It seems like artificial intelligence (AI) technology is popping up everywhere, from Google searches and social media videos to the workplace. Now, diners at Applebee’s and IHOP can expect AI to be part of their dining experience.
The Wall Street Journal reported this week that Dine Brands, the Pasadena, Calif.-based parent company of both casual dining chains, is adding “AI-infused tech support” for all of its franchisees, as well as an “AI-powered personalization engine,” citing Chief Information Officer Justin Skelton. Overall, Dine Brands has more than 3,500 Applebee’s, IHOP and Fuzzy’s Taco Shop locations and 300 franchisees.
Skelton explained that tech support helps franchisees deal with issues such as broken printers that might seem small but can cost restaurant employees valuable time and impact customer experience. According to The Wall Street Journal Dine Brands’ AI tool, which was built with Amazon’s Q generative AI assistant and it “allows the company’s field technology services staff to query its knowledge base for tech help using plain English, rather than needing to manually search for answers.”
As for the personalization engine, the outlet said it uses generative AI to automatically recommend new or additional items to customers. To do this, the AI uses the customers’ past purchases or the purchases of similar diners. Skelton noted that IHOP already has a wealth of customer knowledge from its loyalty program.
Amazon is another business that announced plans to ramp up its use of AI this month. Andy Jassy, CEO of the tech giant, said in a message that Amazon does plan to reduce its workforce as it relies more on AI.
In the case of Applebee’s and IHOP, more AI could also mean less employees.
“One promise of AI is that it can make fast-food and casual-dining restaurants more automated, lessening the need for human labor and speeding up the work of existing staff,” The Wall Street Journal said. Brad Jashinsky, a director analyst at Gartner focused on retail, travel and hospitality cited by the outlet, said that offsetting labor costs could provide restaurants cost savings.
Already, fast food chains such as Wendy’s and McDonald’s have looked to utilize AI in their operations. However, The Wall Street Journal noted that Wendy’s attempt was met with backlash.
Overall, Skelton said the goal for Dine Brands is to use AI to increase customer loyalty. CNBC reported earlier this year that the company was looking to boost sales after its fourth straight quarter of domestic same-store declines for both Applebee’s and IHOP.
Other uses of AI that the company is considering include adding AI to servers’ tablets and tablets that customers order from in the next six months, using AI-powered cameras to detect when tables need to be cleared, and creating an AI app for restaurant managers to help oversee operations.
“Dine Brands declined to say how much it is spending on technology,” The Wall Street Journal said. “Skelton said most of Dine Brands’ AI and tech initiatives are carried out with the help of third-party vendors.