Smart Service Revolution: Applebee’s and IHOP Turn to AI Employees for Restaurant Efficiency
AI Enters the Dining Room
In June 2025, Dine Brands, the parent company of Applebee’s and IHOP, announced plans to bring artificial intelligence directly into their restaurants. The company is testing Voice AI Agents to handle customer orders over the phone, aiming to streamline operations and reduce stress on human staff. This shift marks a major step in the restaurant industry’s adoption of Non-Human Workers to manage high call volumes and labor shortages.
What Exactly Is Happening?
Applebee’s and IHOP are rolling out AI-powered phone assistants that can take customer orders, answer menu questions, and even upsell items. The AI system, provided by SoundHound AI Inc., is already being tested in select locations and is expected to expand to more franchises later this year. Dine Brands noted that over 50% of calls to their restaurants were missed during busy times — a gap that AI Employees can fill efficiently and consistently.
Why It Matters
This move reflects a broader trend in the U.S. food service industry, where rising labor costs and staffing challenges have accelerated interest in automation. Unlike traditional bots, these Voice AI Agents can engage in natural, conversational speech, making them more appealing to customers and reducing the need for additional staff. For franchisees, this technology is particularly attractive as it promises to reduce costs while improving service quality.
What Comes Next?
While the AI technology won’t be replacing in-person waitstaff or kitchen employees anytime soon, its role as a digital front-desk assistant is likely to grow. Dine Brands plans to continue expanding its AI usage, seeing it as a tool to “free up team members for more high-value tasks.” As restaurants face ongoing hiring challenges, the rise of AI in customer service could become a standard practice rather than an experimental one.
Key Highlights:
- When: June 2025
- Who: Dine Brands (Applebee’s and IHOP)
- What: Introducing AI voice assistants to take phone orders
- Why: To improve customer service and address staffing shortages
- How: Partnering with SoundHound AI Inc.
- Impact: Potential reduction in missed calls, lower labor costs, and faster service
Reference:
https://www.wsj.com/articles/applebees-and-ihop-plan-to-introduce-ai-in-restaurants-61770ca5
