AI, VR, Holographs and More in QSRs

What will the QSR of the future look like and what role will AI-integrated technologies play? To answer that and more, Modern Restaurant Management (MRM) magazine reached out to an expert–Daniel Hawes, Vice President of Product Design at Givex, whose work marries the worlds of technology, design, and academic research. He has developed and produced twelve television series, nine films, more than 50 games, and pioneered applications in Artificial Intelligence and Virtual Reality.  Read on to learn why he feels that "AI will ultimately be most successful when it is fully interwoven into that process in a manner that it 'simply works' and solves problems with little or no fanfare."

Why do you feel conversational AI will be a major focus this year in QSRs?

Conversational AI in Quick Service Restaurants (QSRs) just makes sense as it addresses the cost and service side of the business. As such, conversational AI is expected to be a major focus in QSRs due to its ability to streamline operations and enhance customer service. This technology can manage orders, answer queries, and provide personalized recommendations, all while reducing wait times and human error. Further, it also addresses the scarcity of labour concerns that many businesses are faced with. As labor shortages persist and the demand for contactless service options remains high, conversational AI stands out as a solution that can deliver efficiency and customer satisfaction simultaneously.

As labor shortages persist and the demand for contactless service options remains high, conversational AI stands out as a solution that can deliver efficiency and customer satisfaction simultaneously.

What other AI functionality do you feel will be utilized more in restaurants this year?

Other AI Functionalities in Restaurants: Beyond conversational interfaces, AI functionalities likely to gain traction in restaurants include predictive analytics for inventory management and AI-driven personalization for menu suggestions. 

At Givex, we are already using AI driven personalization for menu suggestions at checkout in our online ordering apps and we are adding new “recommendation” tools to provide similar product upsell recommendations earlier in the process. Many restaurants will use predictive analytics to anticipate stock needs, reducing waste and ensuring availability of popular items.

Finally, and most importantly, personalization algorithms can analyze customer data to tailor dining experiences leading to smoother service and enhanced profitability. Bottomline, while not all restaurants have detailed personal data, if customer data is available, it is the most valuable currency for AI applications.

What are some examples of restaurants using virtual reality?

VR in restaurants is not a big thing at this moment in time.  That said, Augmented Reality (AR) applications that overlay visuals that can be experienced with smartphones are likely more common. While VR is not “hot,” some restaurants have begun experimenting with Virtual Reality (VR) to offer immersive dining experiences. Examples include Sublimotion in Ibiza which provides a multisensory dining event combining food with VR visuals and Tree by Naked in Tokyo, which blends cuisine with art and VR storytelling. These experiences use VR to transport diners to different settings or to tell a story that compliments the meal. While these are more of an entertainment experience, it is more likely that other XR-based technology (Extended Reality) like Augmented Reality be used to provide unique and improved information and improved customer experiences.  

For example, being able to get detailed information about your meal in real time would be valuable to many customers, particularly for those more health conscious diners. Example AR information that could be acquired by viewing the plate or wine glass with your smartphone may include: Ingredients, Sources/Regions, Recipe, Cooking Methods, Calories, Carbs, etc. )

In what ways do restaurant concepts integrating virtual reality have an advantage when it comes to providing unique and engaging customer experiences?

As discussed earlier, due to the immersive nature of VR, it will likely serve more as an entertainment or experiential tool than a specific culinary element. For example, restaurants integrating VR can offer diners an experience that extends beyond the meal itself.

VR can create an immersive environment that enhances the storytelling aspect of a meal, evoke certain emotions, or transport diners to far-off locations, making the dining experience memorable and distinctive.

VR can create an immersive environment that enhances the storytelling aspect of a meal, evoke certain emotions, or transport diners to far-off locations, making the dining experience memorable and distinctive. This not only serves as a differentiator in a crowded market but can also increase customer engagement and encourage social sharing.

What are the advantages of investments in advanced AI such as holographs?

Like VR, holographs are very early stage technologies and are still relatively expensive to deploy at scale. That said, for those seeking the bleeding edge, holographic AI can provide restaurants with several advantages, such as interactive displays for menus or food items, which can be both informative and entertaining. Holographs can also be used for brand differentiation, creating visually striking experiences that draw customers. Additionally, they can assist in wayfinding within the restaurant and provide a futuristic touch to the ambiance, enhancing the overall dining experience.

How welcoming are guests to the increasing use of AI in restaurants?

This is an interesting question and one that may be subject to change as public opinion evolves on the topic of AI. While some push back on anything new or innovative that diminishes the human element, many others will seek novel new experiences. As such, the reception of AI in restaurants varies among guests. The key to acceptance, however, lies in how seamlessly AI is integrated into the dining experience, ensuring it adds value without detracting from the personal service and warmth that diners often seek in a restaurant setting. I’ve always said that you know when a technology is really working when you don’t really notice it. AI will ultimately be most successful when it is fully interwoven into that process in a manner that it “simply works” and solves problems with little or no fanfare. 

The successful AI-integrated restaurant will be one that enhances the dining experience without making it feel impersonal or overly mechanized.

What do you see as challenges of increased AI implementation in restaurants?

The challenges of increased AI implementation in restaurants include the initial cost of technology, the need for ongoing maintenance and updates, and if poorly implemented, the potential for a loss of personal touch that can negatively impact the customer experience. Additionally, there are concerns about privacy with data collection and the risk of technology becoming a barrier rather than an enabler in customer service.

Training staff to work alongside AI and updating operational processes are also significant considerations. Further, once you’ve made a commitment to AI, you can’t just stop.  You need to commit to ongoing data collection and process improvement, otherwise it will become an encumbrance and will fail as an initiative.

What do you anticipate the restaurant of the future will look like with respect to AI?

You could write a book about this as AI will be integral to all customer service based businesses in the future. As succinctly as I can, the restaurant of the future will be highly integrated with AI technology, used for order taking, kitchen automation for consistent food preparation, and even robotic servers in some contexts. Conversational AI virtual characters like wine sommeliers and other virtual culinary experts may be available to augment customer experiences and information requests while technology-based entertainment will increasingly be “table stakes” for many dining experiences. Customer experience analysis and data analytics will be crucial for understanding customer preferences and tailoring the dining experience. However, the challenge will be in balancing technology with human interaction, as the social aspect of dining remains important to many patrons. The successful AI-integrated restaurant will be one that enhances the dining experience without making it feel impersonal or overly mechanized.