How AI and Personalisation Are Transforming Restaurant Operations in 2025

The restaurant industry is experiencing a technological revolution, with artificial intelligence (AI) and personalisation at the forefront of change. From streamlining kitchen operations to delivering hyper-personalised guest experiences, AI is no longer a futuristic concept, it’s a practical tool that’s reshaping how restaurants operate and compete.

The Rapid Growth of AI in Hospitality

Recent research shows that 65% of Australian restaurants are already using AI to enhance personalisation, boost efficiency, and meet rising consumer expectations. Globally, the AI restaurant industry is projected to grow at a CAGR of 23% from 2023 to 2030, reflecting widespread adoption among restaurants of all sizes. Operators are turning to AI not just for automation, but to create meaningful connections with guests and drive profitability.

Key Applications of AI in Modern Restaurants

1. Menu Optimisation and Dynamic Pricing: AI-driven tools analyze customer preferences, sales data, and seasonal trends to optimise menus in real time. For example, major chains like McDonald’s use AI to recommend menu items based on weather and time of day, reducing food waste and maximising profits. Dynamic pricing, adjusting menu prices in response to demand, has also become more accessible, helping operators boost margins during peak periods

2. Predictive Maintenance and Inventory Management: AI-powered sensors monitor kitchen equipment, predicting maintenance needs before costly breakdowns occur. This proactive approach reduces downtime and saves money. Similarly, AI forecasts ingredient demand and optimises inventory, minimising waste and ensuring kitchens are always stocked for service.

3. Personalized Guest Experiences: Personalization is the new standard in hospitality. AI-powered CRM systems segment customer data to deliver tailored promotions, menu recommendations, and loyalty rewards. Guests receive offers that match their preferences, whether it’s a favorite dish or a special occasion, leading to higher satisfaction and repeat visits.

4. Automated Marketing and Reservation Systems: AI excels at customer segmentation and targeted marketing, enabling operators to send the right message to the right guest at the right time. Automated reservation systems use AI to manage bookings, suggest optimal seating arrangements, and even handle last-minute changes, freeing up staff for more meaningful guest interactions.

5. Labour Optimisation and Staff Training: AI-driven scheduling tools analyse sales forecasts and labour costs to create efficient rosters, reducing over-staffing and burnout. Some systems even assist with on-boarding and training, ensuring teams are prepared to deliver exceptional service.

The Human Touch: Super-Human Hospitality

While automation is on the rise, the most successful operators are those who blend technology with genuine hospitality. The concept of Super-Human Hospitality places the emphasis on using AI to handle repetitive tasks, allowing staff to focus on creating memorable, personal connections with guests. Rather than replacing the human touch, AI empowers teams to deliver service that feels both efficient and heartfelt.

Why Chefs and Operators Should Embrace AI Now

• Stay competitive: Early adopters of AI are seeing improved efficiency, higher guest satisfaction, and increased revenue.
• Meet evolving expectations: Today’s diners expect seamless, personalised experiences, AI makes this possible at scale.
• Future-proof your business: With labour shortages and rising costs, AI offers practical solutions to streamline operations and boost profitability.

Start small by integrating AI-driven tools for menu optimisation or the guest experience. As AI continues to evolve, the restaurants that thrive will be those that use technology to deepen, not diminish, their connection with guests.