According to recent research conducted by SevenRooms, AI is being used for several purposes in 85 per cent of Australian pubs and other venues.
AI is utilised across areas such as pricing, customer engagement, inventory management, staff training, menus and other data analytics, as well as reporting.
While this does not replace the intuition and experience of publicans, AI can provide a wealth of information by turning data into clear, easily understood actionable accounts.
In turn this can assist to streamline processes and improve decision making as well as the efficiency of operations.
According to Paul Hadida, General Manager, APAC GTM at SevenRooms, when it comes to menus AI can assist in deciding appropriate price points.
“AI has enormous potential when it comes to dynamic pricing, not just at a particular venue, but across a group, too. One Melbourne-based hospitality group is focusing on price elasticity across its portfolio, enabling it to be more nuanced with how it approaches pricing.
“Rather than rolling out one-size-fits-all prices across every venue, AI is enabling it to understand where pricing changes might negatively or positively impact volume,” he stated.
AI is also useful in taking on time-consuming customer engagement tasks, such as in-context responses to inquiries, reservations and reviews.
AI has the ability to analyse reviews to find common issues, such as feedback on service or a menu.
In fact, AI can analyse menus in terms of sales and profit margins of each dish or drink, and an item’s contribution to the pub’s revenue.
This gives the venue the ability to reduce waste and increase operational efficiency.
Hadida pointed to the issue of the rising demand for alternative menu options.
“If there’s not enough variety in a menu – whether drinks, food or both – AI can inform greater menu diversity.
“Many publicans have been doing it tough in recent years, but by ensuring they have a diverse menu, they open up a bigger potential audience to include the millions of Aussies who consider themselves vegans or non-drinkers,” he said.
Ultimately, AI empowers publicans to remain competitive in a challenging environment, driving both operational improvements and customer satisfaction.
