Feb 13, 2025

AI in Restaurants: Top 5 Use Cases in 2025

AI is becoming a mainstream part of restaurant operations. Restaurant chains report massive time and cost savings as AI takes on tasks like answering phone calls, scheduling shifts, and managing inventory. By 2027, researchers project a 69% increase in the use of AI in restaurants.

Yet, many restaurant owners remain skeptical. Is AI truly useful if you’re not a large chain like KFC or Wendy’s? And what does an AI-powered restaurant actually look like?

The answer might surprise you – it looks much like your restaurant does today. AI isn’t about futuristic robots; it’s about smart, behind-the-scenes tools that quietly work to make your restaurant more profitable and efficient.

In this guide, we’ve gathered the best applications of AI for restaurants – particularly for small- and medium-sized businesses.

Let’s get started.

Types of AI in restaurants

AI has numerous restaurant applications, and robot waiters are among the least common. Instead, its greatest impact comes from automating phone order-taking and various back-office tasks.

AI for order-taking

The average restaurant receives approximately 200 phone calls daily, but 10% go unanswered due to long wait times or human error. AI voice agents make sure that every call is answered and every order is taken.

Here’s how it works:

Training. An AI voice agent system is trained on your menu items, ingredients, prices, and brand voice guidelines. If available, AI can also be trained on the recordings of exemplary phone calls of your team members.
Taking orders. After the system is installed, AI answers the call, recognizes the request of the customer, and synchronizes it with the restaurant’s POS system.
Confirmation. An AI assistant repeats the order to the client for confirmation and offers an opportunity to make changes if necessary.
Upselling. AI suggests add-ons and upgrades based on the restaurant’s upselling policy.
Payment processing. AI securely collects payment details and confirms the transaction. Alternatively, AI can send a payment link via SMS or allow payment on delivery or pickup.

AI for order-taking is an excellent solution that has already been implemented by restaurant chains, particularly ones with large delivery volumes. For example, Apiko’s AI voice agents saved thousands of dollars on customer service for an American pizza delivery chain.

AI for staffing and scheduling

65% of restaurant owners consider scheduling one of the main challenges in restaurant management. Due to fluctuating demand, managers struggle to accurately predict staffing needs, which often leads to either overscheduling (wasted labor costs), or underscheduling (poor customer experience). Predictive capabilities offered by AI allow restaurateurs to solve this challenge.

Here are the key features offered by AI software for staffing and scheduling:

Demand-based staffing. AI can track the number of in-person and online orders to predict staffing needs. To match expected demand, it automatically generates shift schedules and suggests which employees should be assigned to shifts.
Customized assignment of shifts. AI can assign shifts based on staff availability, skills, and labor costs. It also adjusts for factors like minimum and maximum work hours per week and preferred working hours for each employee. For specific roles, it can prioritize experienced or trained employees.

Shift swaps and last-minute changes. In case employees request shift swaps, AI can automatically suggest replacements based on availability and qualifications and notify managers of urgent shift gaps.

In this way, AI for restaurants can help shift managers accurately forecast staffing needs and take into account employees’ requests, ultimately leading to better employee and customer satisfaction.

AI for staffing and scheduling

AI for marketing and loyalty programs

AI tools make marketing campaigns and loyalty programs more efficient and personalized. Your restaurant's marketing team can tap into these innovations to build stronger connections with customers and keep them coming back.

Here are the key features to look for:

Targeted marketing. AI can create promotions tailored to the individual preferences of your loyalty program members. Based on past orders, dietary preferences, and trending dishes, AI can generate promotions that convert.
Content generation. AI helps draft emails, social media posts, and SMS promotions, which makes marketing more efficient. AI can also help you create a coherent brand voice to send cohesive messages across email, social media, and branded apps.
Gamification. AI can help your team create tier-based loyalty programs with surprise perks, milestone rewards, and bonus challenges.

Overall, AI is a powerful tool that can help your marketing team turn customers into loyal, long-term clients.

AI for marketing and loyalty programs

AI for accounting and payroll

AI-based accounting and payroll software can help restaurants manage expenses, streamline bookkeeping, and improve cash flow forecasting.

Here are the key features to look for:

Automated receipt and invoice scanning. AI-powered receipt and invoice scanners can extract key data from both electronic and paper receipts. The software captures essential details (vendor name, amount, date, etc.) and enters them into the accounting ledger. This reduces the time spent on manual data entry and minimizes errors.
Categorizing & reconciling transactions. AI can match bank transactions with ledger entries by analyzing amounts, vendor names, and past transaction patterns. It can suggest categories for expenses, such as food costs, supplier payments, and payroll.
AI-powered invoice reconciliation. AI accounting software automatically scans business bank accounts for deposits that match outstanding invoices. If a payment is found, the system marks the invoice as paid. Unpaid invoices remain on the receivables list and are flagged for follow-up.

This type of AI in the restaurant industry can help your accountants perform tasks faster and more efficiently. AI for accounting and payroll

AI for inventory management

Artificial intelligence in restaurants provides outstanding opportunities to optimize stock management. AI enables restaurant owners to calculate the exact amount of stock needed in the future, reduce waste, and make sure that all ingredients are always available.

Here is a breakdown of the key features:

Real-time calculation of stock and waste. AI can track expiration dates of perishable ingredients and warn managers in advance. If necessary, it can suggest menu modifications or promotions to use soon-to-expire items. Further, AI can analyze waste trends and provide insights to help you make changes to portion sizes and ingredient usage.
Automated order recommendations. AI can suggest optimal purchase quantities based on demand forecasts, stock levels, and supplier lead times. It can also pre-fill purchase orders and send them to suppliers automatically. Further, AI can adjust order frequencies to avoid overstocking of perishable ingredients.
AI menu cost calculation. AI can calculate the prices of each of your menu items based on changing ingredient prices and portions to help you control profit margins.
Multiple-location management. AI can help manage inventory in multiple locations, providing a centralized hub for all the data coming from your restaurants. This allows you to transfer stock between locations when necessary and optimize operations across all of your restaurants.

Here’s how it works:

Integration. AI is integrated with your existing POS systems, inventory management software, and supplier databases. This is necessary to enable AI to analyze the flow of data and make accurate decisions.
Training on existing data. AI is trained on historical data of past stock purchases and consumption rates of your restaurant. This allows the system to understand patterns of stock use within the establishment.
Customization. AI is provided with information on menu items, ingredient lists, portion sizes, and storage constraints. You may also set specific rules like minimum stock levels and supplier preferences.
Use. After everything is set up, you can use all the advanced features AI can offer.

Examples of AI in Restaurants

It all sounds good on paper, but what about practical implementations? Here are some of the most comprehensive implementations of AI for restaurants.

Wendy’s

Wendy’s has integrated AI into its operations in two major ways – through Wendy’s FreshAI, an AI-driven drive-thru ordering system, and an AI-powered supply chain initiative in partnership with Palantir Technologies.

Developed with Google Cloud, Wendy’s FreshAI focuses on automating the drive-thru experience. It accurately interprets customer orders and allows employees to focus on other tasks, which improves service speed and customer satisfaction.

Wendy’s Quality Supply Chain Co-op, on the other hand, uses Palantir’s Artificial Intelligence Platform to optimize inventory management, demand forecasting, and logistics. QSCC aims to reduce waste, improve decision-making, and achieve cost savings across Wendy’s 6,400 locations in the U.S. and Canada.

Just Salad

Just Salad has recently introduced Salad AI, a digital ordering assistant designed to personalize meal recommendations based on individual preferences.

Salad AI analyzes customer survey responses to suggest meals tailored to their lifestyle, nutrition goals, and taste preferences. This helps to make menu navigation easier, reduce decision fatigue, and introduce new flavor combinations to both new and returning customers.

In this way, Just Salad creates a more interactive and customized customer experience, which improves customer satisfaction and encourages repeat visits.

Yum! Brands

Yum! Brands, the parent company of KFC, Taco Bell, and Pizza Hut, has launched Byte by Yum!, an AI-driven restaurant management platform designed to optimize various aspects of its operations.

Byte by Yum! integrates AI-powered predictive analytics with digital ordering, point-of-sale systems, kitchen optimization tools, and labor management solutions. The comprehensive platform enables franchisees to use AI insights for improving inventory management, employee training, and menu performance.

Although these examples of AI in the food service industry concern large restaurant chains, AI is also commonly used by medium and small restaurant businesses due to its strong benefits.

Advantages of AI for restaurants

AI in the food industry isn't perfect and can’t automate everything. Yet, AI offers plenty of benefits for restaurateurs. Some of the most important advantages include:

Cost-saving. In the last 4 years, food costs have gone up by 29%, and labor costs have gone up by 31%. The key goal of AI in the service industry is to reduce costs. For instance, AI for phone call-taking can help you save money on labor costs, whereas AI for inventory management can help you save costs on ingredients through effective use and ordering of stock.
Improved productivity. AI helps to automate routine tasks and frees up employees for more creative tasks. In practice, this means that your staff will be able to focus on delivering exceptional in-person customer service instead of confirming phone orders and managing table bookings.
Increased efficiency. AI is completely data-driven – you get a complete overview and analysis of your operations. For example, AI can detect that fresh seafood tends to spoil on Mondays due to low weekend sales and adjust purchase recommendations, or schedule more kitchen staff while reducing front-of-house workers during spikes of delivery orders. AI notices data patterns that human staff may miss – which allows you to increase efficiency across the board.

Overall, AI is extremely useful for improving operations in restaurants, and current AI applications are highly effective at saving costs, improving productivity, and increasing efficiency.

Disadvantages of AI for restaurants

Despite the advantages, businesses implementing AI may face some diffficulties and challenges in while implementing AI for restaurants.

Lack of data. AI relies on historical sales and operational data to make accurate predictions. New restaurants or businesses with inconsistent record-keeping may struggle with AI adoption because the system lacks enough data to generate meaningful insights. However, this mostly applies to inventory management or accounting solutions – AI voice agents, for example, do not require a lot of historical data for effective functioning.
Implementation costs. AI solutions require upfront investment, which can be costly for small restaurants. Also, integration with existing POS, accounting, and inventory systems may involve additional fees and IT support. Plus, some AI-driven tools charge recurring subscription fees, which adds to operational expenses.

Still, AI benefits are highly likely to outweigh the disadvantages – particularly if you think through all the details before starting AI implementation.

AI for restaurants implementation: custom software solutions

Choosing and implementing AI software is a responsible decision that requires detailed planning and expert input. With so many companies offering their AI products for restaurants, it is easy to get confused and opt for the less-than-optimal solution for your business.

Custom AI software development allows you to avoid these risks and use the expertise of a dedicated team to create a solution that precisely fits your business needs. Here’s why:

Validation and testing of your ideas
A custom development team collaborates with you to structure your ideas and identify those with the highest potential. The team assists you with a long-term project roadmap, making sure that the project goes smoothly from start to finish.
Discovery phase
The custom development team conducts in-depth research to validate your product concept and gather requirements. The team works closely with you to understand your business objectives and user needs, making sure that the software solution precisely fits your workflows and delivers the expected value.
Product development
Skilled custom developers create a software solution tailored to your unique requirements. The team develops the product in iterations, providing you with an opportunity to test it and give feedback.
Software testing and maintenance
The team makes sure that the software meets your functional requirements while adhering to industry standards for quality, user experience, and reliability. The software development provider will test and debug your software before release, and provide continuous maintenance support, allowing you to integrate new features when needed.

Custom software development is the right solution for restaurant owners in particular, as restaurant businesses usually don’t have an in-house software development team or software project management experts who could help the business owner make informed decisions.

Conclusion

AI for restaurants is reaching the stage of widespread adoption. From AI phone answering solutions to inventory management tools, AI can help owners, managers, and staff reduce costs and optimize operations.

As an AI software development company, we have extensive experience in AI restaurant app development. If you have a project in mind, don’t hesitate to reach out – our experts are always ready to lend you a hand!