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Why the time is now for restaurants to embrace AI, VR

Panelists at the Restaurant Franchising & Innovation Summit argued that for restaurants, whether big or small, the time to adopt innovative tech like AR, VR and AI is now.

Dave Brewer, Middleby, Jacob Brewer, CKE Restaurants, Cesar Elizondo, StarCorp, Dan Simpson, Taziki's

March 15, 2019 by Bradley Cooper — Editor, ATM Marketplace & Food Truck Operator

Artificial intelligence, virtual reality and augmented reality are rapidly becoming household names as companies, ranging from big retailers to small restaurants, embrace these technologies.

Jacob Brewer, senior director, restaurant excellence, CKE Restaurants Holdings; Cesar Elizondo, controller, StarCorp, and Dan Simpson, CEO, Taziki's Mediterranean Café, discussed how restaurants can determine if these technologies are worth the upfront cost during a panel session at the Restaurant Franchising & Innovation Summit held in Louisville, Kentucky from March 11 to 13.

Dave Brewer, CEO of Middleby Corp. and panel moderator, kicked off the talk and shared that it can be difficult to "even see six months out," when it comes to technology, but it is necessary to stay on top of trends.

What are some use cases?

Jacob Brewer shared a user case still in the testing phase: an AR training simulation.

CKE Restaurant Holding, the owner of Hardee's and Carl Jrs., is working on a system that will show employees virtually how to build a menu item step-by-step. It will also collect data on why certain items are harder to make. Yet for all its innovation Brewer emphasized this solution was a ways off.

"This solution wouldn't work right now in a restaurant," he said.

On a more practical level, CKE Restaurant Holdings is using a VR solution to create virtual stores for engineering planning purposes. Brewer said the solution, which costs $15,000, is a practical strategy even for smaller restaurants.

Elizondo said his company, which acts as franchisee for multiple CKE Restaurant Holdings restaurants, is using an AI-powered accounting solution, which gathers all transactions into a single place. The approach is allowing the restaurant to better plan based on the purchasing data.

Simpson said Taziki's is working on the supply chain level to utilize sensors at farmer providers. The sensors help track temperature, moisture and other factors and farmers are also using robotics to plant seeds.

If you're smaller, you need to jump in

Traditionally, only bigger restaurants have been able to use technology such as AI, VR and AR, but now adoption is wide open for smaller restaurants, according to the panelists.

Taziki's currently has 86 locations in 17 states, and Simpson argues that due to its smaller size, it needs to adopt these technologies, especially as they become more available and more common.

"AI is no more complicated than knowing how to predict sales based on past. If your systems do that, you are already leveraging AI," Simpson said. "The smaller you are, the quicker you should adopt these things. It gives you an efficient way to stay ahead."

Brewer also said that, in many ways, it is easier for smaller companies to deploy these technologies. Because CKE Restaurants has so many locations, any simple upgrade can become a huge task, whereas a smaller brand like Taziki's can roll out technology much quicker.

Prioritize integration

The panelists said that enterprises planning to deploy AI, AR or VR  first need to prioritize integration rather than simply connectivity.

For example, Brewer said at many events he hears restaurants say they are connected, but they simply mean they have an app.

"I want integration not just connectivity," Brewer said.

Simpson said his business is building integration by creating an ecosystem of equipment. Taziki's had an opportunity to have a cloud-based database that integrated well with its kitchen display system, POS and other features. However, it didn't have as many features as other products, but Taziki's chose to go with it, because it helped create an integrated ecosystem.

But what about the cost?

All the panelists said they understand how restaurants are struggling to maintain thin margins, but argued technology is absolutely necessary as the future is now.

"Simpson pointed out if you 'have one location, you are in Big Data,'" Dave Brewer said. "You are in the virtual reality, augmented reality. You are in the future now."

Elizondo said that while margins are thin, technology is worth it.

"You want to invest in technology because it helps with labor, data. Saves you a lot of steps," he said.

The panelists said it's time start investing now rather than later, as it will only get more difficult to catch up down the road.

"If you have 20 restaurants do it now, because it's only going to get harder the bigger you get," Brewer said.

About Bradley Cooper

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Bradley Cooper is the editor of ATM Marketplace and Food Truck Operator. He was previously the editor of Digital Signage Today. His background is in information technology, advertising, and writing.

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