Chinese restaurant chains use AI to cut waste and labor costs

In short: Large Chinese restaurant chains are using AI to run kitchens and dining rooms more efficiently, aiming to reduce food waste and staffing costs.

What's going on

Chinese restaurant operators are starting to use artificial intelligence, meaning software that learns from data and helps make decisions, in everyday restaurant work. The goal is simple. Serve more customers with the same space and staff, and throw away less food.

Haidilao, a major hotpot chain listed in Hong Kong, is one example. It uses AI to review video from its restaurants to estimate how far along diners are in their meal across more than 1,200 locations. That helps the company turn tables faster, like a smart timer that can guess when a table will free up.

Haidilao also uses robots to bring dishes from the kitchen to tables, plus automated kitchen machines for repetitive prep work. It also uses “intelligent” inventory systems, which are tools that help track ingredients so restaurants order closer to what they will actually use.

Yum China, which runs KFC and Pizza Hut in China and has more than 19,000 restaurants, is doing similar work. It uses AI assistants for scheduling, inventory, and food safety tasks. It also uses AI to help choose new locations, predict sales so stores restock at the right time, and plan deliveries based on traffic.

What to watch

The Financial Times points to early financial results that may reflect these efforts, while noting AI is not the only reason. Haidilao’s overseas unit, Super Hi International, reported a restaurant-level operating margin of 10.7% in the first half of this year, up from 6.4%. Yum China reported an 11.1% operating margin in the second quarter, its ninth straight quarter of improvement. Investors will watch whether more traditional businesses adopt similar tools to squeeze more value from existing restaurants.

Source: Financial Times