June 30, 2025
Tech Is on the Menu, But Most Restaurants Can’t Cook with It Yet
Restaurants are racing to pour cash into artificial intelligence, yet most are fumbling when it comes to putting those dollars to work.
A new Deloitte report shows 82% of restaurant executives plan to ramp up AI investments in the next fiscal year, yet fewer than half say they’re ready to actually use the technology effectively.
The survey of industry leaders shows that restaurants are eyeing AI to transform everything from customer experience to kitchen operations and loyalty programmes. Sixty percent of executives said they hope AI will supercharge customer experience, 36% want smoother restaurant operations, and 31% hope to boost loyalty. But so far, only 52% of brands and 84% of operators report seeing a significant impact on customer interactions.
While enthusiasm is high, execution is lagging. Two of the biggest hurdles are figuring out which AI use cases make sense (48%) and managing risks tied to new technologies (48%).
Talent shortages are also causing trouble, with only 27% feeling prepared in terms of having skilled people to implement AI. That’s a huge gap for an industry that increasingly relies on digital ordering, recommendation engines, and even voice bots in the drive-thru.
AI Optimism Varies Across Regions
U.S. and European restaurant leaders are far more upbeat about AI’s ability to improve the customer experience (over 60% cite it as a key benefit) than their peers in Asia, where only 42% agree. Interestingly, Asian respondents are alone in seeing labour automation as a top goal for AI.
Restaurants are using AI for things like personalising orders or improving service speed. Inventory management follows, with more than half already using AI to keep shelves stocked more efficiently.
When it comes to readiness, just 43% say they have a solid AI strategy in place, and confidence drops further for operations (34%), technology infrastructure (39%), and especially governance and risk management (28%). Brands tend to feel better prepared technologically, but operators are more confident in their strategic and operational readiness, though both groups lack talent.
The report hints at a coming wave of AI applications, from AI-powered loyalty programmes to automating new menu development, but the industry’s readiness issues could keep these dreams on the back burner for now. Until restaurants shore up their strategies, skills, and infrastructure, AI may remain more of a buzzword than a game-changer.