By Debbie Carson, RTN staff writer - 6.20.2025
As the restaurant industry navigates labor shortages, rising costs, and evolving customer expectations, major chains are turning to artificial intelligence (AI) as a key ingredient in their digital transformation strategy. Leading the charge this week are Applebee’s and IHOP, two of America’s most iconic dining brands, now leveraging AI to streamline both front- and back-of-house operations.
According to a Wall Street Journal report published today (June 20), Dine Brands—the parent company of both chains—is rolling out a broad suite of AI-powered tools across its 300 franchisees and more than 3,500 store locations. In an interview with WSJ, Dine Brands Chief Information Officer Justin Skelton described AI as a foundational shift: “AI is moving quickly, and I believe it’s going to be embedded in everything we do.”
One of the first tools being deployed is an AI-powered tech support system that allows field technology staff to interact with company databases using natural language queries. Rather than digging through manuals or documentation, employees can now ask questions conversationally and receive instant answers—a simple but powerful enhancement to operational efficiency.
On the customer-facing side, Dine Brands is introducing a new AI-driven “personalization engine.” This technology uses past order data to make personalized recommendations and offer targeted promotions to guests, improving both upsell opportunities and customer satisfaction. Plans are underway to extend the personalization engine to in-store tablets used by both servers and customers.
The company is also exploring AI-powered cameras that can alert staff when a table needs to be cleared—a small but impactful way to keep operations smooth and guests happy. Additionally, an AI-driven management app is under development to assist restaurant managers with staffing decisions and other day-to-day tasks.
IHOP has already dipped a spatula into the AI space. In August 2023, the company announced a partnership with Google Cloud to integrate Google’s Recommendations AI into its digital ordering experience. This allows IHOP to serve up smarter suggestions for items guests are likely to enjoy, creating a more seamless and intuitive online ordering journey.
At the time, IHOP said the initiative was designed to help guests “easily find their favorite items and discover new ones that are relevant to their interests”—a nod to the growing expectation for personalization in quick-service and fast-casual dining experiences.
The move by Dine Brands reflects a broader trend across the restaurant industry. According to a recent PYMNTS Intelligence and American Express report, 67% of restaurants already using automation say it has delivered measurable improvements to customer experience. Technology is increasingly seen not just as a way to cut costs, but to enhance hospitality at scale.
In other recent examples, Chipotle reported a 75% reduction in hiring time after adopting an AI-powered recruiting platform. And SoundHound AI, a leader in voice AI, said in November that its technology is now deployed across seven of the top 20 quick-service chains—powering everything from drive-thru voice ordering to mobile app interactions.
With AI being rapidly integrated into everything from menu customization to employee scheduling, it’s clear that chains like Applebee’s and IHOP are not just experimenting—they’re future-proofing. For Dine Brands, AI is not a side dish—it’s quickly becoming the main course in its technology roadmap.
As other restaurant groups weigh similar moves, the question is no longer whether to adopt AI, but how quickly it can be scaled—and how creatively it can be applied to elevate both operations and the dining experience.
