Restaurant chains Applebee’s and IHOP are integrating artificial intelligence (AI) across their operations to adapt to an evolving commercial environment. As part of this strategic move, their parent company, Dine Brands, will deploy these AI tools across over 3,500 outlets. This decision reflects a growing trend in the industry where technology plays a crucial role in improving service efficiency and customer satisfaction. Innovation through AI is becoming crucial for modern businesses seeking to remain competitive.
In recent years, Dine Brands has consistently pursued tech solutions to streamline its operations and customer interactions. Historically, efforts to adopt technology at Applebee’s and IHOP have focused on improving digital transactions and customer engagement. The introduction of AI demonstrates a more extensive approach to modernization compared to earlier technological updates.
How Are AI Tools Enhancing Operations?
The implementation involves an array of AI-driven initiatives. One such tool is an AI-powered tech support designed for all franchisees, enabling field technology service personnel to use natural language querying for database interactions, streamlining the support process. Furthermore, Dine Brands is integrating an AI-driven personalization engine to analyze customer purchase history. It aims to suggest additional items or tailor promotions to diners, efficiently aligning the offers with consumer preferences.
What Changes Are Expected in Customer Interactions?
Customer interactions are expected to become more seamless with these changes. Integrating the personalization engine into server and customer tablets will personalize dining experiences. AI-powered cameras will optimize operations by identifying when tables need attention. Additionally, enhancements for restaurant managers through AI applications could notably manage daily operations, including staffing, more efficiently.
“AI is moving quickly, and I believe it’s going to be embedded in everything we do,” said Dine Brands Chief Information Officer Justin Skelton.
Partnerships are also a key element of this digital transformation. In 2023, IHOP announced its collaboration with Google (NASDAQ:GOOGL) Cloud to employ Recommendations AI technology to better digital ordering and deliver targeted messaging, underlining an industry’s strategic shift towards technology to cater to modern diners’ tastes.
Automation is increasingly being adopted to overcome staffing challenges, with a PYMNTS Intelligence and American Express report indicating 67% of automation users noticed positive impacts on customer experiences. Restaurants like Chipotle have observed substantial improvements, such as reducing hiring times by embracing AI-driven platforms.
The move to integrate AI into restaurant operations highlights the industry’s trajectory towards embracing cutting-edge technology for enhanced consumer experience and operational efficiency. While previous tech upgrades offered only incremental benefits, AI enables a more systemic enhancement in how these restaurants operate. Ongoing assessments will be essential to measure these tools’ success and further refine AI integration into everyday operations.
