How do you view the impact of generative AI and robotics on the future restaurant workforce?

The impact of AI on business and society has been a hot topic in recent years as people discover new ways to put its capabilities to work. That has certainly been the case in the restaurant industry, where operators are incorporating the technology to improve efficiency and enhance the customer experience. Franchise Update asked several multi-unit restaurant franchisees about their thoughts on the impact of generative AI and robotics on the future restaurant workforce.

Each recognized the important role AI plays in restaurant operations and embraced the many ways it can improve their business. The franchisees said generative AI can assist with scheduling, training, sales projections, and administrative work while saving time, reducing waste, and saving labor costs. With manual labor still an important part of restaurant operations, technology is viewed as a tool to support, and not replace, workers.

The franchisees say the biggest benefit of generative AI and robotics is freeing employees to spend more time with customers and provide better hospitality at their restaurants. One unavoidable aspect of business ownership is that not all employees will be a good fit. In this week’s Franchisee Bytes, we asked multiple restaurant franchisees how they deal with problem employees.

Each owner handles this delicate situation differently. They will often give employees several opportunities to improve performance, but they must also be direct and firm in their interactions. See their thoughts below about how they handle difficult personnel decisions.

Marshall Degani Company: Neptune New Millennium, LLC Brands: 6 Kolache Factory Years in Franchising: 25 AI is showing up first in the back office, helping with scheduling and sales forecasting. I welcome it because it gives my managers more time to spend on people and guests. It’s also helping us read the daily sales arc more precisely, so we’re not overbaking and generating waste.

Robotics is a longer conversation for us. Our kolaches are rolled and filled by hand every morning, and I don't see automation replicating that craft economically anytime soon. So, I see these tools as augmentation, not replacement.

Technology should absorb the administrative load so the humans can do what differentiates a restaurant, which is hospitality. Kristy Rans Company: Prime Hospitality Group Brands: 12 Ruth’s Chris Steak House Years in Franchising: 20 We believe AI will be most valuable when it strengthens our teams rather than attempts to replace the human connection at the heart of hospitality. We are working with AI transformation company Pragmaticoto explore thoughtful applications of generative AI that can improve communication, training, analysis, administrative efficiency, and decision-making, giving leaders more time to focus on their teams and guests.

Robotics may also support repetitive or physically demanding work, but genuine hospitality, leadership, judgment, and relationship-building will remain distinctly human. Matt Roth Company: Geaux Route Partners Brands: 3 Walk-Ons Sports Bistreaux Years in Franchising: 7 You must embrace it, or it's going to pass you by. I think AI is already incredible for marketing and can bring a lot of value to different aspects of the business.

We're also getting ready to open our fourth Walk-Ons, and we're planning to incorporate robotics into the kitchen. There are clear benefits in reducing labor costs, with the potential for consistency in everything prepared in the kitchen. At the same time, there are trade-offs, including the impact on jobs.

I think there's a time and place for all of it, and operators need to be open to new technology while figuring out where it makes the most sense for their business. Jason Thomas Company: Marquee Coffee LLC Brands: 3 Bad Ass Coffee of Hawaii Years in Franchising: 3 Generative AI and robotics will reshape restaurant work by automating repetitive tasks and helping operators make faster, better-informed decisions without eliminating the need for people. AI can improve forecasting, scheduling, training, marketing, and administrative work, while robotics can support consistency in routine production and cleaning tasks.

The strongest operators will use these technologies to make employees more productive and allow them to focus on hospitality, leadership, and the genuine human connection that ultimately builds customer loyalty. Franchisee Bytes How do you deal with problem employees? **I am very transparent and am not afraid to have difficult conversations, especially if it can improve job performance.

I like to give people every chance to improve and succeed, but if a problem continues, it’s up to me to let them go. One bad apple can spoil the whole bunch.** -David Weeks, CEO, The Bean Team, 9 Barberitos, 8 Dunkin’, 4 Newk’s Eatery, 1 Dunkin’/Newk’s co-brand **First, we look at ourselves to see where we are falling short as leaders.

From there, we enact counseling and action plans in an effort to break through and develop that individual’s skill set.** -Wade Oney, President, Bam-Bam Pizza Inc., 96 Papa Johns, 8 Qdoba, 8 Starbucks **Head-on.

We encourage our leaders to invest in and coach all our staff until they feel there is no return on investment.** -Tom Lovelace, Owner/President, Tom Lovelace Group, 96 Papa Murphy’s **Verbal coaching session, then written coaching session, and finally termination. Even the most skilled employees are not worth it if they are a drag on your culture and team morale.

We elevate the employees who see the big picture, put “we” before “me,” and can train their replacement.** -Alex Karcher, Operating Principal, JCK Restaurants, 61 Carl’s Jr., 11 Jersey Mike’s Subs, 8 The Human Bean, 8 Dave’s Hot Chicken, 1 Hawaiian Bros Island Grill **I start with direct, honest conversations.

Clear communication and feedback usually resolve most issues before they escalate. Addressing concerns early helps maintain trust and keeps the focus on growth and accountability.** -Misha Punwani, Multi-Unit Franchise Owner, Playa Bowls, 16 Playa Bowls **We have 30, 60, and 90-day rules that allow employees to correct themselves.

If they don’t correct themselves after the third time, we let them go.** -Ali Lakhany, Chief Executive Officer, CSM Group, 141 Popeyes Louisiana Kitchen, 11 Tim Hortons, 2 Andy’s Frozen Custard, 118 T-Mobile, 4 LaPasha Mediterranean Lounge and Grill, 4 Marriott International and Hilton Hotels **I listen to them first and ask them why there is an issue. If I can’t get to a resolution that makes both parties satisfied with the outcome, then we have to part ways.

When someone shows they have no interest in staying on a team, there is no reason to keep that train going just for the sake of turning the wheels.** -Andy Cabral, CEO, Vigario Management, 25 Dunkin’, 9 Baskin-Robbins **How we lead our teams has more impact on our success than anything else. We coach and deal with issues quickly and never underestimate the impact that a poorly performing or highly negative employee can have on the team.

Helping someone find a better fit is often the best thing you can do for everyone.