Advice for Restaurant Franchisors Embracing an AI-Driven Future

Technology is transforming our world at an unprecedented pace and many hospitality companies are turning towards artificial intelligence (AI), ushering in a new era of efficiency and customer satisfaction through automation. Several quick-service brands have already started implementing this technology into their operations, such as Wendy’s who recently announced they would be partnering with Google to test a voice-assisted AI chatbot that can take orders at the drive-thru. 

With ongoing labour shortages impacting the hospitality sector, AI can be a valuable tool for restaurant franchisors looking to retain employees and foster a more skilled workforce. Automating repetitive tasks allows employees to focus on more meaningful and engaging responsibilities, improving job satisfaction and reducing burnout, while also helping to control costs by allowing restaurants to operate with less staff. AI-powered virtual training simulations offer a cost-effective and efficient way to upskill employees, enabling them to learn new techniques and enhance their expertise. 

AI is more than a trend – it’s the future of the hospitality industry. However, before restaurant franchisors can unlock the potential of this transformative technology, several key considerations should be made. Here are some tips to navigate this exciting time.

Identify goals and assess infrastructure

The first step before implementing any sort of AI technology is to identify what problems you want to solve or what specific needs you have. This will help to determine what technology you need – AI or otherwise – to meet your specific needs and align with your vision. There are many different types of technologies available for restaurant franchisors to consider, such as chatbots, voice ordering, recommendation engines, inventory management systems and more. When deciding, it’s important to choose the technology that fits your specific goals. 

For instance, perhaps you find your front-of-house staff are frequently putting prospective guests on hold for long periods of time, or missing phone calls altogether due to a lack of staff. In this case, operators should consider an AI-powered answering service to streamline phone calls, answer frequent questions, and ensure potential guests aren’t left hanging – and spending their money elsewhere.

Consider investing in flexible technologies and integration-friendly point-of-sale (POS) systems, looking at factors such as ease of use, compatibility with your existing systems, and cost. This can also help to facilitate the automation and streamlining of other tasks such as order-taking, food preparation, inventory management and more.

Start small and train right

AI can be overwhelming, and it’s important to start small – don’t bite off more than you can chew. Implementing AI technologies gradually to test and evaluate their effectiveness will allow you to minimize disruption and gather valuable feedback before scaling it across franchises. 

For instance, perhaps you might want to start by using ChatGPT to write promotional emails or support with writing menu item descriptions for a seasonal menu refresh, testing AI-generated copy against standard copywriting to ensure the output is accurate.

Another important step here is to invest in comprehensive employee training to empower your staff and maximize the benefits of AI. This will equip staff members with the necessary skills to operate and maintain AI systems, fostering a smoother transition and boosting staff morale. By prioritizing training, franchisors can ensure that their workforce is well-prepared to embrace AI effectively and maximize the benefits of this technology.

Measure results and maintain security

Once the technology is in place, the next step is to track and measure its performance. It’s important to analyze how AI is impacting your franchise operations, such as improvements in efficiency, revenue, or customer satisfaction, and use this knowledge to make data-driven decisions. AI can process large volumes of data and find patterns quicker than humans can manually, and POS systems are a treasure trove of data for franchisors. 

One example of using AI for data is analyzing historical information such as customer reviews, preferences and order history to make accurate predictions about future customer behaviour. This information can also be used to guide decisions about menu items and pricing, and to create tailor-made loyalty programs.

However, with this data comes risk, and customer data safety and security should be of paramount importance. It’s critical for franchisors to implement robust security measures and comply with data privacy regulations, safeguarding customer data from potential breaches or hacks and maintaining trust amongst customers. 

Stay informed

Finally, stay informed about the latest AI developments and trends in the restaurant industry to adapt and maintain competitiveness. We’re in a time of rapid digital transformation, and as AI advances, staying up-to-date is essential for restaurants seeking sustainable growth and success. Attend conferences, read industry publications, and network with other franchisors to stay ahead of the curve when it comes to new technologies.

The recipe for success

The integration of AI technologies holds immense potential for the restaurant industry. From enhancing operational efficiency and improving the customer experience to empowering employees and tackling labour challenges, AI has the ability to reshape how restaurants function. 

Restaurant franchisors that embrace AI can now position themselves at the forefront of innovation, providing an edge in a competitive industry. By identifying priorities, choosing the right AI tech, starting small, investing in training and measuring results, restaurant franchises will thrive in this new reality.

Mo Chaar is the Chief Commercial Officer of Givex, where he oversees commercial strategy and development worldwide as well as managing sales teams within North America. His experience in gift card, loyalty and POS has played a pivotal role in the success of some of Givex’s largest partners. You can learn more at givex.com.