AI & Technology

AI phone agents in restaurants as a profit tool, not a gimmick

By Conor McCarthy, Co-Founder and CEO of Flipdish

Conversations about any innovation in the restaurant industry, including AI, usually drift into hype. In a highly competitive sector with rapidly fluctuating margins, independent restaurants simply do not have time for this hype. Costs across the board keep growing. Restaurants require practical tools designed to increase profits. 

Phone agents are one of the few areas where AI can actually help. A person can physically answer one inbound phone call, but during peak service calls often go unanswered, creating a bottleneck. The challenge is designing a system that can handle the real order, complete a payment, and deliver support that works. End users also need to feel happy and confident using it. 

The main issue solved by AI phone agents in hospitality 

AI phone agents solve the problem of concurrency. That is, simply handling more than one call at a time. Peak service generates bursts of demand, while a person on the line automatically creates a queue. People get busy signals, go on hold, or end up leaving the queue entirely, which means lost orders. 

Instead of leaving potential orders in a queue, AI phone agents are capable of answering immediately. They can handle several calls at a time. That removes a big source of friction on a busy service. 

The differences between existing “automation” technologies and modern AI phone agents 

The main difference between traditional automation technologies and phone agents is real-world design.. Traditional conversation agents sound robotic and slow. Modern technology elevates the experience. It can answer questions naturally, suggest helpful upsells, and field relevant questions. 

Designing an AI phone ordering experience end to end 

A good AI phone ordering experience should feature clear, conversational intent routing and simple navigation. Not every incoming call is an attempt to place a new order. Some calls relate to existing orders or other enquiries. The phone agents of the future will learn to deal with any call coming in. 

When it comes to placing an order, it has to do several things efficiently. It should take the order. It should confirm it. It should handle changes, and finish cleanly. 

Common failures and necessary guardrails in developing phone agents  

Systems tend to perform badly if they are viewed as a demo instead of real-world tools. The ideal phone agent must be designed to be reliable on a busy Friday night; It should operate fast, keep everything easy to understand, confirm the order, and move on. Even when the incoming call is not a new order, systems should be able to handle all incoming requests. 

Beyond the user experience, the system’s backend integrity is equally critical—specifically when it comes to payments. They have to be secure and simple. Otherwise, people will simply drop the order or leave bad reviews. Payment processing has to be secure and efficient. 

It should not matter whether the customer is using their landline phone or whether the number is withheld. The task of a phone agent is to complete the payment transaction. It should only transfer the call to an employee as a last resort. 

Useful operational data vs. Noise 

The most valuable information which a phone agent will produce is what enhances customer service in restaurant conditions. It is not what simply feeds into reports. This includes: 

  • Call volume by time 
  • Requests made frequently 
  • Places where people usually drop off 

Another significant and interesting advantage of using phone agents is the opportunity to automate upselling. It also creates the ability to track upselling effectiveness. In particular, operators learn which product suggestions people use and which ones they decline. 

They also become familiar with upsell patterns related to time of day, region, and order contents. That data is crucial when designing menus and creating scripts for salespeople or other customer support agents. This approach does not require a data team. 

Instead, it just means monitoring a few of the most important signals. 

Early success indicators that a phone agent is working 

As soon as the number of placed orders grows, it indicates the agent is working effectively. Another important parameter is AOV (average order value). With functional AI agents, it typically increases. Other signals include a reduced rate of order modifications and refunds, and decreased wasted staff hours at peak times. 

Once all these indicators go in the right direction, phone orders turn into valuable channels generating profit. They stop being distractions. They start being dependable. 

The phone agents of the future 

The most optimistic scenario for how phone agents will develop in the future would see an increase in the quality of service experience. It would also mean increased profit for independent restaurants. And it would drive higher efficiency for customer support agents. 

This will be facilitated by operators with full control over their phones. They can monitor call volume, content, order placement efficiency, and upsell effectiveness. At the height of its performance, AI phone agents will completely eliminate the need to listen to ringing phones in restaurants. 

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