For many pizzerias, inventory management has long been a necessary evil – a time-consuming, mundane and often error-riddled endeavor that is nevertheless essential to the health of the business.

But artificial intelligence (AI) is changing the game.

Once the futuristic concoction of science-fiction novels, AI’s application to restaurant inventory management – still a novel, albeit fast-evolving field – is helping pizzerias achieve appropriate stock levels, reduce food waste and bring heightened efficiencies to a historically maddening process.

Adoption of AI applications for inventory management has been swift. According to Deloitte’s “How AI is Revolutionizing Restaurants” report published earlier this year, 55 percent of restaurant operators are using AI in the inventory-management process on a daily basis. In addition, another 25 percent of operators reported they were testing AI applications in inventory management.

Those numbers should accelerate as comfort with AI jumps, too. Four in five restaurant executives surveyed by Deloitte said they planned to increase investments in AI technologies over the next fiscal year – and inventory-management solutions will be a prime target for many.

AI in Inventory Management: The First Wave

AI’s arrival in the restaurant industry began with two common use cases: first, customer experience, such as in-app or kiosk recommendation engines that create personalized experiences for consumers; and second, inventory management.

According to Oliver Ostertag, general manager of Operator Cloud at PAR Technology, AI in inventory management largely started with traditional regression forecasting based on historical data. Looking at past numbers and trends, AI suggests purchasing amounts for specific goods or recommending food-prep levels for the upcoming day. In addition, the technology compiles orders for specific vendors based on inventory counts and sales data.

Early inventory-management AI functions also help in “notifying and actioning things in real time,” Ostertag says. For instance, the technology can automatically place orders if stock of particular items fall below a defined limit or alert operators about a vendor’s purchasing deadline while simultaneously sharing a proposed order.

In many cases, AI’s growing role is uplifting restaurants’ bottom lines. For example, AI warns operators when stock is nearing expiration and helps prevent restaurants from tossing food into the garbage. It also highlights vendor promotions and tracks price trends so operators can take advantage of a special offer or pursue an alternative supplier if prices jump.

AI’s multi-layered ability to align inventory levels with sales, deliver thoughtful forecasts, improve kitchen operations and elevate performance has sparked high praise from many restaurant operators. In fact, about one-third of respondents to the Deloitte survey reported their AI investments in inventory management were generating “high impact.” Meanwhile, 65 percent of restaurant operators surveyed by Popmenu last year said AI was increasing their margins and profitability.

AI Inventory: 10 Times Faster Than Manual Inventory

AI is continuing to push further into the restaurant inventory management arena with new capabilities aimed at improving operations and driving results.

Particularly compelling to many restaurants – especially staff members who have been tasked to regularly count inventory items by hand – is a solution like NomadGo’s Inventory AI, which combines 3-D spatial intelligence with augmented reality. Using a smartphone or tablet, staff scan inventory from shelves, walk-ins, thaw racks and more, and NomadGo’s technology provides near-instant counts with 99 percent accuracy.

“It solves the manual inventory counting problem and turns one of the most hated jobs in the restaurant into something far more manageable,” NomadGo CEO David Greschler says, adding that the AI-powered process is 10 times faster than manual inventory counting and produces about 15 hours of labor savings each month.

NomadGo then sends an inventory report to the operator. Through its partnership with PAR Technology, NomadGo also can shoot the data right into PAR’s Data Central back-office platform. There, it feeds PAR’s AI engine and enables better predictions for purchasing.

“AI needs data – and with highly accurate data around counts, AI’s predictions can be that much better,” Greschler says.

Indeed, AI is producing more robust forecasting models that factor in a range of variables, such as weather, holidays or even local events. The functionality is helping restaurants bring a more strategic, data-driven approach to purchasing, which can then fuel results.

“Insights are getting smarter and better utilizing real-time data,” Ostertag confirms, adding that AI also can benchmark inventory-management data, thereby allowing operators to see “what good is and what great is.”

Increasingly, too, AI applications across the restaurant operation are working in tandem with other technologies and creating new use cases. For instance, inventory management is seamlessly working with point-of-sale data and loyalty programs to push out profit-driving promotions.
So-called smart promotions offer deals at the time people are most likely to be interested in expiring inventory, thereby helping operators generate cash, not waste.

“The real umbrella function here is optimizing inventory, and AI is helping operators do just that,” Ostertag says.

Where Will Restaurants Use AI Next?

Artificial intelligence continues capturing the attention of restaurant leaders who see the technology as a way to improve operations and bolster profitability.

While customer experience and inventory management were the first frontiers, restaurant operators are far from done looking for ways to leverage AI in their establishments. Pizzerias and other restaurants currently are investigating ways to deploy AI to increase customer touchpoints, advance consumer loyalty and develop new products.

For many restaurant technology providers, the overriding mission is to push frictionless technology and make it as easy as possible for operators to succeed.

“We want to help restaurants use the newest solutions in ways that drive more benefits,” PAR Technology’s Oliver Ostertag says.

When operators understand AI applications and are trained on the full usage of products, the technology can be “incredibly powerful,” he adds. It will be up to operators, however, to determine how many decisions they want driven by AI.

“AI can certainly help contribute to a smarter, more efficient operation, but operators still need to have their hands on the wheel,” Ostertag says.

DANIEL P. SMITH is a Chicago-based writer who has covered business issues and best practices for a variety of trade publications, newspapers and magazines.

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As I walked the show floor at Pizza Expo in March, it was clear that pizza has gone high tech. While there were “oohs and ahhs” over the latest robotic and AI technology, it was the integration of advanced technology in commonly used equipment, such as mixers, ovens, POS systems and even cheese graters and inventory systems that has captivated the independent pizzeria market.

After 14 years of producing Pizza Expo and covering the pizzeria industry, I’ve seen the immense evolution of technology, and it has grown at lightning speed in recent years. Emerging themes are taking enterprising pizzerias to the next level. Let’s explore what’s happening in the restaurant tech landscape.

6 Technology Trends in the Pizza Restaurants

1. Pizza kitchens are getting smarter.

Not just your kitchen staff, but the equipment itself is SMART. Integrated sensors and advanced tech now aid the function of equipment in today’s kitchens. New technology in mixers adds more precision to measuring, time and temperature, as well as automated features. Even prep tables have become tech savvy with better temperature control and airflow.

One of the biggest areas of advancement is in pizza ovens – from conveyor ovens and smart ovens to electric deck ovens and rotating pizza ovens. “Now they’re producing ovens that are able to tell you when there’s a hot spot or cold spot in the oven,” Alastair Hannmann says. He owns Pizza Buddha Consulting, where he works with pizzeria owners around the world on equipment upgrades.

2. AI is powering everyday tech.

Artificial intelligence is being used in smart kitchens for inventory management, sales forecasting, ordering and marketing planning and execution.

There is no doubt that AI has become a buzzword. Approach AI with caution, says Sri “Raj” Raju, founder and CEO of Houston, Texas-based tech consultancy Smartbridge. “Take a step back and look at the big picture and see what exactly you are trying to do,” he says. “What do you need? And what is this AI doing? What is the true AI capability that they’re talking about? They have to ask the question and try to understand how AI is either going to help – otherwise, you’re paying a premium for something that says ‘AI’ when it may not even give you any added benefit.”

3. New tech is answering call for efficiency and labor savings.

Automation has filled the void restaurants have felt in the slowed labor market while adding efficiency and precision to daily tasks.

Automation is being deployed in daily tasks such as dough making, food prep and inventory management. There is a cost for automation. Do your due diligence to evaluate if automation is a good fit. Discover more about kitchen automation.

4. Getting and using real-time data and analytics has never been easier.

Collecting data from every source in a restaurant is one thing, but now the key is integration between the tech devices. IoT (Internet of Things) has been a game changer in interconnecting devices and data. POS systems have become especially savvy by integrating inventory and loyalty programs with sales analytics to give operators real-time data to make operational decisions.

It’s not enough for the tech to exist, it must integrate into existing systems. “Part of long-term success is to make sure that that the systems behind the scenes that I use are all connected and not having to require manual interventions every step to be able to connect,” Raju says.

Hannmann says he sees this in pizzerias. “The advancements on point-of-sale systems on phone integration are huge to me,” he says. “I’m really excited to see how that develops.”

5. Customer-centric tech enhances experience and loyalty.

AI-driven personalization tools, augmented reality food experiences, self-ordering systems, enhanced ordering platforms and others are helping restaurants get to know, understand and market to their customers. This area will continue to be at the forefront of restaurant tech growth.

Raju contends that digital transformation starts with the customer. “It’s really reimagining how you deliver exceptional experience to customers.” Raju says. “Reimagine your brand, reimagine how your brand delivers exceptional experience to your customers, so that the customer feels, ‘This is the brand I want to spend my money on.’ … Part B of that is, then, how do I transform all my operations to be digitally savvy using digital technologies? Can I deliver that Amazon-like experience, simple ordering, great service.”

6. Lastly, don’t just chase the next great tech gadget

It’s easy for people to “get enamored by cool stuff,” Raju says. “But again, I’m not diminishing AI and all those things. Yeah, they will play a big role, but it’s still maturing. It’s still early, so I would say don’t get sucked up in ‘that thing’. You’ll spend a lot of money and not that much return.” Be strategic when you plan your tech stack.

Don’t get lost in the weeds of the daily releases of new technology, Hannmann warns. “There is this sense of you can have too much tech to where it’s overwhelming, like a million spreadsheets or a million devices, and I warn people about it,” he says.

Look at the big picture of how the new technology will not just impact your business but also the operation and ROI of your restaurant. “It’s not just technology,” Raju says. “The process is the important thing. How are the processes and then, how do I use technology to simplify the process by making the digital become digitally savvy? But then, to do all this, a lot of data, you have to understand the customer.”

Just like adding a new menu item, integrating new technology into your business requires planning and strategy. “When you look at the tech – and let’s use machinery, for example –  that’s the No. 1 easiest form of tech for an operator to get is to buy the machine and put it in place,” Hannmann says. “But they don’t realize cleaning procedures, breakdown, setup, safety hazards, so you have to develop an entire SOP.”

Don’t forget about your contingency plan for outages or equipment failure.

“As with everything tech, what happens when it goes down?” Hannmann asks. “What happens when you lose the internet?”

Denise Greer is Executive Editor at Pizza Today.

Read the June 2025 Issue of Pizza Today Magazine

This month, we focus on restaurant technology. See what’s hot in tech trends this year. Explore kitchen automation that can save labor costs and improve quality. See how digital menu boards can help you stay on top of menu prices in a fluctuating economy. After a record-breaking Pizza Expo and International Pizza Challenge, we explore pizza trends from the world pizza competition. Find summer dessert inspiration. Discover how to take your side salads to entree status. Go to the June Issue.

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