In the dynamic world of hospitality, where consumer expectations are constantly evolving, artificial intelligence (AI) is becoming a key driver of innovation and growth. A recent report from the renowned consulting firm Deloitte, titled "How AI is revolutionizing restaurants," provides an in-depth look at the current state of artificial intelligence adoption in the restaurant industry, exploring what drives value, what challenges leaders face, and how prepared organizations are for the effective implementation of AI solutions.

The report clearly shows that investments in artificial intelligence in the restaurant sector are significantly intensifying. According to data collected from surveyed restaurant executives, an impressive 82% of them plan to increase their investments in AI technologies in the upcoming fiscal year. This figure highlights the growing confidence in the potential of artificial intelligence to transform business operations and provide a competitive advantage. Only a negligible 2% of respondents expect a decrease in investment, further confirming the strong growth trend.

The expected benefits of these investments are multiple and focused on key aspects of business. In first place, with 60% of respondents citing it as one of the top three benefits, is the improvement of the customer experience. This includes everything from personalized meal recommendations to faster and more efficient service. This is followed by the optimization of restaurant operations, highlighted by 36% of executives, and the enhancement of loyalty programs, which is the goal for 31% of respondents. A smaller, but significant portion of respondents also hopes that AI will strengthen their digital marketing efforts (26%), optimize food preparation and waste management (25%), improve the employee experience (21%), and help in the development of new products and concepts (20%).

Focus on customer experience and operational efficiency

Investments in artificial intelligence, especially those focused on the customer experience, are already yielding tangible results. The report reveals that 52% of brands and as many as 84% of operators are already seeing a significant impact of AI on the customer experience. This is not surprising, given the ubiquity of AI in the consumer environment, such as recommendation systems within apps or at self-service kiosks. For example, in cities like Zagreb, where the hospitality scene is rapidly developing, the implementation of such solutions is becoming increasingly visible.

The most common application of AI, used daily by 63% of respondents, is precisely to help improve the customer experience. An additional 26% of respondents are conducting pilot projects or limited implementations in this area. The second most common use case is inventory management, where 55% of respondents use AI daily, while 25% are testing such applications. This includes demand forecasting, order optimization, and waste reduction, which directly impacts profitability and business sustainability.

Waves of artificial intelligence adoption in hospitality

Deloitte's research suggests that the adoption of artificial intelligence in the restaurant industry will occur in several waves. The first wave, which is already in full swing, includes applications focused on customer experience and inventory management. These applications have proven to be the easiest to implement and provide the fastest return on investment.

The second wave of AI implementation is focused on strengthening customer loyalty and improving the employee experience. Around 70% of respondents are already using or testing AI in these areas, and planned activities indicate that these numbers will soon increase. For example, AI can analyze customer data to create personalized offers and rewards, thereby increasing customer engagement and retention. On the other hand, automating repetitive tasks through AI can free up employees for more complex and creative jobs, improving their satisfaction and productivity.

The third wave involves the application of AI in food preparation and new product development. Currently, less than half of the respondents are using or testing AI in these areas, but it is precisely here that the biggest plans for future development and implementation are being recorded. This can include robotic chefs, systems for optimizing recipes based on available ingredients and customer preferences, and tools for rapid prototyping of new dishes. One of the most interesting emerging examples is the use of voice AI in drive-thru restaurants to automate the order-taking process, which significantly speeds up service and reduces the possibility of error.

Challenges on the path to full implementation

Despite the optimism and growing investments, restaurants adopting AI face a number of challenges. Two factors have proven to be the biggest obstacles to implementing AI solutions: identifying the right use cases and managing risks, both with 48% of respondents citing them as a major concern. This suggests that companies are unsure how to best leverage AI for their specific needs and how to deal with potential negative consequences.

The lack of talent and technical skills also represents a significant challenge, with 45% of respondents highlighting it. Implementing and maintaining complex AI systems requires experts with advanced knowledge in data science, machine learning, and software engineering, who are often difficult to find on the job market. When it comes to risks associated with AI implementation, the most frequently mentioned were problems with intellectual property (20%) and misuse of client/customer data (16%). This data emphasizes the importance of robust security protocols and ethical guidelines when working with sensitive information.

It is interesting to note what does not worry restaurant executives. Lack of executive commitment (only 20% of respondents cited it as an obstacle), choosing the right technologies (29%), or IT infrastructure and data (31%) are not among the main concerns. This indicates that executives have already secured leadership support for AI investments and are now focused on more practical aspects, such as selecting the right applications and finding qualified people to support them.

AI Readiness: Still in the preparation phase

Despite ambitious plans for future AI implementations, many restaurant executives admit that their organizations still lack all the foundational elements needed to scale AI solutions. Strategy is the only area where a majority of respondents feel their companies are "highly" prepared, although nearly 40% of them still feel they do not have a strong strategy in place.

Only 21% of respondents across all segments and geographies believe they have established risk management and governance mechanisms to successfully execute AI investments. Similarly, only 29% of respondents state that their organizations are ready in terms of technology infrastructure, and 27% in terms of talent. This data points to significant readiness gaps that need to be filled to fully leverage AI potential.

AI adoption readiness also varies between brands and operators. Operators are, according to the report, better prepared in terms of strategy and operations, while brands have an advantage in technology infrastructure readiness. Both groups show a relatively low level of confidence and readiness regarding talent and risk management and governance, which are key areas for successful long-term AI implementation.

The future of hospitality with artificial intelligence

Evert Gruyaert, Restaurant and Food Service Industry Leader at Deloitte, points out that the path to full transformation through artificial intelligence is still ongoing, despite the growing acceptance of AI in the restaurant industry. He emphasizes that using AI to create personalized experiences and deeper connections with consumers is an effective strategy. However, to unlock the full potential of AI, leaders will likely need to find a balance between innovation and operational discipline, strengthen governance, and address capability gaps. The goal is to optimize operations, increase margins, and secure the future of the business – both in the front of house and the back of house.

The Deloitte report "How AI is revolutionizing restaurants" is based on a survey of 375 global restaurant executives in 11 countries conducted during the fourth quarter of 2024 (from October to November 2024). For the purposes of this study, "operators" are defined as those whose organization owns franchise operations for one or more brands, holds a license for a brand in the market, or is from an operating group with restaurants under one or more brands. This comprehensive research provides valuable insights into the direction the global restaurant industry is heading, emphasizing the inevitable role of artificial intelligence in shaping its future.