Restaurants Boost AI Spending Amid High Hopes and Readiness Gaps

Restaurants Increase Investments in AI, But Adoption Still Faces Challenges

Restaurant leaders are increasingly turning to artificial intelligence (AI) to meet evolving customer expectations and unlock new growth opportunities across their operations. According to a recent Deloitte survey, 82% of restaurant executives plan to increase their AI investments in the next fiscal year, aiming to improve customer experience, streamline operations, and enhance loyalty programs.

Key Findings from the Deloitte Survey

• Investment Plans: 82% of restaurant executives expect to increase AI spending, with only 2% anticipating a decrease.
• Primary Benefits: 60% of respondents prioritize improving customer experience, followed by 36% focusing on restaurant operations, and 31% targeting loyalty program enhancements.
• Impact Areas: Over half of brands (52%) and most operators (84%) report strong positive impacts from AI in customer experience.
• Adoption Barriers: Identifying the right AI use cases and managing associated risks are the top obstacles, each cited by 48% of respondents.
• Readiness Levels: Less than half of the respondents feel prepared for AI adoption across strategy (43%), technology infrastructure (39%), operations (34%), risk and governance (28%), and talent (27%).

AI Investment Focuses on the Customer

Customer experience leads the charge for AI investments. Sixty percent of executives see AI as a tool to enhance customer interactions, while 36% expect operational improvements and 31% look to strengthen loyalty programs. Other anticipated benefits include digital marketing (26%), food preparation and waste management (25%), crew experience (21%), and new product development (20%).

Investment priorities vary by restaurant type and region. Casual dining operators are more optimistic about customer experience improvements (60%) compared to quick service and fast casual segments (48%). U.S. and European respondents are also more positive about AI's impact on customer experience than those in Asia, where automation of restaurant labor ranks higher among key benefits.

Adoption is Happening, But in Waves

Many restaurants have integrated AI into their daily operations, especially in enhancing customer experience and inventory management. Currently, 63% use AI daily for customer experience, and 55% for inventory management. Another segment is engaged in pilot programs for these areas.

The next wave of AI adoption is focused on boosting customer loyalty and improving employee experience, with nearly 70% of respondents involved in daily use or pilots. Food preparation and new product development represent a third wave, with growing interest in voice AI applications, such as automating drive-thru order-taking.

Challenges Holding Back Wider AI Deployment

Despite growing interest, restaurants face several hurdles in deploying AI effectively. Nearly half of those surveyed cite difficulty in identifying suitable AI use cases and managing risks as key challenges. Talent shortages and lack of technical skills also concern 45% of respondents. Intellectual property and data privacy issues are the most frequently mentioned risks.

Interestingly, lack of executive commitment, technology choice, and computing infrastructure are less commonly seen as barriers. This suggests leadership support is largely in place, shifting the focus to practical issues like application selection and skills development.

Organizational Readiness for AI Remains Limited

Many organizations feel unprepared to scale AI initiatives fully. While strategy is the area with the highest readiness (43% feel highly prepared), significant gaps remain in technology infrastructure (39%), operations (34%), risk and governance (28%), and talent acquisition (27%).

Operators report higher readiness in strategy and operations, whereas brands tend to be better prepared technologically. Both groups express low confidence in talent availability and governance frameworks.

Conclusion

AI holds promise to improve restaurant customer experiences and operational efficiency, but many organizations are still in the early stages of adoption. Executive leaders should focus on clarifying AI use cases, managing associated risks, and building talent capabilities to translate investments into tangible results.

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