Technology

Voice AI delivers more efficient, scalable restaurant operations

As restaurants struggle with labor gaps and operational hurdles created by a shortened staff with increased responsibilities, voice AI solutions can help address this issue

Image via Adobe Stock

June 5, 2023 | Bradley Cooper, staff writer

AI is making revolutionary changes in our everyday lives and restaurants are no exception. For restaurants in particular, AI can boost operational efficiency, increase revenue, and reduce staffing challenges — ultimately positively impacting margins, while also helping to create a more consistent guest experience.

This is particularly important, as many restaurants struggle with labor gaps and operational hurdles created by a shortened staff with increased responsibilities. Here's what many restaurants are facing today:

• Restaurant operators are facing consistent staff shortages, which impact service.
• Fewer staff means up to 30% of food ordering calls go unanswered (SoundHound findings), resulting in lost revenue
• Customers are impatient: 50% of callers hang up after 90 seconds on hold.
• Staff churn — only 54% of QSR employees worked 90 days before quitting in 2022.

Daniel Vorderstrasse, senior sales manager for SoundHound for Restaurants, said in a phone interview that "restaurant staff frequently have to choose between servicing the customer in front of them or attending to other tasks such as phone calls, takeout orders, and more."

The result is fewer orders processed, lost revenue, higher costs and higher turnover.

Improving margins, revenue and operational efficiency

So how can voice AI address these issues? Restaurants can deploy a solution such as Soundhound for Restaurants, a dynamic product suite that can be integrated for a wide variety of purposes, such as drive-thru, phones, kiosks or custom solutions to meet a brand's needs.

Soundhound's phone solution can capture unanswered phone orders from customers, which might otherwise result in missed calls and lost revenue. The system processes customer orders placed via voice then seamlessly transmits orders directly to the restaurant's point-of-sale. It can also remove "human and environmental errors," Vorderstrasse said, such as an employee entering the order incorrectly into the POS, connection issues or simply misunderstanding an order.

"Ultimately restaurants are able to get more revenue from the same staff," adds Vorderstrasse.

SoundHound is seeing this play out at two of its restaurant customers.

AmeriBrunch, based in downtown Las Vegas and Trip Advisor's 2020 Traveler's Choice Winner, was short staffed and simply wasn't able to answer its phone during busy hours, which left many customers facing busy signals, waiting on hold or being sent to voicemail.

Since deploying Soundhound's voice AI, AmeriBrunch transformed its operations, gaining a 100% increase in phone ordering, a 50% increase in ticket size, and $36K increase in annual sales.

Multisite restaurant, Round the Clock, in Indiana experienced a similar dynamic. However, being open 24/7 exacerbated its staffing troubles and ability to answer calls. With SoundHound voice AI now answering 100% of its phone calls, it is seeing a 50% increase in calls answered and that's leading to more revenue as the restaurant projects a $55K increase in annual sales in 2023.

A prelude to scale: Strong margins and consistency

Voice AI is delivering significant value:

• 100% of calls answered.
• Higher ticket sizes.
• Increase in annual sales.
• Lower costs.
• Stronger margins.
• Faster service to customers.

All of these ensure a solid and predictable foundation that is optimized for restaurants that want to expand and scale. Brands can test it at one location, identify gaps and bottlenecks and, in turn, solve those issues. Once addressed, restaurants can clearly see the efficiencies and the predictability of the technology, such as its ability to capture customer orders consistently.

According to Vorderstrasse, "Internally it'll strengthen operations, fill labor gaps and make business more predictable," he said. "So each new franchisee begins with a highly efficient, cost-effective structure in place."

Overall, restaurants need to be thinking about voice strategy carefully, as it can substantially improve operational efficiency and boost margins.

"2023 is the year that brands are deploying a voice strategy and we believe the impact will reverberate throughout the restaurant industry," Vorderstrasse said.