Hello, Is This AI? The Rise of AI Voice Hosts in the Restaurant Industry

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Upon dialing a restaurant, it's possible you're conversing with an AI receptionist. A warm, womanly voice welcomes me via call. "Hello, I serve as an assistant called Jasmine for Bodega," the voice introduces itself. "What can I assist you with?"

"Is there outdoor seating available?" I inquire. There's a hint of disappointment in Jasmine's voice when she explains that, regrettably, the Vietnamese eatery in San Francisco lacks an exterior dining area. However, her melancholy isn't due to any personal misfortunes. Instead, it's more of an ambiance, a characteristic of her tone.

Jasmine belongs to an emerging group known as the AI voice restaurant host. If you've made a phone call to a dining establishment in cities like New York City, Miami, Atlanta, or San Francisco of late, it's likely you've interacted with one of Jasmine’s courteous, methodical rivals.

Amidst the plethora of AI voice assistants, the use of such technology in hospitality, specifically as phone agents for restaurants, hasn't been in the spotlight as much as consumer-focused AI tools like Gemini Live and ChatGPT-4o have. However, this sector is quickly becoming more competitive, with several startups beginning to cater to restaurants throughout the United States. At the National Restaurant Association's yearly food expo last May, AI technologies designed for voice ordering received considerable attention. For instance, I reached out to Bodega, an upscale Vietnamese eatery, which has implemented Maitre-D AI, a service that first appeared in the Bay Area in 2024. Meanwhile, Newo, a relatively new player in the field, is in the process of introducing its software to a number of restaurants in Silicon Valley. RestoHost, which is just over a year old, is now handling phone calls for 150 dining establishments in the Atlanta area. Additionally, Slang, a voice AI firm that began to concentrate solely on the restaurant industry during the Covid-19 crisis, has recently announced a funding influx of $20 million in 2023 and is making strides in both the New York and Las Vegas regions.

Each of these platforms provides a comparable function: a 24/7 AI telephone assistant capable of responding to common inquiries regarding the eatery's dress policy, type of food, layout of seating, and guidelines on food allergies. They are also equipped to help with booking, modifying, or canceling reservations. Occasionally, the system may reroute a caller to a live person, though RestoHost's co-founder, Tomas Lopez-Saavedra, mentions that this only happens in about 10 percent of cases. The services offer various subscription levels for restaurants, granting access to extra features, and some of the technologies are capable of communicating in several languages.

In today's digital age, it might seem surprising that people still pick up the phone to make reservations at restaurants, but according to entrepreneurs behind artificial intelligence voice service companies, a significant number of patrons still prefer this method. They point out that restaurants, especially well-known ones that accept reservations, receive an overwhelming amount of phone inquiries. Alex Sambvani, the CEO and co-founder of Slang, a company that collaborates with various dining establishments from high-end groups like Wolfgang Puck to fast-food chains like Chick-fil-A and the trendy Slutty Vegan, shares that sought-after restaurants can get between 800 to 1,000 calls monthly. The typical demographic making these calls includes individuals looking for last-minute reservations, out-of-towners, older customers, and people who multitask by making calls as they drive.

Matt Ho, proprietor of Bodega SF, acknowledges the situation. "During service hours, our phones were incessantly busy," he remarks. "Many of the inquiries we got were for information readily available on our website." In his quest for a solution, Ho discovered that Maitre-D stood out as the optimal choice after considering various options. In May, Bodega SF became an early adopter of the startup, with Ho even contributing to the pre-launch phase by participating in trial and error testing. "This system simplifies tasks for the host and ensures that diners' experiences remain uninterrupted," he notes.

The lingering effects of the pandemic have left the hospitality sector grappling with challenges like staff shortages, high employee turnover, and rising wage bills. The situation where personnel, especially those responsible for greeting guests and managing calls, are stretched too thin, is viewed by some innovators as a chance for change. David Yang, the creator of Newo, points out the inadequacy of a $17 hourly wage, noting it barely covers commuting expenses, leading to high turnover rates in these roles. Furthermore, Yang highlights the simplicity of tasks involved in restaurant customer service, particularly when compared to industries like wellness centers, proposing the adoption of what he terms a "digital employee" to streamline operations.

Mathew Focht, the CEO of the Emerging Fund, a company focused on restaurant technology, describes the rapid expansion in this area of artificial intelligence as "unbelievably rapid and astounding." However, this growth is not without its obstacles. Yang highlights that one significant issue is latency, a problem I have also encountered in my reporting. Many of the AI voice assistants I interacted with either made me wait while they formulated a response or paused in complete silence before answering. Furthermore, these AI systems displayed unpredictable responses; they struggled whenever the conversation deviated from their programmed script, such as when I changed my reservation details or posed a somewhat ambiguous question.

Sambvani asserts that in dealing with delicate matters—like discussing an unfortunate incident of food poisoning after a meal—people are more adept at handling the situation. Moreover, he mentions, "for several restaurant owners, there's a skepticism about whether an AI host can maintain a positive customer experience without causing harm."

Brian Owens, who co-owns Crave Fishbar, a New York-based restaurant with three outlets across the city, along with the recently launched Crave Sushi Bar, was initially convinced about the potential of AI. However, his belief was short-lived. In 2021, amidst efforts to operate with minimal overheads during the post-pandemic reopening phase, Owens experimented with Slang, a recommendation made by his OpenTable account manager.

Owens was initially intrigued by the proposal. "They presented us with a virtual host, promising it would reduce our labor costs," he recalls, finding the idea appealing at first. However, upon reviewing the customer interactions, Owens encountered numerous cases of dissatisfaction, with customers frequently attempting to bypass the automated system in favor of speaking with a real person, sometimes even resorting to swearing at the chatbot. Owens points out the shortcomings of artificial intelligence in capturing the essence of human interaction. "There's a notable difference when you inquire about the atmosphere of the restaurant through a machine, as opposed to receiving a response from someone who can convey the ambiance without relying on specific keywords," he explains. Owens emphasizes the importance of the personal touch, saying, "I train my hosting team to greet callers warmly, something that's impossible to replicate with AI."

Currently, Sambvani describes the AI host as a hardworking member of the team, promising that more complex and nuanced engagements are on the horizon. The firm revealed on September 12 that it has incorporated OpenTable, allowing users to make reservations via OpenTable directly or by calling through the AI-powered voice assistant. Sambvani believes that with the right design, this can lead to a favorable user experience.

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