How AI helps venues control cost

Labour costs already account for upwards of 30% of restaurant costs; paired with a nation-wide shortage of skilled staff, and the cost of employing staff rising, it is more critical now than ever before to use available staff time as efficiently as possible.  

Sadie Representative Jos Nacua summaries some key points from one of the keynote speakers: 

“AI is already helping venues with back-of-house tasks related to optimising revenue and controlling the cost of operations. What is different about Voice AI when compared to other AI tools being used in the hospitality industry, is that customers are engaging directly with the tool, and this leads to some confusion around its purpose.  

Voice AI solutions are a tool that venues can use to optimise labour costs, while capturing revenue that would otherwise be lost.  

Voice AI doesn’t replace face-to-face interaction, but rather enables venues to use available hours with skilled staff more effectively. Rather than staff members being pulled away from service to answer the phone, solutions like Sadie handle the incoming calls so staff can focus on valuable face-to-face interactions.  

It is an important takeaway for venues looking to implement a Voice AI like Sadie. These tools don’t replace staff, but rather they ensure a better return on the existing investment in skilled staff members, and extend operational capacity beyond what is possible with staff alone.” 

Voice AI helps preserve profitability in a challenging operating environment

Profit margins are already thin in Australian hospitality, and with upcoming changes to the operating landscape, venues need to look for incremental improvements across the board to remain profitable.  

Even a small increase in operating revenue can have a major impact on the bottom line. ARCA CEO Wes Lambert explains:  

“Restaurants and cafés are heading into FY27 facing a perfect storm - acute workforce shortages, an expected 4.5–6% increase in Award rates, and the likely removal of junior rates, all of which will fundamentally reset the cost base of running a hospitality business in Australia.” 

Sadie Representative, Darek Ekaputra speaks to some of the key takeways from his conversations with venues around managing these increasing costs: 

“A recurring theme at the show was how hospitality margins are getting thinner and thinner. Labour costs are on the way up, the card surcharge ban will kick in soon – so the question everyone was asking was around how venues can manage those costs to preserve their margins. 

Restaurants lean on Sadie to ensure they aren’t missing out on revenue, simply because the call has come through at an inopportune time, like during busy service or out of hours.  

One of the speakers also made the point that if you’re paying staff $30 an hour, then it is really important they remain focused on high-value tasks and the face-to-face interactions that underpin great hospitality.  

Where Voice AI comes in, handling phone calls so front of house staff can focus on providing great in-venue interactions that patrons remember; creating dining experiences that make them want to keep coming back. 

With Sadie handling incoming phone calls, taking bookings, answering general enquiries, and capturing event enquiries, staff have more bandwidth to focus on what’s important.” 

What venues are looking for in a Voice AI

When it comes to comparing Voice AI solutions, the conversations had by Sadie Representative Kendall Balon centered strongly around quality. She explains:  

“For many venues, what was holding them back from implementing a Voice AI solution was the concern for the patron’s experience, particularly for venues catering for an older demographic. The fear generally was that Voice AI solutions might sound like a robot reading from a script.  

It was super positive for us at the show to see the reactions when venue owners got to test Sadie out. We received so many comments on how lifelike she sounds, and how easily she handles natural and nuanced conversation.  

We put her through her paces, asking for seating recommendations, and all sorts of general enquiries, and she would handle them with ease. Consistently the feedback was that Sadie handles calls just like a staff member would, enabling her to fill the gaps when staff can’t get to the phone, without impeding on the customer experience.” 

Missed Sadie at Restech?

To get a taste of the action that Sadie saw at ResTech, book a demo to speak to one of our Australian hospitality experts.