DFZQ has released a research report stating that AI applications in the restaurant industry are transitioning from single-point digitalization to intelligent operations. Compared to the early focus on smart ordering, AI is now gradually entering store operations and supply chain management. Franchise systems have become a key scenario for the rapid deployment of AI. Compared to directly-operated restaurants, new tea beverage chains, with their high standardization and large number of franchise outlets, allow AI to more easily achieve economies of scale. In the long run, AI is expected to enhance headquarters management efficiency, optimize franchise systems, and improve single-store models, becoming a new core competitive advantage for chain restaurant enterprises. The main views of DFZQ are as follows:
AI's Evolution in the Restaurant Sector
AI is moving from consumer service to enterprise management, marking the industry's entry into an intelligent operations phase. Previously, digitalization in the restaurant industry mainly focused on online ordering, membership management, and payments. Now, large language models and AI agents are driving AI to cover the entire customer journey, from pre-dining to post-dining. Haidilao took the lead by partnering with Volcano Engine to launch the AI assistant "Xiao Laolao." Based on the Doubao large model and the HiAgent platform, it handles functions like reservation queuing, dish recommendations, coupon inquiries, and after-sales service, upgrading AI from a customer service tool to an operational assistant. Yum China announced in June 2026 that its KFC brand became one of the first restaurant brands to integrate with the Tongyi Qianwen app's third-party agents, further exploring the integration of AI agents with consumer service scenarios. The industry's AI applications are shifting from isolated digital tools towards comprehensive smart operations.
Pioneering AI Integration
Full-service restaurants are leading the exploration of AI agents, with AI beginning to extend into restaurant management and operations. Compared to the early focus on smart ordering, AI is now gradually being applied to store operations and supply chain management. Jiumaojiu has designated 2025 as a significant starting point for its AI applications. Under its Tai Er brand, it created the industry's first AI agent restaurant "Chao Na Bian," launched a Pad-based AI Chat Box ordering system, and simultaneously advanced end-to-end digital and intelligent supply chain construction, aiming to improve store operational efficiency and headquarters management capabilities through AI.
Franchise Systems as a Key Driver
Franchise systems have become a primary scenario for the rapid implementation of AI, with the potential to significantly amplify headquarters management capabilities. Compared to directly-operated restaurants, new tea beverage chains, characterized by high standardization and a large number of franchise outlets, allow AI to more easily achieve scale effects. Mixue Group established "Snow King AI Wisdom Technology" in 2024, with its business scope covering AI algorithms, application software, and public data platforms, indicating the company's organizational-level commitment to building AI capabilities. Cha Bai Dao has integrated large models like DeepSeek, launching a franchisee intelligent assistant gradually applied in scenarios such as store inspections and operational analysis. Gu Ming continues to advance its digital supply chain and intelligent equipment construction. AI is progressively extending from front-end marketing to the headquarters management system, providing intelligent decision-making support for franchise operations.
The New Competitive Landscape
The report posits that AI is becoming a new competitive barrier for chain restaurants. For chain brands with thousands or even tens of thousands of stores, the value of AI lies not only in improving the consumer experience but, more importantly, in expanding headquarters' management reach, strengthening supply chain coordination, and optimizing operational decisions. This drives improvements in franchisee operational capabilities, single-store model optimization, and enhanced net store opening capacity. Future industry competition will gradually extend from brand and product competition to competition in AI-driven operational efficiency. Enterprises with accumulated AI capabilities and supply chain advantages are expected to continuously enhance their long-term competitiveness.
Potential Risks to Consider
Risks include the commercialization and adoption pace of AI technology falling short of expectations; franchisee acceptance and return on investment being lower than anticipated; and intensified industry competition and fluctuations in consumer demand potentially affecting the realization timeline for efficiency improvements driven by AI.
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