How Restaurants Such As IHOP Are Using AI To Boost Sales - Dine Brands Global (NYSE:DIN)

AI To Recommend Food For Applebee's, IHOP Customers: Inside The 'Personalization Engine' Powered By Amazon

by Chris Katje Benzinga Staff Writer

Zinger Key Points

Several restaurants are embracing AI for speed, innovation, cost savings and customer satisfaction.
Dine Brands, which owns Applebee's and IHOP, is among the latest restaurant companies to adopt AI technology.
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The restaurant sector could be the next to be disrupted by rising use cases for artificial intelligence.

Here's a look at how Dine Brands Global Inc DIN is embracing the technology.

What Happened: If you're one of the consumers who go to restaurants and order the same thing, or a consumer who can't decide what to order, artificial intelligence could soon play a role in recommending menu selections during your next visit.

Dine Brands is planning to roll out artificial intelligence in its restaurants to help with menu recommendations and boost sales.

Called its "personalization engine," the AI-powered technology was built using the Q generative AI assistant from Amazon.com Inc AMZN, as reported by the Wall Street Journal.

Using generative AI, the personalization engine automatically recommends items to customers based on their past ordering history, using the company's loyalty program. For those without an ordering history, the recommendation could include frequently purchased items as recommendations.

The technology could be used to upsell additional products or recommend more expensive products. The AI recommendations could be added to servers' tablets and tabletop tablets that customers order from in the future.

Along with helping customers make food decisions and place their orders, Dine Brands is using AI technology to help detect when tables are ready to be cleared and for managers to help with day-to-day operations such as staffing.

Why It's Important: Dine Brands is the latest restaurant company to embrace AI technology. Other companies, such as those in the fast food sector, have been using technology for drive-thru services and other operations.

McDonald's and Yum Brands are named in the Wall Street Journal report as restaurants embracing AI inside restaurant locations.

AI can be used to help with staffing, boost productivity, forecast food items and inventory control, all items that could save restaurants money.

Companies such as SoundHound AI Inc SOUN are also jumping in, similar to the Dine Brands technology, by giving recommendations to consumers on products based on ordering history and popularity.

Wendy's is also named in the report with reference to its past plans to use AI technology for drive-thrus and for dynamic pricing, which received severe backlash.

Artificial intelligence is disrupting many sectors and could replace human jobs in some areas, including the restaurant sector. Dine Brands and others are likely balancing the potential positives from AI that could help with customer satisfaction, while also enjoying benefits like higher sales and lower costs.

DIN Price Action: Dine Brands stock closed Monday at $27.15 versus a 52-week trading range of $18.63 to $38.68. Dine Brand stock is down 9.8% year-to-date in 2025.

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