Applebee's and IHOP Embrace AI for Personalized Dining Experience and Operational Efficiency

Applebee's and IHOP have plans for AI

Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO. Applebee's and IHOP plan to launch an AI-powered "personalization engine" that could help its restaurants provide recommendations and customized deals, according to a report from The Wall Street Journal. The personalization engine would use a customer's past purchases -- or the orders of customers similar to them -- to make recommendations. Justin Skelton, the chief information officer at the restaurants' parent company, Dine Brands, tells the Journal that an AI-powered personalization system would be designed to boost customer loyalty, as well as serve as a way to upsell products. As noted by the Journal, IHOP already has some information about its customers' ordering habits through its rewards program. Instead of chasing viral trends like Chili's, other restaurant franchises have hopped on the AI bandwagon as well, with Wendy's deploying an AI chatbot at its drive-thrus that can take orders and even upsell menu items. McDonald's also recently resumed plans to put AI at the drive-thru and inside its restaurants, while Taco Bell revealed plans to put "Voice AI" technology at more than 100 of its drive-thrus across the US. As noted by the Journal, Dine Brands is considering rolling out AI tools designed for staff members as well. Along with exploring the use of AI-powered cameras to detect when a table needs cleaning, it's also testing an AI app for managers.

Applebee's and IHOP to Deploy AI-Powered Tech Support and Personalization | PYMNTS.com

"AI is moving quickly, and I believe it's going to be embedded in everything we do," Skelton said in the report. One of the tools being added for all franchisees is AI-powered tech support that allows field technology services staff to use natural language to query the company's database, rather than manually searching for answers, according to the report. Dine Brands is also rolling out an AI-powered "personalization engine" that uses data about customers' prior purchases to automatically recommend new or additional items and offer customized promotions to diners, the report said. The company is also working on adding the "personalization engine" to the tablets used by servers and customers, using AI-powered cameras detect when a table should be cleared, and developing an AI app that will help restaurant managers with staffing and other day-to-day tasks, per the report. IHOP said in August 2023 that it formed a partnership with Google Cloud and would leverage that company's Recommendations AI technology for digital ordering and more targeted messaging. The company said at the time that the partnership would infuse AI into its online ordering experience, making it easier for guests to place orders, find their favorite items and discover new ones that are relevant to their interests. Restaurants are increasingly adopting technology and automation to address staffing shortages, according to the PYMNTS Intelligence and American Express collaboration, "Why More Restaurants Need to Bite Into Digital Transformation." The report found that 67% of the establishments using automation said it had delivered direct benefits to diners' experiences. In another, separate deployment of AI in this sector, it was reported June 13 that quick-service restaurant chain Chipotle cut its hiring time by 75% when it adopted an AI hiring platform. SoundHound AI said in November that its voice AI solutions had been deployed by seven of the top 20 quick-service restaurants, which are using the technology for drive-thru, phone ordering, kiosks, mobile apps and supporting their staff.