Artificial Intelligence (AI) has undeniably become the flavor of the year, capturing headlines and sparking countless conversations across the foodservice sector. While its potential is vast – from streamlining operations to revolutionising customer service – the reality for most foodservice operators is rather more down-to-earth. The daily grind is still dominated by concerns about the availability of labor, the soaring cost of energy, and the unpredictable pricing of ingredients. Foodservice consultants have to expose the ‘real’ challenges facing our industry, giving voice to the worries that keep operators up at night, and asking what can be done to weather this turbulent landscape.
Let’s start with the issue that’s been dogging the industry for years: labor. Despite all the talk of robotics and digital assistants, the foodservice trade remains a people-centric business. From chefs and servers to cleaners and delivery drivers, it’s the human touch that makes dining out an experience rather than a transaction.
Yet, finding – and keeping – good staff has never been harder. For example, In the UK, Brexit has changed the face of the British workforce, reducing the pool of available workers, while the pandemic prompted many to seek stability elsewhere. The hospitality sector, with its traditionally unsociable hours and relatively low pay, struggles to compete with other industries. Operators are reporting record levels of staff turnover, and many are forced to operate with skeleton teams, which puts pressure on everyone and can erode service standards.
There’s no simple fix and AI will not help. While some businesses are investing in better training and offering more flexible working arrangements, these solutions are only part of the answer. Ultimately, the sector needs to rethink its approach to employment, ensuring it offers meaningful work, clear progression pathways, and fair compensation. Only then can we hope to attract and retain the talent necessary to keep our kitchens and dining rooms running smoothly.
Next, let’s talk about energy. For many operators, the past eighteen months have felt like a game of Russian roulette with their utility bills. The war in Ukraine, ongoing supply chain disruptions, and volatile global markets have all combined to send the cost of gas and electricity through the roof. For a typical restaurant, energy bills now account for a significant proportion of overall expenses, forcing many to reassess everything from their opening hours to the equipment they use.
Some have responded by investing in energy-efficient appliances, switching to LED lighting, and even installing solar panels where possible. Others are looking at their menus, trimming items that require longer cooking times or high-energy preparation. Yet, these are expensive changes, and for small operators, the upfront costs can be prohibitive and yet again AI does nothing to assist.
Government support has been patchy at best, with many small businesses feeling left out in the cold. Industry bodies continue to lobby for more targeted relief, but in the meantime, operators must make tough decisions to stay afloat.
Of course, a restaurant is nothing without its ingredients. And here, too, operators are feeling the pinch. Inflation has made everything from flour to fish more expensive, while supply chain issues mean that certain products are simply unavailable at times. Add to this the increasing demand for local, sustainable, and ethically sourced produce, and the pressures on procurement teams are immense.
Some operators are adapting by simplifying their menus, focusing on dishes that use fewer – but higher quality – ingredients. Others are forging direct relationships with farmers and suppliers, cutting out the middleman and securing better prices. Still, for many, the choice is stark: pass the costs on to customers or absorb them and risk lower margins and once again AI is no help.
Consumers are becoming more understanding, especially when operators are transparent about the challenges they face. Nevertheless, there’s a delicate balance to strike between maintaining affordability and upholding quality.
Keeping the (LED) lights on
Amidst these very tangible concerns, it’s easy to see why some operators view the excitement around AI as a distraction. Yes, technology can help – with automated inventory management, predictive ordering, or chatbots handling reservations – but these solutions often feel a million miles away from the day-to-day realities of running a foodservice business. For many, the priority is keeping the lights on, the kitchen stocked, and the staff happy, rather than investing in the latest digital innovation.
That’s not to say AI has no place. The most successful operators are those who adopt technology with a clear purpose, using it to solve specific problems rather than chasing the latest fad. But until the sector’s fundamental challenges around labor, energy, and ingredients are addressed, AI will remain more of a nice-to-have than a necessity.
So, what does the future hold? If there’s one thing the foodservice industry has always excelled at, it’s resilience. Operators are nothing if not resourceful, finding creative ways to adapt to changing circumstances. Whether it’s by reimagining menus, renegotiating supplier contracts, or fostering closer relationships with staff, there’s a spirit of innovation that runs through the sector.
Industry bodies and government need to play their part, offering practical support and listening to the genuine concerns of operators. But ultimately, it’s the collective ingenuity and grit of those on the ground that will see the industry through.
AI might be the buzzword of last year, but for most foodservice operators, the real challenges today are far more immediate. Labor shortages, rising energy costs, and expensive ingredients are the issues that dominate the conversation. Addressing these concerns will require a combination of industry-wide action, government support, and good old-fashioned determination. Only then can we ensure that the foodservice sector remains vibrant, resilient, and ready to embrace whatever the future may bring.
Tim Smallwood FFCSI
