Is AI the future of hospitality?

Is AI the future of hospitality?

By Jonathan Reeve (pictured), Vice President, APAC, Eagle Eye

 

As the Australian food and beverage industry continues to evolve, particularly through delivery Apps and other forms of digital engagement, personalisation has become a necessity for staying ahead of the competition. Diners now expect tailored experiences that cater to their individual preferences, and businesses that fail to deliver risk being left behind.

Advanced strategies and data-driven Artificial Intelligence (AI) tools are transforming how hospitality businesses connect with their guests, fostering deeper engagement, building stronger loyalty, and driving higher revenue.

The Australian market presents strong opportunities for businesses that are keen to embrace personalisation.

A cursory look at Statista reveals that online food delivery user penetration rate reached 31.3% in 2024, and according to Accumulate Australia, the country ranked fourth globally for food delivery growth during COVID-19, with expansion of almost 60%. This trailed only the United States at 95%, Russia at 89%, and Canada at 69%.

Australia has the right ingredients of an established digital consumer base and significant opportunity for growth, which could accelerate with increased personalisation.

But personalisation is about more than just having customer data. Customer data needs to work. Often the first part of putting data to work involves breaking free of siloed systems. Picking a technology partner or choosing the right tech stack ensures data flows seamlessly across platforms. This empowers teams with the insights they need to make personalisation an important driver of revenue.

Equally important is adopting a mindset of “test and learn.” Personalisation in hospitality is a continuous process of experimentation and refinement. By analysing what works, such as menu recommendations or tailored promotions, and iterating based on real-time results, restaurants can stay agile and better meet the evolving needs of their guests.

Personalisation Strategies That Drive Results

Effective personalisation starts with understanding your customers across every touchpoint. This means capturing data from bookings, point-of-sale transactions, delivery orders, and customer service interactions.

Eagle Eye, in partnership with Bloomreach and Lead Luxe Agency, recently released a short report and checklist for personalisation strategies for restaurants and quick-serve businesses.

These strategies included items like implementing personalised onboarding, which welcomes new customers with tailored emails or SMS offering discounts on their first meal.

Providing weekly updates where a business shares curated content like new menu items, chef specials, or exclusive promotions based on past preferences can also be powerful. Of course, adding milestone offers like celebrating birthdays, anniversaries, or first-visit milestones with freebies will also drive engagement.

The full checklist is much more comprehensive, I definitely recommend checking it out by following this link.

Real-World Success Stories

Several restaurants that have implemented these kinds of personalisation strategies are already seeing measurable results.

One such beneficiary has been the UK business of popular US burger chain Popeyes, which transformed their customer reward programs with the “Winner, Winner, Chicken Spinner” loyalty initiative.

The program offers prizes like free meals and even a year’s supply of chicken sandwiches. Customers make a purchase and spin a virtual wheel on the mobile site. Since launching in July 2023, the program has distributed more than 300,000 rewards, driving stronger customer retention and repeat visits.

Using integrated customer data platforms, Popeyes UK collects 20% of offline customer data from kiosks, guest WiFi, and post-purchase surveys. This data enables personalised rewards and tailored loyalty strategies. Guests in the program are three times more likely to return within 30 days compared to those who aren’t.

Another brand, PizzaExpress, launched the UK’s first omnichannel loyalty program through their PizzaExpress Club. The tiered system rewards members with pizza slice stamps every time they dine in, order delivery or collection, or pick up a pizza in the supermarket.

These stamps unlock new tier levels, offering more rewards as members progress. Results included 2 million customers signing up in the first 12 months, 25% of revenue now linked to the loyalty scheme, and 2.2 million stamp card transactions annually.

These examples demonstrate how Australian restaurants can create powerful customer experiences, drive loyalty, and increase profitability without extensive lead times or complex implementations.

Making It Happen

Australian hospitality businesses have a significant opportunity to lead personalisation adoption in the region. The technology exists to deliver personalised hospitality experiences at scale, with implementation possible in weeks rather than months. Pilot programs allow restaurants to test effectiveness before committing to full adoption.

The future of dining is about anticipating your guests’ needs before they walk through the door. For local restaurants, this means leveraging the country’s high digital adoption rates and sophisticated dining culture to create experiences that competitors cannot easily replicate.

Customers are ready for personalised dining experiences. The technology is proven and accessible. Australian restaurants that act now will establish themselves as market leaders while those that wait will find themselves playing catch-up in an increasingly competitive landscape.

To read the full report and gain access to the 2025 Hospitality Personalisation Checklist, follow this link.