How Did AI Data Solutions Help Leading Fast Food Retailers to Improve Sales by Optimizing their Menu Offerings? 

Aug 23, 2022

Highlights of the Case Study: 

Particulars Description 
Client A Chicago-based multinational fast food chain retailer partnered with Quantzig to develop an AI-powered application capable of updating restaurant menus in response to current market conditions. 
Business Challenge Our client wanted our assistance in analyzing restaurant-specific data to plan the menu further, enhance the use of resources, and monitor the price gaps in real-time. 
Impact Quantzig’s data analytics and AI-based solution helped the client design a menu that catered to customers’ needs and helped optimize its operations. 

Game-Changing Solutions for the Fast-Food Retail Industry 

First, we need to understand the role of AI data solutions for the fast-food retail industry. Artificial intelligence (AI) is a technology transforming every walk of life, including the restaurant industry. Companies are applying technology to their menus, utilizing AI-powered analytics to increase sales through dynamic customization. Customers are being encouraged to order using a voice assistant-integrated kiosk or virtual board with a dynamic menu display. AI enables menus to adjust to a customer’s past orders, anticipate tastes, or even the weather and time of day to present specialties tailored to that encounter. With more frequent visits, the AI menu becomes more adept at anticipating the needs of each customer and providing customized menu items, opening the possibility of automatic upsells.  

The concept of AI-powered menus provides unique advantages because of the customization and personalization opportunities that it yields. They also have causal patterns to higher customer retention rates and loyalty due to their unique offerings. Quantzig offers big data analytics solution to help fast food retailers optimize menus and increase sales.  

The Challenges of the Fast-Food Chain Retailer 

A prominent Chicago-based multinational fast food chain retailer partnered with Quantzig to develop an AI-powered application capable of updating restaurant menus in response to current market conditions. The client approached Quantzig for a big data analytics solution capable of generating data from fast food menu items sold.  

To further plan the menu, the client wanted our assistance in analyzing restaurant-specific data, such as special diets, portion sizes, and consumption of different dishes. This data was further analyzed to provide insights on optimizing the menu, enhancing the use of resources, and monitoring the price gaps in real-time.  

The client intended to free up time for customer service and reduce food waste. Moreover, the client also focused on creating AI menus that made suggestions that the customer might like, such as upselling a popular side or suggesting the most frequent order that eventually increases revenue.  Some of the pain points that the client was struggling with were as follows:   

  • People’s shift to healthier lifestyles  
  • Rising competition  
  • Stringent nutritional laws  
  • Shifting customer preference  
  • Difficulty in coming up with a unique selling point  
  • Food security issues and challenges  
  • Lack of automation  
  • Developing new recipes guided by consumer trends  

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Data Analytics and AI-Solutions for the Fast-Food Retail Industry 

Quantzig helped the client design a menu by analyzing every item on the menu to determine its popularity and profitability and adjusting menus to reflect new findings and increase revenue. The Quantzig solution also provided customers with menu options with different layouts, images, and prices. Digital and touch screen menus have been around for years, but AI-enabled menus took digital screens a step further. The Quantzig AI-based menus remember customers’ preferences and settings, loyalty information, past orders, and much more, all for a smooth and seamless customer experience.   

POS systems or self-service kiosks with AI-enabled menus frequently leverage smartphone-like features such as voice commands for a contactless ordering experience. The increase in mobile and internet ordering is perhaps the most appropriate application of AI-powered menus. Prospective clients receive menu recommendations directly on their mobile devices as they place a delivery or takeaway order.  

Our AI system enabled the following features to help optimize the client’s business and operations:  

  • Eliminated poor-performing items from the menu  
  • Customized orders  
  • Highlighted more profitable menu items  
  • Regular analysis and optimization of the menu to boost profitability  

Impact Analysis of Quantzig’s AI Data Analytics Solutions: 

Quantzig’s big data-based analytics and AI solutions helped optimize the client’s business. In addition to helping with creating a dynamic menu suited to customer demand and trends, our collaboration also helped optimize day-to-day operations. We were able to facilitate a reduction in wait time for the customer and improve the customer experience. Analyzing buying patterns and customer psychology helped the client boost impulse purchases. AI also helped the client collect and leverage the data generated through its loyalty program to run campaigns for targeted customers based on their characteristic behavior, ensuring relevancy, cost savings, and eventually a considerable return on investment.   

Key Outcomes of AI Data Analytics: 

Our solution assisted the client in analyzing essential customer data such as wait times, distance, and location to optimize its menu and provide a better customer experience. This enabled the client to stay relevant and competitive in this highly volatile business. Quantzig helped the client carve out a profitable menu that caters to the needs of its customers. Clear visibility in terms of what will sell also helps reduce food waste, fine-tune the operational infrastructure and deliver an enhanced customer experience.  

A Broad Perspective on the role of AI in the F&B Sector: 

AI is becoming more prevalent in the foodservice sector, but very subtly and frequently behind the scenes. Voice ordering and self-serve technologies allow customers to manage and personalize their dining experience. People can customize menu items, place kiosk orders, divide bills, and make payments using tableside tablets or even their gadgets. While technological advancements have made AI more accessible, the food service is yet to implement the wide-scale deployment of robots for food preparation or delivery. 

Key Takeaways  

Quantzig’s AI-solutions yielded the following benefits for the fast-food retailer: 

  • Designed a custom menu suited to customer demand and market trends 
  • Optimized operations and reduced wastage 
  • Automated the system with POS systems or self-service kiosks 
  • Leveraged customer data to provide a curated customer experience 
  • Increased customer satisfaction and loyalty 
  • Increased popularity and drive revenues  
  • Positively impacted profit margins by enhancing sales 

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