The Impact of AI for Restaurants in Canada

Artificial Intelligence (AI) has been making rounds yet again across industries, and this time it's beyond what we always think of: robots gone rogue or machines with brains. From AI built to clean or vacuum your homes to high-end assembly shipping facilities, they've piqued people's interest across industries. When it comes to the hospitality industry, we're seeing their inclusion more in terms of systemizing the process and making it efficient. We still have people looking after prepping, tasting, and creating to the most degree. There are restaurants that have robot servers or POS systems that include AI for forecasting and recommendations. While there are several warnings of AI taking over every facet of the food industry, we're missing out on a larger point: that it can actually support human capabilities instead of doing their jobs. Even when it comes to using AI at scale, smaller restaurant startups may have a hard time adopting it as they don't function like fast-food chains that are made for speed.

Now you must be wondering, how does this impact the Canadian restaurant industry? Well, the good news is that you don't have to pick and choose between the two — humans and machines. The future of the restaurant industry is hinting at integrating automations and processes that make things easier for the staff and restaurant employees. Embracing restaurant management software and other technological advancements can lead to a more efficient and innovative dining experience.

What is AI for Restaurants?

With the changing landscape of the restaurant and hospitality industry, AI has also established itself in the market. People are slowly moving away from the phenomenon that it's man vs. machine and adopting it as a tool to support their businesses. Canadian restaurant owners now have a chance to empower staff at all levels to make smarter, better-informed decisions.

The current nature of the industry is making it seem like if you don't adapt quick enough, you'll get left behind. Understandably, these warnings can induce anxiety among owners, managers, and staff. However, there's nuance to the workings of AI and how it is to be implemented in the industry as well. It is not about outsmarting us but supporting us in the long run to be efficient and effective.

Before we do a deep dive into the trends that we're seeing in context with AI in restaurants, let's actually understand the tech terminology that's impacting us. By understanding these concepts, we can better appreciate how restaurant technology in Canada, from AI-driven restaurant management software to advanced automation systems, can enhance the industry rather than creating obstacles.

Artificial intelligence (AI) refers to intelligence that is artificially created, allowing computer systems to mimic intelligent human behaviours. Unlike natural intelligence, AI is designed to simulate human-like responses and actions. Virtual assistants like Siri and Alexa are forms of AI, as is ChatGPT, which is an AI-generated tool. While the former two are known for their voice assistance features, ChatGPT, Claude, Perplexity, etc. are embedded with different forms of communication tools to make interacting with them easier. They're also a part of Large Language Models (LLMs) that process vast amounts of data.

Machine learning, however, takes AI a step further. This branch of computer science involves training computer systems to recognize, anticipate, and respond to data patterns through complex statistical algorithms using customer data. Machine learning enables systems like Netflix, Spotify, and YouTube to listen, learn, and serve up more of what you like in real time.

In context with the restaurant industry, AI has found its roots in everything from inventory planning to waste management. The idea is not to replace human workers but to support them in reaching their goals. By leveraging AI and machine learning, restaurant management software in Canada can offer personalized dining experiences and streamline restaurant automation across the country.

There's enough and more evidence of AI supporting people in different industries like design, manufacturing, healthcare, finance, and entertainment. While it plays a unique role in every industry, the foundation is still the same: reimagining how we live, work, and play. It also closes the gap when it comes to accessing resources, as the information is widely available to anyone with a device that works with the internet.

Trends & Statistics for AI in Restaurants

In Canada, the restaurant industry stands to benefit significantly from these advancements. It has transformed how restaurants function from enhancing customer experiences to optimizing back-of-house operations. By embracing restaurant technology trends and implementing advanced restaurant management software, Canadian eateries can stay ahead of the curve, offering unique and efficient services that cater to the modern diner's expectations.

When it comes to the trends and statistics for AI restaurants, we've only scratched the surface. Here's what the Forbes article said:

• Over half of business owners use artificial intelligence for cybersecurity and fraud management.

• Almost all (97%) business owners believe ChatGPT will help their business.

• One in three businesses plan to use ChatGPT to write website content, while 44% plan to use ChatGPT to write content in other languages.

• 61% of companies use AI to optimize emails, while 55% deploy AI for personalized services, such as product recommendations.

While these numbers look interesting, you must be wondering how they apply to Canada's restaurant industry. Here are some of our learnings:

• One in four operators said they would be open to adding kitchen automations and AI-driven inventory systems. (Toast)

• 77% of restaurant operators say they've started researching and implementing technology they were curious about in the previous year. (Source)

• Smart kitchen technology, like connecting equipment to an IoT monitoring dashboard, is expected to have reduced downtimes. (Source)

• 27% of Canadian customers aim to use AI platforms like ChatGPT or Perplexity to discover newer restaurants and make reservations in 2026. (Source)

• There's a clear increase in the usage of online payment methods in Canadian restaurants. 51% of restaurants now use contactless payments, and 21% accept mobile payments. (Toast)

The Application of AI in Restaurants

As the economic and labour shortages start to grow, restaurant owners are trying to meet customer demands one way or the other. With data showing the restaurant industry has an average churn of around 75% and ongoing struggles to recruit and retain employees, the opportunity to leverage technology to reduce some of these challenges and costs is surely intriguing.

Currently, the integration of AI across the industry tends to focus on robots, delivery bots, and chatbots. But there's a space that exists where it simplifies cooking and serving food while your remaining staff can still retain the human element of the process. The creators of Aniai view their new technology as a solution to the staffing shortage. You see, while the robot cooks the burger, a human employee assembles the bun. It's teamwork that creates efficient restaurant operations.

Also, Dexai Robotics has developed a robotic sous chef named Albert who can adapt to kitchens straight out of the box. But these are exceptions, not the rule.

While adding these to your restaurants may sound futuristic and fancy, your average restaurateur doesn't work with those kinds of funds. And most of this tech is still in the testing phase, which can be slightly frustrating for the consumers despite the ease. To top it all, the ROI for these examples is still undefined with their unattainable costs.

This doesn't mean AI for Canadians is out of reach. The focus is simply on more operational needs. For example, there are back-of-house automation tools that control what portions are being used. This results in less food waste and over-pours and adds inventory management counts to notify chefs when they're low on certain ingredients.

How to Leverage AI for Restaurants

With the constant upgrades and updates the hospitality industry is seeing, leveraging AI in restaurants is one way to manage, if not, beat, competition. Depending on how you're using it, you get an edge over the competitors out there. For example, maybe you want to use AI for order management and inventory instead of completely relying on it for marketing. Before you invest in any AI service, you need to understand the space better. Here are a few ways you can leverage AI for your restaurant:

1. Optimize third-party search platforms

Similar to on-demand ordering, AI for customer servicing has become all the rage and considered to be cutting-edge technology. This means automating and streamlining your systems for potential consumers too, not just the ones who've made it through the door. For example, Halla has challenged what the norms have been so far.

Its recommendation engine amalgamates a number of food delivery apps to present relevant cafes and eateries based on a user's location and predetermined "taste profile." Ensuring your restaurant is available via these services optimizes your chances of making the cut as a "restaurant you might like." This showcases the potential of AI restaurant technology trends in Canada to enhance visibility and customer engagement.

In today's day and age, the customers want a curated experience. So when you get yourself listed for these applications, you're presenting your restaurant at the exact moment they want to make a decision. Which means there are more chances of them converting instantly if you fit the bill.

2. Keep your customers in the loop

Everything you've built within your restaurant business is for the consumers. So paying attention to their needs and making them feel seen is probably one of the top things to achieve in customer service and hospitality. Every query, every conversation can lead to a lifelong customer or someone who refrains from visiting your establishment.

Popmenu enables you to keep up with your guests and give a great customer experience, even when your staff is busy. With their AI answering solution, you can get your customers' queries cleared every time because a missed call is a missed transaction. This aids your staff in taking up calls that need human intervention because the AI answering system captures all the data as well for the future. Busy phone lines can act as a red flag and deter customers from experiencing what your establishment feels like. So when you use AI technology, you're simplifying a part of the process that would generally work against you.

They also offer dynamic menu item technology that can make recommendations based on customers' past orders. For example, a customer liked a special, and they would want to receive updates about it. When your restaurant brings that item back on the menu, the guest can receive a notification telling them that the item is back in stock. This is called menu optimization, and it works wonders, especially if you want to improve customer loyalty. Millennials and especially Gen-Zers want to feel like they're a part of the conversation and the decision-making process. These tools ensure that you're making them feel seen without strenuous wait times and tedious workarounds. This not only fosters affinity and loyalty but also contributes to increased foot traffic and revenue.

3. Use big data to your advantage

You might not realize or know this, but you’re probably sitting on a goldmine of customer insights and data if you’ve implemented solutions like employee scheduling software or point-of-sale systems. Your POS system keeps track of your most-sold dishes, pattern of ordering, frequency of repeat purchases, and loyal customers, too. When you put together these data points, you can actually use this to your benefit. You already have a great case study in front of you. 

Maybe you could tweak the pricing of certain items or create combo offers for dishes that perform well amongst customers. This also signals to the consumers that you’re paying attention to their needs and building from a place of intention. This makes for a quicker food ordering process, resulting in a better guest experience.

These systems make it easier to handle higher volumes of data on the daily. Since they are predictive, forecasting models, you can actually expect them to provide you with labour needs, changes in customer ordering behaviour, AI inventory management, food quality and wastage, etc., removing the guesswork out of it.

4. Integrate voice ordering

Voice commerce is projected to reach $164 billion by 2028 globally. In the world of accessibility, voice ordering and voice assistant features are the new upgrades that people have welcomed. So, if there’s one AI-powered movement to get behind, it’s voice commerce.

When a large portion of your audience is busy during meetings, voice search is a simple way they can still easily pick and choose their meals through voice search. Restaurants can easily create “skills” for tools like Amazon Alexa that can help people instantly order without ever having to lift a finger. Grubhub, for example, has enabled this online ordering technology to allow its users to place fast, hands-free orders.

The Future of AI for Restaurants

When you’re a small startup, the way you’d adopt AI for restaurants is going to be different than the big players in the market. Your job is to be mindful of the trends that make and break systems. For restaurateurs in Canada, remember to not let it make you feel worried if you’re unable to implement it everywhere within your establishment. For example, getting a self-ordering kiosk makes sense for chain restaurants like McDonald’s but might just be an added cost for you. Instead, a full-service POS system that handles orders, inventory, payment taking, etc. with AI integrations could be apter for you and your staff. 

Your job is to be vigilant to understand what the early adopters are doing and create a use case for your establishment. Keeping a watchful eye on AI and machine learning trends and breakthroughs can be an interesting activity for your team without having to squirrel away large chunks of funds.

For now, you need to ensure that you’re focusing energies on learning and implementing strategies from your in-store data.

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