Who doesn't dream of living a personalized experience worthy of the great Star-level restaurants during a weekend at a grand hotel or while attending a match of their favorite professional team? The use of AI in the F&B hospitality industry now allows this level of experience in a high-volume context by maximizing the use of data. AI in F&B is not just a trend; it is a strategic tool to offer premium experiences and innovate to increase revenue. By combining customer preferences, contextual data, and product offerings, AI enables the structuring of ultra-personalized offerings desired by the clientele. AI is the technology of choice to achieve this transformation in the F&B hospitality universe. It revolutionizes how an F&B establishment operates and interacts with its customers.
Here are 9 reasons why AI should be at the heart of your F&B hospitality strategy to offer a premium experience:
- Long-Term AI Strategy
Long-term AI strategies are considered the best because they integrate data acquisition, which is key to making informed decisions. Several studies demonstrate that adopting a strategy where significantly increasing the number of high-quality SKU has a major impact on customer perception. Offering a rare Burgundy wine to a client seeking such an experience in a high-volume context can make a significant difference and have a major impact on revenue without needing to increase selling prices. Equipping oneself with technologies to effectively manage long-tail offerings can increase revenue by 15 to 20%.
- Personalized Experience for Customers
AI can help personalize the experience for each of your customers in a high-volume context, using their preferences and order history, among other factors, to tailor offers and menus. Based on customer-collected information and external factors such as demographics, weather, and peak hours, AI can determine different approaches in terms of service or product offerings and optimize business performance.
- Dynamic Display
Regularly changing prices can pose a risk to the organization's reputation, but adopting dynamic display to offer the right product to the right customer can prove very profitable in terms of both customer satisfaction and sales. AI relies on predictive analytics to vary the display of dynamic menus based on customer profiles. By offering better-suited choices to the right customer, we can improve satisfaction and increase average spend by 15 to 20%. Dynamic display can, depending on context, consider consumer food preferences, local events, or even weather. Limited inventory quantities are a headache, the risk of running out of stock is important, and customer dissatisfaction even more so. By offering in dynamic display the product to a limited number of people, we control the quantities, give ourselves the possibility of introducing niche products, local preferences, and adjusting the offers for greater profitability.
- Operational Efficiency
AI has been helping for a few years in areas such as inventory management, purchasing, and staff planning to optimize operational workflow. By analyzing company data with AI, we can minimize repetitive tasks that no one wants to accomplish today. AI accurately organizes data and eliminates errors by automating, for example, purchases and minimizing exhaustive inventories by replacing them with audits. Managers can focus more on high-value-added tasks, such as improving the customer experience.
- Anomaly Management
The time when bar employees had to weigh bottles with a scale or measure residual with a ruler at the end of their shift is over. By using AI to control sales and purchases while taking inventory into account, it is possible to detect anomalies in management and adopt exception management methods that will lighten operations without abandoning controls. With a powerful database that can adequately recognize products, it is possible to implement effective controls that are much less cumbersome and more economical.
- Predictive Demand Analysis
Based on various data such as history, event types, weather patterns, and other local factors, AI provides accurate forecast analysis to help businesses better predict demand for goods and services. This is important because the hospitality industry focuses on selling the right products at the right time, with the ideal staff to serve these customers. AI helps avoid product shortages while optimizing operational processes.
- Real-Time Information
All managers face the challenge of having to make decisions quickly, and AI helps speed up reaction times in areas such as sales performance, consumer behavior, and operational metrics. Analytical data analyzed by AI opens the door to features that help managers make informed decisions on the spot and even provide advice on how to make the best management decisions during various operations.
- Dynamic Pricing
AI algorithms use consumer behavior and market dynamics to recommend pricing models and key prices for a given event. As data is collected, AI helps optimize revenues. Managers can differentiate products, propose new offers, and increase margin per item sold based on the present clientele.
- Competitive Advantage and Innovation
F&B hospitality companies using AI position themselves as innovators in the industry because it helps provide premium experiences and use automation to add value to guests during their visit. AI has the potential to transform the hospitality industry by enabling personalized service in a high-volume context.
