WEBVTT - May AI Take Your Order?

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<v Speaker 1>This is Bloomberg Business Week with Carol Messer and Tim

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<v Speaker 1>Stenebeck on Bloomberg Radio.

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<v Speaker 2>Matt, I think we might have gone about two hours

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<v Speaker 2>and twenty three minutes without mentioning AI. Wow, and we're

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<v Speaker 2>gonna blow for this show.

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<v Speaker 1>By the way, that's your record, because Carrol's record.

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<v Speaker 3>Carol will talk about AI in relation to dealing with

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<v Speaker 3>your pet like anything.

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<v Speaker 2>All right, how about it dealing with the restaurant business.

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<v Speaker 2>And this won't be a first because we've heard a

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<v Speaker 2>couple of people talk about automating like.

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<v Speaker 1>The drive through.

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<v Speaker 3>Drive through that's a slam dunk, right, We'll taking to

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<v Speaker 3>upsell you every time.

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<v Speaker 1>Yeah, we're taking it to a different level here.

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<v Speaker 2>Robert Irvine, he's celebrity chef host of Restaurant Impossible on

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<v Speaker 2>the Food at network. He joins us on the phone

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<v Speaker 2>from Tampa, Florida. Robert again, Matt and I. It seems

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<v Speaker 2>like when we talked to members of the C suite

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<v Speaker 2>and almost any industry out there, one of the top

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<v Speaker 2>topics is, you know, artificial intelligence, how can it impact

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<v Speaker 2>my business, either positively or if I'm in the tutoring

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<v Speaker 2>business negatively. Talk to us about kind of restaurant business

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<v Speaker 2>house technology in general kind of impacting that business for

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<v Speaker 2>good and bad and kind of what are you what

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<v Speaker 2>do you look for the next several years?

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<v Speaker 4>Well, think think about technology in general has changed, right,

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<v Speaker 4>We went from paper menus to iPads.

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<v Speaker 1>Now now every airport has an iPad without people. Yep,

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<v Speaker 1>people just deliver food.

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<v Speaker 4>So technology has changed from the point of sale over

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<v Speaker 4>years and years being imagery controlled. Also, pictures sell faster

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<v Speaker 4>than words. So I think literally the next generation of

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<v Speaker 4>restaurants will have very few people. I think AI will

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<v Speaker 4>will be a huge part of the forward customer facing

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<v Speaker 4>as well as the back end where the food is

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<v Speaker 4>produced and served.

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<v Speaker 1>So it's going to change dramatically over the next two years.

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<v Speaker 1>I guarantee is that is that.

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<v Speaker 2>A net positive? It sounds like a net positive for

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<v Speaker 2>the restaurant business business. From a financial perspective, I know that,

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<v Speaker 2>like a lot of industries, the restaurant industry has a

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<v Speaker 2>very difficult time. I'm finding labor for sure.

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<v Speaker 1>Look right now, we're paying.

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<v Speaker 4>Anywhere from twenty two to twenty seven dollars for a

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<v Speaker 4>cook that can't cook, you know which. It sounds funny, right,

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<v Speaker 4>So are there are obviously ways we can make better.

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<v Speaker 4>We have a server or a or a host that

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<v Speaker 4>sits there and we're paying them to do nothing.

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<v Speaker 1>AI will upsell by twenty eight percent.

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<v Speaker 4>We know that, but fact so, the average check goes up,

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<v Speaker 4>the service time is faster. You know, the restaurant industry

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<v Speaker 4>is having such a tough time right now with not

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<v Speaker 4>only going through COVID. We lost fifty four percent of

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<v Speaker 4>our restaurants through COVID across the country.

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<v Speaker 2>Fifty four I've never heard it.

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<v Speaker 1>Yeah, that's huge. Wow. Think about what we have and

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<v Speaker 1>what we don't have now.

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<v Speaker 4>The majority of Mama Pop restaurants can't afford to pay

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<v Speaker 4>with inflation, with salaries, with everything like that, AI is

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<v Speaker 4>always going to be I think McDonald's spent a billion

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<v Speaker 4>point five one point five billion dollars on AI for

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<v Speaker 4>their grab and go restaurants.

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<v Speaker 1>So I get that it works well at McDonald's.

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<v Speaker 3>But if I come to a restaurant where you're cooking food,

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<v Speaker 3>I want a human to tell me, you know, what's

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<v Speaker 3>tasting good tonight, or what the chef is interested in,

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<v Speaker 3>or you know, I just need an opinion that can

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<v Speaker 3>only come from a person.

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<v Speaker 1>Well, you're never gonna you're still going to get that.

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<v Speaker 4>You're not going to remove humans, but the mundane tasks

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<v Speaker 4>of humans, I dishwashing, fris French fries, uh, chips, things

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<v Speaker 4>like that. We're going to be all by robotics and

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<v Speaker 4>AI are ordering systems. Are going to buy by AI

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<v Speaker 4>simply because we make less mistakes, we less waste, and

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<v Speaker 4>we're not paying people do we don't need to pay.

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<v Speaker 4>You're still gonna have somebody to serve the food, of

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<v Speaker 4>course you are. It depends on the style of restaurant

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<v Speaker 4>that you have as.

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<v Speaker 1>To the AI that works for you.

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<v Speaker 3>I also need to bribe the matre d Robert, so

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<v Speaker 3>you know.

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<v Speaker 4>So instead of bribing it, you can spend more money

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<v Speaker 4>on that butler wine that you wanted.

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<v Speaker 2>Exactly So, Robert, you know, Matt and I here in

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<v Speaker 2>our studio, we have a bank of TV screens from

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<v Speaker 2>all the cable networks. And invariably it's illegal immigrants rushing

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<v Speaker 2>over the border in the southern border. And I know

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<v Speaker 2>one of the industries that has historically benefited from migration,

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<v Speaker 2>both legal and illegal, has been the restaurant business. Talk

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<v Speaker 2>to us about kind of how your industry views this

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<v Speaker 2>country's immigration policy or lack thereof.

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<v Speaker 4>Well, here's the thing right now, we're struggling with labor

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<v Speaker 4>no matter what. It's not just the restaurant industry. You know,

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<v Speaker 4>load paying jobs. And I say when I say load

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<v Speaker 4>paying jobs, it used to be seven dollars per person.

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<v Speaker 4>Right now it's fifteen, twenty, twenty two, twenty seven. It

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<v Speaker 4>has gone over the years. We don't have themeople to

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<v Speaker 4>do those Mondays asks. If you look at cruise ships

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<v Speaker 4>as a great example of how we've changed doing business,

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<v Speaker 4>cruise ships don't have very many many Americans doing mundane charts.

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<v Speaker 4>They don't we go all around the world to pick

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<v Speaker 4>up people that we pay less money to do. That's

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<v Speaker 4>simply the facts really is. And AI is going to

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<v Speaker 4>change that. It's going to rededicate the labor that we

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<v Speaker 4>do have to doing a better job instead of sitting

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<v Speaker 4>in a chewing gum or being on their phone.

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<v Speaker 1>You know. The immigration policy that I can't talk on.

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<v Speaker 4>I don't get involved in that policy, although I would

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<v Speaker 4>love to see people that come to this country or

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<v Speaker 4>people in this country being able.

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<v Speaker 1>To work and do the jobs. Look, you can.

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<v Speaker 4>Make twenty seven thirty dollars fifty dollars working from home. Now,

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<v Speaker 4>why should I go and be a dishwasher or a

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<v Speaker 4>server or a cook in a restaurant. If you imagine,

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<v Speaker 4>every film star that wanted to be a film star

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<v Speaker 4>in La started in restaurants doing something different. We don't

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<v Speaker 4>have them people anymore. So that's why AI is going

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<v Speaker 4>to take over that role.

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<v Speaker 3>I got to say, you know, people know you, of course,

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<v Speaker 3>Robert from your hit show on the Food Network. Restaurant impossible.

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<v Speaker 3>I feel like AI, you could put AI to use

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<v Speaker 3>replacing a lot of your staff on the production crew

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<v Speaker 3>as well.

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<v Speaker 4>Absolutely, and we do. And here's the funny thing. You know,

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<v Speaker 4>I'm working with Grubber. I'm putting Grubber, the new technology

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<v Speaker 4>self serving or ordering technology into the Pentagon itself that

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<v Speaker 4>might have a restaurant inside the Pentagon, right, think about that?

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<v Speaker 4>How does how do we put AI into the Pentagon

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<v Speaker 4>when you can't use your phone in the Pentagon.

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<v Speaker 1>It's really interesting.

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<v Speaker 3>I mean, but you have to have a closed circuit

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<v Speaker 3>system or how do you do that as to go out,

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<v Speaker 3>it has to has to go out of the building

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<v Speaker 3>to get cleared, to make sure it's safe to come

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<v Speaker 3>in to get paid.

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<v Speaker 4>It's kind of interesting. But AI is always going to change,

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<v Speaker 4>it will continue. Look, I did a restaurant last year

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<v Speaker 4>that had bowling alleys that were still using pen and

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<v Speaker 4>papers to tell you the scores. You know, people mum

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<v Speaker 4>and pop and big business has to change because you know,

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<v Speaker 4>it's not only the customer experience that we're talking about now,

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<v Speaker 4>it's every facet of commerce, whether it be restaurants, whether

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<v Speaker 4>it be hospitals, whether it be doctors' offices, retail stores.

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<v Speaker 1>We just don't have the workforce.

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<v Speaker 4>So you know, if you and other Walmart is a

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<v Speaker 4>great example, they have a store that has no people

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<v Speaker 4>in it. Right, whether we like it or not, Who's

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<v Speaker 4>going to do those jobs? If we can't employ them,

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<v Speaker 4>do the stores or the restaurants or whatever close or

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<v Speaker 4>do we keep them open using AI and other ways?

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<v Speaker 4>And I think the hospitality industry think about before we

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<v Speaker 4>used to have front desks in hospital in hotels, you

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<v Speaker 4>get your key. Now you can do it on your phone.

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<v Speaker 4>You don't need to talk to a person. You can

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<v Speaker 4>order towels, food, everything from your phone. So we've advanced

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<v Speaker 4>dramatically over the last ten years.

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<v Speaker 3>For sure, grubber is a pretty cool technology. Where does

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<v Speaker 3>grubber who uses grubber besides you. I mean, I know

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<v Speaker 3>you use it in the Pentagon, but where else is

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<v Speaker 3>brand new?

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<v Speaker 4>Is brand new technology between Samsung having a hard case

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<v Speaker 4>and then grubber having the intellectual property.

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<v Speaker 1>Inside of it. Right now is out testing all over.

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<v Speaker 4>I mean, I think it's the newest and I'm saying

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<v Speaker 4>this the newest technology, the fastest technology there is out there.

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<v Speaker 4>So we're testing it in lots of places. You'll see

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<v Speaker 4>it all over. I mean there are different ways as

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<v Speaker 4>tablets as phones.

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<v Speaker 1>Says. Look, you can go to a stadium.

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<v Speaker 4>How many times have you ever been to a football

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<v Speaker 4>game or a baseball game? And the restaurants are twenty

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<v Speaker 4>three or twenty five in number, and you want a

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<v Speaker 4>French fry from one, You want a chicken nugget from

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<v Speaker 4>that you want right.

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<v Speaker 3>They all have lines like forty fifty sixty people standing

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<v Speaker 3>in line.

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<v Speaker 1>You don't need that anymore.

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<v Speaker 4>With grubber, or as you do, you get the barcode

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<v Speaker 4>on your seat, which are there in stadiums, You order

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<v Speaker 4>your food and it all comes at the same time.

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<v Speaker 1>And the back end, this is what I love and

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<v Speaker 1>this is why I partnered with grubber.

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<v Speaker 4>The back end solution that goes into the kitchen is

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<v Speaker 4>so so fantastic. It's not only that you can order

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<v Speaker 4>an upsal on the front, the way it's split up

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<v Speaker 4>into the back out of the house. I use less labor,

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<v Speaker 4>I get a better product, less mistakes, and it's delivered.

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<v Speaker 1>Fact.

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<v Speaker 2>Technology all right, technology again in the restaurant biz, it's coming.

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<v Speaker 2>Robert Irvine, celebrity chef, host of a restaurant Impossible on

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<v Speaker 2>the Food Network, joining us on a phone from Tampa, Florida,