AI delivers the full syrupy stack as IHOP, Applebee’s deploy tech to personalize menu suggestions

Applebee’s and IHOP plan to deploy an AI-powered “personalization engine” that will recommend menu items and offer customized deals based on customers’ past purchases and similar ordering patterns. The initiative represents Dine Brands’ strategy to boost customer loyalty and increase sales through targeted upselling, joining a growing trend of restaurant chains integrating AI technology into their operations.

What you should know: The personalization system will analyze customer data to create tailored recommendations and promotional offers.

• Justin Skelton, chief information officer at Dine Brands (the parent company of both restaurants), says the AI-powered system is designed to boost customer loyalty while serving as an upselling mechanism.
• IHOP already collects customer ordering data through its existing rewards program, providing a foundation for the AI system to build upon.
• The technology will use both individual purchase history and behavioral patterns from similar customers to generate recommendations.

The bigger picture: Restaurant chains are increasingly turning to AI solutions rather than chasing viral social media trends to drive business growth.

• Wendy’s has already deployed AI chatbots at drive-thrus that can take orders and upsell menu items.
• McDonald’s recently resumed plans to implement AI at drive-thrus and inside restaurants after previous testing phases.
• Taco Bell announced plans to roll out “Voice AI” technology at more than 100 drive-thru locations across the United States.

Beyond customer-facing AI: Dine Brands is also exploring AI tools designed to assist restaurant staff and managers.

• The company is testing AI-powered cameras that can detect when tables need cleaning, automating part of the restaurant maintenance process.
• An AI app for managers is currently being tested to streamline operational tasks and decision-making.

Why this matters: The move signals a shift toward data-driven personalization in the casual dining sector, where restaurants are leveraging existing customer information to create more targeted experiences and drive revenue growth through intelligent recommendations.