The AI Amplifier Advantage

If a brand has a strong data foundation, AI can accelerate growth and operational improvements, but if that foundation is weak, AI just scales existing problems.

AI is an amplifier, said Michelle Miller, Senior Director of AI and Machine Learning at Revenue Management Solutions, and even the most advanced AI cannot compensate for incomplete or inaccurate data. Because LLMs and AI tools are becoming increasingly accessible,  simply having the technology is becoming less of a competitive differentiator. 

“What separates brands is the quality of the data they can provide to those tools. A restaurant with clean, connected and well-managed data can use AI to generate better recommendations and personalize marketing. It can also improve forecasting, optimize pricing and respond more quickly to changing customer behavior.”

AI as Problem Solver

AI should never be implemented just because it's the latest technology, Miller recommended. Instead, operators should specify a problem to be solved and set measurable goals. Current examples include  using AI to reduce labor pressures, improve forecasting accuracy, increase check averages, streamline operations, or deliver a better guest experience. 

“Cost savings are important, but we see AI’s greatest value in improved decision-making. For example, how can AI help employees work more efficiently or create more personalized customer experiences that drive long-term loyalty?”

The biggest challenge for restaurants incorporating more AI is preparing the business to use it effectively, said Miller. Many restaurant brands have data spread across POS systems, loyalty programs, online ordering, delivery partners and marketing tools, making it difficult to create a unified view of the customer or the business. 

“To successfully implement AI, a brand must connect those systems, establish strong data governance and ensure the information is accurate and accessible. Without that foundation, it's difficult for AI to deliver meaningful results.”

Early iterations of drive-thru AI have evolved into more sophisticated systems that continue to advance with operators moving beyond the novelty of the technology, taking a more measured approach to determine exactly where these tools deliver the greatest operational value, Miller said.  

“In the delivery space, AI offers a clear path to streamlining the consumer experience. As app fatigue grows, customers are seeking a unified interface to discover dining options, compare choices, and execute orders. While AI platforms can facilitate this initial discovery, brands remain focused on protecting direct relationships and proprietary transaction data.”

AI Optimization and Personalization

Restaurants will increasingly leverage AI for search and evaluation while directing final transactions through their own digital ecosystems to maintain control over the customer journey, Miller anticipates, adding  that ordering will become much more conversational and personalized. 

“Instead of scrolling through menus, customers will increasingly ask AI assistants for recommendations based on their dietary preferences, previous purchases, budget or even the occasion. 

Additionally, menu engineering will become personal thanks to increasing use of AI, she said.

“Using AI, restaurants can recommend items based on historical transaction data and customer preferences. Suggested add-ons or high-margin items, when aligned with a customer's past orders, can increase average check size while enhancing the customer experience.”

Because consumers are already asking generative AI where to eat, so restaurants need to think beyond traditional search engine optimization when planning out menus and marketing campaigns, Miller pointed out. AI models rely on both their training data and current information aggregated from trusted online sources, so it’s important for restaurants to maintain consistency across digital channels.  

Brands should ensure their menus, hours, locations, and brand descriptions are accurate and presented in formats that AI systems can easily understand, she added. For example, searchable text-based menus are much more useful than PDFs. Consistent information across websites, Google Business profiles, social platforms and other online listings helps AI systems suggest accurate recommendations. 

“Restaurants should also clearly communicate what makes them unique, whether that's food choices, dietary accommodations, signature dishes or their value proposition, because those differentiators influence AI-generated recommendations."