What if your coffee shop could brainstorm new drink recipes, balance the books, and design posters, all before your first pour-over of the day? 

That’s not the future. That’s AI in retail today, and it’s already transforming businesses across Illinois. 

Froth, a Chicago-based coffee bar, offers a range of beverages, from artisanal lattes to inventive drink recipes inspired by the world of cocktails. With the help of AI, owner Michael Salvatore has been able to apply his bold and untraditional approach to coffee to business operations. 

AI has become his ultimate retail sidekick. 

In this blog, we’ll explore eight practical and game-changing benefits of AI in retail and how it can make any shop a long-term success.

1. Efficiency That Saves Time 

Looking to save time and money? It’s time to get familiar with AI. At Froth, AI tools are utilized to streamline everyday operations, from bookkeeping to legal documentation, eliminating the need for additional staff or extensive manual work. 

“If you’re not using technology to steer your retail concepts, I think you’re already 10 years behind,” Michael shares.

The result is a more efficient, focused business that runs smoothly behind the scenes. 

As you explore AI in retail, you’ll find that automating basic functions can drastically reduce burnout and improve consistency. You’ll quickly see a return on investment through time saved and an improved customer experience.

Tasks that once took hours, or even days, can now be completed in minutes. AI also helps avoid costly mistakes, like double-ordering stock or missing payment deadlines. Overall, it’ll make your systems more efficient, allowing you to have more energy to build a brand and customer experience that stands out.

2. Smarter Product Development 

AI can revolutionize how you calculate product costs. At Froth, Michael uses AI to analyze invoices and instantly determine the price of recipes. AI even recommends new drink creations based on existing ingredients, turning supply lists into inspiration. This not only saves time but also reduces waste by maximizing the use of what’s already in stock. 

If you’re trying to find new ways to use slow-moving inventory, minimize losses, and boost creativity, AI is your answer. Utilize platforms like ChatGPT to brainstorm creative ideas, generate product bundles, or develop themed sales concepts.

Want to boost your retail strategy? Here’s how AI can help:

• Create data-driven product bundles that make the most of current inventory.
• Develop seasonal menus or limited-time offers (LTOs) based on historical purchasing data.
• Automate recipe and product development, freeing up your team to focus on creativity.
• Enhance pricing strategies with AI-powered margin tracking and profitability forecasts.

This level of customization and efficiency is something customers will notice and come back for. By automating product development, you’ll be able to stay one step ahead in a crowded market.

3. Profit Insights on Demand

AI is changing the way Froth thinks about profits. With AI acting as a personal financial analyst, Michael has gained insight into sales trends, margin improvements, and upsell opportunities. His tools help him identify declining product lines and suggest optimal times for promotions. This level of analysis used to require a team, but now it’s just a few clicks away.

For retailers, AI can be used to generate real-time reports, monitor key profit drivers, and test pricing changes. These kinds of financial insights are among the most powerful benefits of AI in retail, enabling business owners to make smarter, more profitable decisions. Rather than looking back at past retail mistakes, you’ll be predicting your next best step. It’s financial forecasting, made fun (and functional).

4. Stronger, Smarter Teams 

Performance feedback at Froth comes early and often. With the help of AI tools, Michael can track individual contributions, create reports that encourage specific improvements, and recognize top efforts. This motivates his employees to stay focused and creates a more transparent and equitable culture, where goals are clear and progress is measurable. 

Retailers can apply similar tools to monitor performance, optimize schedules, and provide actionable coaching to their teams. Platforms like Deputy, Kronos (UKG Dimensions), and Ceridian Dayforce use AI to track productivity, identify coaching opportunities, and recommend real-time staffing adjustments. You can even use AI to predict the optimal staffing levels based on historical data, helping you avoid over- or underscheduling. A happy team creates a happy store, and AI helps you get there. 

5. Marketing That Scales Fast

AI can take your marketing to the next level. Froth leverages AI to create marketing materials, including posters, to stay ahead of design trends without needing to hire a graphic designer. It has also helped Michael to initiate faster and more accessible ways to stay visible and relevant in a crowded market. 

One of the most significant advantages of retail marketing today is the ability to combine creativity with automation, and AI makes that possible. Here’s how to apply it to your store:

• Generate eye-catching ad copy and captions using tools like Jasper or Copy.ai: Input your product description and target audience, and let AI deliver multiple versions of social media posts, headlines, and email subject lines that you can A/B test immediately.
• Design professional-quality graphics with Canva’s Magic Design or Adobe Firefly: Upload your brand assets, enter a few prompts (like “vibrant summer iced coffee promo poster”). These tools will generate editable, on-brand visuals in seconds, ideal for both digital and print applications.
• Create and automate full email campaigns with platforms like Mailchimp AI or Klaviyo’s Smart Send Time: Use AI to craft content, segment your audience based on behavior, and schedule emails for when your customers are most likely to engage.

AI in retail unlocks creativity and consistency on a budget, resulting in increased engagement and sales, without draining your time or resources. 

6. Data-Driven Decisions 

AI helps Froth make more strategic decisions. It identifies what’s working, what needs to change, and where there’s room to grow. The ability to act on facts puts Michael in control of his business’s trajectory, making his strategy sharper, faster, and more aligned with real-time results.

Retailers can use the provided data to forecast trends, test strategies, and adapt to shifting customer behavior. With AI and retail working together, strategic decisions become less about guessing and more about knowing. That knowledge leads to quicker pivots and better customer experiences. 

7. More Time for What Matters 

If you use AI right, you’ll have more time to do what you love most: interacting with customers. By automating the repetitive and complex parts of the job, AI gives Michael more time to focus on the creative and human aspects of running the business. The result is a more balanced, inspired shop.

This is one of the most human-centered benefits of AI in retail. It empowers owners to be present, engaged, and visionary, while the back end runs itself. As a retailer, you might find yourself wearing a thousand hats, but AI can help lighten the load. The extra time that you have can be spent connecting with customers, experimenting with new products, or just catching your breath. 

8. A Competitive Edge That Lasts 

Retail is evolving fast, and Froth stays competitive by using AI to lead trends instead of following them. Michael’s AI tools have helped him identify rising trends before they hit the mainstream. It has transformed his store into one that sets trends, rather than following them.

For retailers seeking to remain relevant, consider incorporating AI into your processes. Embracing these tools ensures long-term success, adaptability, and a constant edge in a fast-paced environment. Today’s market rewards bold moves and intelligent systems. By incorporating AI, you’re building a business that’s ready for whatever comes next. So stay fresh and future-ready!

Conclusion 

At Froth, AI doesn’t replace the magic; it enhances it. The vision, creativity, and human connection are still the heartbeat of the business. But now, those moments are amplified by innovative tools that simplify the rest. Back office tasks run more efficiently, brand-building becomes more dynamic, and the overall experience feels more intentional and refined.

If you’re running a retail store and still doing it all manually, it’s time to evolve. The benefits of AI in retail are real, accessible, and evolutionary. You don’t need a tech team to get started, just curiosity and a willingness to try. Start small, stay open, and let AI help you build something even better.

Want to learn more about other Illinois retail leaders? Read inspiring stories from retailers across Illinois who are making a difference.

If you loved learning about the story of Froth and know a retailer who deserves recognition, Nominate A Retailer to submit your nomination!