restaurant operations. By automating certain tasks, workers can focus on providing quality service and meaningful interactions with customers.

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