AI is uniquely positioned to revolutionise the efficiency of hospitality businesses’ operations, streamlining workflows, minimising wastage, tracking consumer behaviour, and even creating optimised menus. But for this transformative journey to take place, a fundamental shift in the attitudes and priorities among hospitality decision-makers is urgently required.
It is no secret that in the past few years the hospitality sector has encountered a number of seemingly unending obstacles. The pandemic brought unprecedented uncertainty, with social distancing and lockdown measures giving way to fresh challenges like food price inflation, staff shortages, operational headaches, as well as the government terminating support initiatives such as furlough, energy bill relief and Eat Out to Help Out.
Amid these relentless economic trials, many hospitality businesses find themselves focused on short-term survival and reactive troubleshooting just to keep their doors open. Understandably, getting to grips with new technologies, particularly AI, aimed at spiking growth and innovation might not seem like an immediate priority.
Spurring innovation through AI
Numerous areas within the hospitality sector are ripe for AI-driven innovation, desperately seeking greater efficiency and optimisation. Narrow profit margins come with the territory in hospitality; even minor reductions in waste, costs, or time can be a valuable boost to profitability, offering a lifeline to businesses grappling with inflationary pressures.
Peckwater Brands’ own recent survey showed that nearly half (44%) of UK hospitality businesses are currently operating at a loss, highlighting the need for rapid cost-cutting initiatives and improved efficiency.
Time and again machine learning has proved its ability to advance the ideas of entrepreneurs and innovators. AI has been already successfully harnessed a number of industries including agriculture, manufacturing, finance – and hospitality ought to take note. For instance, the retail sector is already effectively using AI to predict demand, and various consumer-facing businesses have enhanced their customer experiences through AI support like chatbots and digital assistants.
For hospitality, AI’s predictive abilities are the key to businesses shielding themselves from future shocks. Just a few of the ways in which AI can help the sector include predicting stock shortages, adjusting menus based on customer demand, personalising marketing offers and creating staff work schedules. For takeaway kitchens, AI can analyse data to establish consumer food-ordering trends like the most sought-after dishes and cuisines, as well as gaps in a local takeaway market.
Unleashing AI’s potential in hospitality will necessitate a comprehensive assessment and analysis of a business’s workflow. AI’s automated data analysis capabilities can pinpoint missed opportunities and inefficiencies, advancing how decision-makers operate their establishments.
Moreover, AI enables hospitality business owners to gain deeper insights into their customers by leveraging machine learning to identify patterns in consumer behaviour and develop insights. With this approach, businesses can more effectively predict demand and adapt their strategy to maximise revenue while reducing resource waste. This enables hospitality businesses to create personalised recommendations and promotions, encouraging customer loyalty and driving sales.
Catalysing future success
Although the benefits of embracing AI in hospitality are numerous, the road ahead to success is a bumpy one. It is vital that upfront investments in AI technologies be made, while developing the skills to make the most of them is also a requirement. One option businesses should investigate is partnering with hospitality AI specialists who can provide the right infrastructure, doing away with the need for building an in-house AI or tech team.
Ultimately, the responsibility falls with decision-makers to look beyond the present challenges and embrace strategies that pave the way for future success through technology and AI.
The domino effect of challenges posed by the COVID-19 pandemic, the energy crisis, and high inflation mean the hospitality sector continues to grapple with uncertainty. While AI is not a cure-all for all these issues, it undeniably paves a road to improved productivity and profitability, filling a crucial gap in many business strategies.
Embracing tech-driven innovation and the revolutionary potential of AI gives hospitality businesses what they need to conquer their exist challenges and streamline their operations. The sector must cast aside reservations and seize the opportunity to drive AI-driven transformation, propelling itself into a new age of optimal performance and success.
