Leighton Peter Prabhu contributed to this story.
In an industry where personal interaction has long been deemed irreplaceable, artificial intelligence (AI) is making significant inroads into restaurant front-of-house operations. Traditionally reliant on human hosts and hostesses for managing reservations, full-service restaurants are now facing a new wave of AI-powered solutions that promise to enhance efficiency while delivering surprisingly human-like interactions.
The Evolution of Front-of-House Technology
New AI technologies are revolutionizing customer-facing functions. Companies like Newo.ai, Slang, RestoHost, Maitre D AI, Revmo, and PolyAI are not just managing bookings; they are engaging in natural conversations, handling multiple languages, and showcasing soft skills previously thought to be exclusive to humans.
However, widespread adoption faces barriers. Many consumers have experienced the frustration of automated systems that fail to understand their needs, leading to negative customer experiences. Such issues can harm guest relations and damage reviews on platforms like Yelp and Google Maps, raising the question: is becoming an early adopter worth the risk?
An Immediate Bottom-Line Impact
The potential benefits of AI are compelling.
“In our existing implementations, AI hosts are generating an additional revenue of $3,000 to $18,000 per month per location, up to 25 times the cost of the AI host itself,” says David Yang, founder of Newo.ai. “Technology has never been more accessible for businesses of any size. In just a couple of years, there will hardly be any business that hasn’t hired an AI employee.”
Restaurants with established training procedures are particularly well-positioned to see a quick return on investment in AI hosts, leveraging internal IT expertise to implement and support the technology.
Where To Start?
With a plethora of technology providers available, how can restaurants assess their capabilities? Key factors include ease of implementation, customization options, and human-like functionality. For instance, Newo.ai allows restaurants to create their AI host in one click within minutes. The system can handle reservations directly and can be implemented in under an hour by feeding it the restaurant’s menu, signature dishes, and reservation schedules.
As the AI learns from previous cases, it becomes increasingly adept at handling complex scenarios. Unlike human staff, the knowledge gained by the AI is retained even amidst staff turnover.
AI assistants are already in use by early adopters, often without guests realizing it. For instance, AI can take bookings when the restaurant is closed or during peak hours when human hosts are unavailable.
“I’m skeptical on the state of AI agents currently,” says Sanjay Singhal of Coffee Oysters Champagne in Toronto.
“I have enough trouble trying to train a human on how to respond to anything other than the simplest seating requests — I don’t see how any AI would be able to make the requisite analysis of whether the room could be rearranged to fit a large number of last-minute guests. If a buzz develops around a particular solution, of course we’ll try it out, but our favored approach would be if our reservations software (Sevenrooms or OpenTable) offered an AI host solution,” he says.
Beyond Basic Booking
Moving far beyond simple reservation management, modern AI hosts can enhance efficiency personalization, and guest satisfaction by:
- Engaging in natural conversations across multiple languages
- Handling bookings without human intervention, including complex modifications
- Remembering guest preferences and special occasions
- Managing waitlists dynamically
- Providing real-time updates on table availability
- Cross-selling special events and promotions
- Addressing dietary restrictions and special requests
The Canadian Context
Low pay, high stress, worker competition, and reluctance from those laid off during the pandemic to return, on top of poor working conditions have led to a chronic shortage of entry-level staff in Canada’s hospitality industry. The reality that many restaurants face has created a natural role for AI hosts to help bridge the gap.
In multicultural cities like Toronto and Montreal, AI systems offer a distinct advantage with their multilingual capabilities, enabling smoother communication with diverse clientele and enhancing the overall customer experience.
Balancing AI With The Human Touch
Contrary to fears of job displacement, many restaurants find that AI hosts complement human staff. By managing routine tasks, AI allows human hosts to focus on high-touch interactions, enhancing guest experiences and job satisfaction.
“Restaurants are rapidly becoming the last bastion of personal interaction in the retail space,” says Lenny Lighter, former owner of Moishe’s Restaurant in Montreal and now of the Prime Bar à Boeuf restaurant in Royalmount. “AI is coming and coming fast, but will AI be intelligent enough to find the balance between technological innovation and the warmth of the human touch?”
At the same time, beyond improving guest interactions, AI can also deliver tangible business benefits that make it an attractive investment.
ROI and Operational Benefits
Beyond enhancing guest interactions, AI hosts offer significant financial and operational advantages. They provide 24/7 reservation management without the need for additional staffing, reducing labor costs while ensuring seamless booking experiences. Automated confirmations help minimize no-shows, while smart scheduling optimizes table utilization, maximizing revenue potential. Additionally, AI systems ensure consistent guest communication, streamlining operations and improving overall efficiency—all while lowering operational costs.
Implementation Challenges
Despite the promises of AI, restaurants must carefully consider several factors.
Of course, initial setup and integration can be costly, requiring both time and financial investment. The staff training and acceptance are also crucial, as employees need to willingly adapt to new technology while maintaining a seamless guest experience. Customer comfort levels with AI interactions may also vary, making it essential to strike the right balance between automation and personal service. Ongoing technical support is necessary to ensure smooth operation, and strict data privacy compliance must also be maintained to protect customer information.
The Future of AI in Restaurant Innovation
As AI technology evolves, its applications in restaurant operations will become increasingly sophisticated. Future advancements may include predictive analytics that optimizes staffing, supply orders, and guest experiences.
For Canadian restaurant operators, the pressing question is not whether to adopt AI solutions, but when and how. With ongoing labor challenges and rising costs, AI presents a path to operational efficiency while enhancing the guest experience.
Ultimately, the most successful implementations will balance technological efficiency with the warmth of human hospitality, defining the future of the restaurant industry. As AI expands, other sectors such as wellness, beauty, and service are also poised to benefit from these advancements.