For the second straight year, artificial intelligence dominated the conversation at FSTEC, the annual restaurant technology conference. But the tone of that conversation was different this time around.
A year ago, there was a palpable sense of awe about AI’s potential. Leaders from big companies like McDonald’s, Chick-fil-A and Yum Brands detailed ambitious plans for the technology. A futurist hailed it as the foundation of a new industrial evolution.
This year, that awe was tempered by a healthy dose of reality. Restaurants are still eager to use AI. But they are thinking more carefully about the business case.
One theme: Not every form of AI will make sense for every brand. Many QSRs are treading carefully on AI in the drive-thru, for instance, because of how automated voice bots might impact the customer experience.
“We have a much older demographic and they tend not to want to engage with a robotic voice,” said Tim Newton, CTO of Long John Silver’s, which has been exploring drive-thru AI solutions.
ROI has also become more of a focus. With all the shiny new toys on the market, operators have to be extra sure that the tech has a clear purpose and that it can pay for itself, lest they fall victim to the hype cycle.
“I see the cycle, but it’s flatter for me, because I take the hype out and just apply it to what I’m trying to do,” said Leon Davoyan, CTO of Dave’s Hot Chicken. “If it matches up, then great, we roll it out. If not, we shelve it, and at least we have a story to tell about why we’re not trying to pursue it.”
Dave’s applies that philosophy even to tech that it’s high on, like computer vision. The chain has been testing it for a while to help with order accuracy and sees a bright future for it. But it won’t move forward until it can prove the ROI, Davoyan said.
As with any technology, clear goals and timelines are key. But with AI, there’s a push and pull between operators and suppliers that is muddying the waters. Restaurant execs want to see more AI in their tech products, and all the buzz has them expecting big results. Vendors have responded by rapidly developing AI tools ranging from basic chatbots to more sophisticated predictive systems and even AI agents.
Despite all the activity, some cautioned that AI is still not in a position to transform anyone’s business overnight.
“I think we’re in the assisted driving stage of AI, not self-driving,” said Ivan Matkovic, founder and CEO of loyalty provider Spendgo. “A lot of vendors are overeager and have a lot of that Elon in them.”
Operators said it’s important to set realistic expectations for higher-ups about what AI will be able to do in the near-term.
“In reality, it’s a long-term play. It’s not this quarter,” said Keith Canseco, senior director of national marketing for Captain D's. Being honest about that can help avoid the disillusionment that is so often part of the hype curve.
Overall, restaurants remain excited about what AI can do, but not overly so. According to Technomic data presented at the event, 31% of operators believe AI will be the most impactful form of technology for their business in the future. But that ranked behind other, less flashy technologies, such as equipment that can measure temperature and food safety (35%) and POS integration (49%).
As far as how they planned to use AI, most operators tended to place it behind the scenes. Nearly half (48%) said they’d use it to analyze customer data, and 43% apiece chose staff scheduling and inventory tracking and prediction. Forty percent said AI phone ordering.
On the ground, many brands praised AI’s ability to forecast sales and other tradewinds. Others agreed that it’s good for handling mundane tasks—“all the bullshit that we don’t want to do day to day,” said Jennifer Bell, CMO of Lettuce Entertain You Enterprises. That leaves more room for essentials like human connection and creativity.
“If we’re not jumping on those opportunities, we’re missing the mark,” she said.