Effectively managing food and labor costs remains one of the most pressing challenges for restaurant operators today. Recent findings from the National Restaurant Association’s 2024 State of the Restaurant Industry Report highlight just how critical these issues are:
A staggering 98% of operators identify rising labor costs as a major threat to their business success, while 97% point to soaring food costs as a key barrier to profitability.
Given the significant strain these challenges place on restaurant operations, many operators are increasingly turning to innovative back-office solutions to drive profitability and improve their bottom line. Artificial intelligence is playing a growing role in this shift, streamlining complex tasks like inventory and labor management.
A key development in this space is the first live integration between a spatial AI inventory management system and a back-office provider – PAR OPS and NomadGo – a robust, end-to-end solution that automates critical back-office functions like inventory management.
Our recent webinar, From Chaos to Clarity: Transforming Restaurant Operations with AI, highlights this emerging technological trend and how restaurant operators are using AI to tackle rising food costs. Featuring Russ Jones, Chief Information Officer at Amirian Management Company, Kevin Rood, Vice President of Product at PAR OPS, and Jonah Friedl, Co-Founder and Chief Product Officer at NomadGo, the session dives into how AI-powered back-office solutions are transforming restaurant operations and driving efficiency. Amirian Management Company has already adopted this solution, leveraging the seamless data flow between the two platforms to cut inventory counting time in half, enhance operational insights, and allow managers to focus more on customer-facing tasks.
Here’s what our experts shared about how these AI solutions are reshaping the future of restaurant management:
- AI’s Role in Addressing Key Back-Office Challenges
Rising food and labor costs are forcing restaurant operators to rethink how they manage their back-office operations. Traditional approaches to labor scheduling, inventory tracking, and cost control are no longer sustainable in an industry where margins are razor-thin and operational complexity continues to grow. AI-powered solutions like PAR OPS and NomadGo are stepping in, providing restaurant teams with real-time data and automation tools to make informed decisions.
As Russ Jones put it, “At the end of the day, restaurant operators are running highly complex production and fulfillment centers. You must balance food prep, labor, ordering, and multiple revenue streams – all while ensuring consistency. AI allows us to be more efficient and accurate in that process.” By eliminating guesswork and automating routine tasks, AI solutions allow restaurants to save time on administrative work and refocus on guest experiences and profitability.
Building on this shift, Kevin Rood emphasized the growing reliance on data-driven decision-making: “We’re moving away from gut-feel decisions and manual data entry. AI allows operators to be proactive, to spot trends before they become problems, and to act on real-time insights rather than historical data.”
- Automating Inventory Management for Greater Accuracy
Inventory management is another critical area where AI is making a significant impact. Traditional methods are not only time-consuming but also prone to human error. With AI-driven tools like the PAR OPS and NomadGo integration, inventory management is streamlined, more accurate, and less labor-intensive.
Before adopting these solutions, Amirian Management Company spent hours each week manually counting inventory and verifying stock levels. “With AI tools like NomadGo and PAR OPS, we’ve cut that time in half while also improving accuracy,” said Russ Jones. The efficiency gained through these tools not only saves valuable time but also reduces the risk of costly mistakes.
This integration has empowered Amirian Management Company store managers to use tablets or mobile devices to complete inventory counts, eliminating the need for paper-based tracking and manual data entry. The process is more efficient and reduces errors, as real-time updates are automatically synced with the system. Automated alerts also notify managers when stock is running low, enabling them to place orders ahead of time, rather than waiting for stockouts to occur. This foresight helps prevent stockouts and over-ordering, leading to better control over inventory levels and ultimately, healthier profit margins.
- Looking Ahead: AI’s Future in Restaurant Operations
As AI continues to evolve, restaurant operators can expect even more advanced capabilities in forecasting, automation, and customer engagement:
- AI-driven forecasting will help restaurants better predict demand, allowing for smarter labor and inventory management. With this functionality available in PAR OPS this year, brands can leverage real-time data to optimize staffing, reduce waste, and improve performance.
- Chatbots and automation tools are also on the rise, streamlining everyday tasks. These systems can handle customer inquiries, reservations, and even process orders, freeing up staff for more critical tasks. As these tools advance, they will take on more responsibilities, making operations even smoother.
- Smart menus and dynamic pricing are set to revolutionize how restaurants maximize profitability. Powered by AI, these innovations refine menu layouts and pricing strategies by analyzing sales data, market trends, and customer behavior. Soon, AI will enable real-time dynamic pricing, adjusting menu prices instantly based on competition, demand, and customer preferences, optimizing profitability in every transaction.
