What was perceived as science-y and intimidating a decade ago—AI, IoT and other technology optimizing real-time analytics, digital supply, resource ordering, inventory streamlining, cross-training staff and labor—is so seamlessly woven into hotel and resort food and beverage management that it almost feels as if it was always there. Decision makers realized these could free them up to improve guest and employee relations. Applications like AI-driven menu design, meanwhile, are viewed as barometers reflecting how well guests’ needs and preferences are being met.
According to both service providers and hotel and resort F&B managers, what’s coming next can take informed decisions to the next level. The improvements, upgrades and add-ons arriving in 2026 may be subtle, yet promise to bolster profitability and sustainability efforts in meaningful ways. While hotel decision makers may be inclined to seek out the lowest-cost providers, Lindsey Goedeker, the interim chief revenue officer of hotelier platform Actabl, advises current and prospective clients to seek out and invest in technology partners who add clarity, reduce complexity and help hotel teams work more efficiently while strengthening profitability.
“Technology plays a major role in keeping teams engaged and empowering staff to succeed in their current role while upgrading their understanding of how the industry works,” she said. “The best partners help hotel teams work smarter and build new skills. Investing in tools that empower staff isn’t just a tech decision; it’s a retention strategy.”
While AI, IoT and other innovations won’t replace the human touch, Larry Levine, expense reduction consultant at P3 Cost Analysts, said the right partnership between F&B management and technology providers frees up a hotel’s humans to do what they were ultimately hired to do. “Whether it be us, our competition or a procurement specialist predicting what a (hotel client) will be purchasing and getting better pricing, it's the mid-line stuff firms like ours focus on to improve the bottom line.”
A Clean Slate for 2026
According to Valerie Layman, CPO at BirchStreet Systems, incoming AI will build on existing F&B technologies by taking on more manual decision-making steps that slow operations down. Instead of simply collecting and presenting data, the next stage in technology evolution will be defined by automated solutions that can analyze, reason and provide optimized recommendations to staff.
“The growing focus on predictive analytics will reduce waste and prevent out-of-stock issues by ensuring supply levels match actual demand,” she said. “When ingredient prices spike, newer AI-driven solutions will be able to substitute recipe ingredients or recommend alternatives in real time to preserve profit margins. Combined with enhanced digital communication about allergens, sustainability and sourcing, these tools will help create truly seamless operations from supply chain origin to guest delivery.”
According to Layman, connecting these systems allows hotels to deploy automated purchasing perfectly aligned with demand forecasts, current inventory levels and supplier lead times, leading to smart replenishment that reduces overstocking, avoids last-minute shortages and frees up working capital.
To Serve and Perfect
Walt Sheffler, president of Avendra International, explains that his firm’s products help F&B management teams embrace advanced technology by harmonizing their purchasing data through AI. Avendra’s “Mosaic AI Supply Chain,” a client-facing platform, helps clients and customers effectively mine data through AI-powered analytics. Through supply chain and procurement innovations, Avendra leverages its IoT solutions, such as parent company Aramark’s AIWX™ Connect, to optimize performance.
“We challenge our suppliers to enhance their offerings, which allows our clients to benefit from the latest and best products, often at better pricing or under programs that drive additional savings,” said Sheffler. “These efforts add up to tangible improvements in gross operating profit for our partners. They gain access to high-quality resources with optimized costs and ongoing support to maximize every dollar spent. By understanding the market and having insights into product quality, sourcing and manufacturing locations, we’re able to identify cost-effective solutions without compromising on quality.”
As is the case with Avendra, Kelsey Higginbotham at Inn-Flow (a back-office system service provider using analytics to improve portfolio visibility) predicts that its select-service and full-service hotel clientele will be less focused on replacing systems and more on tweaking existing technology to connect data across their clients’ organizations in 2026.
“By linking accounting, labor and business intelligence, management teams gain real-time visibility into how operational decisions impact profitability across their portfolio, so necessary updates and upgrades are made in a timely fashion,” she said. “Every quarter, we talk to (clients) from a wide range of hospitality brands using different property management systems. I want to know what they are struggling with and what we can do to provide better solutions. We continue to roll out new features every quarter, such as the just-launched mobile app, because it is easy for them to use and comprehend the resulting data. This shows our customers how operational decisions impact profitability across their whole portfolio, and how our leadership team can better address our customers’ struggles so they can focus more on (guests) and profitability.”
Shawn Tarter at RealTime Reservation points out that AI helps culinary teams design menus based on margin, demand and ingredient volatility before items go live. Resulting analytics from RealTime give managers a clearer view of food cost and labor impact during service, underscoring that many new sustainability practices are tied to cost control and waste reduction.
“Many groups in the industry are developing tools that connect guest behavior, resource use and production levels to support the shift to greater sustainability,” Tarter said. “IoT-connected equipment, automated temperature logs and improved waste tracking help kitchens operate more efficiently. Predictive prep levels reduce overproduction, and better equipment monitoring lowers utility costs.”
Hotels and Resorts Check In and Plug In
“No thriving operation wants to sacrifice quality, so as costs go up, we need to lean on technologies and robotics as possible to help deliver a more profitable business,” states Ried Floco, president and director at California-based Nightfood Holdings, a hospitality technology and asset acquisition company, as constant changes in labor, supply procurement, culinary trends and sustainability demands drive industry and create a need for his firm’s technologies.
“As you prepare for 2026 and the shifts in the economy, how are you planning strategically to better manage your Gross Operating Profit (GOP) more tightly, given the high possibility for higher payroll and supply costs? In our owned-and-operated FB outlets, we implemented TechForce Robots to help our team move linens and trash. We are currently working on adapting to allow deliveries within our FB operations. It is amazing to see how the team has benefited by removing some of the hardest, dirtiest and most time-consuming tasks from their routines.”
Nightfood Holding’s latest acquisition, Hilton Garden Inn Rancho Mirage in California, prompted Floco to confirm a major goal for 2026 is to continue advancing the firm’s robotics integration to reduce the routine burdens from the hotel’s team, while bringing sustainability to employees through reduced injuries, less turnover and more efficient use of time. He is excited to see how his firm’s technology will accelerate F&B operations and customer interactions.
“We expect to continue to see new technologies joining each year, ultimately allowing our business and its offerings to streamline and improve,” he continues. “While seasonality and local sourcing remain major drivers in menu development, we also consider how each item impacts kitchen flow and ticket time. Real-time analytics and guest reviews guide those decisions, but we approach every menu with the mindset that nothing is untouchable.”
“Technology plays a huge role in managing an F&B operation that both delivers a memorable guest experience and profitability,” affirmed John Beck, regional operations director at Crowne Plaza HY36 (CPHY36) in New York City. “(In 2026), we plan to continue leveling up our F&B operation technology, building existing data profiles that track guest preferences and give our team a heads-up in service. We'll use historical data to do everything from optimizing inventory based on local events to stocking more seafood and shellfish when the Toy Show is at the Javits Center and more steaks during a basketball tournament at Madison Square Garden.”
“It’s all about pulling the four levers—price, mix, labor and cost of goods sold—more quickly and more precisely,” assessed Karl McElligott, director of F&B at Olympia Hospitality. While Olympia’s technology helps generate data, he said the best results come from how its operators translate that data into real-time action. Improving agility and shortening the loop between insight and decision will be critical so every outlet in an Olympia property can adjust on the fly and protect gross operating profits in a volatile cost environment.
“We constantly challenge our teams to keep menus disciplined and cohesive, balancing guest variety with operational efficiency,” he said. “Enhancing existing technology advances the goal to ‘keep the heroes and lose the dogs,’ whether those are high-cost items, dishes with operational complexity or menu items that consistently underperform in guest feedback. Sustainability is also embedded in our daily decision-making. We are also finding creative ways to repurpose trim or production overage into menu components and track around waste and utility usage, so sustainability is measured with the same rigor as cost and labor.”
Making Supplier Decisions Less Demanding
Even with advances lightening the load, technology has a long way to go before it is completely plug-and-play.
To help Avendra International hotel clients stay ahead, Sheffler said his team is constantly in communication with suppliers to share information on product improvements and innovations to ensure his clients have access to options that swiftly adapt to changing market dynamics. This helps them source better options and negotiate more favorable terms. Crowne Plaza HY36’s Beck said technology helps F&B management continuously reassess supplier relationships to ensure it is getting the best value without compromising quality. McElligott said Olympia Hospitality F&B management constantly evaluates supplier relationships to strike the right balance between national pricing leverage and local identity.
“National programs bring scale and savings, while local partners help define the character of each restaurant,” said McElligott. “Both matter, and both contribute to the financial and reputational success of the operation, as we are refining our category strategy in 2026: Consolidating commodities like oils, dry goods and paper nationally while keeping core culinary items local to preserve the connection between menu and community.”
The ultimate goal isn’t to chase every new platform, but for Olympia Hospitality to adopt technologies that bring a short-term, measurable payback to operators and owners. In 2026, it will be lining up a new procurement platform to help its teams reach quicker decisions on COGS, order sizing and payment timing while optimizing for early-pay discounts and supplier terms. Managers are also exploring how AI can assist with menu engineering in helping teams analyze item performance, auto-generate prep lists and streamline remote ordering.
Floco acknowledges that his biggest challenge with inventory management is that there are currently no viable off-the-shelf options. For now, his managers rely on their direct experience in building and operating a complete inventory management system for a major client that, post-implementation, will provide the speed, accuracy and savings that are immediately beneficial to an operation and the bottom line.
“We use AI to analyze menu options based on seasonal ingredients, allowing for new twists and offerings to our menu,” he said. “Most POS systems have advanced so much that we don't currently rely heavily on independent AI for analytics.”
When Everyday is ‘Labor’ Day
Given that labor remains the largest operating expense for hotels, Goedeker said that manual, inconsistent or outdated processes add hidden labor hours that operators can no longer afford to absorb. Outdated methods like spreadsheets or paper slow decisions, increase administrative burdens and pull managers away from the floor. This is why in the last few years, digital workflows have proven that technologies that standardize reporting and connect across multiple platforms are now the rule rather than the exception.
“Optimizing labor in F&B in 2026 starts with precision,” she said. “The teams seeing the strongest results are connecting occupancy forecasts, event types and historical data to build accurate schedules well in advance. Staffing a buffet dinner is completely different than table service, where you need more servers, runners and bar support tied to seats rather than volume at the line. Predictive staffing reduces overtime, eliminates last-minute shift cuts and gives teams more reliable schedules that improve retention.”
Beck leveraged technology to make training more efficient and agile, as managing GOP amid rising payroll and supply costs requires a multi-faceted approach.
“Instead of lengthy sessions and endless exams, we developed a microlearning program with hundreds of five-minute, topic-focused trainings accessible on team members’ own devices,” he explained. “If we identify an issue that requires immediate attention, we can quickly deploy targeted training in real time, helping reduce overtime and improve performance. We are focusing on operational efficiency through technology, such as predictive scheduling to reduce unnecessary labor hours and AI-driven procurement to negotiate better pricing and optimize order quantities. We also plan to enhance staff productivity through targeted training and incentivization, ensuring that every labor hour contributes maximally to guest satisfaction and revenue.”
By turning raw POS data into real-time insights, at the push of a button, managers can see who is excelling, who needs support and when demand peaks or dips, according to Frontline Performance Group’s CEO Geoffrey Toffetti. The leaderboard, goals and incentives also drive consistent productivity; employees are motivated to achieve more during their scheduled hours.
“Happy, motivated employees take better care of guests, guests return more often and the business grows, without relying on overtime or inflated staffing levels to get there,” he said. “Our technology streamlines operations and creates a culture of achievement that lifts performance, reduces costs and unlocks the full revenue potential of every shift. By creating a fun, competitive and transparent environment with recognition, contests and bonuses, it’s possible to boost engagement and retention. And retention is one of the most effective labor-cost reducers there is.”
Higher payroll and supply costs are not new for Inn-Flow’s hotel owners and management company clients, as they experienced a huge increase in 2025 and expect to see more of the same in 2026. Higginbotham maintains that giving Inn-Flow customers the tools for inflows, budgeting and forecasting is key right now.
“Property leaders need to work together from the same set of numbers,” said Higginbotham. “You have to have the same consistency and expectations, so giving them the same information in multiple ways, whether it is with a dashboard or mobile app, will alert them to spot rising costs or overtime trends before they happen. Helping them make corrections earlier is definitely what's most important for them going into 2026. As hospitality leaders, anything we can do to leverage technology is what really matters. After all, hospitality is a people business, and there will always be a need for the human touch. We call what we’re doing now ‘guided buying,’ but where we’re headed is something even better: autonomous buying, powered by AI.”
Leveling Up
No matter how effective your existing F&B operations technology is in keeping you proactive and organized, there’s always a good reason or two to upgrade. Service providers offer statistics underscoring the importance of keeping your tech in tip-top shape:
- Actabl’s Lindsey Goedeker points to HotelData.com, showing labor costs rose 6.6 percent year-over-year in H1 2025, nearly double the 3.6 percent wage growth seen across the broader U.S. labor market. This volatility means operators can’t afford guesswork.
- Forecasting labor must now account for regulatory changes and regional variability, not just occupancy. Goedeker added that agility is also key, especially as local wage laws shift. For example, Hawaii’s minimum wage will increase by over 14 percent starting January 1, 2026, from $14 to $16. If hotels plan for only a 3 percent to 5 percent cost-of-living adjustment, they’ll largely miss the mark.
- Geoffrey Toffetti, CEO, Frontline Performance Group, said his firm’s “CheckMax” consistently helps restaurants achieve a 5‑15 percent increase in revenue per guest, which can double the bottom line. Servers can use the data to learn how to upsell naturally and confidently with daily specials, wine pairings, cocktail upgrades, small add-ons and other high-margin items that can boost profitability.
- Levine found that among his firm’s clients that 90 percent of businesses are overspending on their midline expenses by 30 to 40 percent or more, pointing out, “that's real money.”
- Although chefs and culinary teams bristle at the thought of losing their independence when it comes to choosing ingredients, Avendra International’s Sheffler stressed that F&B managers can gain useful insight with added technology when deciding how and where to cut costs. If there’s a 20 percent price difference between two options, ask yourself, does it taste 20 percent better? If not, maybe it’s time to make a change.
- Connecting back-office systems across finance and operations allows hotels to manage expenses proactively, according to Higginbotham. When payroll and accounting flow through one platform, leaders can quickly identify variances and inefficiencies. This means they can pinpoint where labor or food costs are outpacing revenue and use portfolio-level data to guide efficiency decisions across departments.
This article was originally published in the January edition of Hotel Management magazine. Subscribe here.