Bi-line: Michael L. Atkinson: ResTech Entrepreneur, Investor, and Co-founder of ARI Venture Studio | @michaelatkinson | [email protected]
Welcome to 'Atkinson on AI,' a weekly (sometimes bi-weekly) column dedicated to exploring the transformative power of artificial intelligence in the restaurant and hospitality industry.
Where to Find ROI in Restaurant AI: Real-World Use and Implementation
Artificial intelligence (AI) is no longer a futuristic concept reserved for Silicon Valley. In today’s hyper-competitive restaurant landscape, AI is becoming a must-have tool for operators who want to optimize operations, improve margins, and create better guest experiences. However, with all the buzz and complexity around AI, the core question for many restaurant owners and operators remains: Where can I actually find ROI (return on investment) using AI in my restaurant?
The good news is that real value and measurable ROI from AI are increasingly accessible — if implemented strategically.
Where AI Delivers ROI in the Restaurant Business
1. Labor Optimization
Labor is the largest controllable expense in most restaurants. AI-powered labor forecasting tools help predict customer traffic patterns by analyzing historical sales data, weather, holidays, events, and more. This allows managers to create more precise schedules that reduce overtime costs and prevent overstaffing.
For example, QSRs using AI-driven scheduling platforms often see 5–10% reductions in labor costs within weeks of implementation.
2. Inventory and Waste Reduction
AI can forecast inventory needs down to specific ingredients based on menu trends, daypart performance, and guest demand. When paired with sales data, these tools help avoid both spoilage and stockouts.
Operators using AI for predictive inventory management can reduce food waste by 15–30% and improve cost of goods sold (COGS).
AI can recommend price changes in real time based on demand, day of the week, weather, or local events. AI also supports menu engineering by analyzing which dishes are high-margin and popular — and which underperform.
Operators can increase profit margins by promoting top-selling items, retiring poor performers, and adjusting prices to maximize profitability.
4. Guest Personalization and Loyalty
AI-powered CRM systems help restaurants create personalized offers based on guest behavior and purchase history. Custom rewards, upsells, and messaging based on customer segments can dramatically improve retention and repeat visits.
Brands using AI personalization often see loyalty program engagement and average check size rise by 10–20%.
5. Marketing Performance and ROI
AI can streamline campaign targeting across digital channels — identifying the right message, for the right guest, at the right time. Restaurant marketers are using AI tools to test creative, measure response rates, and optimize spend in real time.
AI-driven marketing platforms typically reduce acquisition costs by 15–25% and drive higher conversion rates on promotions.
6. Automated Guest Feedback Analysis
Rather than manually reading hundreds of Yelp, Google, and in-app reviews, AI tools can instantly surface patterns and sentiment insights. This lets brands act quickly on negative experiences, praise top performers, and identify recurring issues.
Faster feedback loops help improve online reputation, increase star ratings, and boost NPS.
7. Voice- and Chat-Based Ordering Assistants
Voice AI and chatbot technology can streamline ordering in kiosks, apps, and call centers. AI can reduce friction, upsell intelligently, and collect valuable data without needing additional staff.
Restaurants using voice ordering or AI bots for call-in orders often see increased order accuracy, better upselling, and faster throughput during peak hours.
7 Ways to Track AI ROI in Restaurants
To ensure that AI isn’t just hype but actually delivering value, you must track its impact. Here’s how to measure return on investment across AI implementations:
Pre- and Post-Implementation Benchmarks
Track key metrics like labor cost %, food cost %, average check, and guest counts before and after using AI. Ensure a clear baseline exists.Time Savings for Managers and Staff
Quantify the hours saved through automation of tasks like scheduling, reporting, or guest follow-up. Time savings often translate directly into productivity gains.Reduction in Errors
Measure reductions in order inaccuracies, scheduling errors, or inventory variances due to AI support. Fewer errors often equal direct financial savings.Increased Sales and Check Averages
Monitor whether personalized offers, smarter upsells, and guest retention strategies are driving higher per-guest spend or visit frequency.Waste and Spoilage Reductions
Track waste levels before and after implementing AI inventory or prep forecasting. Multiply reductions by ingredient costs for clear COGS impact.Marketing Campaign ROI
Measure lift in redemptions, email opens, guest visits, or loyalty signups when using AI-enhanced campaign tools.Online Reputation and Review Scores
Monitor changes in star ratings, NPS scores, and review volume. These correlate with guest satisfaction and long-term brand equity.
Final Thoughts
AI for restaurants isn’t just about flashy technology, it’s about smarter operations, happier guests, and better margins. When implemented with purpose and measured carefully, AI can deliver a compelling and sustainable return on investment. Whether you're running a fast-casual chain or an independent fine dining concept, the opportunity to leverage AI for ROI is here, and growing fast.
