AI Transforms Applebee’s and IHOP

Applebee’s and IHOP are undergoing a major digital overhaul, with AI set to transform operations across 3,500 locations. This integration aims to boost efficiency, personalize the dining experience, and support staff amid industry shifts.

In the unassuming realm of pancakes and burgers, a silent revolution is brewing, poised to redefine the very essence of casual dining.

The familiar comfort of Applebee’s and the iconic stacked plates of IHOP are set to become the unwitting laboratories for a sweeping integration of artificial intelligence, a move that signals a profound shift not just for these beloved chains, but for the entire restaurant industry.

Dine Brands, the parent company overseeing these culinary behemoths, is not merely dabbling in AI; it’s orchestrating a comprehensive digital overhaul.

With a rollout planned across 300 franchisees and a staggering 3,500 stores, the scale of this ambition is immense.

As Justin Skelton, Dine Brands’ Chief Information Officer, candidly put it to the Wall Street Journal, “AI is moving quickly, and I believe it’s going to be embedded in everything we do.”

This isn’t just about adopting new tech; it’s about fundamentally embedding intelligence into the operational DNA of a vast food service empire.

The initial applications of this AI infusion are as varied as they are strategic.

On the back end, a crucial but often overlooked aspect of restaurant operations is getting a significant upgrade: tech support.

Field service staff, typically navigating complex databases with manual searches, will soon leverage AI-powered tools that respond to natural language queries.

Imagine a technician troubleshooting a faulty fryer, simply asking a digital assistant for solutions, rather than sifting through endless manuals.

This seemingly minor enhancement promises to drastically cut down on resolution times, ensuring smoother operations and less downtime for critical equipment, directly impacting customer service by keeping kitchens humming.

But the AI push extends far beyond the kitchen’s back door.

The more visible, and perhaps more intriguing, aspect of this deployment is the “personalization engine.” This sophisticated system will analyze diners’ past purchases, preferences, and potentially even their browsing habits on digital platforms, to craft tailored recommendations and customized promotions.

The days of generic upsells might be numbered, replaced by an invisible hand guiding diners towards items they’re genuinely likely to enjoy, or deals that feel uniquely designed for them.

IHOP, in particular, has already laid groundwork for this, having partnered with Google Cloud in August 2023 to infuse AI into its online ordering experience, making digital discovery of new favorites seamless and intuitive.

The vision doesn’t stop at digital recommendations.

Dine Brands is actively working to integrate this personalization engine directly onto the tablets used by servers and, eventually, by customers themselves.

Picture a server’s tablet not just taking an order, but subtly suggesting a dessert based on your entrée choice, or a customer’s table-side device offering a discount on that extra side of bacon it knows you love.

The future also includes AI-powered cameras designed to detect when a table needs clearing – a small but significant detail that can dramatically improve table turnover and cleanliness.

And for the harried restaurant managers, a new AI app is in development, promising to streamline day-to-day tasks like staffing, inventory, and scheduling, freeing up valuable time for human interaction and problem-solving.

This aggressive adoption of AI is not happening in a vacuum.

It’s a direct response to a seismic shift in the broader restaurant landscape, exacerbated by persistent staffing shortages that have plagued the industry in recent years.

The human element, while irreplaceable in many aspects of hospitality, has become increasingly scarce and expensive.

Technology and automation are stepping in to fill the void, not necessarily to replace staff entirely, but to augment their capabilities and shoulder the more repetitive or data-intensive tasks.

A PYMNTS Intelligence and American Express collaboration, “Why More Restaurants Need to Bite Into Digital Transformation,” underscored this trend, finding that a remarkable 67% of establishments utilizing automation reported direct benefits to their diners’ experiences.

The success stories are mounting across the sector.

Chipotle, a quick-service chain known for its digital prowess, reportedly slashed its hiring time by a staggering 75% after adopting an AI hiring platform.

And SoundHound AI, a leader in voice AI solutions, announced last November that its technology had been deployed by seven of the top 20 quick-service restaurants, handling everything from drive-thru orders to kiosk interactions and supporting staff.

These examples paint a clear picture: AI is no longer a futuristic concept but a tangible, results-driven tool being wielded by industry leaders to gain a competitive edge.

What does this mean for the average diner, or for the thousands of individuals who make a living within these establishments?

It means a dining experience that is subtly, yet profoundly, different.

It means quicker service, more personalized interactions (even if driven by algorithms), and potentially, a more consistent level of quality as operational inefficiencies are ironed out by intelligent systems.

For employees, it could mean a shift in their roles, from purely transactional to more focused on genuine hospitality, with AI handling the mundane.

The balance between the human touch and the efficiency of the machine is the delicate tightrope restaurants are now walking.

As Applebee’s and IHOP embark on this ambitious journey, they are not just upgrading their technology; they are participating in a grand experiment to redefine the very fabric of casual dining.

The sizzle of the steak and the fluff of the pancakes may remain the same, but the intelligence behind their journey from kitchen to table will be undeniably, and invisibly, transformed by the pervasive power of artificial intelligence.