May 12, 2025 • 33 mins
Dive into the future of dining as industry experts explore the transformative potential of AI in restaurants. This eye-opening discussion reveals how artificial intelligence is set to revolutionize customer service, operational efficiency, and personalization—while preserving the essential human touch that makes dining special. Learn how restaurant leaders are navigating the delicate balance between cutting-edge technology and authentic hospitality.
~This episode is sponsored by: Gusto → https://gusto.pxf.io/PBN ~
#1 rated HR platform for payroll, benefits, and more
With Gusto’s easy-to-use platform, you can empower your people and push your business forward. See why over 400,000 businesses choose Gusto.
RestaurantTech #AIInDining #HospitalityInnovation
Get Your Podcast Now! Are you a hospitality or restaurant industry leader looking to amplify your voice and establish yourself as a thought leader? Look no further than SavorFM, the premier podcast platform designed exclusively for hospitality visionaries like you. Take the next step in your industry leadership journey – visit https://www.savor.fm/
Capital & Advisory: Are you a fast-casual restaurant startup or a technology innovator in the food service industry? Don't miss out on the opportunity to tap into decades of expertise. Reach out to Savor Capital & Advisory now to explore how their seasoned professionals can propel your business forward. Discover if you're eligible to leverage our unparalleled knowledge in food service branding and technology and take your venture to new heights.
Don't wait – amplify your voice or supercharge your startup's growth today with Savor's ecosystem of industry-leading platforms and advisory services. Visit https://www.savor.fm/capital-advisory
~This episode is sponsored by: Gusto → https://gusto.pxf.io/PBN ~
#1 rated HR platform for payroll, benefits, and more
With Gusto’s easy-to-use platform, you can empower your people and push your business forward. See why over 400,000 businesses choose Gusto.
RestaurantTech #AIInDining #HospitalityInnovation
Get Your Podcast Now! Are you a hospitality or restaurant industry leader looking to amplify your voice and establish yourself as a thought leader? Look no further than SavorFM, the premier podcast platform designed exclusively for hospitality visionaries like you. Take the next step in your industry leadership journey – visit https://www.savor.fm/
Capital & Advisory: Are you a fast-casual restaurant startup or a technology innovator in the food service industry? Don't miss out on the opportunity to tap into decades of expertise. Reach out to Savor Capital & Advisory now to explore how their seasoned professionals can propel your business forward. Discover if you're eligible to leverage our unparalleled knowledge in food service branding and technology and take your venture to new heights.
Don't wait – amplify your voice or supercharge your startup's growth today with Savor's ecosystem of industry-leading platforms and advisory services. Visit https://www.savor.fm/capital-advisory
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
We're back here on another podcast right here from the
Saber Network, and we are covering today the topic of
AI and its use case within the restaurant industry. Obviously
joining me right now is mister Rudy Mick. How are you.
Speaker 2 (00:13):
I'm so good, good to be here. Thanks.
Speaker 1 (00:15):
Yeah, So we're going to get down into something that
we haven't talked about. I mean, I've had a lot
of people on and quite a few of our masterminds
have talked about the topic of AI. Oh yeah, it's
coming a lot of people. We're going to get into it.
The technology is going to shift the industry. But the
one thing that has always left out, Rudy, is something
you're really good at, and that is how does this
(00:36):
affect culture? How does this affect the consumer mindset about
culture in a restaurant. So today that's our topic. Stay
tuned right here. This episode is brought to you in
(00:57):
part by Gusto, the number one rated HR platform for payroll,
benefits and more. With Gusto's easy to use platform, you
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we're back here, Rudy. Let's jump into it tight and
get into the topic. I want to lead off with,
first of all, when you look at because I think
a lot of people may not necessarily understand completely how
(02:44):
you engage with operators. You and I talked about this
pre show. When you talk to operators that are you know,
let's say, independent operators, and then you have brand operators,
what is the kind of the feel of whether or
not they're ready for this? Right now? What are you seeing?
Speaker 2 (03:03):
I am seeing across the board the great majority of
operators in every segment and every size, from really large
hundreds and hundreds of units to down to two three
stores and looking to grow. There is not a doubt
(03:24):
that AI and tech is come in full force. There's
no denial of that. I don't I'm not even sure
that there's fear of it. I think the big question,
and my experience of the question is how are we
going to utilize this Because some of my customers want
(03:48):
tech and want no touch with humans and an interesting
moving margin of guests do right we were, I'm seeing
a swing across the country back and forth between I
want no contact, give me AI or tech to oh
(04:12):
my god, I miss human connection, I miss interaction. Right, So,
I think that's going to be the tap dance, Paul,
not as a simple answer yes.
Speaker 1 (04:24):
Or no, yeah, exactly right. Well, I think the key
that you have to hit on a lot right now
is really around the whole customer service experience, because that's
the one we just showed that on screen. You know,
it's one of the most visible applications that people are
looking at within AI, and whether it's touch points like
in quick service, like you look at, you know, the
(04:46):
idea of ordering Kiosk or possibly even mobile interaction, all
of those kinds of things that take away the obvious,
you know, the obvious touch point. But when you get
into the component of full service, independent find dining, casual dining,
those are much different because the customer service is a
(05:08):
one on one, usually at the table side or at
least on the greet. When you look at the potential
of AI integration within that, I mean, do you feel
like we are in a position where the industry is
ready to kind of replace some sort of element of
that first greet or at least the customer service side
(05:29):
of it.
Speaker 2 (05:30):
I like anything. I think there are early adapters out there.
You and I both know some operators that are jumping,
ready to get force. Right, So the early adapters are
ready to experiment and then pivot quickly. I think that
for the folks that are courageous and have the cash
(05:52):
flow and the and the war chest to invest in
AI early, I think that's exactly what's being done. There's
experimentation with where is the touch point? How does the
touch point grow or diminish? Right? It could go? Where?
And what is that relationship? In real time? And not
(06:14):
unlike we would track prime costs or labor turnover, we
can track and make decisions in the moment about the
contact point and the frequency and the retention that happens
from a guest experience from either component. Oh, because I
(06:37):
think there's an interesting irony with AI growing. How do
we grow? Also, we can't let the human choice just sit.
The human choice has got to move and raise I
think as well, because otherwise a I will trounce it.
Speaker 1 (06:55):
Right, get this look at this data point right here.
This is something that I think and I want your opinion.
Do you think this is going to be real? Sixty
two percent of restaurant leaders now believe AI is going
to be a significant competitive advantage to restaurants that adopt it,
with sixty seven percent feeling well positioned to leverage AI
(07:17):
for market differentiation. So basically they're saying, operators are like,
it's kind of like social. If you have it, it's
going to give you a leg up. If you don't,
you're going to look kind of behind. Do you think
customers are really going to be first of all, first question,
do you think customers are really going to choose by
whether or not you have it or you don't.
Speaker 2 (07:36):
I think what's going to happen is the wise operators
that are using AI to expedite and ease the guest experience,
make easier and more successful the guest experience success meaning
(07:57):
any number of things, right, it's not a short live
right for those operators that figure out how to make
my quest to find your restaurant, to return to it,
to order online, to get my food faster, quicker, easier,
to order in advance, to make some sort of special occasion,
(08:21):
easier to correspond, right, easier to communicate. Those operators are
going to be hugely successful. If the AI gets in
the way of my experience and lets me, as a
guest stumble or the team stumble because the training isn't consistent,
(08:43):
I think we're going to have trouble. It's that it's
going to come down to performance, plain and simple.
Speaker 1 (08:51):
Yeah, yeah, going back to this, let me bring this
back up here if I can.
Speaker 2 (08:56):
One of the easy dialogues, right, and we're seeing this
in qsr kiosks and stuff, is oh, if I want
to go one direction or another, one hundred percent AI
one hundred percent attach right, a very little human touch point.
That's a whole other dialogue. But in that, in that
(09:17):
from sit down dining to even a more in depth
fast casual experience, that's where this question is really front
and center.
Speaker 1 (09:28):
Well, and look at look at what they're saying here,
because this is the kind of an interesting statement that
he's getting at. This is a Chicago based bar guy
Hospitality works as a company. He said that AI is
going to have a substantial impact on labor costs. So
everybody's kind of been talking about that, especially in fast food. Now,
(09:49):
I get it that fast food will be kind of
the lynch pin for AI's use case because it's the
lowest hanging fruit that delivers, you know, very specific automation.
We get that, you know, in the industry, and I
can understand that, but I look at it and I
wonder because I I kind of remind myself. We did
(10:10):
a gen Z corner last week on on UH, you know,
Masterminds and.
Speaker 2 (10:17):
UH.
Speaker 1 (10:17):
It was interesting because we had an eight and a
nine year old on the show and they were talking about,
you know, the use case why they like restaurants. A
lot of it was menu driven, but some of the
things that they said was because the people were nice.
So if you take the component of that that you know,
that personal connection out, do you think gen Z's will
(10:41):
matter because they're very screen oriented already. Do you think
that they'll do they'll care do they think do you
think they will think that that matters in the selection
of a restaurant and say, hey, mom, I want to
go to Chick fil A instead of you know, Chipole
because whatever.
Speaker 2 (11:00):
Well, you know what I've found over the years with
eight nine year old kids, fifteen, sixteen year old, five
and six year olds is they have opinions as you name.
And the only driver more important than the mom or
the character and the family, oh totally, that guides more
(11:25):
than the giver are the kids themselves.
Speaker 1 (11:28):
Yeah. Well, and I think and what I'm.
Speaker 2 (11:31):
Really struck by with the data that you just shared
is here's an innate eight and a nine year old
quote that are going. Wow. I love it when somebody
says hello, welcome and looks right appy. That feels good.
Speaker 1 (11:48):
What's the most powerful you know? And especially when you
get in and this is not trained well enough, I
think in the use case for even fine dining is
and I don't know if you've seen this, well, we've
talked about it quite a bit, you know, the lack
of hospitality or the declining sentiment on hospitality. I was
at a restaurant the other night and it was the
(12:08):
first time that I truly felt like somebody had been
training these servers, because, you know, the first thing, instead
of just asking what do you want? And here's this,
they asked my name. They asked me my name, and
I'm like, hey, I'm Paul, nice to meet you. And
they must have used my name twenty times at the
(12:31):
table as if they knew me, and you know it
as well as anybody. We as humans love to hear
our name being discussed. And I think that's the question.
Can we train AI into hospitality traits? Can it be
trained into hospitality traits?
Speaker 2 (12:54):
What do you think? I think there's not even a
question about that. The answer is yes, right, it's coming.
It's going to come fast and furious. And with that
intention of actually, can I create not only that hospitality
but the connection? Right And and then then you get
(13:19):
I'm going to contradict myself here. Then we add that
aspect of pure human voice, sort of connection and tone
and intention that we translate from the tone to robotic
(13:40):
eye contact, right and and the entertainment of oh my gosh,
this is robotics in action with a human touch. Right
And in six gens from now, we're going to be Yeah,
the world. I got to share the place.
Speaker 1 (13:57):
I got to share this with you. Okay, I'm going
to bring this up up on screen because this is
going to blow you guys away. So this is the
idea that some of the stuff was at CEES. I'm
going to bring it up on screen and I'll play
the video. So that's that's a robot that we're looking
at right now, and the idea here company that's on
a mission to making humanoid robots as realistic as possible.
(14:18):
Let's check it out. Watch.
Speaker 2 (14:19):
We're gonna interview Aria and meet some of her robot friends.
Speaker 1 (14:22):
Let's get into it. Would you see this at a
hostile At the very minimum, you can probably see it
as a Aria. Could you please introduce yourself in.
Speaker 2 (14:31):
What you do. I'm Maria, the flagship female companion robot
of Rerobotics, and I'm here to engage with you and
share exciting insights about our robots.
Speaker 1 (14:43):
Let's say. So, it's not necessarily the uh, I'll bring
that off the screen here, but it's not necessarily the
most beautiful thing in terms of the visual side of things.
And it's definitely not you know, ex machiina No.
Speaker 2 (14:58):
But what is coming to mind to me? I was
trying to think of the name of the movie, and
Robin Williams, the Great Robin Williams in nineteen ninety nine
was in this movie called Bisonennial Men Ye strinted out
as a raw robot and generation after generation after generation,
(15:20):
we're going to do this way faster. But the whole
point was can I become human? Right, And ultimately the
answer became yes. So to your point that early AI
robotic that we just that you just shared with the audience, yeah,
there's first gen six gens from now, Yes, exactly, so
(15:44):
a case can be made how for this However, one
of the things that I'm sitting with is, well, wait,
it's still not human. That's one number two. Even if
we switch human to robotics AI on steroids, I've now
got to have the investment capability, albeit at a capital
(16:07):
expense capital investment, but I've got to have the cash
to go ahead and get refit my team with.
Speaker 1 (16:14):
But think about hiring. I mean, you know, really, if
you get a good person with training costs the person
itself themselves for a year, I mean you're probably at
the minimum, let's say a high level person in a
you know, in a mid range independent Okay, that's probably
a fifty thousand dollars investment at the minimum. Yeah, okay,
(16:39):
soly to replace it. Yeah, it's very possible you could
have something if we can see advancements far enough. At
the very minimum, possibly a matre d maybe a wine,
you know, a wine, yeah, possibly a psalm, you know,
I mean, can you imagine the knowledge that could be
funneled in via AI into this Yes, around AI, I'm
(17:00):
using I know, I'm using AI more now when I'm
at the restaurant than ever because I want to find
out about a wine and then it gives me three
or four more derivatives off of that wine, and I
look like I'm you know, I'm master summa. Yea, I'm
ordering ordering wine. So I just see those benefits being there.
But again, I just wonder if the connection between hospitality
(17:23):
is going to be lost, and that that's the whole
thing I'm worried about.
Speaker 2 (17:26):
I think that that's the magic That is totally the
magic question, Paul, And I wonder how it's going to
actually add incentive because I think the I think that
our customers, our guests, are going to be the drivers
of this as much as the operators.
Speaker 1 (17:44):
Yeah.
Speaker 2 (17:45):
I really miss human contact.
Speaker 1 (17:49):
Yeah, And what I was showing right there is this
whole idea around personalization. Okay, because if you if you
think about the use case it could be centered around,
which is what the article is saying, is that personalization
is it's always been the heart of hospitality. So the
difference now is can it get personalized at scale. And
(18:12):
if it can, then how much of the industry can
it truly take away that is human operated right now?
Or is it a scenario that allows an operator maybe
just to scale their business more with the human side
of it and adding the AI layer only makes them bigger,
(18:34):
more efficient, etc. Do you think that is going to
be the route that operators take.
Speaker 2 (18:39):
Well, here's so back full circle to your the experience
you shared with us just a few minutes ago about
the restaurant you were just at where the staff used
your name twenty.
Speaker 1 (18:52):
Times, right, it was crazy?
Speaker 2 (18:54):
What is wild with what you shared and just watching
your body language right in your tone voice as you
shared that experience with us in the audience. For a
human being to do that is a choice, yeah, whether
it's the owner's choice and the training, but its owner
(19:14):
to staff choicefulness. And with robotics, even AI generated that
is robotic, it is programmed, right, and maybe there's little difference. However,
I think at least still, whether it's a little kid
(19:37):
or a grown adult or all the gens in between,
the choicefulness of using the most important word in the
English language or any language, which is your name right
by choice is different than just programmed, at least for
(19:58):
a while. I I think this is going to be
one of the great questions you and I are going
to be talking about over the next twenty years. I
really swear to God.
Speaker 1 (20:08):
Well. And it's interesting because the psychological effects. Here's an
article right here that gets into this about where AI
could trigger a lot of you know, side effects of
you know, just the case and use of it. A
lot of people are still concerned that there might be
this regressive nature of the human species, so to speak.
(20:30):
But you know, you look at everything from predictive modeling,
you know, then you have the side effects within you know, organizations,
you know, which could be the supply chain, operational challenges
in back office, all those kind of things that are different.
Much less of just the mental health versus the environmental
(20:51):
health of how AI might be used, because AI is
not necessarily in a position where it's going to say, yeah,
i'm you know, because food safety is concerning, right you
get a robot in there. It could care less if
it's been contaminated. Does it really know? That's the question
mark that is going to be questioned. I think when
(21:12):
you get into back of house use case going forward,
especially around this issue.
Speaker 2 (21:17):
Well, I would agree with you. And if some operators
are out there and are already not maintaining equipment or
not maintaining or implementing human training, staff training, safety, sanitation, right,
what it's going to say that they will do that
maintenance and repair on their tech stacks and their equipment,
(21:43):
robotic equipment, same deal, Right, I think there's still discipline
and choice. So there is a light and shadow issue
with both sides of the equation. Right.
Speaker 1 (21:56):
I saw some of the robots being done by Boss
and Dynamics will show some on screen, but they had
one that was like a horse robot that was traversing
a whole, you know, very unusual landscape. And I'm thinking,
if one of these things goes awry, this could be dangerous.
(22:17):
You know, imagine that in the back of house if
you had something that is you know, that could go awry.
And again, I'm still concerned that we're we're so new
into this era. And my concern is because of the
massive demand of the industry trying to kind of resolve
the workforce issue that we have and the issue of hospitality,
(22:40):
is that maybe the industry rushes to get something out
and for whatever reason, whether it's a physical problem or
a problem where it's overlooked food safety or you know,
maybe other staff safety, whatever it might be. I'm just
wondering if we will run into something like that before
we get to a level of you know, it's kind
(23:03):
of like the I robot concept that.
Speaker 2 (23:04):
Well exactly, and or self driving automobiles or self driving
which I still don't trust they're exactly trusting to be.
There are going to be res There are going to
be as many recks as there are successes in the beginning.
You know. The other thing that comes to mindy me
just to be playful with you in this dialogue, as
you and I often are of I wonder how the
(23:29):
opportunity of this dialogue also looks. Here's a session. A
part of the dialogue we rarely talk about is what
if this onslaught of AI and the adaption adoption of
AI and tech is coming right, which it is, we
(23:50):
both acknowledge that. But with that modality, what if the
whole concept of capitalism became such that by actually investing
in humans, we actually and creating open books, profit sharing
to drive performance into top line sales, right, building check averages,
(24:15):
building frequency, trial by creating these amazing guest experiences of
human AI generated right together, we create frequency that takes
topline sales exponentially and bottom line performance. We start performing
(24:39):
with one hundred sets of ownership eyes instead of one
owner or of the team you know, two founders.
Speaker 1 (24:45):
Well that's see. That to me is where AI I
think is going to be utilized because it's it's like
our own business. We utilize it on a very frequent basis,
but it's adds. It is as an augmentation to the
talent of individuals, whether it's designers, creators, editors, writers, they
bring a certain understanding that is at least at this stage.
(25:08):
I mean in a decade, I may not say that,
but right now, at this stage, it requires that nuance
that a human brings that creates it.
Speaker 2 (25:17):
Now.
Speaker 1 (25:17):
It's not to say that we don't get to a
stage in our life here very shortly where AI has
been able to challenge that. I don't know if you've
done this recently, but I've done this a couple of times.
I've had very specific conversations with perplexity because there's a
voice option with it, and I've had very specific almost
(25:39):
debates with perplexity and it is often around the use
case of AI, the pitfalls of it. But it's interesting
to me is that perpetually doesn't necessarily land on the
side of AI. In fact, what it talks about is
that this is still too early to know. Oh, and
(26:01):
that you know, extreme safety should be taken care especially
and it's not beyond physical safety, it's the mental safety. Yeah,
it's going to affect you know people. Yeah, so my
last question to you is culture. Yeah, well, so you've
got you're you're an operator. You said, Yeah, I'm gonna
put robots in here, or I'm going to put back
(26:22):
a house you know, AI in here, or I'm going
to give you an AI tool that's going to basically
look over your shoulder. How do people respond to such
a thing?
Speaker 2 (26:33):
Well? There again, I so where I was heading, You
and I are on the same frequency, right, I was
about to go from a culture place driving brand If
culture actually drives brand right, what we believe, how we
believe it, how we implement what we believe that is
(26:54):
brand right driven by culture. And so to me, the
immediate question becomes, do I if I'm the owner, if
I'm the founder, and I'm asking the questions that you
and I are asking, do I have people on my
team that are going to be threatened by AI or
(27:15):
excited by it? Right? Is to your point of oh,
I want to learn more about wine. I want to
learn more about fish right, or meat varieties or non
meat proteins right, And I can create we can create
an educational platform and delivery platform of that education to
(27:37):
our guests. Sure that then culturally becomes guess what, We're
a leadership institute that looks like a restaurant. We're a
communication center, education center that looks like a restaurant, sharing
with our guests and all of us are growing. How
cool would that be? And so then that coms I
(28:01):
as the owner, What am I looking for in an applicant? Right?
Are you threatened or excited with this technology? And we
and we are using the technology and we believe in people,
So that.
Speaker 1 (28:13):
Well, I guess it also would depend on what kind
of applicant you're hiring, because you may you may end
up hiring a SEUs chef that is like, listen, we
have a kitchen AI assistant and it's there to basically
help you with supply chain. You know, so for whatever reason,
you know, you're out of whatever, or you're you're seeing
a certain load of more of this menu versus that
(28:36):
menu item, and a sous chef has to now not
worry so much about inventory, but now worries more about execution. Okay, Now,
granted there is nuances to inventory management, especially in a
you know, a high end restaurant, because you know the
difference between a duroc pork shank and a chest white
(28:56):
pork shank is a significant one. Can a can AI
figure that? And I think I'm looking at a sous
chef and I'm thinking, oh, these guys may be and
ladies maybe the worst ones to work with AI in
a kitchen.
Speaker 2 (29:11):
Well what in an interview, in an interview or in
an onboarding with the existing team that one's got, what
a great dialogue to have about what's your comfort zone
with this?
Speaker 1 (29:26):
Now are willing to take?
Speaker 2 (29:28):
Yeah, yeah, hey, you've got this long track record or
your brand new to it doesn't matter what if I
told you we're going to give you this AI tool,
tell me your experience right and this now that technology
technology question becomes part of the incolocation into the brand right.
(29:52):
And for those owners and leaders that choose not to
play there, they do so at their own demise.
Speaker 1 (30:02):
Yeah, I think we're going to see a huge implementation.
I've had this discussion with many people on our other
show over on PBN and if you guys want to
check that out, go to Paul Baron Network on YouTube.
Speaker 2 (30:14):
You'll see it.
Speaker 1 (30:14):
But we get into a lot of what's happening in
the gaming sector, and the gaming sector most likely will
dictate how other interactions with consumers will work, including commerce yep.
And one of them is going to be in food
ordering and food delivery, so like almost like third party.
(30:35):
But they have these tools that are basically a voice
led AI agent, So you no longer go out and
pick the restaurant. You no longer go out and pick
the timing or even look at a menu. The agent
you're interacting it with it. And we showed a clip today.
I'll probably try to drop this clip in from Byte
(30:56):
Technology and it's a consumer that says, hey, I'm hungry
for a pizza, something creative and also some surprise me
with a dessert of some sort o cay. Imagine that, Yeah,
that's the voice command, and you know, a little bit later,
a pizza shows up. Very unique construct from a brand
(31:18):
that the AI selected with a dessert that was unanticipated.
So you've just created an experience if you think about that.
Speaker 2 (31:30):
Well, how often, especially in more high end restaurants, but
frankly even in family dining. We'll go in and the
coolest thing there is to do is say, let the
chef just decide what we should.
Speaker 1 (31:45):
Have exactly, Yes, give.
Speaker 2 (31:48):
Us the best stuff on the menu. Go and if
we can trust AI and it could be done in
a playful, engaging way. How cool? Right? Yeah, for sure,
I would love I would love to see the chef
come out and talk to us afterwards and go, hey,
how did that work?
Speaker 1 (32:08):
How does that work?
Speaker 2 (32:09):
Yeah?
Speaker 1 (32:11):
Well the cool thing is that, Yeah, you've got a
lot of news, Yeah, very new use cases that are
going to be out there in the industry. Listen here
on this show, we're going to be covering AI lot.
We have Rudy on occasionally, we'll get some experts on
to really give you guys a guidebook on maybe how
to deal with this. And I think culture, the idea
(32:31):
of how consumer reception is going to be as well
as adoption in what areas within operations are going to
be very very interesting in the coming years. So Rudy,
look for another conversation on this topic. Thanks for coming
in today.
Speaker 2 (32:45):
We'll look forward to it. Thanks for, as always, for
having me on the show. And remember that culture drives brand,
including all the money. Yeah, right, there you go.
Speaker 1 (32:57):
All right, you guys, make sure and subscribe to the
show if you're not, And of course, if you're watching
us over on YouTube, just drop alike right now. A
comment always helps, and you can catch us over on
saver Fm. If you're listening to the audio podcasts and
you want to catch out the video, just search saver
fm on YouTube. If you're on the other side, just
search the Restaurant Report. You'll find us over on Spotify
(33:18):
and Apple iTunes and all those kinds of cool places.
All right, we'll catch you next time right here on
the Restaurant Report.
Speaker 2 (33:24):
Take care,
We're back here on another podcast right here from the
Saber Network, and we are covering today the topic of
AI and its use case within the restaurant industry. Obviously
joining me right now is mister Rudy Mick. How are you.
Speaker 2 (00:13):
I'm so good, good to be here. Thanks.
Speaker 1 (00:15):
Yeah, So we're going to get down into something that
we haven't talked about. I mean, I've had a lot
of people on and quite a few of our masterminds
have talked about the topic of AI. Oh yeah, it's
coming a lot of people. We're going to get into it.
The technology is going to shift the industry. But the
one thing that has always left out, Rudy, is something
you're really good at, and that is how does this
(00:36):
affect culture? How does this affect the consumer mindset about
culture in a restaurant. So today that's our topic. Stay
tuned right here. This episode is brought to you in
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Gusto is the place for you. Check it all out.
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we're back here, Rudy. Let's jump into it tight and
get into the topic. I want to lead off with,
first of all, when you look at because I think
a lot of people may not necessarily understand completely how
(02:44):
you engage with operators. You and I talked about this
pre show. When you talk to operators that are you know,
let's say, independent operators, and then you have brand operators,
what is the kind of the feel of whether or
not they're ready for this? Right now? What are you seeing?
Speaker 2 (03:03):
I am seeing across the board the great majority of
operators in every segment and every size, from really large
hundreds and hundreds of units to down to two three
stores and looking to grow. There is not a doubt
(03:24):
that AI and tech is come in full force. There's
no denial of that. I don't I'm not even sure
that there's fear of it. I think the big question,
and my experience of the question is how are we
going to utilize this Because some of my customers want
(03:48):
tech and want no touch with humans and an interesting
moving margin of guests do right we were, I'm seeing
a swing across the country back and forth between I
want no contact, give me AI or tech to oh
(04:12):
my god, I miss human connection, I miss interaction. Right, So,
I think that's going to be the tap dance, Paul,
not as a simple answer yes.
Speaker 1 (04:24):
Or no, yeah, exactly right. Well, I think the key
that you have to hit on a lot right now
is really around the whole customer service experience, because that's
the one we just showed that on screen. You know,
it's one of the most visible applications that people are
looking at within AI, and whether it's touch points like
in quick service, like you look at, you know, the
(04:46):
idea of ordering Kiosk or possibly even mobile interaction, all
of those kinds of things that take away the obvious,
you know, the obvious touch point. But when you get
into the component of full service, independent find dining, casual dining,
those are much different because the customer service is a
(05:08):
one on one, usually at the table side or at
least on the greet. When you look at the potential
of AI integration within that, I mean, do you feel
like we are in a position where the industry is
ready to kind of replace some sort of element of
that first greet or at least the customer service side
(05:29):
of it.
Speaker 2 (05:30):
I like anything. I think there are early adapters out there.
You and I both know some operators that are jumping,
ready to get force. Right, So the early adapters are
ready to experiment and then pivot quickly. I think that
for the folks that are courageous and have the cash
(05:52):
flow and the and the war chest to invest in
AI early, I think that's exactly what's being done. There's
experimentation with where is the touch point? How does the
touch point grow or diminish? Right? It could go? Where?
And what is that relationship? In real time? And not
(06:14):
unlike we would track prime costs or labor turnover, we
can track and make decisions in the moment about the
contact point and the frequency and the retention that happens
from a guest experience from either component. Oh, because I
(06:37):
think there's an interesting irony with AI growing. How do
we grow? Also, we can't let the human choice just sit.
The human choice has got to move and raise I
think as well, because otherwise a I will trounce it.
Speaker 1 (06:55):
Right, get this look at this data point right here.
This is something that I think and I want your opinion.
Do you think this is going to be real? Sixty
two percent of restaurant leaders now believe AI is going
to be a significant competitive advantage to restaurants that adopt it,
with sixty seven percent feeling well positioned to leverage AI
(07:17):
for market differentiation. So basically they're saying, operators are like,
it's kind of like social. If you have it, it's
going to give you a leg up. If you don't,
you're going to look kind of behind. Do you think
customers are really going to be first of all, first question,
do you think customers are really going to choose by
whether or not you have it or you don't.
Speaker 2 (07:36):
I think what's going to happen is the wise operators
that are using AI to expedite and ease the guest experience,
make easier and more successful the guest experience success meaning
(07:57):
any number of things, right, it's not a short live
right for those operators that figure out how to make
my quest to find your restaurant, to return to it,
to order online, to get my food faster, quicker, easier,
to order in advance, to make some sort of special occasion,
(08:21):
easier to correspond, right, easier to communicate. Those operators are
going to be hugely successful. If the AI gets in
the way of my experience and lets me, as a
guest stumble or the team stumble because the training isn't consistent,
(08:43):
I think we're going to have trouble. It's that it's
going to come down to performance, plain and simple.
Speaker 1 (08:51):
Yeah, yeah, going back to this, let me bring this
back up here if I can.
Speaker 2 (08:56):
One of the easy dialogues, right, and we're seeing this
in qsr kiosks and stuff, is oh, if I want
to go one direction or another, one hundred percent AI
one hundred percent attach right, a very little human touch point.
That's a whole other dialogue. But in that, in that
(09:17):
from sit down dining to even a more in depth
fast casual experience, that's where this question is really front
and center.
Speaker 1 (09:28):
Well, and look at look at what they're saying here,
because this is the kind of an interesting statement that
he's getting at. This is a Chicago based bar guy
Hospitality works as a company. He said that AI is
going to have a substantial impact on labor costs. So
everybody's kind of been talking about that, especially in fast food. Now,
(09:49):
I get it that fast food will be kind of
the lynch pin for AI's use case because it's the
lowest hanging fruit that delivers, you know, very specific automation.
We get that, you know, in the industry, and I
can understand that, but I look at it and I
wonder because I I kind of remind myself. We did
(10:10):
a gen Z corner last week on on UH, you know,
Masterminds and.
Speaker 2 (10:17):
UH.
Speaker 1 (10:17):
It was interesting because we had an eight and a
nine year old on the show and they were talking about,
you know, the use case why they like restaurants. A
lot of it was menu driven, but some of the
things that they said was because the people were nice.
So if you take the component of that that you know,
that personal connection out, do you think gen Z's will
(10:41):
matter because they're very screen oriented already. Do you think
that they'll do they'll care do they think do you
think they will think that that matters in the selection
of a restaurant and say, hey, mom, I want to
go to Chick fil A instead of you know, Chipole
because whatever.
Speaker 2 (11:00):
Well, you know what I've found over the years with
eight nine year old kids, fifteen, sixteen year old, five
and six year olds is they have opinions as you name.
And the only driver more important than the mom or
the character and the family, oh totally, that guides more
(11:25):
than the giver are the kids themselves.
Speaker 1 (11:28):
Yeah. Well, and I think and what I'm.
Speaker 2 (11:31):
Really struck by with the data that you just shared
is here's an innate eight and a nine year old
quote that are going. Wow. I love it when somebody
says hello, welcome and looks right appy. That feels good.
Speaker 1 (11:48):
What's the most powerful you know? And especially when you
get in and this is not trained well enough, I
think in the use case for even fine dining is
and I don't know if you've seen this, well, we've
talked about it quite a bit, you know, the lack
of hospitality or the declining sentiment on hospitality. I was
at a restaurant the other night and it was the
(12:08):
first time that I truly felt like somebody had been
training these servers, because, you know, the first thing, instead
of just asking what do you want? And here's this,
they asked my name. They asked me my name, and
I'm like, hey, I'm Paul, nice to meet you. And
they must have used my name twenty times at the
(12:31):
table as if they knew me, and you know it
as well as anybody. We as humans love to hear
our name being discussed. And I think that's the question.
Can we train AI into hospitality traits? Can it be
trained into hospitality traits?
Speaker 2 (12:54):
What do you think? I think there's not even a
question about that. The answer is yes, right, it's coming.
It's going to come fast and furious. And with that
intention of actually, can I create not only that hospitality
but the connection? Right And and then then you get
(13:19):
I'm going to contradict myself here. Then we add that
aspect of pure human voice, sort of connection and tone
and intention that we translate from the tone to robotic
(13:40):
eye contact, right and and the entertainment of oh my gosh,
this is robotics in action with a human touch. Right
And in six gens from now, we're going to be Yeah,
the world. I got to share the place.
Speaker 1 (13:57):
I got to share this with you. Okay, I'm going
to bring this up up on screen because this is
going to blow you guys away. So this is the
idea that some of the stuff was at CEES. I'm
going to bring it up on screen and I'll play
the video. So that's that's a robot that we're looking
at right now, and the idea here company that's on
a mission to making humanoid robots as realistic as possible.
(14:18):
Let's check it out. Watch.
Speaker 2 (14:19):
We're gonna interview Aria and meet some of her robot friends.
Speaker 1 (14:22):
Let's get into it. Would you see this at a
hostile At the very minimum, you can probably see it
as a Aria. Could you please introduce yourself in.
Speaker 2 (14:31):
What you do. I'm Maria, the flagship female companion robot
of Rerobotics, and I'm here to engage with you and
share exciting insights about our robots.
Speaker 1 (14:43):
Let's say. So, it's not necessarily the uh, I'll bring
that off the screen here, but it's not necessarily the
most beautiful thing in terms of the visual side of things.
And it's definitely not you know, ex machiina No.
Speaker 2 (14:58):
But what is coming to mind to me? I was
trying to think of the name of the movie, and
Robin Williams, the Great Robin Williams in nineteen ninety nine
was in this movie called Bisonennial Men Ye strinted out
as a raw robot and generation after generation after generation,
(15:20):
we're going to do this way faster. But the whole
point was can I become human? Right, And ultimately the
answer became yes. So to your point that early AI
robotic that we just that you just shared with the audience, yeah,
there's first gen six gens from now, Yes, exactly, so
(15:44):
a case can be made how for this However, one
of the things that I'm sitting with is, well, wait,
it's still not human. That's one number two. Even if
we switch human to robotics AI on steroids, I've now
got to have the investment capability, albeit at a capital
(16:07):
expense capital investment, but I've got to have the cash
to go ahead and get refit my team with.
Speaker 1 (16:14):
But think about hiring. I mean, you know, really, if
you get a good person with training costs the person
itself themselves for a year, I mean you're probably at
the minimum, let's say a high level person in a
you know, in a mid range independent Okay, that's probably
a fifty thousand dollars investment at the minimum. Yeah, okay,
(16:39):
soly to replace it. Yeah, it's very possible you could
have something if we can see advancements far enough. At
the very minimum, possibly a matre d maybe a wine,
you know, a wine, yeah, possibly a psalm, you know,
I mean, can you imagine the knowledge that could be
funneled in via AI into this Yes, around AI, I'm
(17:00):
using I know, I'm using AI more now when I'm
at the restaurant than ever because I want to find
out about a wine and then it gives me three
or four more derivatives off of that wine, and I
look like I'm you know, I'm master summa. Yea, I'm
ordering ordering wine. So I just see those benefits being there.
But again, I just wonder if the connection between hospitality
(17:23):
is going to be lost, and that that's the whole
thing I'm worried about.
Speaker 2 (17:26):
I think that that's the magic That is totally the
magic question, Paul, And I wonder how it's going to
actually add incentive because I think the I think that
our customers, our guests, are going to be the drivers
of this as much as the operators.
Speaker 1 (17:44):
Yeah.
Speaker 2 (17:45):
I really miss human contact.
Speaker 1 (17:49):
Yeah, And what I was showing right there is this
whole idea around personalization. Okay, because if you if you
think about the use case it could be centered around,
which is what the article is saying, is that personalization
is it's always been the heart of hospitality. So the
difference now is can it get personalized at scale. And
(18:12):
if it can, then how much of the industry can
it truly take away that is human operated right now?
Or is it a scenario that allows an operator maybe
just to scale their business more with the human side
of it and adding the AI layer only makes them bigger,
(18:34):
more efficient, etc. Do you think that is going to
be the route that operators take.
Speaker 2 (18:39):
Well, here's so back full circle to your the experience
you shared with us just a few minutes ago about
the restaurant you were just at where the staff used
your name twenty.
Speaker 1 (18:52):
Times, right, it was crazy?
Speaker 2 (18:54):
What is wild with what you shared and just watching
your body language right in your tone voice as you
shared that experience with us in the audience. For a
human being to do that is a choice, yeah, whether
it's the owner's choice and the training, but its owner
(19:14):
to staff choicefulness. And with robotics, even AI generated that
is robotic, it is programmed, right, and maybe there's little difference. However,
I think at least still, whether it's a little kid
(19:37):
or a grown adult or all the gens in between,
the choicefulness of using the most important word in the
English language or any language, which is your name right
by choice is different than just programmed, at least for
(19:58):
a while. I I think this is going to be
one of the great questions you and I are going
to be talking about over the next twenty years. I
really swear to God.
Speaker 1 (20:08):
Well. And it's interesting because the psychological effects. Here's an
article right here that gets into this about where AI
could trigger a lot of you know, side effects of
you know, just the case and use of it. A
lot of people are still concerned that there might be
this regressive nature of the human species, so to speak.
(20:30):
But you know, you look at everything from predictive modeling,
you know, then you have the side effects within you know, organizations,
you know, which could be the supply chain, operational challenges
in back office, all those kind of things that are different.
Much less of just the mental health versus the environmental
(20:51):
health of how AI might be used, because AI is
not necessarily in a position where it's going to say, yeah,
i'm you know, because food safety is concerning, right you
get a robot in there. It could care less if
it's been contaminated. Does it really know? That's the question
mark that is going to be questioned. I think when
(21:12):
you get into back of house use case going forward,
especially around this issue.
Speaker 2 (21:17):
Well, I would agree with you. And if some operators
are out there and are already not maintaining equipment or
not maintaining or implementing human training, staff training, safety, sanitation, right,
what it's going to say that they will do that
maintenance and repair on their tech stacks and their equipment,
(21:43):
robotic equipment, same deal, Right, I think there's still discipline
and choice. So there is a light and shadow issue
with both sides of the equation. Right.
Speaker 1 (21:56):
I saw some of the robots being done by Boss
and Dynamics will show some on screen, but they had
one that was like a horse robot that was traversing
a whole, you know, very unusual landscape. And I'm thinking,
if one of these things goes awry, this could be dangerous.
(22:17):
You know, imagine that in the back of house if
you had something that is you know, that could go awry.
And again, I'm still concerned that we're we're so new
into this era. And my concern is because of the
massive demand of the industry trying to kind of resolve
the workforce issue that we have and the issue of hospitality,
(22:40):
is that maybe the industry rushes to get something out
and for whatever reason, whether it's a physical problem or
a problem where it's overlooked food safety or you know,
maybe other staff safety, whatever it might be. I'm just
wondering if we will run into something like that before
we get to a level of you know, it's kind
(23:03):
of like the I robot concept that.
Speaker 2 (23:04):
Well exactly, and or self driving automobiles or self driving
which I still don't trust they're exactly trusting to be.
There are going to be res There are going to
be as many recks as there are successes in the beginning.
You know. The other thing that comes to mindy me
just to be playful with you in this dialogue, as
you and I often are of I wonder how the
(23:29):
opportunity of this dialogue also looks. Here's a session. A
part of the dialogue we rarely talk about is what
if this onslaught of AI and the adaption adoption of
AI and tech is coming right, which it is, we
(23:50):
both acknowledge that. But with that modality, what if the
whole concept of capitalism became such that by actually investing
in humans, we actually and creating open books, profit sharing
to drive performance into top line sales, right, building check averages,
(24:15):
building frequency, trial by creating these amazing guest experiences of
human AI generated right together, we create frequency that takes
topline sales exponentially and bottom line performance. We start performing
(24:39):
with one hundred sets of ownership eyes instead of one
owner or of the team you know, two founders.
Speaker 1 (24:45):
Well that's see. That to me is where AI I
think is going to be utilized because it's it's like
our own business. We utilize it on a very frequent basis,
but it's adds. It is as an augmentation to the
talent of individuals, whether it's designers, creators, editors, writers, they
bring a certain understanding that is at least at this stage.
(25:08):
I mean in a decade, I may not say that,
but right now, at this stage, it requires that nuance
that a human brings that creates it.
Speaker 2 (25:17):
Now.
Speaker 1 (25:17):
It's not to say that we don't get to a
stage in our life here very shortly where AI has
been able to challenge that. I don't know if you've
done this recently, but I've done this a couple of times.
I've had very specific conversations with perplexity because there's a
voice option with it, and I've had very specific almost
(25:39):
debates with perplexity and it is often around the use
case of AI, the pitfalls of it. But it's interesting
to me is that perpetually doesn't necessarily land on the
side of AI. In fact, what it talks about is
that this is still too early to know. Oh, and
(26:01):
that you know, extreme safety should be taken care especially
and it's not beyond physical safety, it's the mental safety. Yeah,
it's going to affect you know people. Yeah, so my
last question to you is culture. Yeah, well, so you've
got you're you're an operator. You said, Yeah, I'm gonna
put robots in here, or I'm going to put back
(26:22):
a house you know, AI in here, or I'm going
to give you an AI tool that's going to basically
look over your shoulder. How do people respond to such
a thing?
Speaker 2 (26:33):
Well? There again, I so where I was heading, You
and I are on the same frequency, right, I was
about to go from a culture place driving brand If
culture actually drives brand right, what we believe, how we
believe it, how we implement what we believe that is
(26:54):
brand right driven by culture. And so to me, the
immediate question becomes, do I if I'm the owner, if
I'm the founder, and I'm asking the questions that you
and I are asking, do I have people on my
team that are going to be threatened by AI or
(27:15):
excited by it? Right? Is to your point of oh,
I want to learn more about wine. I want to
learn more about fish right, or meat varieties or non
meat proteins right, And I can create we can create
an educational platform and delivery platform of that education to
(27:37):
our guests. Sure that then culturally becomes guess what, We're
a leadership institute that looks like a restaurant. We're a
communication center, education center that looks like a restaurant, sharing
with our guests and all of us are growing. How
cool would that be? And so then that coms I
(28:01):
as the owner, What am I looking for in an applicant? Right?
Are you threatened or excited with this technology? And we
and we are using the technology and we believe in people,
So that.
Speaker 1 (28:13):
Well, I guess it also would depend on what kind
of applicant you're hiring, because you may you may end
up hiring a SEUs chef that is like, listen, we
have a kitchen AI assistant and it's there to basically
help you with supply chain. You know, so for whatever reason,
you know, you're out of whatever, or you're you're seeing
a certain load of more of this menu versus that
(28:36):
menu item, and a sous chef has to now not
worry so much about inventory, but now worries more about execution. Okay, Now,
granted there is nuances to inventory management, especially in a
you know, a high end restaurant, because you know the
difference between a duroc pork shank and a chest white
(28:56):
pork shank is a significant one. Can a can AI
figure that? And I think I'm looking at a sous
chef and I'm thinking, oh, these guys may be and
ladies maybe the worst ones to work with AI in
a kitchen.
Speaker 2 (29:11):
Well what in an interview, in an interview or in
an onboarding with the existing team that one's got, what
a great dialogue to have about what's your comfort zone
with this?
Speaker 1 (29:26):
Now are willing to take?
Speaker 2 (29:28):
Yeah, yeah, hey, you've got this long track record or
your brand new to it doesn't matter what if I
told you we're going to give you this AI tool,
tell me your experience right and this now that technology
technology question becomes part of the incolocation into the brand right.
(29:52):
And for those owners and leaders that choose not to
play there, they do so at their own demise.
Speaker 1 (30:02):
Yeah, I think we're going to see a huge implementation.
I've had this discussion with many people on our other
show over on PBN and if you guys want to
check that out, go to Paul Baron Network on YouTube.
Speaker 2 (30:14):
You'll see it.
Speaker 1 (30:14):
But we get into a lot of what's happening in
the gaming sector, and the gaming sector most likely will
dictate how other interactions with consumers will work, including commerce yep.
And one of them is going to be in food
ordering and food delivery, so like almost like third party.
(30:35):
But they have these tools that are basically a voice
led AI agent, So you no longer go out and
pick the restaurant. You no longer go out and pick
the timing or even look at a menu. The agent
you're interacting it with it. And we showed a clip today.
I'll probably try to drop this clip in from Byte
(30:56):
Technology and it's a consumer that says, hey, I'm hungry
for a pizza, something creative and also some surprise me
with a dessert of some sort o cay. Imagine that, Yeah,
that's the voice command, and you know, a little bit later,
a pizza shows up. Very unique construct from a brand
(31:18):
that the AI selected with a dessert that was unanticipated.
So you've just created an experience if you think about that.
Speaker 2 (31:30):
Well, how often, especially in more high end restaurants, but
frankly even in family dining. We'll go in and the
coolest thing there is to do is say, let the
chef just decide what we should.
Speaker 1 (31:45):
Have exactly, Yes, give.
Speaker 2 (31:48):
Us the best stuff on the menu. Go and if
we can trust AI and it could be done in
a playful, engaging way. How cool? Right? Yeah, for sure,
I would love I would love to see the chef
come out and talk to us afterwards and go, hey,
how did that work?
Speaker 1 (32:08):
How does that work?
Speaker 2 (32:09):
Yeah?
Speaker 1 (32:11):
Well the cool thing is that, Yeah, you've got a
lot of news, Yeah, very new use cases that are
going to be out there in the industry. Listen here
on this show, we're going to be covering AI lot.
We have Rudy on occasionally, we'll get some experts on
to really give you guys a guidebook on maybe how
to deal with this. And I think culture, the idea
(32:31):
of how consumer reception is going to be as well
as adoption in what areas within operations are going to
be very very interesting in the coming years. So Rudy,
look for another conversation on this topic. Thanks for coming
in today.
Speaker 2 (32:45):
We'll look forward to it. Thanks for, as always, for
having me on the show. And remember that culture drives brand,
including all the money. Yeah, right, there you go.
Speaker 1 (32:57):
All right, you guys, make sure and subscribe to the
show if you're not, And of course, if you're watching
us over on YouTube, just drop alike right now. A
comment always helps, and you can catch us over on
saver Fm. If you're listening to the audio podcasts and
you want to catch out the video, just search saver
fm on YouTube. If you're on the other side, just
search the Restaurant Report. You'll find us over on Spotify
(33:18):
and Apple iTunes and all those kinds of cool places.
All right, we'll catch you next time right here on
the Restaurant Report.
Speaker 2 (33:24):
Take care,
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