Is AI the key to navigating this tariff storm?

Jay Ashton, Canada's Restaurant Guy

The 25% tariffs are here, and if you haven’t made a plan yet, it’s time to move. This isn’t a drill, it’s reality, and every restaurant across Canada needs to pivot fast or risk getting steamrolled by rising costs. The industry is already under pressure, and now with these tariffs in place, there’s no time to hesitate. The good news? AI is the key to navigating this storm. If you’re not leveraging artificial intelligence right now to optimize your menu, control costs, streamline purchasing, and rethink your entire supply strategy, then you’re already behind. AI is no longer just a tool for big corporations—it’s the most powerful weapon an independent restaurant can use to fight these tariffs head-on.

Start with your menu. AI can analyze your existing offerings and suggest reformulations that cut out tariff-heavy ingredients while maintaining or even improving customer satisfaction. It can process historical sales data, supplier costs, and even customer sentiment analysis from reviews to identify what’s working and what can be replaced. You need to think beyond just swapping out one product for another—AI can suggest entirely new dishes built around Canadian-sourced ingredients that avoid tariffs altogether. It can run simulations on pricing, showing how minor ingredient adjustments impact margins in real-time. This is how you build a truly tariff-free menu without sacrificing quality or brand integrity.

AI-driven procurement platforms can track and predict price fluctuations based on tariff impacts, allowing you to secure inventory at the right moment. Instead of relying on traditional supplier relationships, you can use AI to scan the market and find Canadian alternatives, often uncovering sources you never knew existed. Many of these platforms integrate directly with ordering systems, automatically adjusting purchase volumes based on real-time sales data to prevent overstocking or waste. AI helps make purchasing decisions that maximize every dollar, ensuring you’re always getting the best possible price on everything from proteins to produce.

Labour costs are another factor that AI can help mitigate. With increased costs from tariffs, restaurants need to be leaner than ever. AI-powered scheduling software ensures you have the right number of staff on shift based on predicted traffic patterns, helping to avoid unnecessary labour costs while still maintaining service levels. AI-driven training modules can also onboard staff faster, ensuring they’re up to speed on the new menu and processes without taking up valuable management time.

Pricing strategies need a complete overhaul, and AI excels at dynamic pricing. By analyzing sales trends, competitor pricing, and customer demand, AI can suggest optimal pricing for every dish on your menu. It can show when small price increases won’t impact sales volume, helping you absorb costs more strategically. AI can also drive personalized promotions through digital menus and loyalty apps, pushing high-margin, tariff-free dishes to customers based on their ordering history. Instead of a blanket price increase, AI enables a surgical approach to pricing adjustments that protect your bottom line while keeping customers happy.

AI isn’t just about survival—it’s about seizing the opportunity to build something better. This is the moment to lean into Canadian ingredients and develop a menu that’s not only tariff-free but proudly local. AI can help with recipe development, pulling from databases of existing Canadian dishes and modernizing them with your restaurant’s unique spin. It can identify the best suppliers and even help forecast demand for seasonal items, reducing the risk of ingredient shortages or over-ordering. The ability to design a truly Canadian menu, optimized for profitability, isn’t something that takes months anymore—it can be done in weeks with the right AI tools.

Your marketing strategy needs to shift too. AI-powered content creation can generate social media posts, email campaigns, and even personalized promotions that emphasize your commitment to Canadian ingredients. AI-driven analytics tools track engagement and sentiment in real time, allowing you to tweak messaging instantly. When customers know they’re supporting a restaurant that’s standing up to tariffs by championing Canadian products, they’ll be more inclined to dine with you. AI ensures that message reaches them in the most effective way possible, from targeted digital ads to loyalty programs that reward repeat visits.

Don’t forget the power of AI in customer experience. Chatbots and AI-driven reservation systems streamline operations, reducing the need for front-of-house staff to handle repetitive tasks. AI can personalize the guest experience by remembering preferences, suggesting ideal pairings from your new tariff-free menu, and even upselling based on individual dining habits. All of this improves the guest experience while keeping operations lean and efficient, helping to offset the financial burden of tariffs.

There’s no time to sit back and wait for a solution to fall into place. AI is the solution. Restaurants that embrace AI now will not only survive but thrive in this new economic landscape. The technology is here, it’s accessible, and it’s powerful enough to turn the biggest industry challenge into a competitive advantage. The playbook for running a successful restaurant in Canada has changed overnight, and AI is the new secret ingredient. If you’re not using it, you’re losing. The tariffs aren’t going anywhere, but with AI on your side, neither are you.