It’s hard to remember a time when the restaurant industry was followed so closely by mainstream media. In the wake of COVID’s upheaval, there have been successes and failures. From novel restaurant concepts and TikTok trends to the closure of popular restaurants, bankruptcy proceedings and even new rules for employee pay.
Of course, customers will always vote with their feet, and many of the changes ahead will be shaped by consumer habits and driven by macroeconomic factors beyond their control.
But while the prospect of further change can be unsettling, there is also good news: They are nothing new – and operators finally have the tools to meet these challenges.
The patterns of this industry are cyclical (like many others), and as someone who worked on the front lines as a McDonald’s operator for decades, I recognize all of the problems I hear about from operators today.
Staffing has always been a big issue. It is difficult to recruit, train and then retain staff. Then there are fluctuations in customer traffic, which in turn create uncertainty about sales and can limit price elasticity. These are the cornerstones of restaurant operations.
Having learned a lot from my own experience in the industry, I now have a new perspective. SoundHound works with thousands of restaurants with a total footprint of well over 10,000 locations. Today, my intelligence is a synthesis of the experiences of all of these companies and gives me a more holistic view of many of the universal pain points. Restaurant partners trust us to help solve these problems – not just to keep their heads above water, but to increase revenue while supporting employees and keeping customers happy and loyal.
For those who recognize these known vulnerabilities, here are some thoughts on the entirely new ways we now have to solve old problems:
- Technology is now standard for restaurant operators. When even the operators who were once against voice AI are proactively looking for the best solution, we’ve reached a tipping point. We predicted that in the next three years, all drive-thru counters will be using AI. We also see a huge need for AI that automates phone orders and helps employees with instructions on how to order or other tasks. Restaurant operators know they need these tools to meet customer expectations, build loyalty, and drive sales in the right direction. Don’t get left behind. Adopting new and unfamiliar technologies can be daunting at first, but there are more and more case studies of companies using AI with great success.
- It’s not about replacing employees with bots. Restaurant operators and technology providers already know this, but the AI replacement myth is widely circulated in the media due to a perception gap. With labor shortages overwhelming employees and turnover that have always existed, it’s about supporting employees in their role –to keep them in their role– and helps fill the gaps where needed. For the first time, operators have access to technology that really helps understaffed sites and relieves pressure even during peak times.
As someone who has been using AI since 2018 and has processed tens of millions of orders, I have learned that AI helps people focus on their guests in addition to more complex tasks that tend to lead to higher revenue, and this has a transformative effect on the evolution of the business.
- Customers choose AI (for efficiency reasons). The new generation of sophisticated AI-powered voice ordering technology is nothing like the automated phone systems of yore. The software can easily take menus (thanks in part to generative AI), understand different dialects and phrasing, and even answer common questions about restaurant parking or food allergens. In short, it’s incredibly user-friendly. We know from consumer surveys that nearly 80 percent expect most food orders to be handled by AI in the next few years. Even those who were skeptical of AI said they would use it if it would speed up the process—and wow, it really does speed up the process. And of course, voice AI isn’t the only technology that can improve speed, accuracy, and—ultimately—the customer experience and help foster all-important loyalty.
I’m not saying AI is a panacea that will instantly solve staffing and food cost problems or change consumer behavior. I’m just saying it’s an extremely valuable tool in the operator’s toolbox – and it’s never been a) better or b) more necessary than it is now. I know this because the growing interest we’re seeing from brands not just locally but globally is as clear as day.
All smart operators try to protect themselves against risks, including economic changes. This is not always possible. But now operators have new options when it comes to finding the best solution to not only survive, but thrive.
Steve Bigari is a market leader and innovator with decades of experience in the restaurant space. A pioneer and driving force behind groundbreaking developments such as multi-lane drive-thru systems and the first fully automated food ordering, he brings unmatched industry expertise and global restaurant relationships to SoundHound. Steve is a graduate of the United States Military Academy at West Point and a lifetime Ashoka Fellow.
