Convenience, speed, and quality are key to driving repeat business. Many of today’s restaurant and convenience store operators are relying on artificial intelligence (AI) to deliver on all these fronts. From personalized recommendations to automated review responses, AI has proven to be a game-changer for tech-savvy operators in recent years, and we expect the trend to accelerate in 2024 and beyond.
As inflation and labor shortages persist, automation technologies can help streamline operations and aid in guest retention efforts. According to Deloitte, consumers are accepting automation tools and expressing a growing willingness to return to establishments that use technologies like voice-automated ordering systems, drone deliveries, and kitchen automation.
Many AI tools are part of a wave of pilot programs that began at restaurants and c-stores across the country last year, and 2023 will likely be remembered as the year artificial intelligence achieved critical mass in the foodservice industry.
Let’s look at four areas where artificial intelligence tools can enhance your guest engagement and marketing efforts: loyalty, customer feedback response, ordering, and consistent guest experiences.
If you’ve ever used Amazon or Netflix, you know that algorithms can make recommendations to customers based on past behavior. The same is true for restaurants and c-stores.
With a first-party online ordering system in place collecting data from guests, operators can leverage AI to suggest menu up-sell and cross-sell items based on past orders, complementary flavor profiles, and popularity.
A technology called AI-driven menu clustering is an effective personalization method that helps guests find what they’re looking for—and more. By identifying item relationships and recommending complementary dishes to guests, operators are more likely to increase sales and satisfaction.
When combined with loyalty program data, AI-driven menu clustering can make promotions more relevant and cost effective. Using this approach to segment loyalty members and generate personalized campaigns, one burger franchise drove incremental sales that led to a tasty 61x ROI.
The upshot is simple: When guests feel recognized, heard, and understood, they’re much more satisfied by their experience.
The quality of an experience can determine a guest’s likelihood to return to a restaurant or convenience store. That’s why operators strive to measure the quality of their dining experiences. But it’s the response to customer feedback that matters more than any one meal. And too often, managers simply lack the time to respond quickly and adequately to customer feedback. With AI assistants in place, restaurant staff can more quickly and efficiently address and resolve customer feedback through prompt acknowledgement and appropriate responses. We’ve found, for example, that AI-generated, automated responses (with or without an offer) to poor customer ratings lead to more frequent visits and better future reviews from the same guests.
Calling in to-go orders is still a popular guest behavior, and AI-enabled voice bots are making the process less cumbersome. Guests who call in can now get connected to automated systems that use large language models to guide guests through their orders with ease, eliminating hold times and reducing inaccuracies. These AI assistants are also being implemented in drive-thrus, providing a seamless and efficient conversational interface that keeps the line moving along.
Kitchen flow automation is another category of artificial intelligence that’s keeping things moving, whether orders come in on-site, by phone, or online. By optimizing order preparation, operators can prioritize orders based on cooking time, order volume, and other factors, and route them to the appropriate kitchen stations. The result is faster, more accurate order processing—and happier customers.
Driver dispatch automation is another AI-powered capability that operators use to ensure prompt and efficient delivery. With predictive analytics, AI algorithms can optimize delivery routes and reduce wait times for guests. Tracking systems add an extra layer of transparency by providing real-time updates on driver progress.
The best thing about artificial intelligence technologies is that they keep learning and improving as they continue to analyze data, such as guest preferences and trends. By leveraging insights from AI, restaurants and c-stores can keep responding to guest needs more quickly, create increasingly effective marketing campaigns, and drive long-term growth.
Making decisions based on accurate and up-to-date information is essential for success, so it’s critical for operators to have a steady stream of data to fuel their AI tools. Operators who implement integrated first-party guest engagement platforms that combine online ordering, loyalty, and other programs own the most data, which can be used to optimize the capabilities of AI-enabled tools.
From personalized recommendations to streamlined ordering processes, AI is making food ordering more efficient and enjoyable for operators and guests alike. As AI technology continues to advance, we can expect even more innovative solutions that cater to guest preferences and ensure seamless and delightful experiences for years to come.