AI Serves Up Efficiency and Personalization at Applebee’s and IHOP

Dine Brands Integrates AI to Optimize Operations at Applebee’s and IHOP

Dine Brands, the parent company of Applebee’s and IHOP, is implementing AI-powered solutions across its network of 300 franchisees and over 3,500 locations. The goal is to improve efficiency in both front- and back-of-house operations amid challenges like labor shortages and rising costs.

Justin Skelton, Dine Brands’ Chief Information Officer, described AI as a foundational shift in their approach: “AI is moving quickly, and I believe it’s going to be embedded in everything we do.” This marks a strategic push to integrate AI deeply into daily restaurant operations.

AI Tools Enhancing Operational Efficiency

One of the first AI tools being introduced is a tech support system that uses natural language queries. Field technology staff can now ask straightforward questions and get instant answers, eliminating the need to sift through manuals or technical documents. This streamlines problem-solving and reduces downtime.

On the customer side, Dine Brands is deploying an AI-driven personalization engine. By analyzing past order data, this engine offers tailored menu recommendations and targeted promotions to guests. This not only boosts upsell potential but also enhances the dining experience through relevant suggestions.

The company plans to extend this personalization technology to in-store tablets used by servers and customers. Additionally, AI-powered cameras are being tested to notify staff when tables need clearing, helping maintain smooth service flow. An AI-based management app is also in development to assist managers with staffing and daily operational decisions.

IHOP’s Existing AI Initiatives

IHOP began integrating AI in August 2023 through a partnership with Google Cloud. Using Google’s Recommendations AI, IHOP improved its digital ordering by offering smarter, personalized item suggestions. This creates a more intuitive online ordering experience, helping guests find favorite items and discover new ones aligned with their preferences.

Industry Trends and Broader Implications

Dine Brands’ AI adoption follows a wider industry trend where automation is increasingly linked to better customer experiences. A recent PYMNTS Intelligence and American Express report found that 67% of restaurants using automation have seen measurable improvements in customer satisfaction.

Examples from other chains support this trend: Chipotle reduced hiring time by 75% after adopting AI-powered recruiting tools, and SoundHound AI’s voice technology is now active in seven of the top 20 quick-service chains, powering voice ordering and mobile app interactions.

Future Outlook for Restaurant Operations

With AI integrated into tasks from menu customization to employee scheduling, Applebee’s and IHOP are moving beyond experimentation. For Dine Brands, AI is becoming central to their technology roadmap, focusing on scalable and creative applications that improve operations and guest experiences.

Operations professionals should watch how AI tools like natural language tech support, personalization engines, and smart staffing apps can free up resources, reduce manual effort, and enhance service quality. Learning more about AI applications in operations could offer a competitive advantage in managing restaurants efficiently.

For those interested in expanding their AI skills related to operations and automation, exploring specialized courses can be beneficial. Check out automation-focused AI training to stay ahead in this evolving landscape.