Research conducted by restaurant technology platform Toast found that when it came to the use of AI powered improvements in restaurants, more tailored discounts and loyalty rewards topped the list at 23% followed closely by faster ordering and shorter waits (22%).
This coincides with how operators are implementing the technology, says Toast, with just under a third (30%) using AI to personalise offers, loyalty rewards or promotions, and a further 34% actively trialling it.
The research also found that half of restaurant managers (58%) who use AI, also say that its use for marketing and customer engagement has increased both customer visits and spend, the clearest indicator that AI being used to entice diners with personalised deals and offers is delivering a commercial return.
Looking at the next 12 months, marketing and customer acquisition was highlighted as the single most likely area to receive AI investment, cited by 23% of operators, ahead of inventory and waste reduction (14%), POS systems (11%) and guest-facing ordering technology (11%).
Using AI for transparency
The survey also found that 65% of diners say they’d be more likely to choose a restaurant that clearly discloses when and why prices or offers change.
Indeed, 81% of operators say AI-informed pricing has led them to lower or hold a price they might otherwise have raised, to stay competitive or protect customer loyalty. Diners who have encountered it broadly agree. Among the 69% who say they’ve noticed AI-driven or dynamic pricing, 31% say it made them feel they got a good deal.
When diners were asked what would most increase their trust in restaurant AI, the top answer at 47% was knowing they can easily reach a human if something goes wrong. Diners were equally clear about the moments AI shouldn’t own, naming resolving a complaint (25%) and answering questions about allergens or dietary needs (17%) as the least appropriate situations for automation.
“Diners care most about getting a good deal and having a great time, the use of AI can support all of these things, and we are seeing this from operators in our survey reporting that using it in their marketing has helped increase revenue and visits,” says Gaurav Nakhare, senior director of product management at Toast.
“Going forward, further transparency with diners around how AI is used to provide them with personalised deals and while respecting diner privacy.
“Crucially, high stakes areas like allergen information and customer complaints must maintain human oversight at their core.
“Restaurants that balance AI adoption within their marketing are best positioned to see strong commercial gains”