Full-service restaurants have had an especially challenging road in recent years – and the belt-tightening that has come with inflation hasn’t helped. A report from Fortune said that Gen X and boomers are the sole demographics that can afford to dine at high-end restaurants right now. But fortunately, technology is helping the segment find ways to deliver full-service meals (and what feel like high-value experiences) to guests. Specifically, full-service restaurants are doubling down on AI and automation, according to FSR Magazine. Like brands in other restaurant segments, they are using AI to deliver more personal experiences to guests and maximize order accuracy. But beyond that, AI is also helping the full-service segment innovate, which could otherwise be a challenge at a time when more consumers may hesitate to spend money on higher-end meals. AI is transforming how these restaurants plan, develop, and test new concepts. Using AI, a restaurant can create “digital twins” – models that allow them to experiment with a variety of kitchen workflows, dining room configurations and staffing levels, for example. As a result, full-service operators may be better able to predict how service levels, traffic flows or other elements of the business would likely be affected if they made such changes in real life. Then, when changes are made, immersive, AI-supported simulations can be used to train employees on how to anticipate and navigate the scenarios that may arise as a result. Of course, segments beyond full-service can benefit from these tools too.
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Artificial intelligence is demonstrating its ability to tap into consumer cravings – and to help restaurants generate more sales as a result. One recent example is IHOP, whose online sales have gotten a significant boost recently with some help from AI. Last year, the brand launched an AI recommendation engine on its website. The platform, which was trained on the brand’s historical order data using machine learning, suggests menu items based on what a customer has already put in their cart. The response to date has been enthusiastic – and profitable. According to a Restaurant Business report about the change, 73 percent of customers who see a recommendation on their order add one to their cart, and IHOP’s digital check average has climbed 10 percent in the year since the feature launched, including menu price inflation. Adopting the AI platform wasn’t an overnight process: IHOP conducted testing with live customers, placing the tool in just 15 stores before expanding it incrementally until it was in use at all of the brand’s roughly 1,700 U.S. locations. During testing, they wanted to make sure customers weren’t turned off by the recommendations and abandoning their carts. They also had legal hurdles to clear regarding how the new platform would be using and storing data. But so far, the investment has been worthwhile – and perhaps one to watch if you’re considering a similar platform. Justin Skelton, CIO of IHOP parent company Dine Brands, said their platform, which they purchased from a vendor after considering building it in-house, costs IHOP just $1 for every $60 it generates.
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