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Industry Playbooks

AI Agents for Hospitality & Restaurants: Reservations, Orders & Guest Services

DomAIn Labs Team
January 30, 2025
10 min read

AI Agents for Hospitality & Restaurants: Reservations, Orders & Guest Services

Hospitality businesses live or die by service quality. But delivering that service is getting harder:

  • Staff shortages mean longer wait times
  • Phones ring off the hook during peak hours
  • Reservations come in 24/7 (while you're closed)
  • Online orders require constant monitoring
  • Guest questions need immediate answers

The businesses that thrive are the ones that deliver instant, personalized service—and AI agents make that scalable.

The Hospitality Challenge

What hospitality managers tell us:

"Our phone rings 50+ times during lunch rush. Half are reservations, half are asking about the menu. My host is overwhelmed and can't greet guests properly."

"We lose 20-30 reservation requests per week that come in after hours. People book somewhere else by the time we open."

"Online order errors cost us $500-1000/week in refunds and remakes. Customers select wrong options or don't read allergy info."

The business impact:

  • 15-25% of calls go unanswered during peak hours
  • 30% of after-hours inquiries are lost
  • Front desk/host spends 60%+ of time on phone
  • Average response time to online questions: 4-6 hours

AI agents handle this volume without adding staff.

The Hospitality Agent Stack

Most successful implementations use 3-5 specialized agents:

interface HospitalityAgentSystem {
  // Front-of-house
  reservationAgent: ReservationManagementAgent    // Book tables, manage waitlist
  orderAgent: OnlineOrderingAgent                 // Take online orders, upsell
  conciergeAgent: GuestServicesAgent             // Answer questions, make recommendations

  // Operations
  feedbackAgent: GuestFeedbackAgent              // Collect reviews, handle issues
  eventAgent: EventBookingAgent                   // Private dining, catering
}

Agent 1: Reservation Management Agent

Purpose: Handle all reservation requests and optimize table turnover.

Handles:

  • New reservations (walk-in, phone, website)
  • Modifications and cancellations
  • Waitlist management
  • Special requests (high chairs, accessibility, dietary)
  • Table optimization (seat 4-top vs 2 2-tops)

How it works:

class ReservationManagementAgent {
  async handleReservation(request: ReservationRequest) {
    // 1. Check availability
    const availability = await this.checkAvailability({
      date: request.date,
      time: request.time,
      partySize: request.partySize,
      preferences: request.preferences  // window, quiet, bar seating
    })

    if (!availability.hasAvailable) {
      // Offer alternatives
      return this.offerAlternatives(request, availability)
    }

    // 2. Validate special requests
    const validatedRequests = await this.validateSpecialRequests(
      request.specialRequests
    )

    // 3. Optimize table assignment
    const table = await this.optimizeTableAssignment({
      partySize: request.partySize,
      duration: this.estimateDiningDuration(request),
      timeSlot: request.time
    })

    // 4. Create reservation
    const reservation = await this.createReservation({
      ...request,
      table,
      status: 'confirmed',
      confirmationCode: this.generateCode()
    })

    // 5. Send confirmation
    await this.sendConfirmation(reservation)

    // 6. Set reminders
    await this.scheduleReminders(reservation)

    return reservation
  }

  private async checkAvailability(params: AvailabilityCheck) {
    const { date, time, partySize } = params

    // Get current reservations for that time slot
    const existingReservations = await db.reservations.findMany({
      where: {
        date,
        time: {
          gte: subMinutes(time, 30),
          lte: addMinutes(time, 30)
        },
        status: 'confirmed'
      }
    })

    // Calculate available capacity
    const totalCapacity = this.calculateTotalCapacity(time)
    const bookedCapacity = existingReservations.reduce(
      (sum, res) => sum + res.partySize,
      0
    )

    const availableCapacity = totalCapacity - bookedCapacity

    if (availableCapacity >= partySize) {
      return {
        hasAvailable: true,
        requestedTime: time,
        availableCapacity
      }
    }

    // Find nearby available times
    const nearbySlots = await this.findNearbyAvailability(date, time, partySize)

    return {
      hasAvailable: false,
      nearbySlots,
      waitlistAvailable: true
    }
  }

  private async offerAlternatives(
    request: ReservationRequest,
    availability: AvailabilityResult
  ) {
    if (availability.nearbySlots.length > 0) {
      return {
        status: 'alternative_offered',
        message: `We're fully booked at ${formatTime(request.time)}, but I have availability nearby:`,
        alternatives: availability.nearbySlots.map(slot => ({
          time: slot.time,
          seatingArea: slot.area,
          available: true
        }))
      }
    }

    // Offer waitlist
    return {
      status: 'waitlist_offered',
      message: `We're fully booked for ${formatDate(request.date)}. Would you like to join our waitlist? We'll notify you if a table opens up.`,
      waitlistPosition: await this.getWaitlistPosition(request)
    }
  }
}

Real example:

Guest (website chat, 11:30 PM): "Table for 4 tomorrow at 7pm?"

Agent (responds instantly):

"I'd love to help! Let me check availability for 4 guests tomorrow (Saturday, Feb 1st) at 7:00 PM.

Great news! I have availability at 7:00 PM. A few questions:

  1. Any seating preference? (Window, bar area, or patio - weather permitting)
  2. Are you celebrating anything special?
  3. Any dietary restrictions I should note?"

Guest: "Window if possible. Birthday! One person is vegetarian"

Agent:

"Perfect! I've reserved a window table for 4 at 7:00 PM tomorrow.

Reservation Details:

  • Date: Saturday, February 1st
  • Time: 7:00 PM
  • Party size: 4 guests
  • Seating: Window table (Table 12)
  • Notes: Birthday celebration, 1 vegetarian guest

Confirmation code: RES-8472

Our sommelier will have some excellent vegetarian-friendly dishes to recommend, and we'll make sure to bring a special dessert for the birthday!

You'll receive:

  • Confirmation email right now
  • Reminder 24 hours before
  • Option to pre-order wine (15% off for reservations)

Looking forward to seeing you tomorrow! Reply with any questions."

What happened:

  • Handled after-hours request instantly
  • Captured special occasion (birthday)
  • Noted dietary restriction
  • Assigned preferred seating
  • Set expectations for special treatment
  • All without staff involvement

ROI:

  • Captures 100% of after-hours reservations
  • Handles 60-70% of calls during peak hours
  • Gathers guest preferences automatically
  • Reduces no-shows with automated reminders (from 20% to 5-8%)

Agent 2: Online Ordering Agent

Purpose: Take online orders with accuracy and intelligent upselling.

Handles:

  • Menu navigation and recommendations
  • Dietary accommodations
  • Order customization
  • Upselling and cross-selling
  • Order confirmation and timing

Implementation:

class OnlineOrderingAgent {
  async takeOrder(conversation: OrderConversation) {
    const order = {
      items: [],
      specialInstructions: [],
      total: 0
    }

    // 1. Understand what customer wants
    const intent = await this.understandIntent(conversation.message)

    if (intent.type === 'browse') {
      return this.helpBrowse(intent.category)
    }

    if (intent.type === 'specific_item') {
      return this.handleItemOrder(intent.item, order)
    }

    if (intent.type === 'dietary_request') {
      return this.handleDietaryRequest(intent.restrictions)
    }

    // 2. Add item to order
    const item = await this.addItemToOrder(intent, order)

    // 3. Intelligent upselling
    const upsell = await this.suggestUpsell(item, order)

    return {
      orderSummary: order,
      suggestion: upsell,
      nextStep: order.items.length > 0 ? 'Anything else?' : null
    }
  }

  private async suggestUpsell(
    currentItem: MenuItem,
    order: Order
  ): Promise<UpsellSuggestion | null> {
    // Don't upsell on first item
    if (order.items.length === 0) return null

    // Check what makes sense to suggest
    const suggestions = []

    // Add a drink?
    if (!order.items.some(item => item.category === 'beverages')) {
      suggestions.push({
        type: 'beverage',
        items: await this.getPopularDrinks(),
        message: 'Would you like to add a beverage? Our fresh lemonade pairs perfectly with that.'
      })
    }

    // Add appetizer?
    if (order.items.some(item => item.category === 'entrees') &&
        !order.items.some(item => item.category === 'appetizers')) {
      suggestions.push({
        type: 'appetizer',
        items: await this.getPopularAppetizers(),
        message: 'How about starting with an appetizer? Our truffle fries are a guest favorite!'
      })
    }

    // Dessert?
    if (order.items.length >= 2 &&
        !order.items.some(item => item.category === 'desserts')) {
      suggestions.push({
        type: 'dessert',
        items: await this.getPopularDesserts(),
        message: 'Save room for dessert! Pre-order now and get 10% off.'
      })
    }

    // Size upgrade?
    if (currentItem.hasLargerSize) {
      const savings = this.calculateSizeUpgradeSavings(currentItem)
      if (savings > 0) {
        suggestions.push({
          type: 'size_upgrade',
          message: `Upgrade to large for just $${savings} more? That's ${this.calculateExtraOunces(currentItem)}oz more.`
        })
      }
    }

    // Return highest-value suggestion
    return suggestions.length > 0 ? suggestions[0] : null
  }

  private async handleDietaryRequest(restrictions: string[]) {
    // Filter menu for dietary restrictions
    const suitableItems = await db.menuItems.findMany({
      where: {
        OR: restrictions.map(restriction => ({
          dietaryTags: { has: restriction }
        }))
      }
    })

    return {
      message: `Here are our ${restrictions.join(', ')} options:`,
      items: suitableItems.map(item => ({
        name: item.name,
        description: item.description,
        price: item.price,
        tags: item.dietaryTags
      })),
      note: 'All items are prepared fresh. Please let us know of any allergies.'
    }
  }
}

Real example:

Guest: "I want the bacon burger"

Agent:

"Great choice! Our Bacon Cheddar Burger comes with:

  • 1/2 lb angus beef patty
  • Applewood smoked bacon
  • Sharp cheddar
  • Lettuce, tomato, pickles
  • Served with fries

Customizations:

  • How would you like it cooked? (Rare, Medium-rare, Medium, Medium-well, Well-done)
  • Any changes to toppings? (Add/remove anything)
  • Fries, sweet potato fries, or side salad?"

Guest: "Medium rare, add grilled onions, sweet potato fries"

Agent:

"Perfect! Added to your order:

Bacon Cheddar Burger - $16.99

  • Cooked medium-rare
  • Extra: Grilled onions
  • Side: Sweet potato fries

Would you like to add a drink? Our house-made lemonade ($3.49) or craft sodas ($4.29) pair great with burgers!"

Guest: "I'll do the lemonade"

Agent:

"Excellent! Your order:

  1. Bacon Cheddar Burger (medium-rare, + onions, sweet potato fries) - $16.99
  2. House Lemonade - $3.49

Subtotal: $20.48 Tax: $1.84 Total: $22.32

Anything else, or ready to checkout?"

Guest: "That's it"

Agent:

"Great! One more thing - we have fresh-baked chocolate chip cookies today. Add 3 for just $5? (Usually $2 each)"

Guest: "Sure why not"

Agent:

"Awesome! Final order:

  1. Bacon Cheddar Burger - $16.99
  2. House Lemonade - $3.49
  3. Chocolate Chip Cookies (3) - $5.00

Total: $27.32

Pickup or Delivery?"

What happened:

  • Confirmed customizations upfront (fewer errors)
  • Upsold drink (+$3.49)
  • Upsold dessert (+$5)
  • Order value: $16.99 → $27.32 (+61%)
  • Zero staff time until kitchen prep

ROI:

  • Handles 70-80% of online orders
  • Average order value +30-40% (upselling)
  • Order accuracy 95%+ (vs 85% with human phone orders)
  • Frees staff to focus on in-person guests

Agent 3: Guest Services (Concierge) Agent

Purpose: Answer guest questions and make recommendations.

Handles:

  • Menu questions (ingredients, preparation, allergens)
  • Hours and location
  • Parking and directions
  • Recommendations (wine pairing, popular dishes)
  • Event information (happy hour, live music)
  • Reservation policy

Implementation with RAG:

class GuestServicesAgent {
  async handleQuestion(question: string) {
    // Search restaurant knowledge base
    const context = await this.vectorDB.search(question, {
      sources: ['menu', 'policies', 'events', 'location'],
      topK: 3
    })

    // Generate answer
    const answer = await llm.generate(`
      You are a friendly concierge for a fine dining restaurant.

      Guest question: ${question}

      Restaurant information:
      ${context.map(c => c.content).join('\n\n')}

      Provide a helpful, welcoming answer. If suggesting dishes, mention why they're popular.
      If you don't know something, offer to connect them with staff.
    `)

    return {
      answer: answer.content,
      sources: context.map(c => c.metadata),
      suggestedAction: this.suggestNextAction(question, answer)
    }
  }

  private suggestNextAction(question: string, answer: any) {
    if (question.includes('gluten') || question.includes('vegan') ||
        question.includes('allergy')) {
      return {
        action: 'book_reservation',
        message: 'Would you like to make a reservation? I can note your dietary needs.'
      }
    }

    if (question.includes('wine') || question.includes('recommend')) {
      return {
        action: 'view_menu',
        message: 'Check out our full menu and wine list here: [link]'
      }
    }

    return null
  }
}

Real example:

Guest: "Do you have gluten-free options?"

Agent:

"Yes! We have several gluten-free options:

Appetizers:

  • Caprese Salad (fresh mozzarella, tomatoes, basil)
  • Grilled Shrimp Skewers

Entrees:

  • Grilled Salmon with seasonal vegetables
  • Ribeye Steak with roasted potatoes
  • Chicken Piccata (we can make it GF)

Sides:

  • All our vegetable sides
  • Sweet potato fries
  • Side salads (with GF dressing options)

Note: We take gluten allergies seriously. All GF dishes are prepared in a dedicated area to avoid cross-contamination.

Would you like to make a reservation? I'll note your dietary needs so our chef is prepared."

Guest: "What's your most popular dish?"

Agent:

"Our signature dish is the Blackened Mahi-Mahi - it's been on the menu since we opened in 2015!

It's served with:

  • Cajun-spiced mahi-mahi filet
  • Creamy lobster risotto
  • Grilled asparagus
  • Lemon butter sauce

Why guests love it:

  • Fresh mahi delivered daily
  • Perfect balance of spice and richness
  • The lobster risotto is incredible

Wine pairing: Our sommelier recommends a crisp Sauvignon Blanc ($14/glass)

It's $34 and absolutely worth it. Want to see our full menu?"

ROI:

  • Answers 85% of questions instantly
  • Available 24/7 (even when closed)
  • Consistent, accurate information
  • Drives reservations and orders

Agent 4: Guest Feedback Agent

Purpose: Collect feedback and handle issues proactively.

How it works:

class GuestFeedbackAgent {
  async collectFeedback(guestInfo: GuestInfo) {
    // Send feedback request 1 hour after reservation
    await this.scheduleFollowUp(guestInfo.email, {
      delay: 60 * 60,  // 1 hour
      template: 'post_dining_feedback'
    })
  }

  private async handleFeedback(response: FeedbackResponse) {
    // Analyze sentiment
    const sentiment = await this.analyzeSentiment(response.text)

    if (sentiment.score < 0.3) {
      // Negative feedback - immediate escalation
      await this.escalateIssue({
        guest: response.guest,
        feedback: response.text,
        severity: 'urgent',
        sentiment: sentiment.score
      })

      // Immediate recovery attempt
      return this.sendRecoveryOffer(response.guest)
    }

    if (sentiment.score > 0.8) {
      // Positive feedback - request review
      return this.requestPublicReview(response.guest)
    }

    // Neutral - thank you
    return this.sendThankYou(response.guest)
  }

  private async sendRecoveryOffer(guest: Guest) {
    await email.send({
      to: guest.email,
      subject: 'We want to make it right',
      template: 'service_recovery',
      data: {
        name: guest.name,
        managerName: 'Sarah Chen',
        managerEmail: 'sarah@restaurant.com',
        compensationOffer: '$50 credit on your next visit'
      }
    })

    // Alert manager immediately
    await sms.send({
      to: MANAGER_PHONE,
      message: `URGENT: Negative feedback from ${guest.name}. Recovery email sent. Call to follow up: ${guest.phone}`
    })
  }

  private async requestPublicReview(guest: Guest) {
    await email.send({
      to: guest.email,
      subject: 'Thank you for dining with us!',
      template: 'review_request',
      data: {
        name: guest.name,
        googleReviewLink: GOOGLE_REVIEW_URL,
        yelpReviewLink: YELP_REVIEW_URL,
        incentive: 'Enter to win $100 gift card'
      }
    })
  }
}

Real example (automated feedback after dining):

Email to guest:

"Hi Michael! Thank you for joining us last night. We hope you enjoyed your dinner!

Quick question: How was your experience? (1-5 stars)"

Guest selects: ⭐⭐ (2 stars)

Agent (immediately responds):

"We're sorry to hear your experience wasn't great. We'd really like to make it right.

Sarah Chen, our general manager, will call you personally today to discuss what happened.

In the meantime, please accept this $50 credit for your next visit - on us.

Your feedback matters, and we want to earn back your trust."

Manager receives alert:

"URGENT: Michael Johnson gave 2-star rating. Reason: 'Food was cold and service was slow.' Recovery email sent with $50 credit. Call: (555) 555-1234"

If guest gives 5 stars:

"We're thrilled you had a great experience! Would you mind sharing your thoughts on Google? It really helps us.

[Leave Google Review]

As a thank you, here's 20% off your next visit. See you soon!"

ROI:

  • Catches negative experiences before public reviews
  • Converts happy guests to online reviews (social proof)
  • 60-70% recovery rate on negative feedback
  • Improves online rating by 0.3-0.5 stars

Complete Hospitality Implementation

Month 1: Reservation Agent

  • Goal: Handle 100% of after-hours, 70% of peak-hour calls
  • Impact: Capture 30% more reservations
  • Time saved: 15-20 hours/week of phone time

Month 2: Online Ordering Agent

  • Goal: 80% of online orders automated
  • Impact: +35% average order value (upselling)
  • Revenue: +$15K-$30K/month

Month 3: Guest Services Agent

  • Goal: Answer 85% of questions automatically
  • Impact: Reduce inquiry response time to < 1 minute
  • Guest satisfaction: +20%

Month 4: Feedback Agent

  • Goal: Collect feedback from 80% of guests
  • Impact: Improve online rating, catch issues early
  • Review volume: +40-50% positive reviews

Total Impact (Year 1):

  • Revenue increase: $180K-$360K (more reservations + higher order values)
  • Cost savings: $40K-$60K (staff efficiency)
  • Guest satisfaction: +25% (faster service, fewer errors)
  • Investment: $30K-$50K
  • ROI: 5-10x

Industry-Specific Considerations

For Restaurants:

Focus on:

  • Peak hour phone coverage (lunch, dinner rush)
  • Online ordering accuracy
  • Dietary accommodations
  • Upselling/average check size

For Hotels:

Focus on:

  • 24/7 concierge services
  • Room booking and upgrades
  • Local recommendations
  • Issue resolution

For Event Venues:

Focus on:

  • Event inquiry qualification
  • Custom package quotes
  • Availability management
  • Vendor coordination

The Bottom Line

Hospitality businesses have high ROI potential for AI agents:

Why it works:

  • High volume of repetitive questions
  • After-hours inquiries (24/7 demand)
  • Labor-intensive front-of-house operations
  • Opportunity for upselling

Best use cases:

  • Reservation management
  • Online order taking
  • Guest questions and recommendations
  • Feedback collection

Investment: $30K-$50K

Payback: 3-6 months

Long-term: 40-60% increase in operational capacity without proportional staff increase

Next steps: Schedule a consultation to discuss your specific operation, or take our AI Readiness Assessment.

Remember: Hospitality is about the guest experience. AI agents handle the repetitive tasks so your team can focus on creating memorable moments.

Tags:hospitalityrestaurantshotelsreservationscustomer service

About the Author

DomAIn Labs Team

The DomAIn Labs team consists of AI engineers, strategists, and educators passionate about demystifying AI for small businesses.