INDUSTRY UNLOCKED
AI SHOULD NOT BE A LUXURY RESERVED FOR ENTERPRISE CHAINS. the change. From advanced POS systems to CRM platforms and digital loyalty apps, independent venues are adopting new tools to streamline operations and improve customer engagement.
At Embargo, we work with nearly 2,500 food and drinks SMEs. On the one hand, we see what a huge difference technology( and better customer data) can make. But equally, we see that adopting technology is not always an easy task for businesses that are tight on time, money and, sometimes, digital skills.
SMEs are the backbone of the entire hospitality industry and they must have access to cuttingedge, yet simple-to-use, technology.
Next generation will bring muchneeded digital skills
There’ s also a generational shift happening, with the next wave of hospitality workers entering the industry with a completely different mindset. They’ ve grown up with technology, and many are already using AI in their daily lives. In fact, over 90 % of UK university students now rely on AI tools for their schoolwork, so stepping into a workplace that doesn’ t use smart tech can feel like stepping back in time.
What’ s more, while these systems are useful, they often only go so far.
Since the pandemic accelerated digital adoption, hospitality businesses have gained access to a wealth of data, spanning sales trends, visit frequency, customer preferences and more. Yet for many SMEs, this data remains largely untapped. Time constraints and limited analytical resources mean that most managers rely on simple metrics like customer count or average spend, meaning they are missing out on the deeper insights that could drive growth and efficiency much further.
New hires today are tech-savvy and comfortable with automation, data platforms and digital systems. The same goes for customers. They’ re used to seamless, personalised experiences, whether they’ re ordering coffee or receiving offers. For them, AI won’ t be a novelty but a baseline expectation.
The true value lies in understanding complex patterns: how time of day, different types of offers or even weather conditions influence customer behaviour and purchasing decisions. This level of analysis can inform everything from staffing and inventory to targeted marketing and loyalty strategies. We know from experience that repeat purchases and high spending customers are the key to revenue growth – and Artificial Intelligence( AI) can easily identify what makes customers spend more often and higher, as long as it has sufficient high-quality data.
AI offers a way to unlock value by transforming raw data into actionable insights and direct engagement with customers, with minimal effort. But for small hospitality businesses, building their own AI models and engines is almost certainly out of reach. The fact remains that it’ s costly and complex; proprietary tools are therefore the reserve of large enterprises.
Bridging that gap is the next step in helping independent venues compete and thrive in a rapidly evolving market. We see a huge need to address this – there is a revolution coming.
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