Technology
3 ways AI is revolutionizing inventory management
On-device Artificial Intelligence is revolutionizing inventory management in quick-service restaurants (QSRs) by automating the error-prone, tedious process to deliver faster, more accurate counts, resulting in happier employees and increased profitability.
October 20, 2025 by David Greschler — Co-Founder & CEO, NomadGo
In the food service industry, especially in quick-service (QSRs) and fast causal restaurants, inventory management is one of the most time-consuming, error-prone, and most disliked parts of the job. After a long shift, it is hard to get excited about counting boxes of lettuce or track down missing cases of burgers. Yet, inventory management is a key element to overall profitability and success. Without frequent and accurate inventory data, restaurants lose significant money through waste, inefficiency, and missed sales opportunities.
When counting inventory manually, there is only an average of 80–85% accuracy rate. That means nearly one in five inventory counts is incorrect. That kind of error impacts margins, fuels unexplained variance, wastes labor, and pulls employees away from where they matter most: serving customers.
But artificial intelligence (AI) is changing this dynamic.
When QSRs introduce handheld devices (smartphones and tablets) with on-device AI to their operations, inventory management is faster, frequent, more accurate and less painful for employees. As more restaurants adopt these devices, three key lessons are emerging about the impact of this technology – inventory is more accurate, employees and customers are happier, and restaurants are more profitable.
Let's take a closer look.
Lesson 1: replacing error-prone counting
Traditional methods of counting inventory involve clipboards and spread sheets and are often inaccurate. It's prone to human error. After a long shift, fatigue can lead to inconsistencies that make mistakes inevitable. One wrong number can have a ripple effect on a restaurant's backroom. And in an industry where margins are razor-thin, even the smallest of errors can have a ripple effect down to the supply chain.
AI solves this problem by automating inventory counts with precision. According to a Deloitte study, inventory management is one of the more mature AI use cases and 55% of restaurant executives reported that using AI in daily operations for inventory management.
On-device AI allows employees to automatically scan shelves, recognize products, and track quantities with accuracy. These systems use computer vision, 3D spatial intelligence, and augmented reality (AR) to deliver real-time, location-wide insights, turning a tedious process into a quick, intuitive task.
For example, on-device Inventory AI transforms the physical back of house or front of house into a digital twin. The AI instantly recognizes and counts individual items in every row in real-time and then uses augmented reality to allow users to interact with live inventory data while moving through the physical space. These systems can identify SKUs, recognize discrepancies, and even predict future shortages with a level of speed and accuracy that manual methods can't match.
Lesson 2: improving workforce efficiency and engagement
Counting inventory is a tedious process. Restaurant teams are already stretched thin, and asking employees to spend extra hours counting stock, contributes to burnout and job dissatisfaction. Tedious and repetitive tasks also pull employees away from serving customers and delivering great experiences.
AI automates the most time-consuming parts of inventory tracking, giving staff more time to focus on operations that matter. When employees no longer need to go through inventory with a pen and paper, they can reallocate their time toward customer service.
On-device AI is empowering employees. By automating the most tedious parts of inventory, they're able to spend more of their day doing fulfilling, high-impact work rather than chasing down stock numbers. The result? A higher employee satisfaction and perhaps most important, a better customer experience.
Lesson 3: increasing profitability
Inventory errors hurt the bottom line. Inaccurate counts lead to overstocking products, which leads to waste or under-ordering, ultimately resulting in lost sales. These inefficiencies quickly chip away at profit margins and create unnecessary pressure on already tight operations.
AI tools provide a real-time view into stock levels across the entire restaurant. This visibility allows for smarter ordering decisions, reducing waste and preventing stockouts. Additionally, beyond counting, AI can be integrated with POS data, supplier databases, and forecasting tools to create a full-picture view of supply and demand. This creates a full-picture view of supply and demand, helping managers make smarter, faster decisions.
Final thoughts: work smarter, not harder
Inventory may never be the most exciting part of running a restaurant, but it does not have to be a pain point. With on-device AI, QSRs can turn inventory management into a streamlined, smart, and efficient process. Restaurants can reduce labor strain, eliminate costly errors, improve team morale, and protect their bottom line, all while gaining real-time insights that help drive better business decisions.
About David Greschler
David Greschler is a serial entrepreneur with over 30 years of experience building and leading successful tech ventures, including Softricity (acquired by Microsoft). As CEO and co-founder of NomadGo, he is transforming inventory management through AI, spatial vision, and augmented reality to make the process faster, more accurate, and easier to use. Known for his strength in product strategy and go-to-market execution, David holds seven patents and has a track record of launching category-defining innovations that simplify complexity and drive real-world impact.
