QSR brands adopt AI to cut refund losses

Operators are advised to use AI to boost profitability and reduce losses from false delivery claims.

Artificial intelligence is rapidly transforming the quick service restaurant (QSR) industry, and its role is set to deepen as brands shift focus from expansion to profitability, according to Deliverect’s Regional General Manager for APAC, Jeremy Van Dille.

“I think definitely the two magical letters that we've seen are the words AI,” said Van Dille. “Everyone is exploring the ins and outs of what AI can do for their brands, from an HR perspective, from a marketing perspective, automation perspective.”

He noted that current AI use cases are only the beginning. “We've only seen the top of the iceberg… I think we'll see a lot of new innovations with AI not only giving data, but also actually actioning things on behalf of the restaurants and the operators.”

One key area for AI deployment is in reducing profit leakage from false delivery claims. “For example, the refunds on delivery orders,” he said. “We've actually developed an AI solution now that can scan the prepping area on the restaurant to justify that the food was actually packed in the delivery package.”

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Van Dille said QSR brands must shift priorities. “Profitability is what everyone should be aiming for,” he added. “The time where stores should open just to have a big footprint and to strive for break even should come to an end.”

While the year may bring global uncertainty, Van Dille remains optimistic. “It’s F&B after all, and food is resilient,” he said. “I think there’s still a good opportunity for quite a few brands to expand.”

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