The AI-Powered Pantry: How Predictive Ordering Is Slashing Food Waste and Costs

Predictive ordering, empowered by AI, can help restaurant operators address significant challenges such as food waste.

What Is Predictive Ordering? 

The U.S. generated 73.9 million tons of food waste in 2023, with the retail sector accounting for $28.7 billion of that amount. Restaurants can reduce those numbers by using AI to modernize and optimize their businesses. Predictive ordering focuses on data and algorithms to forecast customer demand, therefore “predicting” what people want. 

This technology is used to anticipate demand and determine inventory levels. Say the most popular item on the menu is steak, but sometimes people choose to order pasta. Restaurant staff are likely aware of the trend and focus on accounting for it when preparing inventory. Predictive ordering can help. The AI tool monitors data in real time and assists staff in tracking inventory levels instantaneously so they don’t order too much or too little of either pasta or steak. 

This technology is useful for inventory analysis as harnessing this technology allows them to  reduce their food waste levels and cut costs so they can optimize their business in new ways.

Waste Reduction 

Restaurants have a responsibility to reduce food waste for the sake of their business expenses and the well-being of their community. Many establishments waste up to 10 percent of what they buy before customers place an order. Principles to follow in minimizing this include education, prevention and reuse — and a predictive AI tool can amplify these strategies. 

As the tool analyzes customer trends, inventory stock and food quality, staff can instantly see what to use and when, what to restock and what can be used later. One study found that data classification and food quality management systems helped reduce food waste by 29 percent via imaging and 30 percetn via computer classification systems. 

By utilizing these organizational management systems with predictive analytics, AI could reduce food waste levels and get even better at it as technology advances. 

Cost Reduction

Reducing food waste can significantly lower costs. Businesses actively reducing their amounts may see 14 times their ROI or higher.

Of course, a number of factors play into the cost-effectiveness of waste reduction, but the key focus is on spending. Without the need to consistently buy new products that then go to waste, every dollar invested in production is more likely to generate a return. 

Predictive ordering itself is a human-centered investment. The tool’s analytics aim to understand customers' needs so the business can meet demand at the highest possible level with the top-quality standards. 

AI's Future in the Restaurant Industry

There are many other ways AI and predictive ordering can change how the restaurant sector operates. 

• Supply chain management: Predictive AI uses organizational analysis software to support the food supply chain and help manage quality control through every step of the process, from farm to table. 
• Task automation: AI systems can automate laborious tasks like stock inventory management or paperwork to save workers time and allow them to focus on providing the best quality service. 
• Menu management: Automated menu management systems may provide real-time insights and save time organizing and updating. 

Predictive ordering is the future of the restaurant industry. From cutting costs to supporting sustainability, AI tools will help empower businesses to focus on what matters and serve the best food to their customers.