AI is forcing restaurants to rethink where technology belongs—and where the human touch still matters most. From using it to manage prime costs to resisting automation that strips hospitality from the guest experience, this week we reflect on the balance between efficiency and connection.

Meanwhile, rising fuel costs are putting pressure on both operators and diners, adding another layer of complexity to an already challenging cost environment. Plus, what changing labor, consumer and menu trends mean for restaurants right now.

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AI may be changing the economics of restaurant consulting: Operators can use AI, paired with their own POS and payroll data, to replicate much of the playbook consultants charge thousands to provide—from labor scheduling to menu costing and dashboards. The human expertise that remains valuable is observation, judgment and accountability.

Why it matters: For operators, the takeaway is less “fire your consultant” than learn to use AI with the data you already have. A GM who can turn POS and scheduling information into actionable recommendations could identify prime cost savings faster and cheaper. But make sure to double-check the results, as AI is vulnerable to errors. Consultants may still add value through on-site expertise and accountability, but operators should understand exactly what they're paying for. (Nation’s Restaurant News)

Rising fuel costs are putting pressure on both restaurant operators and consumers, creating another expense burden for an industry already operating on tight margins. A study found that nearly 90% of consumers affected by rising gas prices spend less on goods and services, and that every $0.50 increase in gas prices has a $68 billion impact on consumer spending. Higher gas prices can increase delivery and transportation costs while leaving consumers with less discretionary income to spend on dining out, potentially putting pressure on restaurant traffic and sales.

Why it matters: For operators, higher fuel costs can create a double squeeze: transportation and delivery become more expensive just as customers have less money available for dining. Restaurants may need to revisit delivery fees, purchasing and distribution costs, staffing and pricing while being careful not to push already price-sensitive customers away. (Restaurant Business)

As restaurants race to adopt AI, operators should be careful about automating the very thing diners are paying for: hospitality. Technology can improve prep, reduce waste and eliminate administrative work, but removing human interaction from the guest experience risks stripping away the product itself: connection.

Why it matters: The takeaway isn't to reject AI, but to use it where it gives hospitality back time. If automation saves 30 minutes, operators should consider how that time gets reinvested—ideally putting managers and staff back in front of guests. The best technology should enhance efficiency without making the restaurant feel less human. (Restaurant Dive)

The percentage of diners surveyed by an advisory firm who say they still prefer ordering with a human over an AI agent. (Fortune)

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The Prep is written by Kelly Dobkin and edited by Bianca Prieto.