A Deloitte survey sheds light on the state of AIreadiness and adoption across the industry Deloitte Consumer Industry Center 02 . . . Introduction03 . . . Expectations for AI spend and benefits are high06 . . . Adoption is expected to come in waves10 . . . A deeper look at specific technologies13 . . . Lacking in readiness15 . . . Multiple challenges to overcome19 . . . Investing with confidence20 . . . EndnotesTable of contents Introduction The worldwide AI market is expected togrow to over US$631 billion by 2028from US$235 billion in 2024.1 Howmuch of that growth is likely to occurin the restaurant industry? It could be ahealthy amount, based on the findings ofDeloitte’s State of AI in Restaurants Survey of 375 restau-rant executives across brands and operators located in11 countries (see methodology). •Adoption is expected to come in waves.Whilerestaurant companies have invested in areas withpotential for high return on investment whereproven technologies exist, they are also exploringemerging applications. •Identifying the right use cases and managing risksare top challenges.Other obstacles to AI deploy-ment among respondents include a lack of technicaltalent and skills, concerns about compliance withregulations, and a lack of governance. Findings from the survey indicate that the industry isembracing AI, changing the way work is performed andrestaurant experience is delivered, with great potential todo more in the very near future. We set out to understandAI aspirations, expectations, usage, and readiness byrestaurant type, entity profile, and geography. Some ofthe key takeaways across these groups are: •Most feel underprepared for AI adoption.Acrossall brands, most respondents say their organizationslack readiness when it comes to strategy, operations,technology infrastructure, and other enablers; Asiastands out as the most prepared region. •Expectations for AI expenditure and benefits arehigh.Eight in 10 restaurant executives surveyed saytheir investments in AI technologies will increase inthe next fiscal year, with expected benefits such asenhanced customer experience, smoother restaurantoperations, and more impactful loyalty programs. We also uncovered interesting nuances in how AIperspectives differ across restaurant executives whenwe analyzed them by respondent cohort—operators,brand representatives, quick service restaurants, casualbrands, and across different global regions. As restaurantcompanies around the globe work to ensure that theirorganizations are ready for AI adoption, they shouldbe able to draw inspiration from leaders in this space.In addition to reporting the findings of our survey, wecapture some of the leading practices being put in placetoday to help increase the probability that AI investmentswill generate value in the future. •Restaurants are already seeing results.AI use casessuch as customer experience and inventory manage-ment, which have seen high adoption rates amongrespondents, are generating economic value. Expectations for AI spend andbenefits are high I has captured the interest and imagina-tion of business leaders worldwide, andrestaurant executives are no exception.In our survey, the respondents indi-cate plans for AI adoption, along withhopes for what such investments willhelp them achieve. When asked how they expect their organization’s invest-ment in AI technologies to change in the next fiscal year,73% of those surveyed say they are likely to increasesomewhat, while another 9% predict it will increasesignificantly (figure 1). Only 2% forecast a decrease. Figure 1 8 in 10 executives say their organization’s AI investments are increasing next year Question: How do you expect your organization’s investment in all AI technologies to change in the next fiscal year? Notes: n = 375 restaurant executives from 11 countries. About half of the respondents consider themselves early adopters. Among those earlyadopters, about 16% expect spend to increase significantly, versus 9% for all respondents as a whole. Restaurant executives expect those investments to yieldnumerous benefits in the future. When asked to picktheir top three, enhanced customer experience emergedas the clear leader, listed by 6 in 10 respondents (figure2). Thirty-six percent expect AI to improve their restau-rant operations, loyalty programs, and procurement and supply chain management. A smaller but significantcohort (at least 2 in 10) believes AI will strengthen theirdigital marketing efforts, optimize food prep and wastemanagement, enhance crew experiences, and help themdevelop new products and concepts. Figure 2 Respondents listed customer experience, operations, and loyalty programs as areas wherethey see AI benefiting them the most Question: What are the top three overall benefits your organization hopes to achieve through AI efforts? benefits from improved procurement and supply chain,and optimizing food prep and waste management madetheir top five, unlike their counterparts