New AI-Powered Dining: How Applebee’s & IHOP Are Transforming with Automation

Dine Brands—the parent of Applebee’s, IHOP, and Fuzzy’s Taco Shop—is rolling out a sweeping AI strategy across its 3,500+ restaurants. From behind-the-scenes tech support to front-of-house personalization and smart‐camera experiments, the chain aims to boost efficiency, engage guests more deeply, and stay ahead in an increasingly digital dining landscape.

1. AI-Driven Tech Support for Franchisees

Over 300 franchise operators will gain access to an AI “help desk” powered by Amazon’s Q assistant. Instead of waiting on hold, managers can troubleshoot equipment glitches—like grill malfunctions or POS errors—via conversational prompts. Early pilots report:

• Faster resolution (average downtime cut by 30%)
• Reduced support costs (fewer field-service calls)
• Predictive alerts: AI flags sensors out of spec before they fail, scheduling maintenance proactively.

2. Personalized Promotions with Generative AI

Co-developed with Amazon’s AI team, a new engine analyzes guests’ past orders, loyalty data, and regional trends to deliver tailored offers:

• Dynamic deals: “Add guac with your fajitas today for 20% off”
• Cross-sell suggestions on digital receipts and in-app notifications
• Localized menus that highlight bestsellers in each neighborhood
  This system already drives a 12% lift in average check size in early trials.

3. Tablets in the Spotlight

Within six months, servers and diners at select Applebee’s and IHOP locations will use AI-enhanced tablets to:

• View guest profiles (dietary prefs, past feedback)
• Receive real-time upsell prompts (“Your favorite appetizer is back—want to add it?”)
• Speed checkout with one-tap suggested gratuity based on service ratings.

4. Experimenting with Smart Cameras & Staffing Apps

Dine Brands is also testing:

• AI cameras that notify staff when a table’s dishes are cleared or a guest signals for help
• Workforce-optimization apps that forecast busy windows, recommend shift swaps, and balance labor costs against service levels
  These pilots aim to reduce time-spent on routine checks by as much as 25% and improve staff satisfaction by matching schedules to real-time demand.

5. Behind the Scenes: Data, Vendors, and Investment

• Third-party partners handle most AI modules—Dine Brands customizes and co-brands the solutions.
• The company hasn’t disclosed total tech spend, but insiders say annual AI R&D is in the “tens of millions.”
• Data privacy is front-and-center: customer insights stay within Dine Brands’ secure cloud, anonymized before any machine-learning use.

6. How Dine Brands Stacks Up

Major chains are racing ahead with AI:

• McDonald’s: AI voice ordering in drive-thrus
• Taco Bell: Automated kitchen prep
• Pizza Hut: Dynamic menu boards that adjust pricing by demand
  But Dine Brands’ focus on franchise support and guest personalization offers a unique blend of B2B and B2C value.

7. Challenges & Considerations

• Accuracy: Voice-and-camera AI must hit 95%+ reliability to avoid mis-orders or missed tables.
• Labor dynamics: Balancing automation with human touch is critical to maintain staff morale.
• Training: Franchisees need clear, hands-on onboarding—Dine Brands plans to roll out digital “AI academies” next quarter.
• Ethical use: The company has convened an internal council to oversee AI fairness, preventing biased promotion offers or over-surveillance of staff.

3 FAQs

1. When will I see AI features at my local Applebee’s or IHOP?
Look for AI-powered promos and tech support tools rolling out in select markets this summer, with a broader national launch slated for early 2026.

2. Will AI replace restaurant jobs?
No. Dine Brands emphasizes that AI handles repetitive tasks—like monitoring equipment or suggesting upsells—while servers and kitchen staff focus on hospitality and cooking.

3. Is my personal data safe?
Yes. Customer profiles used for personalization are anonymized and encrypted. Dine Brands maintains full control over data access, partnering only with vetted vendors under strict privacy agreements.

By weaving AI into both operations and guest experience, Applebee’s and IHOP aim to set a new standard for casual dining—one where smart automation enhances, rather than replaces, the human side of hospitality.

Sources The Wall Street Journal