Restaurants develop a taste for AI as economic outlook sours

Restaurants have generally had a rough start to the year as consumer spending shifts and potential trade policy changes continue to threaten momentum. The industry is searching for answers amid the volatility, with major chains looking to automation and AI to boost efficiency and increase productivity.

BJ’s Restaurants, Cracker Barrel and Bloomin’ Brands continue to explore, test and deploy AI as they pursue better forecasting capabilities and experience upgrades for customers and employees alike. 

Cracker Barrel is testing AI-powered personalization capabilities as part of its rewards program, among other use cases. 

“We are encouraged by the results as it has driven a mid-single-digit lift in average revenue per member compared to control,” CEO and President Julie Felss Masino said Thursday during the company’s Q3 2025 earnings call. “We’re also using AI in other ways as part of our broader efforts to improve efficiency and effectiveness.”

The Tennessee-headquartered chain’s AI-powered traffic forecasting model has improved accuracy and labor management, according to Masino. Guest relations received an AI boost, too. Masino said the technology has sped up the time to resolution and made getting in touch with a live representative when needed quicker by triaging calls. 

“Finally, we’re using machine learning to bolster our cybersecurity,” Masino said. “These are just a few examples, and we continue to evaluate opportunities to incorporate AI-based technology into our toolkit to positively impact the business.”

With just under 660 locations across 44 states, the company saw total revenue for the quarter tick up 0.5% year-over-year to $821.1 million. Comparable store restaurant sales sustained positive growth for the fourth consecutive quarter. 

The experience intersection

Similar to other industries, restaurateurs have long been beguiled by different forms of automation — finding some more useful than others. As AI hype has dissipated, the industry is favoring results-driven deployments rather than flashy innovation, Restaurant Dive reported from the National Restaurant Association Show 2025  in Chicago last month. 

BJ’s Restaurants is considering broadening its deployment of AI-powered forecasting and workforce planning in the year ahead after reporting improvements in labor scheduling and guest sentiment. The company expanded pilots to some restaurants in Texas and Northern California. 

“It’s all about having our team members in the right place at the right time to wow our guests,” Lyle Tick, who took on the CEO and president role at BJ’s Thursday, said last month during the company’s Q1 2025 earnings call. “We will continue to calibrate and scale throughout 2025, but we believe we have a definite opportunity going forward.”

The company, which operates more than 200 locations across 31 states, saw total revenue increase 3.2% year-over-year to $348 million during the quarter. Comparable restaurant sales increased 1.7% during the same period.

The intersection of guest and employee experience highlighted by BJ’s executives is also top of mind for Bloomin’ Brands. 

The Florida-headquartered company operates more than 1,450 restaurants across its four brands, which include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse and Wine Bar. 

“We’re obviously always looking at technology that helps them to do their jobs simpler, faster, easier that also delivers a great guest experience,” CEO Michael Spanos said in February during the company’s Q4 2024 earnings call. 

The company promoted Gagan Sinha to the CIO role in September after previously serving as SVP of technology. In a press release announcing the appointment, Spanos credited Sinha’s ability to help the company optimize experiences.

Bloomin’ Brands has been rolling out a new point of sale system across Outback restaurants to enable a quicker feedback process and enhance experiences for customers and workers.