It’s hard to remember a time when the restaurant industry was tracked so closely by the mainstream media. In the wake of COVID’s disruption there have been successes and failures. From novel new dining concepts and TikTok trends, to the closure of favorites, Chapter 11s, and even new rules around employee wages.
Of course, customers will always vote with their feet, and many of the changes still coming down the tracks will be shaped by consumer habits and driven by macroeconomic factors outside of their control.
But, while more change can be an unsettling idea, there is good news, too: this isn’t anything new—and finally operators have the tools at their disposal to meet these challenges.
The patterns of this industry are cyclical (like many others), and as someone that worked on the frontlines as a McDonald’s operator for decades, I recognize all of the struggles I hear from operators today
Staffing was always a big one. The struggle to attract, train, and then actually retain staff is tough. Then there’s fluctuations in traffic, which in turn can cause uncertainty around revenue and restrict price elasticity. These are mainstays of running a restaurant.
Having learned a lot from personal experience in the industry, I now have a new vantage point. SoundHound works in partnership with thousands of restaurants with a total footprint of well over 10,000 locations. These days, my intelligence is a synthesis of the experience of all these businesses, and it gives me a more holistic view of many of the universal pain points. We’re trusted by restaurant partners to help solve these problems—not just to keep heads above water, but to drive revenue while supporting employees and keeping customers contented and loyal.
For those that recognize these familiar pain points, here are some thoughts on the very new ways we now have to solve old problems:
- Technology is now table stakes for restaurant operators. When even the operators that were once resistant to voice AI are proactively seeking out the best solution, we have reached a tipping point. We have predicted that all drive-thru lanes will deploy AI within the next three years. We’re also seeing a huge appetite for AI that automates phone ordering and assists employees with instructions on how to make orders or fulfill other tasks. Restaurant operators know that they need these tools to meet customer expectations, build loyalty, and drive revenue in the right direction. Don’t get left behind. Embracing new and unfamiliar technology can be daunting at first, but there are more and more case studies of businesses using AI to great effect.
- It’s not about replacing staff with bots. This is something restaurant operators and technology providers already know, but the mythology of AI replacement abounds in the wider media due to a perception gap. With labor shortages causing employees to be stretched, and churn being what it always has been, this is about supporting employees in-role—to keep them in role—and helping to plug the gaps where needed. For the first time, operators have access to a technology that provides real assistance to understaffed locations—taking the pressure off, even at busy times.
As someone that has been deploying AI since 2018, and has processed tens of millions of orders, I’ve learned that AI helps people focus on their guests, alongside more complex tasks that tend to generate greater revenue. This has a transformative effect on the trajectory of the business.
- Customers are choosing AI (for efficiency). The new generation of sophisticated AI-powered voice ordering technology bears no relation to the automated phone systems of old. The software can ingest menus with ease (thanks in part to generative AI), understand different dialects and phrasing, and even answer FAQs about restaurant parking or food allergens. In short, it’s incredibly user friendly. We know from consumer polling that nearly 80 percent expect most food ordering to be handled by AI in the next few years. Even those that were hesitant about AI said they would use it if it expedited the process – and wow, does it expedite the process. And, of course, voice AI isn’t the only technology that can improve speed, accuracy, and—ultimately—the consumer experience, helping to cultivate that all-important loyalty.
I’m not suggesting that AI is a diamond bullet that will, in one swoop, eradicate problems with staffing and food costs, or change consumer habits. I am saying it’s an extremely valuable tool in the operator’s toolkit—and it’s never been a) better, or b) more needed than it is right now. I know this because it’s as clear as day from the surge in interest we’re seeing from brands not just locally, but globally.
All smart operators seek to fortify themselves against risk, including economic changes. It’s not always possible. But now operators have new options when it comes to finding the best fit to help not just to survive, but to thrive.
Steve Bigari is a leader and innovator with decades of experience in the restaurant space. As the pioneer and driving-force behind leading-edge developments like multi-lane drive-thru and the first fully-automated food order, he brings unmatched industry expertise and global restaurant relationships to SoundHound. Steve is a graduate of the United States Military Academy at West Point and a lifetime Ashoka Fellow.
