AI in hospitality: Real-world applications shaping today's operations
Artificial intelligence (AI) has quickly evolved from a buzzword, whose potential was longer-term, to a powerful tool that's already reshaping processes, businesses and industries across the globe. The AI industry, projected to grow to roughly AUD$2.8 trillion by 2030, is already driving significant change in business operations, and we've only scratched the surface.
In hospitality, the vast majority (85%) of operators in Australia are already using AI according to SevenRooms research, with common uses including data analytics, inventory management, creating menu items and rostering. In hospitality, where personalised, meaningful and human-centric service is key, AI streamlines tasks and improves decision-making. So how are operators putting AI to work in practical ways today, without impeding the guest experience?
Optimising venues and inventory management
In hospitality, managing tables and inventory efficiently can often feel like a juggling act, but AI makes it easier. AI-powered systems help streamline table management by predicting guest arrival patterns, optimising seating arrangements and minimising wait times. This not only improves guest satisfaction by improving their end-to-end experience, but it also increases revenue by maximising the amount of time during which a venue is at capacity. By analysing real-time data, which 36% of venues are already doing, AI can adjust seating plans based on demand, ensuring the restaurant runs smoothly and cost-effectively, whether during a Saturday peak or a quiet weekday afternoon.
On the inventory side, AI helps restaurants track stock levels, predict usage and automate reordering. This reduces waste and ensures that ingredients are always fresh and available. For instance, if AI detects that a high-demand dish is running low on ingredients, it can automatically reorder supplies to avoid running out. And similarly, if there's excess stock of something, AI can advise a venue to create a limited-time special to use that ingredient before it goes to waste. AI can also be used to create more margin-friendly dishes, or even optimise a menu to ensure the most profitable items are prominently displayed.
Perfecting staffing, one shift and staff member at a time
In an industry with significant variability, often on a daily or weekly basis, optimising staffing is a common challenge in the hospitality industry. AI is stepping in to help, though, with SevenRooms research showing that 26% of venues are using AI to optimise their staffing, while a further 25% are using it to enhance their hiring and training.
On the staffing front, AI can analyse upcoming reservations and historic data to forecast peak times and trends, helping operators schedule the right amount of staff during busy periods and avoid overstaffing during slower hours. If a venue is understaffed its guest experience suffers, and if it's overstaffed it might not break even for a shift. Not only can it guide how many staff to roster on any given day, but how to stagger their start and finish times too, to better manage the busy and slow periods within a shift.
Hospitality is a transient industry, where hiring is critical to growing revenue and maintaining high service standards, but it can be a drain on time and resources. AI is already driving value here, by reviewing resumes and matching candidates to the roles that best suit their skills, reducing turnover and improving team quality and happiness.
Once employees are hired, AI can assist with onboarding, performance monitoring and training. By tracking metrics like customer feedback and employee performance, AI ensures that a team is motivated, driven and on top of their game. With AI's help, venues can make better-informed staffing decisions, optimise schedules, and improve both the hiring, onboarding and training process – leading to a more efficient and productive operation overall.
As a former cafe owner in Sydney myself, I remember spending hours and hours every week on rostering and hiring, venue optimisation and inventory management. Back then, it was an arduous, time-consuming process that often relied on intuition and gut instinct. Had I had a tool like AI, it would've completely transformed the way I ran my business. It's for that reason that I know how tantalising the short-, medium- and long-term potential of AI is. From processing reservations and marketing automation, to dynamic pricing and customer service, the use cases are limitless.
As AI keeps evolving, the potential for growth and improvement is huge. After a challenging few years, we're now entering a golden age of hospitality, with AI, data and automation not replacing the meaningful, human interactions and experiences that our industry is renowned for, but enhancing them. With AI underpinning and optimising operations behind the scenes – from venue and inventory management, to rostering, data analytics and more – we're on the precipice of a new era of superhuman hospitality.
