The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

With food waste now a central focus at this year's COP30 in Brazil, smart technologies and automation are set to play a crucial role in tackling the problem, explains Maxwell Harding, CEO and founder of digital ordering platform Dynamify.

Globally, around 30% of all food produced is either lost or wasted, which is especially concerning in the context of the food and agriculture system, accounting for approximately 1/3 of global greenhouse gas emissions.

As leaders from around the world focus on transforming food systems to reduce emissions, the role of technology in addressing waste is now more prominent than ever.

Technology has rapidly advanced in the hospitality industry since Covid, as businesses were forced to adapt and adopt new digital tools. This shift transformed an industry that once dragged its feet on innovation, positioning it today at the forefront of technological advancement.

This tech-forward approach has dovetailed with the widespread creation and adoption of AI technology so that now, the industry can and does do things that couldn’t be dreamt of even a decade ago.

Increasing efficiencies through automation and AI

Automation and AI are being widely adopted as transformative technologies in the F&B space to drive efficiencies in a difficult business climate. Used together, they enable businesses to streamline operations, enhance service delivery and create more meaningful interactions without necessarily sacrificing the human touch. By automating repetitive, rule-based tasks with automation and introducing data-driven intelligence with AI, hospitality providers are elevating themselves to new levels of efficiency and personalisation.

However, as with any introduction of new technology in the workplace, there is a concern in the industry that automation and AI may ‘steal’ human jobs. In reality, the technology is designed to take on the menial grunt work, freeing up people to focus on personalising F&B experiences.

Automation involves using software bots to perform routine, structured tasks like managing orders and updating pricing. These bots work across existing systems, making implementation fast and non-disruptive. Additionally, AI brings intelligence to automation through learning from historical data, recognising patterns, predicting trends and supporting decision-making.

This can further enhance the customer experience through personalised recommendations, demand forecasting, and dynamic pricing.However, as with any introduction of new technology in the workplace, there is a concern in the industry that automation and AI may ‘steal’ human jobs. In reality, the technology is designed to take on the menial grunt work, freeing up people to focus on personalising F&B experiences.

Automation involves using software bots to perform routine, structured tasks like managing orders and updating pricing. These bots work across existing systems, making implementation fast and non-disruptive. Additionally, AI brings intelligence to automation through learning from historical data, recognising patterns, predicting trends and supporting decision-making.

This can further enhance the customer experience through personalised recommendations, demand forecasting, and dynamic pricing.

Real-time stock visibility and accurate demand forecasting

While a lot of media attention focuses on automated systems that streamline labour, the more interesting innovation is in the data, which is used to forecast demand and manage inventories more effectively.

Predictive analytics powered by AI allows kitchens to bring production into line with actual customer demand through real-time data analysis. Whereas kitchens previously relied on historic sales data or guesswork, algorithms can now process real-time data from POS systems, reservations and even include local events to predict what will sell, and when. This gives operators the information they need to prepare the right quantities, leading to a reduction in overproduction and resulting in less waste as well as a more dynamic and informed approach to menu planning.

Advancements in IoT and automation also mean that businesses can achieve real-time visibility into their stock levels, which has traditionally been widely inaccurate and time-consuming to manage manually.

Smart shelves and sensors can now monitor inventory across multiple stock rooms, and automatically flag when supplies run low, or even trigger automatic reorders that don’t require a human’s manual input. These systems can also track environmental conditions like temperature and humidity, and inform venues about how to avoid spoiling perishable goods, which also complies with food safety standards.

The technology can help implement proactive approaches like First-Expired, First-Out (FEFO) management, meaning that caterers can use ingredients before they spoil, which leads to less food waste.

As well as the advantages of lowering food waste and improving operational efficiency, increased digitisation can lead to improved customer insight. F&B operators are more informed on what is selling, what isn’t, and where stock could be redistributed. This improves their ability to control their cost of goods sold, as each ingredient is tracked precisely. Some operators who have implemented real-time visibility solutions have reduced their food cost by up to 5%.

EPoS and sustainability reporting

Another wider sustainability benefit of automation in the F&B space is that operators can now use EPoS systems that integrate carbon labelling to give customers visibility of the environmental impacts of their meal choices.

EPoS systems can integrate with carbon calculation platforms to show consumers the carbon footprint of items on the digital menus, providing transparency at the point of sale. Through empowering customers to make more environmentally conscious decisions, F&B operators gain the added benefit of enhancing their image and encouraging loyalty from environmentally aware customers.  

 In the end, integrating automation, AI and IoT is not just about efficiency or reducing food waste; it is also about giving F&B operators the tools that they need in a tough economic environment.

Through gathering and using insightful data, F&B professionals can make better decisions that align with their financial and sustainability goals. Margins are tight and expectations continue to rise, so real-time visibility, increased efficiency, and accurate forecasting can give businesses the foundation that they need to succeed in a sustainable way.