May 8, 2025 3 min read

Article 7: AI and Labor: Optimizing Staffing and Enhancing Employee Experience

Article 7: AI and Labor: Optimizing Staffing and Enhancing Employee Experience
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Bi-line: Michael L. Atkinson: ResTech Entrepreneur, Investor, and Co-founder of ARI Venture Studio | @michaelatkinson | michael@arivs.ai.

Welcome to 'Atkinson on AI,' a column exploring AI in the restaurant and hospitality industry. I'm Michael L. Atkinson, and I’ll attempt to demystify AI and reveal its practical applications for restaurant operators and anyone curious about technology's impact on the industry. AI is not a distant concept; it’s here now. By embracing AI, we can create more efficient, personalized, and profitable restaurants. Join me as we explore the future of food service. In the world of restaurants, every second counts and every decision matters. 

Hello! This week let’s address a critical issue: labor management. AI can help you optimize staffing, reduce turnover, and enhance the employee experience. Imagine a system that predicts staffing needs based on historical data and real-time demand. It can also match employees with shifts based on their skills and preferences, improving job satisfaction. AI can also be used to automate training and onboarding, making it easier for new employees to get up to speed. 

Use Case: Automated Shift Scheduling and Personalized Training Programs. AI can analyze historical data, employee availability, predicted demand based on events and seasonality, and individual employee skill sets to create optimized shift schedules, minimizing overstaffing and understaffing. Additionally, AI can generate personalized training programs based on individual employee learning styles and career goals, improving onboarding efficiency and employee retention. 

Let’s go a little deeper…here are three task-specific AI agent ideas (that will be a reality I am sure by Q1 2026) designed to tackle labor and workforce challenges in restaurants. These examples are ideal for a blog post highlighting the power of specialized AI tools in hospitality:

1.SmartShift AII

Focus: Smart Scheduling & Shift Optimization

Description:
ShiftSmart AI builds efficient and dynamic shift schedules by analyzing sales forecasts, historical foot traffic, employee availability, weather patterns, and special events. It ensures the right number of staff are scheduled at the right times to reduce labor waste and avoid understaffing.

Use Cases:

·       Automatically generate daily shift schedules based on anticipated customer volume and staff availability.

·       Adjust staffing levels in real time when foot traffic or delivery orders surge unexpectedly.

·       Flag compliance risks (e.g., overtime limits or missed break requirements) and suggest alternatives.

2. PerformBot

Focus: Real-Time Performance Coaching & Feedback

Description:
PerformBot monitors POS activity, tip trends, order accuracy, and table turnover to assess staff performance. It provides personalized feedback and micro-training suggestions to help team members improve efficiency and guest satisfaction.

Use Cases:

  • Alert managers when a server’s table turnover time is consistently longer than average.
  • Notify a line cook about an uptick in order errors and offer a quick retraining module.
  • Generate a weekly performance dashboard with coaching tips for each employee based on KPIs.

3. RetainAI

Focus: Employee Engagement & Retention

Description:
RetainAI uses sentiment analysis, schedule fairness metrics, and engagement trends to identify at-risk employees before they quit. It suggests interventions like schedule adjustments, recognition prompts, or surveys to improve workplace morale and retention.

Use Cases:

  • Predict which employees are likely to churn within 30 days based on attendance, engagement, and sentiment data.
  • Recommend shout-outs or rewards for top-performing employees to boost morale.
  • Survey staff after particularly busy shifts to identify burnout indicators and adjust future scheduling.

Why it Matters: These AI concepts are all designed to reduce labor costs, improve employee satisfaction, and ensure you always have the right number of staff on hand to meet demand. AI can also be used to automate routine administrative tasks, such as payroll and time tracking, freeing up your HR team to focus on more strategic initiatives. Furthermore, AI can provide real-time feedback to employees, helping them improve their performance and develop their skills. By leveraging AI to optimize labor management, you can create a more efficient, engaged, and productive workforce. We’ll explore specific labor applications in future posts but start thinking about how you can leverage AI to create a more efficient, engaged workforce. AI is your labor solution, allowing you to transform your staffing and training processes, leading to increased employee satisfaction and reduced turnover. Embrace AI to create a workplace that is both efficient and rewarding, fostering a culture of growth and excellence.

To learn more and step into the future, shoot me an email.

Cheers!

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