When restaurant operators consider investing in AI phone agents, the first question isn't "Can this technology work?" but rather "Will this investment pay for itself?" With AI hosts generating an additional revenue of $3,000 to $18,000 per month per location, up to 25 times the cost of the AI host itself, the financial case is compelling. However, every restaurant has unique labor costs, call volumes, and revenue opportunities that require a customized approach to ROI calculation.
The challenge lies in creating a framework that accounts for your specific operational realities. SoundHound's research demonstrates that restaurants deploying voice AI on their phone systems can expect a 760% annual ROI, but these industry benchmarks need to be translated into your restaurant's context. This tutorial will guide you through building a comprehensive ROI calculator that factors in labor rates, call volume, upsell percentages, and after-hours booking opportunities.
Modern AI hosts can enhance efficiency personalization, and guest satisfaction by engaging in natural conversations across multiple languages, handling bookings without human intervention, including complex modifications. The key is quantifying these benefits in dollars and cents that justify the investment to stakeholders.
Industry analysts typically evaluate AI phone agent ROI through two primary lenses: cost savings and revenue generation. A voice AI solution that augments a labor resource at a premium annual fee of $5998 provides an annual ROI of 760% on reducing staff labor costs, based on an annual labor cost of $45,724.
Cost Savings Components:
Revenue Generation Components:
Low pay, high stress, worker competition, and reluctance from those laid off during the pandemic to return, on top of poor working conditions have led to a chronic shortage of entry-level staff in Canada's hospitality industry. This staffing crisis makes the cost-saving potential of AI phone agents even more significant.
Major chains like Dine Brands, the parent company of Applebee's and IHOP, announced plans to implement artificial intelligence in their restaurants, testing Voice AI Agents to handle customer orders over the phone. This mainstream adoption signals that the technology has moved beyond experimental phase into proven ROI territory.
ConverseNow's voice AI platform is designed to enhance the guest experience in restaurants by reducing drive-thru lines and missed calls, addressing the labor shortage in the restaurant industry by shifting staff focus to food preparation, order fulfillment, and guest service. The platform demonstrates how AI can boost same-store sales and average ticket with dynamic upsell capabilities.
Create a new Google Sheet with the following tabs:
In the Input Variables tab, create the following parameter fields:
| Parameter | Description | Your Value | Industry Average |
|---|---|---|---|
| Average Hourly Wage | Including benefits and taxes | $XX.XX | $18-25 |
| Daily Call Volume | Peak and off-peak averages | XXX calls | 50-200 |
| Average Call Duration | Minutes per call | X.X min | 3-8 min |
| Current Missed Call Rate | Percentage of unanswered calls | XX% | 15-30% |
| Average Order Value | For takeout/delivery orders | $XX.XX | $25-45 |
| Upsell Success Rate | Current human performance | XX% | 10-25% |
| AI System Monthly Cost | Including setup and maintenance | $XXX | $200-800 |
Restaurants field a high volume of phone calls from inquisitive tourists or diners running late, and increasingly, voice chatbots are picking up on the other end of the line. Understanding your specific call patterns is crucial for accurate ROI calculation.
Create the following calculated fields in your Labor Cost Analysis tab:
=Daily_Call_Volume * Average_Call_Duration * (Average_Hourly_Wage/60) * 365
This formula calculates your annual labor cost for phone handling. Voice AI offers hard savings and additional revenue for restaurants by allowing staff to focus on more valuable tasks.
Monthly Labor Savings Calculation:
=(Daily_Call_Volume * Average_Call_Duration * (Average_Hourly_Wage/60) * 30) * AI_Efficiency_Rate
Where AI_Efficiency_Rate represents the percentage of calls the AI can handle independently (typically 70-90% for modern systems).
AI systems can capture up to 30% of missed calls, representing significant net annual revenue gain. Calculate this opportunity:
Missed Call Revenue Recovery:
=Daily_Call_Volume * Current_Missed_Call_Rate * AI_Capture_Rate * Average_Order_Value * 365
Upsell Revenue Enhancement:
=Daily_Call_Volume * (AI_Upsell_Rate - Current_Upsell_Rate) * Average_Upsell_Value * 365
AI-powered Menu Assistant features can pair diners with their ideal dish based on their tastes and dietary needs, aiming to elevate the dining experience and increase table turnover. This personalization capability often translates to higher upsell success rates.
Slang AI operates as a 24/7 AI-powered phone concierge that handles reservation requests and guest inquiries for restaurants. Calculate the revenue potential from extended availability:
After-Hours Booking Revenue:
=After_Hours_Calls_Per_Day * Booking_Conversion_Rate * Average_Party_Size * Average_Per_Person_Spend * 365
In multicultural cities like Toronto and Montreal, AI systems offer a distinct advantage with their multilingual capabilities, enabling smoother communication with diverse clientele and enhancing the overall customer experience. This expanded accessibility can significantly increase after-hours booking potential.
While companies like Newo.ai allow restaurants to create their AI host in one click within minutes, with implementation possible in under an hour, there are still setup considerations:
Modern AI models are demonstrating human-like behaviors such as chatting, joking, empathizing, with 73% passing the Turing Test in recent benchmarks. This improved conversational quality reduces the risk of customer dissatisfaction that could offset ROI gains.
Customer Satisfaction Impact Formula:
=Customer_Retention_Improvement * Average_Customer_Lifetime_Value * Customer_Base_Size
Your ROI calculator should account for seasonal variations:
| Season | Call Volume Multiplier | Labor Cost Multiplier | Revenue Opportunity |
|---|---|---|---|
| Peak (Summer/Holidays) | 1.4x | 1.6x (overtime rates) | 1.5x |
| Standard | 1.0x | 1.0x | 1.0x |
| Slow (Winter/Weekdays) | 0.7x | 0.8x | 0.8x |
Input Parameters:
Calculated ROI:
Input Parameters:
Calculated ROI:
AI assistants are already in use by early adopters, often without guests realizing it. This seamless integration is key to maintaining customer satisfaction while realizing ROI benefits.
Call Handling Efficiency
Revenue Impact Metrics
Cost Savings Validation
Create a monthly review template that compares projected vs. actual performance:
| Metric | Projected | Actual | Variance | Action Required |
|---|---|---|---|---|
| Labor Savings | $X,XXX | $X,XXX | +/- XX% | Adjust staffing |
| Revenue Gain | $X,XXX | $X,XXX | +/- XX% | Optimize upselling |
| Customer Satisfaction | X.X/5 | X.X/5 | +/- X.X | Refine responses |
Modern AI phone agents integrate seamlessly with existing reservation and POS systems, enhancing operational efficiency. This integration capability opens additional ROI opportunities:
In multicultural markets, AI systems' multilingual capabilities enable smoother communication with diverse clientele. This feature can expand your customer base and increase revenue per available seat.
Multilingual ROI Addition:
=Non_English_Speaking_Customer_Percentage * Daily_Call_Volume * Conversion_Rate_Improvement * Average_Order_Value * 365
AI systems can analyze historical win/loss data to flag hot leads and recommend workflows. For restaurants, this translates to:
While AI technology has advanced significantly, with models demonstrating increasingly human-like behaviors, it's important to model conservative performance in early months.
Even though some systems can be implemented in under an hour, factor in time for staff training and process adjustment.
Restaurant call patterns vary significantly by season, day of week, and time of day. Your ROI model should reflect these variations.
Consider indirect benefits like improved staff morale, reduced turnover, and enhanced brand reputation from consistent service quality.
Here's the complete formula structure for your ROI calculator:
Tab 1: Input Variables
A1: Parameter | B1: Your Value | C1: Industry Benchmark
A2: Hourly Wage | B2: [Input] | C2: $20
A3: Daily Calls | B3: [Input] | C3: 100
A4: Call Duration | B4: [Input] | C4: 5
A5: Missed Call Rate | B5: [Input] | C5: 25%
A6: Average Order Value | B6: [Input] | C6: $32
A7: AI Monthly Cost | B7: [Input] | C7: $400
Tab 2: ROI Calculations
A1: Monthly Labor Savings
B1: =Input!B3*Input!B4*(Input!B2/60)*30*0.8
A2: Missed Call Revenue
B2: =Input!B3*Input!B5*0.7*Input!B6*30
A3: Upsell Improvement
B3: =Input!B3*0.15*8*30
A4: Total Monthly Benefit
B4: =B1+B2+B3
A5: Net Monthly ROI
B5: =B4-Input!B7
A6: Annual ROI Percentage
B6: =(B5*12)/(Input!B7*12)*100
Add data validation and conditional formatting to make your calculator user-friendly:
Building a comprehensive ROI calculator for AI phone agents requires balancing industry benchmarks with your restaurant's unique operational realities. With AI hosts generating significant additional revenue and major chains like Applebee's and IHOP implementing these systems, the question isn't whether AI phone agents provide ROI, but how to accurately quantify and maximize that return for your specific situation.
The framework outlined in this tutorial provides a solid foundation for making data-driven investment decisions. As the technology continues to evolve and demonstrate increasingly human-like capabilities, the ROI potential will only increase.
Remember that restaurants are rapidly becoming the last bastion of personal interaction in the retail space. AI phone agents don't replace this human connection—they enhance it by ensuring every call is answered professionally, every opportunity is captured, and your staff can focus on creating memorable dining experiences.
Start with conservative projections, monitor performance closely, and adjust your model as you gather real-world data. The investment in building a thorough ROI calculator will pay dividends in stakeholder confidence and operational optimization. In just a couple of years, there will hardly be any business that hasn't hired an AI employee—make sure your restaurant is positioned to maximize the benefits when you make that hire.
According to industry data, AI phone agents can generate additional revenue of $3,000 to $18,000 per month per location, up to 25 times the cost of the AI host itself. SoundHound reports that restaurants can achieve a 760% annual ROI with voice AI for phone ordering, based on labor cost savings and capturing up to 30% of previously missed calls.
AI phone agents handle routine tasks like taking orders, answering questions, and booking reservations, allowing staff to focus on food preparation, order fulfillment, and in-person guest service. With an annual labor cost of $45,724 for phone-handling staff, voice AI solutions can provide significant savings while operating 24/7 without breaks or sick days.
AI phone agents boost revenue through dynamic upselling capabilities, capturing after-hours calls that would otherwise be missed, and increasing average ticket sizes. They can handle reservation requests outside business hours and use conversational AI to suggest add-ons and upgrades, maximizing each customer interaction's value.
Dine Brands, the parent company of Applebee's and IHOP, announced in June 2025 their plans to implement AI phone agents powered by SoundHound AI. The system is being tested in select locations with plans to expand to more franchises, demonstrating enterprise-level adoption of this technology.
A comprehensive ROI calculator should include current labor costs for phone handling, missed call percentages, average order values, upsell conversion rates, after-hours booking opportunities, and AI system costs. Industry benchmarks suggest capturing 30% of missed calls and achieving significant upsell improvements through AI-driven suggestions.
Success can be measured through multiple KPIs including reduced labor hours for phone tasks, increased capture rate of incoming calls, higher average ticket values from AI upselling, after-hours revenue generation, and overall customer satisfaction scores. The ROI calculator helps track these metrics against the initial investment and ongoing operational costs.