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Restaurants

Restaurant Executives Embrace AI, but Face Hurdles in Adoption

Strategic Insights

— 2 min read

Despite the excitement around the potential of artificial intelligence (AI) to transform the restaurant industry, adoption is slow going. A recent Deloitte report, "How AI is Revolutionizing Restaurants," reveals that while most restaurant executives plan to increase their AI investments, they face significant challenges in identifying the right use cases and managing risks.

Restaurant executives surveyed by Deloitte intend to increase their AI investments in the next fiscal year, with 82% planning to do so. They anticipate that these technologies will lead to improved customer experience (60%), better restaurant operations (36%), and enhanced loyalty programs (31%). However, the journey to full-scale transformation is far from over, with 48% of respondents citing the need to identify the right use cases and manage risks as the top factors holding back AI deployment.

Key Takeaways:

  • 82% of restaurant executives surveyed by Deloitte intend to increase their AI investments in the next fiscal year.
  • The top benefits expected from AI investments are improved customer experience (60%), better restaurant operations (36%), and enhanced loyalty programs (31%).
  • The biggest hurdles to AI adoption are identifying the right use cases (48%) and managing risks (48%).
  • Talent or technical skills shortages are a concern for 45% of respondents.
  • Intellectual property issues (20%) and misuse of client data (16%) are the most frequently mentioned risks.
  • AI investments in customer experience are already showing impact, with 52% of brands and 84% of operators reporting high returns.
  • Daily AI use is most common in aiding the customer experience (63% of respondents) and inventory management (55%).
  • Emerging applications of AI include voice AI in drive-thrus for automated order-taking.
  • Fewer than half of respondents indicated their organizations are fully prepared for AI adoption, with gaps in strategy (43%), technology infrastructure (39%), operations (34%), risk and governance (28%), and talent (27%).

Statistics:

  • 82% of restaurant executives surveyed by Deloitte intend to increase their AI investments in the next fiscal year.
  • 60% of executives anticipate AI will improve customer experience.
  • 36% of executives expect AI to improve restaurant operations.
  • 31% of executives expect AI to enhance loyalty programs.
  • 48% of respondents cited the need to identify the right use cases as the top factor holding back AI deployment.
  • 45% of respondents cited talent or technical skills shortages as a concern.
  • 20% of respondents mentioned intellectual property issues as a risk.
  • 16% of respondents mentioned misuse of client data as a risk.
  • 52% of brands and 84% of operators reported high returns from AI investments in customer experience.
  • 63% of respondents use AI daily to aid the customer experience.
  • 55% of respondents use AI daily for inventory management.
  • Fewer than half of respondents (43-27%) indicated their organizations are fully prepared for AI adoption in various areas.

Sources:

  • Deloitte, "How AI is Revolutionizing Restaurants"

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