How AI is moving into and affecting the hospitality industry

AI is creeping into every corner of our lives and the hospitality industry is no exception. From online orders and voice searches to robot chefs and automated stock control, AI technology is opening up a world of possibilities for restaurants, cafés and catering businesses. But alongside these exciting opportunities are a few challenges worth keeping an eye on.

So, what does this all mean for hospitality, an industry that is ultimately built on people and personal service?

We’re already using AI, often without realising

Most of us interact with AI every day, even if we don’t notice it. Think about voice searches on Alexa or Siri when you’re looking for a restaurant, or automated phone systems that answer FAQs before you even speak to a human.

In many larger chains, AI is already managing online orders, taking reservations, and running stock control behind the scenes. Take a well known sushi restaurant, for example - they’ve rolled out robot chefs across their restaurants to prepare sushi. Each machine costs in the region of six figures, but they never call in sick, turn up late, or go on holiday. It’s a big upfront cost, but a serious long-term saving.

Admin tasks? An easy win for AI

Quite simply, AI is brilliant at the behind-the-scenes stuff. It can:

• Write rotas based on predicted busy times;

• Track sales and staffing trends;

• Manage inventory and order stock accordingly;

• Reduce food waste by analysing what’s really needed.

This means not only can your business operate more efficiently, but managers spend less time on spreadsheets and more time focusing on what matters – supporting their teams and running a great service.

Recruitment – a mixed bag

AI can certainly help streamline the hiring process and it’s already being used to scan CVs for key skills, words or experience. It can help spot gaps, sort applications quickly, and even create interview schedules. Some candidates are using AI to write their CVs or business plans - and yes, it’s starting to become pretty obvious!

But there’s a catch. AI might pick up on buzzwords, but it can’t detect personality, passion, attitude or a sense of humour – and these are all the things that really matter when you’re hiring for front-of-house or customer-facing roles. Nothing can beat a conversation to ascertain someone’s suitability for a position – those probing questions, asking about gaps in CVs, the why’s, how’s, ambition and aspirations.

And the forming and nurturing of long-term candidate and client relationships, which is what recruitment is all about.

Recruitment, like hospitality, is a people-business and that’s why AI should support, not replace, the human side of hiring.

Will AI ever replace good customer service?

Let’s be honest - probably not. Hospitality is a people business. A smile, a chat, someone remembering your coffee order - those are the things that bring people back.

While some businesses are trialling facial recognition tech to personalise the customer experience (KFC is one of them) and chatbots are answering questions online, there’s still no substitute for real human interaction. And when it comes to complaints or delicate customer issues, no robot is going to handle that as well as a trained, empathetic team member. More often than not, we just want to deal with a human being.

Marketing gets a boost

 

On the flip side, AI is working wonders for digital marketing. It can:

• Personalise online orders and recommendations for repeat customers;

• Tailor marketing emails based on guest preferences;

• Automate content creation and social posts;

• Help with remarketing campaigns to bring customers back.

It’s clever stuff and when used well, it can make your customer feel seen, even before they walk through the door.

The cost of keeping up

One of the biggest challenges for smaller cafés and independent restaurants is cost. Larger chains are often the ones to adopt new tech first. They’ve got the budget and the resources to trial AI tools, roll them out, and train staff. Smaller businesses may find themselves playing catch-up, unsure of what’s worth investing in and what’s just a shiny new toy.

And let’s not forget the risk of losing that all-important human touch. In a sector where relationships and customer loyalty are everything, there’s definitely a fine balance to strike.

A few handy stats (2024 data):

• 76% of hospitality businesses say they plan to increase investment in tech over the next 12 months. (Source: Hospitality Tech Report)

• 64% of consumers are comfortable with AI being used in customer service, as long as a human is available when needed. (Source: Oracle, AI at Work study)

• 60% of Gen Z customers say they’d prefer a personalised experience when ordering from a restaurant online. (Source: Deloitte Consumer Insights)

The real opportunity for hospitality

AI is already transforming hospitality, and it's only just getting started. Used well, it can save time, reduce waste, boost marketing and help with hiring. But it’s not a silver bullet. At its heart, hospitality is still (and will always be) about people.

So, what’s the real opportunity here? It’s getting the balance right. Let AI handle the admin and systems while your team delivers the warm, personal service that no robot can ever match.