Why AI is 2024's top restaurant tech trend

If we are to believe the world's techies, 2024 is finally the year that artificial intelligence will become a mainstream part of restaurant operations.

The global food automation market is expected to reach $14 billion by year's end, and by 2027, there could be a 69% increase in the use of AI and robotics in fast food restaurants. It's one thing to read about those stats from high-level reports commissioned by companies hoping to their products and services, but these ideas become even more believable when you hear how specific restaurant executives are testing and incorporating them into their operations.

From using it to automate order processing, inventory management and basic customer service inquiries to relying on it for forecasting, marketing and cutting labor costs, FastCasual interviewed 14 executives who agreed that 2024 is the year of AI.

See below.

Wouleta Ayele, CTO, Sweetgreen

Q. If you had to choose one to two top tech trends that restaurants should embrace in 2024, what would they be and why?
A. Robotic process automation for operational efficiency and advanced artificial intelligence for personalized experiences
In 2024, we anticipate that restaurants will leverage technology to automate repetitive and time-consuming tasks, such as order processing, inventory management, and basic customer service inquiries. By adopting Robotic Process Automation technology, restaurants can improve operational efficiency, reduce errors, and enhance the guest experience by allowing staff to focus on customer service and quality control.

You'll see restaurants continue to use AI to analyze customer data, preferences and behaviors to unlock highly personalized experiences for guests. With tailored menu recommendations and personalized promotions enabled by advanced AI algorithms, restaurants have the opportunity to enhance customer satisfaction, loyalty and overall restaurant experiences.

Josh Boshard, COO, Savory Fund Chief Operating Officer

Q. If you had to choose a few tech trends that restaurants should embrace in 2024, what would they be and why?
A.Optimizing the technology that supports your employee journey is not just a strategic necessity but an exciting opportunity. By harnessing cutting-edge solutions and a data-driven approach, you create the path to crafting an extraordinary and seamlessly enjoyable experience for exceptional employees. Think about the best employees you have today, what else could you put in place that could help elevate them to the next level? This is where your focus should be.
Q. What technologies are you exploring this year and why?
A. We are excited to harness the power of Craftable's Inventory Management System at Savory. This technology offers real-time tracking, automated reordering, cost analysis, and vendor management, all working together to streamline our restaurant's inventory control. Partnering with Craftable enables us to advance our pursuit of scalable, cutting-edge technology, amplifying sales while delivering bottom-line results.

Graham Campbell, COO Givex

Q. If you had to choose one to two top tech trends that restaurants should embrace in 2024, what would they be and why?
A. AI's role in restaurant tech and omnichannel order management as the future of point of sale. We are looking at many ways of evolving our offering to incorporate AI into our products be that by offering recommendation solutions powered by AI, image and content generation using AI (email images, product content descriptions), and making it easier to learn to use our solution using generative AI tools. Similarly, we are building out tools to help our teams support our customers more effectively using these new tools.

The point of sale is expected to expand to all channels, connecting seamlessly to partners via integrations and funneling sales into locations in an orderly fashion to ensure guest experiences are not only maintained but improved upon using technology.

Carissa De Santis, CTO, BRIX Holdings

A. If you had to choose one to two top tech trends that restaurants should embrace in 2024, what would they be and why?
AI has been a hot topic in the restaurant tech space for the last couple of years, but I think with all of the advancements and adoption of AI in the vendor space more restaurants are going to be embracing this type of technology as a regular part of their day-to-day business.
Q. What technologies are you exploring this year and why?
A. Now that we have completed a huge overhaul and updated a lot of our outdated technology, we are gearing up to add a CDP (customer data platform) into the mix later this year. This will allow us to better serve our customer base with real data-driven decisions, from culinary and operations, through the customer experience and to what real estate sites make the most sense for our brands.

Kris Douglas, VP of Technology, Small Sliders

Q. If you had to choose one to two top tech trends that restaurants should embrace in 2024, what would they be and why?
A. In 2024, my top choices for tech trends to adopt would be elevated customer engagement and a frictionless user experience. It's crucial to understand customer behaviors and preferences, not just for predictive or historical purposes, but to tailor the best experience for each frequent Slider. I believe we are in an era, where customers prefer frictionless interactions enabled through technologies like AI and automation."
Q. What technologies are you exploring this year and why?
A. I consistently assess the changing tech market to stay informed about trends and opportunities in the industry. I genuinely believe that Smalls Sliders will always be attuned to what people dub "next-gen" technology because, for us, it's a constantly evolving landscape that we are committed to growing alongside. This requires that we remain intellectually curious, dynamic and willing to explore new ideas and possibilities for innovation."

Hal Lawlor, CEO of Smokey Bones

Q. If you had to choose one to two top tech trends that restaurants should embrace in 2024, what would they be and why?
A.In 2024, one of the top tech trends for restaurants to embrace is the integration of AI in various aspects, including forecasting, labor scheduling and order-taking for both drive-thru and takeout. This adoption not only enhances operational efficiency but also aligns with the evolving technological landscape within the industry.

Troy Hooper, CEO, Hot Palette Holdings

Q. If you had to choose one to two top tech trends that restaurants should embrace in 2024, what would they be and why?
A.Using AI in analytics suite and processes as well as using geofencing and mobile tracking technologies to give more accurate promise times. Detailed insight into our operations is one of the most valuable, yet elusive forms of intelligence that can make the greatest impact on our performance and results. From Labor planning and reconciliation and its relationship to sales by the half hour, or reducing inventory shrink and waste by understanding sales forecasts and setting up better pars for purchases and prep; AI tools are becoming far more accessible and useful add-ons to our existing tech stacks every day.

More accurate promise times using geofencing and mobile tracking technologies. You just have to use the Chick-fil-A app a couple of times to realize how it makes the consumer journey incredibly more efficient and convenient. The effects on employee efficiency is also profound. There are several tech products that can integrate with all of our ordering portals, POS and KDS systems to provide customized communication between the guest and venue team to reduce stress and improve overall proficiency.
Q. What technologies are you exploring this year and why?
A.Our priority is connectivity with and intelligence from our guests. First, we have tested, and are rolling out Momos for global reputation and sentiment monitoring on all digital platforms, including social channels. It allows us to directly manage and respond to or engage with our guests and fans at scale with incredible efficiency and ease. We can see that they are posting on IG with our plushie promo toys and directly engage with reviews that have concerning mentions. We can also use their analytics dashboard to monitor trends from an individual employee's impact to the store level, franchisee group, and so on.

Next, we are expanding our partnership with Freatz. They are the modern-day Secret Shopper program on steroids that makes us money rather than costs us SaaS fees. We get on average 30 detailed guest surveys a month which are 50 questions long and the platform gives us incredible insights into all areas of our guest journey and where we have opportunities to make adjustments. We can then track in real time the results of each decision and action taken to monitor impact. Their data analysts and scientists then compile detailed monthly reports that illuminate trends and track changes from changes made. Guests are reimbursed a max amount for their survey and receipt, and in the aggregate, they spend more than the reimbursement, thus the intelligence is free and we are actually up in revenue from these transactions overall.

Patric Knapp, VP of Operations, Bobby's Burgers by Bobby Flay

Q. What technologies are you exploring this year and why?
A Our brand has been focused on building a world-class tech stack that caters to the needs of two audiences: our franchisees and our guests. Partnering with proven solutions including Toast, OLO, Thanx, Kitchen Armor and QSR Automations provides our restaurants with a comprehensive tech solution built by experts. With the luxury of beginning our review process at a whiteboard phase, we look forward to leveraging these platforms and more to provide a frictionless guest experience, coupled with ease of use for our operators.

Steve Lieber, VP of Franchise Development, BurgerFi

Q. If you had to choose one to two top tech trends that restaurants should embrace in 2024, what would they be and why?
A.Expanding applications of AI and innovative loyalty programs with gamification and NFTs.
AI is a game-changer in our industry, with its influence extending beyond the obvious. Its applications are diverse and impactful, including:

• Enhanced customer service through chatbots and AI-driven interactions.
• Predictive analytics for inventory management and demand forecasting.
• AI-powered personalization for tailored dining experiences.
• Operational efficiencies in kitchen management and food preparation
• Automated staff scheduling and labor management.
• Advanced analytics for menu optimization based on customer preferences.

Following the trailblazing examples of Starbucks, McDonald's Monopoly, Costa Coffee and Dunkin' Rewards, gamification and digital collectibles are redefining loyalty programs. These approaches create engaging, rewarding experiences that foster long-term customer loyalty. Notably, Starbucks' integration of NFTs into its Odyssey program represents a cutting-edge blend of loyalty and digital collectible innovation.

These trends are not just shaping the immediate future of our industry, but are paving the way for ongoing advancements in how we engage with and serve our customers.

Brian Mills, operating partner co-founder, CHOP5

Q. If you had to choose one to two top tech trends that restaurants should embrace in 2024, what would they be and why?
A. CHOP5 is embracing third-party delivery companies to help increase guest convenience and labor efficiencies.
Q.What technologies are you exploring this year and why?
A. CHOP5 is exploring back-of-house technology that is POS integrated to help with supply chain inventory, food cost management and providing real-time costing resulting in labor costs savings, reduced spoilage and increased efficiencies.

David Mkhitaryan, CEO, Angry Chickz

Q. If you had to choose one to two top tech trends that restaurants should embrace in 2024, what would they be and why?
A.In 2024, restaurants should embrace the integration of AI-driven technologies into their operations to leverage consumer data insights. Some may be apprehensive, but AI isn't about job replacement, rather than enhancing roles, aiding in employee training and streamlining tasks. It continuously evolves, offering robust solutions across operational and marketing aspects. Embracing AI ensures staying competitive and leveraging its benefits for enhanced efficiency, personalized marketing, and deeper consumer understanding. Its integration into various facets of the restaurant business will be crucial for growth and relevance in an evolving market.

Q. What technologies are you exploring this year and why?
We're looking to enhance store development and marketing through various innovative tech partnerships. Gathering as much data about our guests and offering personalized guest interactions will be our priority this year. Improving training and optimizing real estate strategies with tech are also on the horizon.

Kelly Roddy, CEO, Woworks

Q. If you had to choose one to two top tech trends that restaurants should embrace in 2024, what would they be and why?
A. The use of artificial intelligence and machine learning technologies. AI can be utilized to improve various aspects of the restaurant industry, marketing, personalization, guest response, real estate selection, personalized customer experiences, predictive analytics for demand forecasting, and automation of repetitive tasks. ML algorithms can analyze customer preferences and behavior to provide personalized recommendations and enhance menu offerings.

Another important tech trend for restaurants in 2024 is the adoption of contactless technologies. I believe this trend will continue. Restaurants can implement contactless ordering and payment systems, self-service kiosks and digital menus to provide a safer and more convenient dining experience for customers.
Q. What technologies are you exploring this year and why?
A. The possibilities of AI and ML. There are a lot of opportunities around, marketing, guest response, real estate selection and predictive analytics around menu. We will also be implementing business intelligence tools. This will give us better reporting and help us manage inventory, Predict demand and improve profitability. Lastly, self-ordering kiosk. More guests are demanding contactless experiences. We believe this will improve order, accuracy, speed of service and the opportunity to upsell.

Tom Sacco, CEO, Happy Joe's Pizza & Ice Cream

Q. If you had to choose one to two top tech trends that restaurants should embrace in 2024, what would they be and why?
A. One tech trend Happy Joe's is hopping on in 2024 that others should follow along is robotic pizza making. The brand is working with a company called Picnic to try out these new pizza-making robots. This is a top tech trend because it produces pizzas fast and more consistently. It's not cutting jobs in the back, it's providing an extra hand to ensure the pizzas Happy Joe's is selling continue to be the high-quality pizzas that Happy Joe's has stood for during its 50+ years of business. The brand wants to guarantee consistency to its customers in all parts of the country.
Q. What technologies are you exploring this year and why?
A. In the first quarter of 2024, Happy Joe's will be rolling out ORCA systemwide. ORCA is an inventory management system that helps integrate not only the POS system but also with all of Happy Joe's recipes and grocery company, Sysco). With the press of one button, Happy Joe's will know what each food item costs at every restaurant location. For example, they will be able to quickly see what the food cost is for different sizes of pizza. This saves Happy Joe's a lot of time, helps track everything in one place, and better manages items that are variable and change weekly.

Darren Spice, co-founder, Clutch Coffee

Q. If you had to choose a few tech trends that restaurants should embrace in 2024, what would they be and why?
A.Continued evolution (and debate) on using AI, big brands operating locally, product innovation speed and convenience.
There is a push in the industry to find innovative ways to harness the power of AI and its potential impact on the QSR space. Certain brands will share that it will help them become faster, more accurate, and require less human capital. Other brands that are customer-centric (think Clutch, Chick-Fil-A, Dutch Bros) place a premium on face-to-face human interaction, and will likely look to balance technology while maintaining a human touch.

Big brands operating locally
On a similar note brands will be looking to drive that emotional connection with a "local" feel despite being a regional/national brand - it's a trend that is on the upswing. Big brands operating "small" is a great way to describe it. Getting involved with local community events, with local management, will become an even bigger focal point for many brands in the space.

Product innovation
With the market getting more and more competitive, brands that can continue to innovate (unique food/beverage offerings) will stand out and grab business from a cooling customer segment. Simple things such as consistently awesome LTOs will be at a premium in 2024. Offering healthier items for a customer base that is becoming more educated and health-conscious will also be key. We recently switched our brand of Smoothies to a 100% Juice line (no added sugar like the competitors), and elevated our Sugar-Free and dairy alternatives to provide customers with better options.

Speed and convenience: Preparing for increasing workforce return to office
As more companies are requiring their employees to be in the office, brands that can dominate speed and ease of access will separate themselves. Mobile ordering will continue to push in this space, and finding ways to 'make it easy' for someone to order and get their food/beverage will be a top priority.