AI in F&B Operations: What the Hospitality Industry Taught Us
We recently had the pleasure of meeting with several members of Montréal’s hotel industry to discuss today’s key operational challenges. At the heart of the conversation: artificial intelligence applied to F&B operations.
What stood out during the exchange?
A clear willingness to transform everyday pain points into performance drivers. And a conviction shared by all: it’s time to take action.
F&B Challenges Are Universal
Regardless of the market or type of establishment, the priorities are surprisingly similar:
- Increase F&B revenue
- Reduce costs without compromising the guest experience
- Minimize errors and invisible losses
- Rely on accurate, real-time data to manage operations
These ambitions reflect strong operational maturity — and a growing openness to technological innovation.
Laying the Groundwork: A Key Step Before Deploying AI
Before implementing an AI solution, it's essential to first understand your own operations. Every hotel is unique. For AI to deliver tangible results, it must be built on a strong foundation:
- Clear budgets (tech and F&B)
- Engaged teams ready to support the project
- Well-defined processes: menus, recipes, SOPs, POS data
- And above all, structured, reliable, and actionable data
Key reminder: AI doesn’t replace human thinking — it accelerates it, as long as it’s built on the right signals.
Demystifying Agentic AI in Hospitality
One of the most promising topics raised was Agentic AI.
Unlike traditional tools, this technology merges data from multiple systems (POS, CRM, purchasing, inventory…) to act autonomously and in real time.
It can:
✅ Detect anomalies:
- Errors in order receiving
- Inventory or recipe deviations (e.g., overpouring)
- Discrepancies between POS sales and supplier pricing
✅ Recommend immediate actions:
Not simply to boost revenue at any cost, but to correct or prevent issues before they impact profitability or the guest experience.
Five Practical Areas Where AI Creates Value
We explored five key areas where AI can rapidly improve F&B performance:
- Dynamic Pricing Management
→ Adjust prices based on demand, trends, seasonality, or supplier fluctuations — while protecting your margins. - Proactive Anomaly Detection
→ Get automated alerts as soon as unusual deviations are detected in your operations. - Smart Audits
→ Automate internal checks and focus only on areas that carry real risk. - Product Recommendations
→ Promote the right products at the right time, based on performance, guest preferences, and context. - Intelligent Inventory Management
→ Accurately forecast needs to avoid stockouts, overstocking, or waste.
Are Physical Inventories Still Necessary?
A recurring question sparked lively discussion:
“Do we still need to conduct physical inventories?”
We proposed a different angle:
“Can we now rely on real-time data instead?”
✅ Yes, if your data is accurate and consistent, some controls can be automated.
❌ No, if anomalies are detected — in which case targeted verification remains essential.
The goal isn’t to eliminate controls, but to make them smarter, more agile, and more strategic.
From BI to AI: The Difference Between Seeing… and Acting
We ended with an important distinction:
- A Business Intelligence (BI) tool tells you what happened.
- Operational AI tells you what to do now to correct, adjust, or optimize.
And in a fast-paced environment where every minute counts, the real difference lies between simply observing… and taking action.
AI Is Not Magic — But It Is a Strategic Lever
AI does not replace humans. But when thoughtfully designed and properly implemented, it becomes a powerful strategic ally for hoteliers and restaurateurs who want to:
- Manage operations with greater precision
- Eliminate invisible losses
- Elevate the guest experience
- And above all, make decisions that are faster, smarter, and more profitable
Curious to learn more, discuss your challenges, or explore how AI could support your operations?
Get in touch — we’d be happy to continue the conversation with you.
And a heartfelt thank you to the members of AHGM for their warm welcome, valuable insights, and openness.
