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New AI Use Cases for Restaurants

  • Automatic
  • 30 January 2025
  • 3 minute read
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This article was written by Hospitality Technology. Click here to read the original article

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Insights from a Systems Integrator

Paul Schwantes, Digital Services Manager at The Howard Company, shared insights on how AI is being integrated across restaurant operations. The Howard Company, which has been in business for 75 years, is well known for branding signage and drive-thru solutions. As a systems integrator, it works with AI technologies such as computer vision, machine learning, and conversational AI.

The Howard Company has partnered with multiple conversational AI providers and developed its own software to bridge gaps between different systems. “Our solution acts as the glue that brings everything together,” Schwantes said. “For example, brands want data to flow seamlessly to a digital display for order confirmation. However, there are times when human intervention is needed, and our system listens for that and adapts accordingly.”

Beyond drive-thrus, The Howard Company has collaborated with machine learning and kiosk manufacturers to conduct A/B testing on upsell strategies. The AI-driven system learns which items perform best at each location, adjusting recommendations based on regional trends.

“In different parts of the country, even within the same chain, customer preferences vary,” Schwantes explained. “Our system identifies these trends and presents the best upsell options to maximize margins for specific locations.”

Schwantes emphasized the importance of natural language processing in AI systems and the challenges of AI adoption in restaurants. He noted that many operators face “educational hurdles” when implementing AI, and franchise models introduce complexities in maintaining consistent guest experiences across locations. Additionally, infrastructure upgrades are often needed to support AI technology.

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Using AI to Create More Engaging Experiences 

Oliver “Ollie” Ostertag, GM for Brink and Payments with PAR Technology, shared examples of harnessing AI to create more engaging customer experiences while driving both efficiency and empathy. From personalized menu suggestions to more human-like interactions, AI has the potential to enhance the customer experience significantly.

“We’ve spent a lot of time speaking to franchisees and restaurant operators to understand their expectations for AI in 2025 and beyond. AI is more than just analytics—there’s a lot more we can do with innovation in this space,” Ostertag said.

Promoting AI as an Empathetic Partner Customers have many dining options and proactively choose one location over another.

“Customers expect AI to enhance their experience. They want to feel seen and understood by the brand,” Ostertag said.

Two key areas showing progress are voice AI and kiosk personalization.

With voice AI, “a lot of innovation is focused on creating interactions that feel human and exude empathy. The next step is integrating a brand ambassador into the AI voice to drive deeper customer engagement,” Ostertag noted. Several brands are experimenting with incorporating their brand personas into these systems.

“Ultimately, digital touchpoints must offer something unique. Customers aren’t just buying a burger—they’re engaging with the brand. Voice AI and kiosk personalization are two of the most immediate ways we’ve seen brands and franchisees thinking about this,” he added.

AI is also enhancing efficiency. “Where efficiency meets personalization, predictive inventory management allows AI to identify expiring stock and promote creative, revenue-driving offers,” Ostertag explained.

For instance, if a location has an oversupply of hot dogs, AI can suggest a fun promotion to sell more while reducing waste. AI also helps analyze inventory, create targeted promotions, optimize labor scheduling, and predict financial outcomes.

Following its acquisition of Delaget, PAR is investing heavily in AI innovation, transitioning from software as a service to an “agent as a service” model.

“AI is not about replacing humans but about driving better results and streamlining processes,” Ostertag concluded.

Get Involved!

Want to be a part of the next RTN AI Share Group? These informative sessions – and all RTN workgroups —  are open to all restaurant operators.  Sign up here. Technology vendors: got a solution that should be featured in RTN’s next Town Hall? Contact Tammy Hanson at [email protected]. 
 

Please click here to access the full original article.

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