#Japan #Tokyo #Causal AI #Restaurant DX #Insight Lead

Velt and Insight Lead Join Forces to Transform Restaurant Management

In a pivotal collaboration, Velt, a Tokyo-based data science company, and Insight Lead, headquartered in Aichi Prefecture, are set to innovate the restaurant industry using advanced causal reasoning AI technologies. The partnership aims to design a comprehensive scientific PDCA (Plan-Do-Check-Act) support system tailored for restaurant managers. This infrastructure is envisioned to enhance decision-making processes within restaurants, ultimately leading to optimized operations and greater profitability.

The Challenge of Low Productivity in the Restaurant Sector

The restaurant industry faces significant challenges, particularly in enhancing labor productivity. Reports indicate that productivity levels in this sector lag at about one-third of the average across all industries, exacerbated by declining wages and a persistent labor shortage.
While many businesses track sales and costs, they often fail to leverage key performance indicators (KPIs) and daily reports effectively for strategic decision-making. Such oversight leads to uncertainties, where successful strategies cannot be replicated, and managers struggle to articulate the reasons behind business outcomes.

Evolution of Experience into a Scientific Framework

To tackle these challenges, Insight Lead conceived the idea of transforming managerial experience into a scientific framework, focusing on integrating on-site data insights with expertise from causal inference AI and natural language processing. This innovative approach involves using Velt’s causal AI platform, xCausal™, and the newly developed Causal AI Assistant for the initiative.

At its core, the Causal AI Assistant merges the strengths of causal reasoning and AI agents. It enables restaurant managers to consult the AI on their operational queries through a conversational chat interface. For instance, managers can inquire about how adjustments in staffing levels might affect sales or overall profits. By analyzing historical data and industry benchmarks, the AI offers insights into causal relationships, presenting actionable strategies and their underlying rationale.

Bridging Causation and Decision-Making

Typical data analyses can demonstrate correlation between factors like sales and operational changes. However, discerning the specific effects of changes on outcomes is a more complex task. The Causal AI system systematically organizes these cause-and-effect relationships into causal models, allowing for simulation of different operational scenarios and their potential impact. This methodology not only clarifies these causalities but also integrates them into the restaurant management system itself, forming the backbone of an intelligent operational engine.

The Catalyst for Change

This venture is not just about enhancing technological capabilities; it’s about revolutionizing the way restaurants make decisions based on data. Insight Lead's president, Norihiro Kajita, expressed enthusiasm for this partnership, emphasizing its potential to facilitate scientific PDCA cycles that elevate productivity and enrich the working life of restaurant staff.

Moreover, Velt's CEO, Hitoshi Nonogami, emphasized the societal benefits of their collaboration in addressing labor shortages and productivity challenges, underscoring the transformative capabilities of their Causal AI Assistant.

Companies in Focus

Insight Lead

Founded to support restaurants in the Tokai region, Insight Lead focuses on enhancing productivity and improving the livelihoods of restaurant workers. The company has shifted towards consulting and strategic support for the industry, leveraging years of experience in supply chain management.

Headquarters: Aichi Prefecture, Kasugai City 1400 Matsukawa Town
Established: June 20, 2000
Website: Insight Lead

Velt

As a leader in causal AI, Velt focuses on providing data-driven solutions capable of solving societal challenges and catalyzing innovation. Their xCausal platform is at the forefront of AI that explains and clarifies causal relationships, promoting a positive spiral in society.

Headquarters: Tokyo, Shibuya 5-18-10 2-D
Established: August 1, 2012
Website: Velt

Conclusion

The collaboration between Velt and Insight Lead signifies a notable stride towards a digitally transformed dining industry. By harnessing the power of causal AI, they aspire to set a new standard for restaurant management that enhances productivity and enriches the work environment, laying a foundation for sustainable business practices in the face of ongoing labor market challenges.