AI-Powered Pizzerias: A Guide for 2025
Overview
Pizza holds a special place in American culture—it’s comfort food, a convenient meal, and a centerpiece for family gatherings. Whether it’s a cozy pizza-and-movie date night or a lively family pizza night complete with wings and fries, pizza brings people together.
On the other hand, AI often feels like it belongs to a different world entirely. Technical jargon, rapid AI advancements, and concerns about expertise and cost have influenced the rate of AI adoption in the QSR industry.
But the challenges facing QSR leaders in 2025 are impossible to ignore. From operational overload and rising costs to the struggle of retaining customers, the pressure is mounting.
That’s why we’ve brought together two worlds: top AI experts and pizza industry leaders. This blog post for integrating AI into your pizzeria is based on insights from Maria Zhang, CEO of Palona AI and former VP of Engineering at Google, and Christopher Thomas Moore (CTM), Chief Digital Officer of Domino’s, the world’s largest pizza chain. Check out their full conversation on Prosper Forum here.
At Palona, we want to bridge the gap between cutting-edge technology and everyday experience. Because enjoying a hot slice of pizza with loved ones should always be—and can be—a meaningful experience.
Industry Report: 2025 Pizzeria Challenges
Challenge 1: Rising Costs & Shrinking Margins
Inflation and supply chain disruptions continue to drive up food costs, with a 2.4% increase predicted for 2025. Additionally, food-away-from-home prices are expected to rise by 3.4% (USDA’s Food Price Outlook). While this increase is smaller than last year’s, operators still face the tough balancing act of maintaining profits without raising menu prices and risking customer alienation.
The post-COVID boom in takeout and delivery has created new opportunities, with 32% of pizza operators reporting that third-party delivery generates the best ROI for their pizzerias. Despite this potential, over 53% of operators choose not to partner with third-party services due to high fees and concerns over quality control.
Challenge 2: Labor Shortages & Staff Retention
The QSR industry is in the midst of a labor crisis. Over 56% of operators plan to increase hourly wages by 4% or more in 2025 as they compete for a shrinking pool of workers. Hiring and retaining staff has become a constant struggle, with employees often leaving for higher-paying jobs or better working conditions.
Phone service remains critical for pizzerias, especially during peak ordering hours. For already short-staffed restaurants, every ring of the phone adds stress to overburdened employees. They’re expected to juggle multiple tasks simultaneously—taking orders, preparing dough, coordinating with delivery drivers, and managing other operational duties. This overwhelming environment is far from conducive to employee satisfaction or retention.
Labor shortages, rising wages, and employee dissatisfaction aren’t just staffing issues—they’re eating into profit margins and threatening business sustainability.
Challenge 3: Poor Customer Experience & Declining Loyalty
A great customer experience hinges on countless factors, and even one misstep can drive customers away for good. Delayed deliveries, incorrect orders, or subpar service can easily ruin a customer’s night—whether it’s a couple enjoying a pizza date or a family sharing a meal together.
In an industry where loyalty is hard-won and easily lost, ensuring a seamless and enjoyable experience is more critical than ever.
*Statistics taken from Pizza Today’s 2025 Pizza Industry Trends Report. For the full report, click here.
Solution: AI Agents
1. Reclaim Your Margins
While AI can’t lower the cost of ingredients, it can help you reclaim profits lost to third-party delivery platforms like Uber Eats and DoorDash.
By integrating AI order agents directly into your operations, you can bypass the high fees charged by third-party services while still meeting customer expectations for fast, convenient delivery. It’s a win-win: your customers still get their favorite pizza, and you keep more of your hard-earned revenue.
2. Offload Operational Overload
Your staff is under immense pressure. Between answering phone calls, taking orders, prepping dough, and coordinating deliveries, the mental burden is overwhelming. (Think The Bear, but with pizza instead of sandwiches.)
AI order agents can lighten the load. They can handle millions of customer orders simultaneously, 24/7, allowing your team to dedicate their expertise to crafting exceptional pizzas.
3. Delight Customers & Boost Loyalty
Stressed staff can lead to annoyed customers. Even the most patient employee might snap under pressure, risking a negative experience that drives customers away.
AI order agents, on the other hand, are always happy to help. With memory and context capabilities, they can provide individualized recommendations, remember past orders, and make every interaction feel like chatting with a good friend.
Palona’s AI agents are trained on your brand’s unique voice, ensuring every customer interaction reflects your pizzeria’s personality and values.
With so many AI companies vying for your attention, there are a few key considerations to ensure you choose the right AI product that serves your customers and does not alienate them. For example, the AI agent should be able to get the customers’ orders accurately. Stay tuned for a comprehensive how-to guide on choosing the right AI partner in the upcoming weeks.
The Future of AI in Pizzerias
With the rapid advancement of AI and its growing presence across industries—including pizzerias and the broader food and beverage sector—there’s a valid concern about AI replacing human workers.
But honestly, overworked staff can benefit from a little help. Instead of a chaotic The Bear-style kitchen, AI agents can step in to handle taking orders off staff’s plate, reduce work load, and in the end, boost efficiency, creating a better work environment for your employees.
Iconic Bay Area Pizza Chain, Pizza My Heart, is already seeing the benefits of their AI agent, Jimmy:
“As we grew Pizza My Heart from 1 to 28 locations, I created the character “Jimmy the Surfer” to embody our brand. Palona AI brought Jimmy to life in a way that just makes me smile – which I never expected from an AI. Now, Jimmy helps my customers order pizza by talking to them directly. That level of personality, convenience, and customer relationships is what we dreamed of from the very start, but is so hard to maintain as we grow.” – Chuck Hammers, CEO
For the growing numbers of customers already expecting interactive and individualized experiences, AI agents will be able to deliver. AI can bring the in-diner VIP level of care to every customer wherever they are.
Whether it’s a couple enjoying a cozy pizza date night or a family feeding hungry kids, AI agents can ensure seamless and convenient ordering for customers to then really enjoy their pizza. These moments don’t just satisfy cravings—they create lasting connections, making your pizzeria a cherished part of their special moments.
AI isn’t about replacing humans; it’s about building special experiences—for your staff, for your customers, for your business.
Catch us at Pizza Expo 2025 (Booth #1241) and check out our exclusive attendee offer!