From Stewardship to Strategy: AI Adoption and Innovation in Small Business Cooperatives in the Food Sector

This study examines how independent restaurant businesses in Daejeon, South Korea, strategically formed a cooperative to adopt AI-based demand forecasting and inventory management systems. By collectively pooling point-of-sale data and utilizing a shared predictive model, these small businesses significantly enhanced operational accuracy, reduced food waste, and lowered labor costs. Our findings demonstrate that successful AI adoption depends heavily on structured collaboration and collective data interpretation, which not only resolves technological challenges but also leverages organizational strengths through stewardship-based governance. The cooperative thus serves as an effective intermediary, embedding AI into daily operations and highlighting the strategic value of collaborative structures. This approach facilitates continuous adaptation and innovation, providing practical insights into managing digital transformation in small business environments.